The beauty and wellness industry took a hit with the rise of coronavirus in the same way that many other businesses have, and that makes sense. The impact of the lockdown has forced individuals to reevaluate their beauty routines and change their habits in a major way. For some, the anxiety and lack of a traditional schedule has hindered their ability to keep up with their daily routine. For some, the addition of a new routine or adjustments to an existing routine provide a sense of stability they wouldn’t otherwise have.
Businesses in the health and beauty sector have had to adjust in major ways, and it hasn’t always been easy. But it looks like we’re seeing a promising shift upward for the beauty industry as a whole. Many companies have managed to find a sense of stability in their operations despite some setbacks in the early days of the Covid-19 outbreak, and the severity of the circumstances have really helped separate the savviest companies from the most vulnerable during the outbreak.
In other words, a beauty business that can manage to not just withstand the virus but also persevere despite of it is a valuable asset for mergers and acquisitions, and some of the larger beauty companies will soon be positioned to reevaluate their financial standing. In terms of high value M&A deals, more than double the amount have closed in comparison to the lows of April. All told, July saw 171 deals with a total valuation of $88 billion.
If anything, those numbers are only likely to grow. Some insiders see the upcoming presidential election as a flashpoint, with potential investors looking to take advantage of the climate they know rather than risk the unknown of an economic climate under a different administration.
And they wouldn’t be crazy for thinking so. Despite coronavirus changing the economy in some pretty dramatic ways, the beauty industry has weathered the storm comparatively well. And the ones that have succeeded have managed to do so by emphasizing self-care over outward beauty. Companies that blend together beauty products with CBD are trending especially well, but more and more brands are pivoting towards a message of self-care rather than one of glamour.
In an environment where everyone is struggling to keep their wellness in check, it’s a savvy move. It’s also one that could potentially be changing lives for the better. When we emerge from the outbreak, chances are that we’ll see a beauty and wellness climate fundamentally changed: both in terms of how businesses are related to one another but also in terms of how businesses relate to their customers.