Amazon launches private label skincare line

Dive Brief:

Amazon on Wednesday launched Belei, a private-label line of 12 skincare products including moisturizers, serums, masks and wipes. Items range in price from $9 to $40.
All are free of parabens, phthalates, sulfates and fragrance and are not tested on animals. Product bottles are made of post-consumer recycled resin, and carton packaging is also recyclable, according to a company press release emailed to Retail Dive.
Belei orders are eligible for free shipping, including free two-day shipping for Amazon Prime members, and come with Amazon's satisfaction guarantee, the company said.

Dive Insight:

With its penchant for introducing private labels into any category — Amazon is already in batteries, mattresses, pet food and apparel — and with beauty sales among the hottest in retail, it was only a matter of time before the e-retailer debuted its own merchandise.

There's little sign of slow-down in the category. Consumer spending on health and beauty is increasing globally, according to an Edge by Ascential report emailed to Retail Dive. While the Asia-Pacific region is driving most of the growth, North America consumers, at least for now, contribute more to spending, accounting for 36% of global revenue, according to the report.

Amazon is up against strong rivals, however. Walgreens and CVS dominate the sector, contributing to 64% of the top 10 specialists' sales last year, according to the Edge by Ascential report. They, along with specialists Sephora and Ulta, "are also driving innovation in the health & beauty sector through introducing more in-store digital solutions and services," according to the report. Indeed, several drugstores and department stores have been trying to touch up their beauty offerings lately by either partnering with popular startups in the space or revamping their own stores with fresher product offerings and a bigger focus on experiential tech and services.

Still, Amazon is already top of mind for beauty consumers: 71% of 2,500 consumers in a recent Stella Rising Glimmer Report said Amazon is their top online destination for buying beauty products. Edge by Ascential analysts also noted Amazon's existing strength in the category, saying they expect Amazon and Chinese marketplace JD.com "to see double-digit growth in health and beauty over the next five years," with Amazon in particular getting a boost from its private label launch.