Amazon (NASDAQ:AMZN) plans to tap into the growing popularity of the indie beauty market with an online store catering to brands that are at least 50% independent owned and unavailable at broad retail chains such as Ulta Beauty (ULTA +0.7%) or Target (TGT +1.3%).
With younger generations showing a greater propensity to try new brands, Amazon's reach into indie beauty could have repercussions down the road for Sally Beauty Holdings (SBH +4.4%), Revlon (REV +6.2%), Avon Products (AVP +1.6%), e.l.f. Beauty (ELF +0.7%), Coty (COTY +1.6%), Estee Lauder (EL +2.3%), Sephora (OTCPK:LVMHF, OTCPK:LVMUY) and Neutragena (JNJ +0.3%).
Amazon won't go unchallenged. Target and Sephora have hosted "accelerators" for beauty startups in an effort to beat the Seattle e-commerce giant to the punch in finding the next "it" brand. Expect other cosmetics companies to follow.
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