Core Insights - Amazon is adapting its strategy for the upcoming Prime Day event by focusing on high-end beauty products to mitigate the impact of tariffs imposed by the Trump administration on goods sourced from China and other high-tariff countries [1][2] Group 1: Prime Day and Tariff Impact - The Prime Day event is scheduled from July 8 to July 11, and it is specifically for Prime members [1] - Some Amazon sellers are withdrawing from Prime Day to protect their profits due to the increased tariffs [1] - High-margin cosmetics sales are expected to help offset the negative effects of tariffs on Prime Day sales and consumer sentiment [1] Group 2: Growth of High-End Beauty Products - The beauty sector has become essential for consumers, even during economic downturns, according to Anna Mayo from Nielsen [2] - Amazon's high-end beauty service, launched in 2013, faced initial resistance from luxury brands but is now promoting top beauty and haircare brands [2] - During last year's Prime Day, U.S. consumer spending reached $14.2 billion, a year-on-year increase of 11% [2] Group 3: Profitability and Market Trends - High-end beauty products typically have higher profit margins compared to other categories sold during Prime Day [3] - The small packaging and high price of these products contribute to their profitability for Amazon [3] - Amazon's high-end beauty sales are projected to grow nearly 20% from April 2024 to April 2025, reaching $15 billion, surpassing the 14% annual growth rate of beauty products outside specialized e-commerce platforms [4] Group 4: Brand Collaborations and Strategies - Major brands like Estée Lauder and L'Oréal are expanding their presence on Amazon, with Estée Lauder launching 11 brands on the platform since March 2024 [4] - Amazon's high-traffic shopping periods, including Prime Day, provide opportunities for brands to attract new and returning customers [5] - Many high-end brands are localizing their procurement strategies, which reduces the immediate impact of tariffs [5]

Group 1 - Estee Lauder (EL.N) has launched a high-end beauty store on Amazon Canada, expanding its digital presence and accessibility to consumers [1] - This move is part of the company's strategy to enhance its e-commerce capabilities and reach a broader audience in the beauty market [1] - The high-end beauty store will feature a curated selection of Estee Lauder's premium products, aiming to attract luxury consumers [1]