Online makeup stores are at the cusp of a beauty revolution. The industry is abuzz with innovative technologies and emerging trends that are set to redefine consumer experiences in the beauty space. This work aims to elucidate the key findings and insights of the online makeup store industry to pave the way for a luminous business future.

To begin, let's establish the context — the online makeup stores industry operates in the broader beauty e-commerce market. By virtue of being online, these stores leverage the power of the internet and digital technologies to sell cosmetic and beauty products. This industry has witnessed significant traction in recent years, owing to a multitude of factors.

One of the foremost factors is the growing acceptance of e-commerce. This is quantifiable in the form of increasing internet penetration, evolving consumer behavior, and the rising digital literacy rate. The trend has been further accelerated by the COVID-19 pandemic as consumers increasingly resort to online shopping amidst the social distancing norms.

The online makeup stores industry is a shining example of an oligopoly, with a few dominant players holding the majority of the market share. These players strategically invest in online marketing and advertising to enhance their brand visibility, and consequently, their market share. From an economic perspective, this industry has a high entry barrier due to the capital-intensive nature of investments required for setting up an online store and the high-cost of customer acquisition.

The industry is characterized by high competition, leading to an emphasis on differentiating factors such as product range, price, convenience, and user experience. Many stores have integrated AI (Artificial Intelligence) and AR (Augmented Reality) technologies into their platforms to provide virtual makeup trials. For instance, Sephora's Virtual Artist and L'Oréal's Makeup Genius app use these technologies to provide an interactive shopping experience which is becoming an industry standard.

On the supply side, online makeup stores have a vast product portfolio encompassing various brands. These portfolios are carefully curated by leveraging data analytics, which helps in understanding the consumer buying behavior and trends. Based on insights, stores can effectively manage inventory and forecast demand, leading to optimal resource allocation and maximum profitability.

The industry faces challenges in terms of the ability to build trust with consumers. Due to the nature of the product, consumers often prefer to physically test makeup before purchasing. However, with advancements in technology and the introduction of virtual try-on tools, this challenge is gradually being mitigated.

From a regulatory standpoint, these online cosmetic stores are required to adhere to stringent laws revolving around consumer protection, product quality, and data privacy. Compliance with these laws is critical as any violation can lead to legal repercussions and damage to the brand’s reputation.

Looking at the future, the online makeup stores industry is poised for exponential growth. Market research firm Technavio predicts an incremental growth of $45.49 billion in the global online beauty and personal care products market from 2020 to 2024. This growth will be fueled by an increase in mobile commerce, personalized marketing, and enhanced delivery and return services.

In conclusion, the online makeup store industry is a bustling marketplace of innovation, competition, and growth. The fusion of technology with beauty is creating a unique landscape that is both challenging and rewarding. For those willing to embrace change and take calculated risks, the future of the online makeup store industry is indeed beautiful.