Value, demos make up sales in cosmetics
The cosmetics segment has been on the upswing, and the momentum is likely to continue within the mass market as beauty mavens get increasingly thrifty and do their research when it comes to purchasing makeup.
The cosmetics segments for face (up 4%), lips (up 2.7%) and eyes (up 2%) all experienced a lift for the 52 weeks ended Sept. 4 at food, drug and mass (excluding Walmart), according to data from SymphonyIRI Group.
Going forward, it is likely that sales will remain on the upswing as consumers look to get the best value for their money. In fact, a recently released report from Mintel, a supplier of consumer, product and media intelligence, found that 64% of women in the $100,000 to $149,000 income bracket planned to continue buying some store-brand/private-label color cosmetics and some brand-name color cosmetics. This compares with just 50% of women in the $50,000 to $74,000 income bracket, and 48% in the $75,000 to $99,000 income bracket.
In a separate Mintel report, Kat Fay, senior beauty analyst at Mintel, noted, “Women are really starting to do their research when it comes to making cosmetic and skin care purchases. The days where favorite beauty products were simply automatic replacement purchases are gone.”
To further drive sales, retailers and manufacturers shouldn’t underestimate the power of demos. “In addition to recommendations and advertising, shoppers are influenced by in-store cosmetic demos,” Fay said. “Demos show a product in action, teach shoppers how to properly use an item and allow them to ask pertinent questions. Retailers say demos always spur sales.”
The article above is part of the DSN Category Review Series. For the complete Spring Cosmetics Buy-In Report, including extensive charts, data and more analysis, click here.