Is the Lipstick Effect Fading for the Premium Beauty Industry?
Over the past 21 years of researching the Premium Beauty market, I’ve seen how resilient the category has been. The Lipstick Effect has meant that women continue to buy products and treat themselves, even when money is tight.
However, the latest edition of The Premium Market Report, which launched yesterday, reveals the poor economic climate is now having an impact on women’s beauty buying habits.
For the first time in 2012, growth in the Premium Beauty markets slowed to +5%, down from +11% the previous year*.
Our exclusive research into women’s shopping behaviour supports this slowdown. It also suggests that even the low growth experienced by Premium Beauty brands and retailers may not be sustainable.
The research conducted in partnership with YouGov, reveals that:
35% of women aged 25-34 and 33% of women aged 35-44 say they are more careful about how much they spend on premium beauty products
33% of women aged 35-44 say they buy less than they used to
One in ten 25-34s are trading down to cheaper beauty products as premium brands are likely to be seen as an indulgence.
The signs are that the Lipstick Factor is losing its sheen. Women are becoming nervous about spending out on higher-priced premium brands and some are actually downgrading to cheaper ones.
The middle age groups are most affected by the stagnant economic situation and are more careful about how much they spend, while buying less than they used to. They also represent the core demographic buying group for premium brands, who need to work harder than ever to win them over in the face of stiff competition from masstige and mass brands.
You can find the full research findings in this year’s Premium Market Report 2013.
The report investigates the latest trends and consumer buying behaviour within the premium make-up, skincare and fragrance markets and offers analysis and recommendations for how brands can respond to the difficult market.
For the first time this year, individual sections and bundles from the Premium Market Report are available to purchase, as follows:
The Premium Market Overview & Future Report
The Economic Overview
The Premium Skincare Report
The Premium Make-up Report
The Fine Fragrance Report
The Retail and Online Report
The Premium Beauty Consumer Insights Report
The Key Company Performance + News Report
The Premium Market Report Bundle {The Premium Market Overview + Future Report; The Retail and Online Report; The Premium Beauty Consumer Insights Report}
All are now available to purchase from: http://www.imogenmatthews.co.uk/beautyindustryreport2013