BackEpidemicThis holiday season, most companies selling non-essentials are still in a gloomy mood, but the cosmetics industry seems upbeat, gearing up for the festive season. Understandably, consumers are desperate to show their face after being covered by a mask for so long. The resurgence of purchasing cosmetics is reminiscent of the “lipstick lipstick” that was widely used during the recession of the early 2000s. was mentioned fromindex,
The origins of the “lipstick index” can be traced back to a statement by Leonard Lauder, then-Chairman of Estee Lauder, to The Wall Street Journal in 2001: “When lipstick sales go up, people don’t want to buy clothes.” In theory, consumers may cut back on other discretionary purchases in a recession, but will continue to spend on small luxuries like lipstick.
And according to 14 discretionary goods categories tracked by market research firm NPD Group, the only category that has seen unit sales growth so far this year are high-end beauty products sold by department stores or cosmetics store Sephora; The lipsticks that have fallen are recapturing their once lost brilliance.
Larissa Jensen, a beauty industry analyst at The NPD Group, noted that through October, lipstick sales were up 37% from a year earlier; That’s faster than the 31% increase at this time last year. Jensen said the only category of high-end beauty products where sales exceeded pre-pandemic levels are lip products.
Nicolas Hieronymus, chief executive of cosmetics group L’Oreal, pointed to luxury lipstick or mascara for €30 as an “affordable treat” during the company’s earnings call in October. Laya sales increased by 9.1% in the third quarter compared to the same period last year,
For retailers, beauty sales are also a rare bright spot.targetThe company said sales in the beauty category grew nearly 15% year over year in the quarter ended Oct. 29, as total sales at Target’s reverse beauty stores tripled over the same time period.
Meanwhile, the cosmetics industry is claiming strong scent sales, dubbing it the “scent index”. In its third-quarter earnings report in early November, beauty brand Coty said demand was so strong that there was a shortage of fragrance ingredients across the industry. Coty Chief Executive Sue Nabi said on a conference call that there has been no drop in transactions and that consumers are turning to buying fragrances for themselves rather than gifting.
The NPD Group’s Jensen also pointed out that “there has been a shift in what consumers mean by health and wellness, and beauty is one of the few industries that addresses the emotional needs of consumers. Looking good makes them feel good.” Is.”