04/09/2023
Market Trends.
What is the "Lipstick Effect" theory?
Studies have shown that during downturns in the economy, whether recessions or inflation, even when the sales of other luxury items decrease, the sales of skincare and make-up increase. Chanel, Estee Lauder and other luxury brands have reported that their sales on Lipstick doubled in the aftermath of the 9/11 terrorist attack.
The other interesting facts that the study revealed, is that the so called, "Luxury" beauty and skincare products sales, increase much more than the mass produced, less expensive discount store and drug store brands, during economic downturns and political uncertainties.
There are two marketing strategies in the Beauty Industry. One aims to present mass produced, lesser expensive items to cater to the masses, hoping to attract a larger market, while the other aims on building a brand, offering more luxury and higher priced items, catering to the more affluent.
Both philosophies are valid, and depending on your budget for research and development, packaging and marketing, both can succeed.
The first step, before you decide to either offer a new, established line in your Salon/Spa, or make your own exclusive line of products, is to know your clients and how to cater to their needs.
This, could potentially save you a lot of time and resources and could be the difference between success and failure.
We at QQ Beauty Distributors and consulting, can help you navigate through your many options.
From proven tips to increase sales in your existing establishment, helping you start a new one, displaying and signage, to product lines and making your own exclusive lines of products.
With many years of experience from retail, to services, wholesale, import, distribution and our vast network of respected, US. based, Skincare and hair care laboratories, we can help.
