Looking good is a premium worth paying
The average family is expected to be £10 a week worse-off than last year, but spending on premium beauty products, including skincare, cosmetics and perfume, is increasing 11% year on year, according to figures from the Centre for Economics and Business Research.
“People are still willing to invest in quality, regardless of recessionary pressure,” claims Tim Nancholas, strategic insight director at Kantar Worldpanel. “Within prestige beauty, it’s not just high-priced items that are doing well, but also brands that have significant heritage behind them such as Dior.” Indeed, double-digit growth in an economy that has grown a measly 0.5% in the first quarter of 2011 is significant, although Nancholas notes that growth is slowing down.
Conversely, mass market brands such as Rimmel, which experienced strong growth for a number of years, have seen that trend stagnate. “For the first time the market is static in value and growth. Consumers are being more careful about impulse purchases,” Nancholas states.
One item seemingly impervious to this is nail polish, which grew 12% last year. “Nail polish can be a very cheap purchase and is much more likely to be dictated by ever-changing fashion trends than eyeshadow or lipstick, which consumers generally choose to suit their colouring and rarely experiment with,” Nancholas notes.
Professional treatments
The disconnection between so-called austerity Britain and its grooming habits continues in the beauty services sector, with professional treatments also experiencing strong sales. “I’m surprised at how well salons are doing,” Nancholas admits. “The double-digit growth the sector experienced is slowing a little but the fact that Tesco is entering this market [with in-store salons] shows there is still potential.”
Nancholas adds that innovation and the quasi-cosmetic surgery nature of some treatments such as laser and microdermabrasion (professional exfoliation) is driving consumers into salons. He also points to certain fads such as the Gruffa Fish pedicure, where tiny fish remove dead skin from feet, whose novelty value has also led to increased salon visits.
However, products that can postpone or replace more routine “maintenance appointments” such as visits to the hairdresser are also performing strongly as technological innovation makes hair dyes less tricky to apply and conditioners maintain hair’s lustre for longer. Conditioners that claim to repair split ends have grown 29% year on year, while the 10% year on year growth in the colourant category can be put down to three trends, according to Nancholas.
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After that, Phelps will almost certainly put his swim suit in a drawer, toss aside his goggles and look for something else to do. “It's weird to think about it. My mom and I joke about it all the time,” Phelps said. “She says, 'I'm still not retired,
“Nail polish can be a very cheap purchase and is much more likely to be dictated by ever-changing fashion trends than eyeshadow or lipstick, which consumers generally choose to suit their colouring and rarely experiment with,” Nancholas notes.
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