Marketing In The News-Cosmetics

 

I read an article from Dive Brief (Retail Dive) that I found interesting. It discussed how consumers are spending more on cosmetics despite inflation. Although I don't wear a lot of makeup, when I do make a purchase, I ensure that it's from a well-known brand, of good quality, and has great reviews. The same goes for fragrances - I prefer long-lasting scents rather than ones that disappear within minutes after spraying.

According to a recent report from Adobe Analytics, online shopping data for the first five months of 2024 shows that consumers are spending less on groceries, electronics, and apparel, but they are increasing their spending on luxury beauty items such as fragrances and lipsticks. During this period, consumers spent a total of $16.3 billion online on cosmetics, an 8.8% increase compared to the previous year.

The largest portion of online sales, over 50%, comes from electronics, apparel, furniture, and groceries. In these categories, consumers are buying less expensive products due to inflation. However, the cosmetics category is different as consumers are more willing to splurge on items like lipsticks and fragrances.

Adobe's analysis found that sales of prestige cosmetics increased, while sales of cheaper products decreased across major categories. Despite economic concerns, consumers are indulging in prestige cosmetics to feel better about their financial situation. The sales of fragrances and lipsticks have seen significant increases, and Adobe predicts strong sales for certain cosmetic brands this year.

Prestige fragrance sales online are almost double the rate of brick-and-mortar stores, and the beauty market is projected to grow annually by 6% through 2027, with online beauty sales in the U.S. expected to reach $45 billion by 2027 according to McKinsey & Company.

I think there is nothing for them to overcome; they are doing quite well. It's others that are facing challenges and not experiencing as much growth as beauty products. I find it very informative; it shows percentages and sales increases and provides examples of others who have not. I also posted a photo of a well-known name-brand company that sells beauty products. When I see the photo, it makes me think of a big city, with many people, high-end luxury, expensive products, and lots of sales.

I learned that beauty products are selling very well despite inflation, and their sales are expected to increase significantly. On the other hand, electronics, groceries, and apparel are not doing as well in terms of sales. This brings to mind the video we watched, which discussed transparency. When the women came out, it emphasized how they would be seen or heard, and the same can be said for beauty products. Many beauty products feature images of men or women in their advertisements.

If I were a brand or product manager, I would do something unique to capture the attention of many. In the near future, I plan to create a business that caters to families and people of all ages. I will ensure that my advertisements reflect this by featuring colorful and fun activities in the background, such as games and small convenient meals. Additionally, I will emphasize easy access, safety, extended operating hours, and our readiness to serve customers. I have learned a little more about blogging through this assignment, although I've never done it before, other than creating an account and writing about ourselves.

URL-https://www.retaildive.com/news/beauty-shoppers-splurge-cosmetics-online-inflation-fragrances-lipsticks/720020/