Despite surging inflation, retailers have noticed the beauty category has become a rare bright spot as people are still purchasing products.
This spring, Target called out the strength of its beauty sales and has added new brands to its beauty department, despite the company’s shares dropping by nearly 25% this year.
Sam Whillance, a retail expert at online discounts platform, Deal.Town, shares insight into why consumers will spend their money on beauty and wellness products, and how retailers can continue to grow in the beauty and wellness sector.
“Since the pandemic, consumers have learned to prioritize their general well-being and self-care, with no intention to adjust.
“People have begun to understand the value of looking after themselves and being happier in their skin. Beauty and wellness are expected to remain one of the largest spending categories this year, as people shone a light on self-care during difficult times.
“Despite this, businesses offering beauty and wellness services such as hairdressing and makeovers are still increasing prices to compensate for business lost during lockdowns.
“As sales volume of lipsticks has particularly increased, it is expected to have a domino effect on other beauty products.
“Recent reports reveal sales of makeup, including lipstick, are up 20% in the first half, skincare is up 12%, perfume is up 15%, and haircare is up 28% in the first half of the year.
“For growth, retailers should keep up to date with their consumers who are being reached through social media channels more and more.
“Through channels such as Instagram and TikTok, the latest beauty and wellness trends have never been more accessible.
“Retailers can utilize the power of social media influencers, makeup artists, and vloggers who lead the way in advertising beauty and wellness products.
“More so, they are increasing exposure among consumers for demonstrations of beauty techniques and procedures, which were once only communicated by bigger celebrities.
“Quite obviously, it seems digital channels are the way forward when it comes to business growth in the sector, alongside using everyday people to communicate its products.”