For the majority of shoppers, prices are not inflated—they have forever increased to a new rate. To cope, more than half are cutting spending so they can pay their rent and utilities, and feed their families. But there’s also a core group who may not have to cut back but are being cautious—because you never know—namely people earning $75,000 to $150,000 who fall in the Gen Z, Millennial, and Gen X demographics.
When it comes to smart shoppers, rising prices don’t mean they’re doing without beauty. Instead, they’re getting creative about how to get the products they want at more affordable prices. One of the top ways they’re saving is by shopping online. Almost half of shoppers buy beauty online, with cosmetics, fragrance, nail care, and skin care topping the list. While data shows that the more you earn the more likely you are to make an online purchase, two-fifths of those with middle to low-household incomes are finding beauty they can afford in the digital world by shopping on days that offer deals and on sites that offer online discounts. Another way shoppers are saving money is by buying more store brands. The appeal of brands created by Ulta Beauty and Sephora, for example, as well as exclusive brands sold in specialty beauty chains like M.A.C, L’Occitane, and Bath & Body Works, is strong and their price points are typically less. DTC and mass store brands, such as Walgreens No 7, offer elevated skin care and make up at accessible prices and get high marks from shoppers for better packaging, quality products, as well as innovation.
“What’s absolutely clear is that regardless of who they are and how much they earn, beauty shoppers are on a mission to find more affordable ways to get what they want. There are so many great quality, innovative, and less expensive options today. Shopping smartly for beauty is now a badge of honor. Luxe brands take note,” said Wendy Liebmann, CEO, WSL Strategic Retail.
To access WSL Strategic Retail’s report to see how consumers are saving on buying beauty, click here.