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* Need some good news? According to The NPD Group, Inc., 55% of beauty shoppers surveyed in April said they will still buy beauty because it makes them feel better about themselves--up four percentage points since November 2008. More women also indicated they were likely to go to spas/salons on a regular basis and to buy beauty products on impulse than previously reported, according to the Port Washington, NY-based firm.
Interestingly, fewer women are reporting that beauty products are at the top of the "cut list" even in tough economic times. In April 2009, only 42% said they would cut back spending on beauty before other items, versus 45% in November 2008.
"It is very encouraging to see the overall positive shift among beauty shoppers. That tells us that, while we are not out of the woods yet, the greater proportion of beauty consumers are willing to explore spending again," said Karen Grant, senior global industry analyst and vice president of beauty at NPD. "Beauty being so directly tied to a woman feeling better about herself is a vital trigger that cannot be missed in the marketing of beauty products today."
So how is this positive thinking benefiting the industry? Additional statistics released by NPD in July revealed that while overall sales of prestige fragrances sold in U.S. department stores have declined, sales of premium priced fragrances (those priced at $100 and above) are up significantly. In the first quarter of 2009, premium fragrance products--which represented approximately 9% of total fragrance sales--were $26 million, a 10% gain over results posted in first quarter of 2008.
Premium priced skin care face products (priced above $70) have, up until now, been considered to be somewhat recession-proof. Recently, however, premium priced skin care face product sales declined by 6% in the fourth quarter of 2008, according to NPD. That was the first time premium priced skin care face products performed worse than products priced below $70, which were down only 3% in the fourth quarter of 2008. Sales of premium priced face products fell 7% percent in Q1 2009, while sales of face products priced below $70 dropped 5%. More info: www.npd.com
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