Who Are The Drivers of Prestige Skincare?
By this point, as the summer winds down, we have likely read in several magazines, read in a newspaper or two, seen postings on Facebook, and maybe even seen a special on TV cautioning us on the dreadful effects the sun’s harmful UV rays have on our skin. With fall coming, we may see advertisements for moisturizers that will extend our summer tan. During our coldest weather months we’ll undoubtedly be reminded to keep our skin and lips hydrated with a myriad of moisturizers to combat the harsh cold and wind. Finally, as spring time begins to shed a ray of hope, ads will attempt to convince us of how effective and safe self-tanners are and how great the simulated summer glow will make us feel, despite the fact that summer is still looming around the corner. These products may all fall into their own respective sub-categories, but they all certainly fall under the umbrella of skincare. Many of these skincare products fall under the segment of “masstige,” meaning that although reliable, they can be found in your local drugstore, Wal-Mart or Target. The affluent, however, devote their attention and their dollars to the “prestige” products – your Estee Lauders, Cliniques, and Lancomes.
Statistics show that 21 percent of households with an annual income of 100,000 U.S. dollars or more spent 500 to 999 U.S. dollars on skin care (including women’s cosmetics) during the past 12 months (since July 2013). Those with more disposable income are better equipped to spend more on products that they believe in. Seventy-seven percent (77%) of women skincare users say that they don’t mind paying more for a skincare product that really works. Sales growth of premium face products has continued to increase since 2010 and doesn’t seem to be stopping anytime soon.
What does all of this really mean? The affluent are the ones who can afford these prestige products, some of which can cost over $200 for 0.5 oz. so it is extremely important for marketers to focus their efforts on them. However, since 77% of women in general claim to be willing to spend more on skincare that really works, it is safe to assume that not all of them are affluent. With prestige skincare sales on the rise, an economy on the uptick and encouraging research statistics supporting a widening demographic base, marketers should not be dismissive to the lower income brackets. Affluents, start investing!