Premium vs. Private-Label Brands
New Challenges When Promoting Branded Make-up
New figures from the market research agency Mintel indicate that tight budgets among consumers are posing a challenge for branded companies. At 74 per cent, around three-quarters of all respondents in a US study stated that they consider more affordable make-up products to be just as good as premium ones. However, 41 per cent of this group said they prefer branded make-up products regardless of cost.
Growth in the Make-up Market Could Slow Down
For the consultants, these figures demonstrate that a product's value will be a significant factor in consumers' purchasing decisions in future. Although the US market for colour cosmetic products is expected to see annual growth of 9 per cent until 2028, Mintel anticipates that growth in the make-up market will slow down. One reason for this is that, according to studies, consumers are shifting their focus towards lower-priced alternatives. Another reason is that home working is expected to play a greater role. The analysts also believe that the cosmetics industry will increasingly encounter competition from adjacent product categories such as skin care and dietary supplements.
Men Between 18 and 44 – A New Target Group
The following figures are used to back this up: 35 per cent of cosmetics users are applying less make-up than they did a year ago. 37 per cent are doing so because they are not leaving the house as often, while 32 per cent have simply lost interest in make-up. According to Mintel, this is primarily the case among women over 55. On the other hand, young women between 18 and 34 (42 per cent) are frequently concerned about the health of their skin. Nevertheless, it seems that the market has a new target group: 43 per cent of men between 18 and 44 said that they are using more make-up than they did a year ago. The main reason they gave for doing so was a desire to relax. This reason was given by 41 per cent of this group – almost twice the percentage who cited the second most common reason (22 per cent). Accordingly, Mintel advises brands to emphasise both the inward and the outward benefits of such products when addressing this target group.