In a mad rush for that perfect gift and not sure what to buy?
If retail analysts and forecasters had a crystal ball, they’d predict beauty will lead gift giving this holiday season—namely lipstick, foundation, concealer and serums, masks and skincare gift sets.
The beauty category stole the Black Friday weekend thunder and there’s no sign the demand for the feel-good products is slowing down.
“On Black Friday, beauty products were discounted at a lower rate than apparel,” said Kayla Marci, senior retail analyst at Edited. “Nevertheless, beauty emerged as the sales powerhouse, showcasing strong demand during the holiday season, with products selling out majority SKUs.”
Brands with the highest sell-throughs included Lancome, Estee Lauder and Charlotte Tilbury, with makeup and skincare being the top-selling categories, according to Edited.
Luxury skincare brands are also seeing demand surge. Case in point: Erno Laszlo, which sells in upscale department stores like Nordstrom
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“Self-care and masking moments seem to be the common denominator,” said Patricia Schuffenhauer, GM of North America and Chief Product Officer of Erno Laszlo.
“This consumer behavior is not shocking as the hashtag #eyepatches has 229 million views on TikTok,” the beauty executive notes, adding that Spate shows 21.9% year over year growth and 12-month projected growth for this product. “Eye patches have also seen an increase in search volume during colder months.”
The bottomline is self-care gifts can provide an easy, out-of-the-box spa-like experience at home, or “a much-needed moment of zen during the holiday hustle,” Schuffenhauer says.
Belif skincare, a brand focused on skin hydration, has seen its exclusive holiday gift sets sell out on Sephora.com, while limited quanties might be available in stores. “Our influencer community has been going crazy over these sets as well,” said a spokesperson at Belif.
The sets contain moisturizing products like eye cream, moisturizer and lightweight sunscreeen. The “Must Have Minis Holiday Set” retails for $19 while the “Dive In Hydration Holiday Set” is $38.
The Black Friday holiday weekend proved that discounts didn’t translate into high sellout rates, Marci said. Toiletries, nail products and bath and body items saw the most substantial markdowns, over 32% off on average, while makeup and skincare tracked 47% and 26% of sell outs respectively, marked down 28% on average, the analyst noted.
“Beauty stands to be unaffected, as it has proved itself as a recession-proof category, with products such as skincare viewed as a necessity and makeup serving as a gift for customers to treat themselves and loved ones,” Marci said.
The category shows no signs of dimming down even after the gift giving season is over.
“Larger retailers like Target and Kohl’s, drug stores are backing beauty, partially due its price point allowing it to continue to be a gift as well as a personal experience,” said Matthew Katz, managing partner at global consulting firm SSA & Company. “Beauty will continue to be a strong area for collaborations between influencers and beauty brands, amplified by social media and TikTok pushing the community aspect.”
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