Mintel: Upper Income Shoppers Are Thriftier Cosmetics Buyers

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July 26, 2011

Shoppers in higher income brackets can sometimes be thriftier than those with lower incomes, especially when it comes to beauty products. If they think a private label cosmetic's quality and performance is on par with a national brand, they will buy it, according to Mintel.

Sixty-four percent of women in the $100,000 to $149,000 income bracket plan to continue buying some store brand color cosmetics and some national brands, while only 50 percent of those in the $50,000 to $74,000 and 48 percent in the $75,000-$99,000 bracket say the same thing, according to Mintel research.

"This does not mean higher income women do not purchase higher end, national brands," noted Kat Fay, senior beauty analyst at Mintel. "But they can be selective, often spending more on one category or occasion than another."

One-third of Mintel respondents say they are buying store brands cosmetics more now than they did this time last year. Not surprisingly, more than half (51 percent) purchased private label because it offered the best value for the money, which, depending on the product, can be 30 percent to 40 percent cheaper than national brand cosmetics, Mintel noted.

Meanwhile, 33 percent were motivated to try a private label cosmetic because of a coupon or special offer, and 26 percent of shoppers purchased on the recommendation of a friend or family member.

"In addition to recommendations and advertising, shoppers are influenced by in-store cosmetic demos," Fay noted. "Demos show a product in action, teach shoppers how to properly use an item and allow them to ask pertinent questions. Retailers say demos always spur sales."

For those who don't purchase private label color cosmetics, nearly half (49 percent) said they are happy with their national brand product and have no desire to try anything new, 32 percent said they never thought to try something else, and 18 percent fear that store brands use cheap or inferior ingredients. “This offers an opportunity for marketers to educate consumers on the quality of their products and ingredients,” Fay said.

Read These Related Articles:

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• Carrefour Partners With Alliance Boots to Create Private Label Beauty Products
• Walmart to Launch Eco-Friendly Cosmetic Line for Tweens
• Kroger Expands Private Label Beauty and Personal Care Line

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