Consumers’ purchasing power has been under attack for several months now. In its latest Cost of Living report, the Mintel foresight consultancy gives brands (particularly cosmetics) some food for thought to help them better understand the expectations of the general public in these troubled economic times.
Although prices remain high, there are signs that inflation is beginning to ease in Europe. “However, in all markets, consumer confidence in their finances fell sharply throughout 2022,” analyzes Mintel.
According to the agency, the general public has been cautious about buying beauty products this year.
Today, 37% of cosmetics purchasers in France say they wait for a discount before buying a product. Across Europe, consumers tend to avoid buying cosmetics on a whim, preferring to store around for the best price and turn to cheaper brands/products.”
The rise of private labels
Rising prices have prompted consumers to change their habits, and some of them have turned their attention to the cosmetics offered by retailers.
“This is a real opportunity for these brands, provided they continue to design quality products at affordable prices,” explains Mintel.
Efficiency first
At a time when budgets are under pressure, pragmatism is the order of the day. And to convince customers to put their hand in the wallet, it’s important for brands to emphasize the effectiveness of their products. “Right now, consumers are buying less. But they will be more inclined to spend their money if the offer is worthwhile and of high quality.”
