Many higher-income shoppers opt to buy private-label cosmetics, Mintel finds

CHICAGO — Women in the higher-income bracket won't object to buying private-label cosmetics if they think that their quality and performance are on par with national brands, according to recent Mintel research.

Mintel research found that 64% of women in the $100,000 to $149,000 income bracket planned to continue buying some store-brand/private-label color cosmetics and some brand-name color cosmetics; meanwhile, only 50% of those in the $50,000 to $74,000, and 48% in the $75,000 to $99,000, bracket said the same thing.

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

One-third of Mintel respondents (33%) said they are buying store-brand/private-label cosmetics more now than they did this time last year. More than half (51%) indicated that they purchased private label because it offered the best value for the money. Depending on the product, some private-label cosmetics can be as much as 30% to 40% cheaper than brand-name cosmetics. Meanwhile, 33% of respondents said they were motivated to try a private-label cosmetic because of a coupon or special offer, and 26% of shoppers went on a recommendation from a friend or family member.

"In addition to recommendations and advertising, shoppers are influenced by in-store cosmetic demos," Fay added. "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%) said they are happy with their brand-name product and have no desire to try anything new, 32% said they never thought to try something else and 18% feared 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.

Login or Register to post a comment.