The past few years have been a roller-coaster ride for the prestige health and beauty market. One of Tuesday’s HBA educational session offered a clear-eyed look at where the prestige market stands today and included market data from over the past few years and key perspectives from prestige bands and retailers – dissecting the different types of consumers and their impact on the cosmetic industry.

Howard Kreitzman, VP of Cosmetics & Fragrance at Bloomingdales, provided an insider’s viewpoint into the ups and downs of the prestige market. After September 2008, prestige market sales plummeted.

“Critical treatment products were the only cosmetics being purchased, while peripheral products completely shut down. As a result, this gave birth to niche markets and alternative products and solutions. This phenomenon fueled the organic and green movement, leaving prestige behind until early 2010,” he said.

Aspirational consumers are the main reason why the prestige market has bounced back since last year. Kreitzman had anticipated that “consumers would come back for luxury” as shoppers started demanding value from prestige brands and there was a strong movement in brand invention and reinvention. Packaging was encouraged to be kept traditional and iconic but fresh at the same time. Establishing and maintaining brand loyalty is a key factor for prestige markets to strive in today’s market.

“Think about a brand that you like. You like it because it says a lot about who you are or what you’d like to achieve,” said Kreitzman. “Most luxury purchases are design-driven, and we should expect the prestige market to stay on top of its game in the coming years.”