Beauty Industry

High Income Cosmetic Shoppers Still Thrifty

Report finds if consumers think a private label color cosmetic’s quality is on par with a national brand, they will buy it.

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By: Jamie Matusow

Editor-in-Chief

Shoppers in upper income brackets can sometimes be thriftier than those with lower incomes, concludes a new Mintel report. If these consumers think a private label color cosmetic’s quality and performance is equal to a national brand, they will buy it.

Sixty four percent of women surveyed in the $100K to $149K income bracket said they plan to continue buying some store brand/private label color cosmetics and some brand name color cosmetics, according to the media intelligence firm’s latest findings. Meanwhile, only 50% of those in the $50K to $74K and 48% in the $75K to $99K bracket said the same thing.

“This does not mean higher income women do not purchase higher end, national brands,” explains 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 indicated they are buying store brand/private label cosmetics more now than they did this time last year. More than half said they purchased private label because it offered the best value for the money. Depending on the product, some can be as much as 30 to 40% cheaper than name brand cosmetics. Meanwhile, 33% reported 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.

For those who don’t purchase private label color cosmetics, nearly half said they are satisifed with their brand name product and have no desire to try anything new, 32% said they never thought to try something else and 18% fear that store brands use cheap or inferior ingredients.

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