Tough Times Boost Creativity

Miuccia Prada, as reported in Women’s Wear Daily, “is feeling inspired by the current economic downturn,” saying, “Crisis always pushes you to do better.”

Recent reports from L’Oréal and Procter & Gamble indicate that the global giants are following marketing lessons learned during—and after—past difficult economic times. That is, that traditionally, companies that advertise heavily during a down period reap the rewards when conditions turn around, increasing both sales and market share because they’re the companies consumers remember. In fact, the mass-market oriented consumer products division of L’Oréal USA reportedly upped its advertising and promotional spending for the fourth quarter of 2008 by more than10% and will continue the trend in 2009. L’Oréal also announced plans to focus on innovative products and boost items in lower price ranges in order to reach a wider audience.

Meanwhile, Pamela Baxter, president and CEO of LVMH Moët Hennessy Louis Vuitton’s perfumes and cosmetics group, stated that while purse strings may be tighter for some consumers, current economic hardships have not—and will not—kill the prestige market. People still want a piece of luxury and will pay for it, she said at a recent CEW event in California. A prime example, said Baxter, is Rouge G de Guerlain, a collection of $45 lipsticks housed in a stunning, innovative package. Here, a little indulgence in an expensive lipstick makes a woman feel like a million bucks every time she retrieves it from her purse or vanity.

In the bid for additional sales, many brands have taken to playing the numbers—pinning their hopes for new income on the rapidly growing Latino market. In fact, many industry pundits believe that this is not a gamble at all, but rather a necessity for brand survival.

Makeup artist Bobbi Brown has gained exposure for her brand by writing a manual. Now, Emerson College in Boston plans to start a Bobbi Brown program in makeup artistry—a model for one that’s geared up to go international.

With more people hitting the bookstores for low-cost entertainment, beauty brands Burt’s Bees, Nature’s Gate, Kiss My Face and Pacifica have taken up shop—and POP displays—in the stacks of retail outlets such as Borders. Have readers been shown to favor all-natural brands? Even in a recession?

Throughout this issue, you’ll read about many creative strategies brands have adopted in order to be proactive in challenging times, including our online special on re-branding at nitesh_bp.rodpub.com. We know that many more of you have devised your own methods for success in 2009 and beyond, and we’d love to hear your stories, too. In fact, you might say, we’re eagerly awaiting the next chapter.

We hope you enjoy this issue.

Jamie Matusow
[email protected]