According to a report from The NPD Group, consumer confidence is rebounding, particularly in the beauty market.
According to A Snapshot Report on Beauty Consumers’ Reactions to the Economy from The NPD Group, Inc., a leading market research company, 55% of beauty shoppers surveyed in April told NPD they will still buy beauty because it makes them feel better about themselves. This is up four percentage points since November 2008 (51%). More women also indicated they were likely to go to spas and salons on a regular basis and to buy beauty products on impulse than previously reported.
Interestingly, fewer women are reporting that beauty products are at the top of the “cut list,” even in tough economic times. In April 2009, only 42% said they would cut back spending on beauty before other items, versus 45% in November 2008.
“It is very encouraging to see the overall positive shift among beauty shoppers. That tells us that, while we are not out of the woods yet, the greater proportion of beauty consumers are willing to explore spending again,” said Karen Grant, senior global industry analyst and vice president of beauty with the NPD Group. “Beauty being so directly tied to a woman feeling better about herself is a vital trigger that cannot be missed in the marketing of beauty products today,” said Grant.
In addition, 47% of black/African American (non-Hispanic) beauty shoppers are significantly less likely than white/Caucasian (56%) and Hispanic (56%) women to buy beauty products because they make me feel better about themselves.
“The decline among black/African American women may be very closely tied to the fact that women in this segment of the population are also the least likely to use makeup and skin care products,” said Grant. “In general, this group often has a harder time finding beauty products that meet their needs. Now add in tough times and they may be even more inclined to see beauty as a non-essential. Shifting this perception is one that marketers will need to look at and help turn sentiments of black/African Americans to be more in line with other beauty consumers,” ended Grant.
Methodology: A nationally representative sample of women 18+ were selected from NPD’s online panel based on completed surveys from 2.124 total respondents, with 1,935 past year beauty shoppers qualifying to complete the survey. Field work was conducted in April 2009 and is trended to data from a benchmark study conducted in November 2008.
About The NPD Group, Inc.
NPD’s BeautyTrends information has tracked the prestige beauty industry for a decade. The NPD Group is a leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,600 manufacturers, retailers, and service companies rely on NPD to help them drive critical business decisions at the global, national, and local market levels. NPD helps its clients to identify new business opportunities and guide product development, marketing, sales, merchandising, and other functions. Information is available for the following industry sectors: automotive, beauty, commercial technology, consumer technology, entertainment, fashion, food and beverage, food service, home, office supplies, software, sports, toys and wireless.