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Upper Income Shoppers Sticking With Private Label Color Cosmetics

Posted: July 26, 2011

Shoppers in higher income brackets can sometimes be thriftier than those with lower incomes, according to a recent report from Mintel. If they think a private label color cosmetic’s quality and performance is on par with a national brand, they will buy it. In fact, Mintel shows that 64% of women in the $100K-$149K income bracket plan to continue buying some store brand/private label color cosmetics and some brand name color cosmetics, meanwhile, only 50% of those in the $50K-$74K and 48% in the $75K-$99K bracket say the same thing.

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

One-third of Mintel respondents say they are buying store brand/private label cosmetics more now than they did this time in 2010. Fifty-one percent said they purchased private label because it offered the best value for the money (depending on the product, some can cost 30-40% less than name brand cosmetics). Meanwhile, 33% were motivated to try a private label cosmetic because of a coupon or special offer, and 26% of shoppers bought on a recommendation from a friend or family member.

“In addition to recommendations and advertising, shoppers are influenced by in-store cosmetic demos,” says Fay. “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, 49% say they are happy with their brand name product and have no desire to try anything new, 32% say they never thought to try something else and 18% fear 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.