Cosmetics are viewed as an “affordable splurge.”
As prices inflate on both products and services around the United States, the idea of shopping for fun has become a little less appealing. For some people, what were previously occasional splurges that didn’t affect their bottom line much are now completely out of reach. For some of these people, they’ve instead decided to aim a little lower at cosmetics and beauty products.
Compared to other major sectors of the retail industry at large, the beauty industry has been maintaining its momentum in the face of inflation as more shoppers see an occasional tube of lipstick as a much more realistic and affordable purchase than electronics or subscriptions.
In addition to the relative affordability of cosmetics, people have also found a more pressing need of the products as the world returns to in-person interaction. As businesses have brought their employees back to the office and the idea of social events like weddings and parties have become less controversial, the interest in cosmetics and skincare products has jumped back up. On the heels of this boost, major retailers like Walmart and Target have begun heavily reinvesting in their individual cosmetic departments.
People are spending lots of money on makeup and beauty, and retailers are cashing in https://t.co/jb98P3tjfU
— CNBC (@CNBC) August 15, 2022
“Beauty is this fascinating category where it’s not like food and it’s not like health and wellness, but yet the customer interacts and engages with it every day,” Creighton Kiper, Walmart’s vice president of merchandising for beauty, told CNBC earlier this summer. “You’ve got this mental wellness component to it around confidence and feeling good about yourself.”