Looking for Gold

Once the growth engine of the beauty business, mass market skin care is showing signs of aging. After hitting historic highs in 2007 the market managed to stay alive through the recession due to the fact that value-conscious consumers traded down from the prestige market. Noe however luxury skin care companies have come roaring back with a wave of innovation that has changed the face of the business. “We have found a model to source people from mass,” says Fabrizio Freda, president and chief executive officer of the Estée Lauder Cos. Combining with new products and increase in television and digital advertising by more than 60 percent in fiscal 2011, Estée Lauder’s brands have successfully drawn shoppers back to the prestige channel. In 2011 Prestige skin care sales grew 14% and 8% in 2010, which outsold the mass market for 2 years in a row. “Prestige is feeling more like the innovation lab. Every brand is working well,” says Grant. “Consumers are concerned about price and if they’re spending it has to be worth it. They’ve come to recognize that there is some intrinsic value in prestige.” One of the biggest reasons that the mass market is taking a hit is  the prices have rocketed upward and shelves are bursting with product, making it difficult for the consumer to shop, particularly without the help of a beauty adviser. So to truly get the best value for your money, you have to know what you are looking for. Knowing that spending a little more will over help you in the long run will always pay off for you.