A recent survey suggests that only one in five consumers in the UK plan to cut back on health & beauty products this year as small indulgences remain a priority despite cost of living pressures.
The study conducted on behalf of RSM UK showed that only 18% plan to cut back on health & beauty products, and only 22% of consumers would trade down to a retailer’s own-label product – highlighting the overall strength of the category.
Jacqui Baker, head of retail at RSM UK, said: “The lipstick effect is still driving growth in health & beauty, as consumers look to treat themselves to little luxuries despite a squeeze on household budgets. In addition, loyalty is fierce as the majority of consumers will invest in the products and brands they love, despite a higher price point, rather than considering a cheaper, own-brand option.”
She added: “Sephora’s move to open another UK store this week, Boots committing to opening its first beauty-only shop in London, and Avon announcing its first standalone shops demonstrates the strength of the sector and signals real momentum for UK retail.”
NAM Implications:
- ‘Only 22% of consumers would trade down to a retailer’s own-label product’
- Key therefore that brand owners continue to reinforce trust in the brand…
- But opportunity for retailers that minimise price rises to maximise the brand-premium?
