Brand familiarity has a greater influence over the purchasing decisions of beauty-products shoppers then does price, according to the recently released Beauty Shopper Report from Information Resources Inc. More than 90% of the market researchers’ surveyed shoppers supported this finding.
Power beauty shoppers, in particular, represent only 11% of households, yet account for 40% of dollar sales, purchasing $185 or more in beauty products per year, according to IRI. This subset of shoppers is also more likely to purchase products as part of a skin or hair treatment system, or that have been proven effective in clinical trials. They’re more likely to try new products, and their shopping habits often consist of multifunctional products, bulk purchases and small sizes of favorite beauty products, though they are considered less inclined to purchase private brands.
"Power beauty shoppers influence the beauty market far beyond their numbers," added IRI consulting and innovation partner Timothy Ressmeyer. "Understanding these shoppers can help manufacturers and retailers drive sales within these categories. Marketers and retailers alike who can deeply understand and connect with this highly sophisticated and valuable segment of the beauty market can win and win big, despite challenging economic times."
The Beauty Shopper Report further revealed that shoppers, in general, continue to employ multiple trade-offs to save money, including moving to lower-priced brands, switching retail outlets, buying products in bulk, buying smaller sizes of favorite products, attempting to make products last longer, sharing products in the home and purchasing multiuse products. Additionally, they believe there is a quality difference among channels, with spas/salons, department stores and specialty stores ranked as having higher quality, even as they continue to flock to value outlets anyway.
"Even within the hair care, skin care and cosmetic segments of the industry, shoppers often exhibit behaviors unique to each of those categories,” said John Deputato, senior vice president of client solutions at IRI. “Shopper behavior diverges a great deal among these segments, particularly in times of changing economic climates, such as today's emergence from the recession, where some consumers are exhibiting a new confidence, while others are keeping their frugal practices in place."
