Beauty Store Business magazine - January, 2020

Beauty Sales Will Increase This Holiday, NPD Group Predicts

According to the NPD Group, U.S. prestige beauty’s sales performance during the holiday season will be the opposite of how the market performed in the first nine months of the year. With the holiday products in stores, the weather getting colder and Cyber Monday landing in December, consumers are getting into the gift buying holiday spirit.

“Value will be a key driver. Hot holiday items in beauty will include makeup minis, skincare sets, and new fragrance launches, which are always crowd favorites this time of year” claims Larissa Jensen, The NPD Group executive director, beauty industry analyst.

Minis perform well in makeup, as these smaller-sized products offer consumers a more enticing price-point in which to try prestige products and make for great stocking stuffers. In skin care, sets are poised to grow as consumers look for discounts through bundles and an opportunity to self-gift. There are some attractive women’s fragrance launches on the horizon, which will likely boost fragrance’s critical Q4 results. Stronger concentrations like eau de parfum are expected to lead in men’s fragrance, coinciding with the male consumers’ growing desire for longer-lasting scents. In terms of new things to expect for 2019, there will likely be a surge in sales of products containing CBD, specifically in skin care, which have been on a hot streak all year long.

Aside from emphasizing makeup minis, skincare sets, and new fragrance launches, remember to keep in mind that Christmas Day falls on a Wednesday this year. Last minute holiday shoppers may wait for the weekday instead of the weekend, which could affect overall sales volumes. Maintaining a strong merchandise assortment into the final shopping days of Christmas week will be critical to capturing the dollars of the infamous holiday procrastinator.

The promising news is that if past years are any indicator, beauty’s holiday sales performance will be stronger, paving the way for a healthier 2020.