The consumer market is picking up, and recently, international beauty brands such as Estée Lauder, Lancôme, Chanel, Dior, Guerlain and other international beauty brands have reported that prices are about to increase.
Will the Spring Festival be the last opportunity to "buy, buy, buy" at a low price?
On social platforms, some industry insiders have released relevant notice content. For example, from midnight on January 29, many brands under The Estée Lauder Group will adjust prices. A supply chain personnel revealed that the increase of La Mer is relatively high, and the price of star products such as creams is basically raised from hundreds of yuan.
A teller at Lancôme in Chengdu revealed that some Lancome products will increase in price on February 1. She said that the price of "pink water" and "small black bottle" will rise by 10-20 yuan, and the pure series will rise more, "a single product will rise by one or two hundred." ”
Guerlain Shanghai A teller said that the price of the product will increase on February 1, under normal circumstances, the price increase of the whole line of products, the range is about 10%, the specific price increase details have not yet been issued, the price increase is because of raw material problems.
A teller in a Dior Beijing store said that all categories of Dior will increase prices on February 1, and the price increase of each category is different, "some increase by tens of yuan, some increase by two or three hundred yuan." However, because he did not get the price adjustment schedule, the teller said that he did not know the specific price increase.
A teller at ELC Shanghai told Red Star Capital that it has not received a price increase notice. A teller in a store in Guangzhou revealed that most products are expected to adjust prices on January 29, and there is no specific price adjustment information and announcement, "The proportion of increases should be quite high." A teller in a store in Chengdu said that it is expected that some products will have price adjustments around January 28, but has not received a specific notice, "should not rise more than 100 yuan", the price increase is mainly due to the shortage of raw materials and rising costs.
The teller at the Chanel counter introduced that Chanel lipstick will increase the price by tens of yuan, and the rest of the products will basically increase within 100 yuan.
On personal social media, many consumers said that some well-known brands of cosmetics have quietly completed price adjustments.
Rising prices of cosmetics have become the norm?
Many tellers said that it has become a norm for makeup brands to increase prices every spring. On the other hand, rising costs due to comprehensive factors such as the new crown epidemic and inflation are also the reasons why international brands have increased prices.
In fact, from 2022, the price increase trend of the head beauty brand is becoming more and more frequent.
L'Oreal, Estée Lauder, Procter & Gamble and other leading international companies in consumer goods have all said in early 2022 that they will increase the prices of their products due to the continuous rise in commodity prices and supply chain costs.
The increase in costs is also partly due to the price increase trend transmitted by upstream raw material suppliers. But in fact, for these high-end skin care brands, compared with marketing expenses, the proportion of production costs in the terminal retail price is actually not high, and its impact is limited. Just as fashion brands regularly raise prices to maintain brand value, high-end skincare brands also have such premium capabilities and demand.
During the pandemic, international brands have stepped up online marketing and promotions in the Chinese market to stimulate consumer demand. For example, since last year's 618 e-commerce promotion, many international brands have started to use the preferential strategy of giving away formal wear equivalent or excessive sample sets. Under such discounts, brand price increases are also leaving more profit margins.
Judging from the performance of beauty categories in the two e-commerce promotion nodes of 618 and Double 11, the sales of high-end skin care products tend to be better.
According to ELC's fiscal 2023 first quarter report, although the revenue of the skincare category declined, the strong performance of the more high-end Aquamarine Mystery, BOBBI BROWN and affordable skincare brand The Sovereign partially offset the decline and momentum of Estée Lauder, Tikiting and Yuemuyuan.
L'Oreal's third quarter 2022 financial report also shows that the high-end cosmetics division, including Lancôme and Helena, is still the department with the largest proportion of revenue and maintains double-digit revenue growth.
For the news of the price increase, some netizens directly said: After the epidemic ended, big-name cosmetics began to "toe high" again, and hurriedly stockpiled goods.
Some netizens said that the price increase was too outrageous, and I chose not to buy it.
Some people also said that they are ready to switch to domestic cosmetics and support domestic products.
It is worth noting that in addition to international companies constantly "opening volumes" to the expensive high-end beauty market, local cosmetics companies have also joined in the past two years.
For example, Perfect Diary has acquired high-end skin care brands Galénic and Eve Lom in 2020 and 2021; In 2022, Bethany launched the high-end anti-aging brand AOXMED, with a 15ml repair serum priced at 1330 yuan. Recently, the local makeup brand Kazilan also launched a "thousand gold lipstick" priced up to 999 yuan.
Industry veterans believe: "If domestic brand high-end lines want to catch up with imports, it will take at least decades to change the public's consumption concept." ”
It can be seen that under the small phenomenon of rising prices, the domestic high-end beauty market is moving towards a new round of competition.
The price of high-end cosmetics is constantly rising
This wave, are you still "following"?
Shanghai News Broadcast is synthesized from Red Star News and Interface News
Editor: Chen Wen
Responsible editor: Cheng Chen