The quantity of women buying cosmetics at Priceline has almost doubled – from around 620,000 to over 1.Two million – in the last 4 years, based on new research by Roy Morgan Research.
According to the consultancy, today almost one in four women (23.3 percent) of Australian women who buy cosmetics buy from Priceline (up from 12.8 percent four years ago).
Meanwhile supermarkets for example Coles and Woolworths have “stabilised” their cosmetics sales “after a dip in recent years” with nearly a quarter (24.9 percent) of Australian ladies who buy cosmetics now purchasing from them, while Chemist Warehouse, leading department stores such as Myer and David Jones, and discount shops for example Target, Big W and Kmart have observed “a slight drop” in sales in the same period.
Roy Morgan CEO Michele Levine says Priceline's is fifth straight year of growth is “fuelled with a hardcore base of 18-24 year olds and a successful utilisation of the growing online channel”.
“The cosmetics market is a very competitive one with pharmacies and chemists, supermarkets, shops and discount shops all vying to increase their business and looking for an edge to retain existing customers and attract brand new ones,” she said.
“Staggeringly, 41.5 percent of 18-24 year old ladies who obtained a cosmetic product in an average 6 months buy a cosmetic product from Priceline. Not one other retailers are seeing even near to this level of market control of a specific age bracket.
“Looking at the attitudes which these customers value, you can see why Priceline has captured a lot of the cosmetic market, particularly that of the 18-24 year olds. Value for money is recognized as important by 68 percent of 18-24 year olds.
“While supermarkets can offer low prices, and shops can offer premium brands, Priceline has the capacity to combine these strengths right into a high-value offering, attractive to those looking for Good value cosmetics.”
