Australians are expected to invest $50 billion in the lead up to this Christmas – and beauty products are certain to attend the top of many shopping lists.
According towards the 2022 Pre-Christmas Sales Predictions report through the Australian Retailers Association and Roy Morgan Research, Australians are likely to spend 2.8 percent more this Christmas than last.
ARA executive director Russell Zimmerman said that even though the estimate is well underneath the 4-5 percent growth that retailers might have liked it's nonetheless “better than recent figures”.
“There might have been lots of change throughout the industry this season, only one thing is for sure, and that is the fact that Australians love Christmas, as it is the season of giving.”
Beauty salon owners attempting to capitalise around the growth in Christmas spending is going to be heartened to notice that in the US makeup is becoming a preferred gift choice – and it is likely to be in Australia too.
NPD Group beauty industry analyst Larissa Jensen said the business's latest Prestige Beauty report reveals that December makeup sales could overtake fragrance sales the very first time in retail history next month.
Since 2022 the dollar worth of makeup sales in December has grown from 32 percent to 37 percent, while fragrance sale have decreased from 43 percent to just below 40 % within the same period.
Jensen said “this represents a significant closing from the share gap” between the two highly giftable beauty categories.
“Makeup has taken on a greater role in holiday sales during the last couple of years as consumers find excitement in a category ripe with fun and whimsical items ideal for gifting,” she said, adding that retailers have noticed the modification in consumer attitude and also have therefore “put a heavier focus on the course during key holiday months”.
Jensen said the “big sales” within the makeup category in December are likely to originate from small items “as many pre-Christmas makeup launches have placed focus on the mini-trend”.
“Sales of mini/travel size prestige makeup products grew by 58 percent year-to-date through September 2022, and also have increased exponentially as sales have tripled over the last three years,” she said.
“Makeup sets and lip colour and gloss, which are popular holiday sellers, are also some of the mini products seeing the highest up-tick in sales to date this season.”
Salon owners not stocking makeup should however be able to win a share of Christmas spending with their skincare offering.
“The gift of great skin may be a deal too tempting for consumers to resist,” said Jensen.
“Skincare gift sets contain the greatest importance in December, and the top-sellers tend to be heavily anti-ageing focused.
“In 2022, eight of the top ten sets showcased a full-size anti-ageing hero product.
“With the full set often priced near to the cost of the primary item alone, the value appeal makes skincare sets viable gift options, and also a chance for customers to consider purchases for themselves.”
