This July hasn't just seen temperatures soar, fresh inflation has hit consumers worldwide. Clare Kiteley, Client Director at Kantar UK, explains why prioritising your brand is the key to staying cool in the heat
Branding is key to surviving the financial heatwave
The cosmetics sector had been making a strong comeback from the downturn of the pandemic.
Consumer spend in the UK increased by 6% in 2021 following the 5% decrease the previous year while lockdowns limited us largely to working and socialising from home.
But now inflation threatens to put the brakes on that recovery. Consumers are facing rapidly escalating bills which means they are having to reassess their budgets. On top of that, we’re also seeing cosmetics usage falling generally – a trend which predates the pandemic.
Make-up and product use has fallen by 50% in the UK over the past five years. This complex picture could lead to turbulent times for the sector.
As inflation bites, cosmetics brands may be tempted to absorb heightened costs to avoid increasing prices and to maintain market share.
However, this risks ...
This is a small extract of the full article which is available ONLY to premium content subscribers. Subscribers sign-in (top right) to read the article.
Subscribe now to premium content on Cosmetics Business