Beauty Salon Marketing

As the credit crunch deepens, many salon and spa owners are wondering how it will affect them. In our white paper - Getting through the Credit Crunch, How to “Recession Proof” Your Salon - we discussed the possibility that the hair and beauty business may be well placed to survive, or even thrive during difficult economic times. Several marketing experts have noted the “Lipstick Effect” - sales of lipstick rise during a recession. As people cut back on more expensive items, they may actually spend more on the “small indulgences” that make them feel good.

A couple of news items from Cosmetics-Design Europe quote recent reports that back-up that idea.

Women sacrifice food before cosmetics quotes two surveys that suggest that women would rather cut back their spending on food than on cosmetics -

“Women are not only reluctant to reduce their spending on cosmetics but when their purses come under pressure they are more willing to scrimp and save on food, according to new surveys.

Most recently beauty retail website feelingunique.com asked 1,000 women in the UK about their shopping habits and found that the credit crisis may reveal itself more clearly in cupboards than bathrooms.

Nearly one in three female respondents said they would prefer to eat less than reduce their spending on ‘essential’ beauty items.

… The results support the findings of a ShopSmart survey of female customers in the US carried out last month.

Polling 1,000 women by telephone the magazine concluded that female shoppers were more likely to opt for cheaper food essentials than give up their chosen cosmetic brands.

While 67 per cent would switch to less expensive brands for eggs and milk, only 30 per cent said they would be willing to turn to cheaper cosmetics.”

Beauty consumers resist pressures to trade down quotes a US survey showing that the “Prestige” end of the personal care product market is still strong, while the “budget” end of the market is suffering -

There are few signs that consumers are switching to cheaper personal care products despite price rises and economic instability, suggests a US market report from Fitch ratings.

Consumers seem willing to dig ever deeper into their pockets for luxury items while sales of bargain basement products continue to suffer.

Alberto-Culver’s luxury salon shampoo Nexxus sold briskly in the latest quarter with sales up 13.6 percent but V05, which is aimed at the lower end of the market, was down 5.7 percent, according to Information Resources (IRI) data quoted by Fitch.

The report stated: “Consumers still appear willing to splurge on prestige items in this space.”

Related articles on the Beauty Salon Marketing website -

• Getting through the Credit Crunch - How to “Recession-Proof” your salon
• Salon Business - Can you reduce your bank charges?
• Salon Internet Marketing - should you advertise your salon online?