Why you should spend less time on shopping for your cosmetics
The cost of cosmetics, cosmetics and beauty products is skyrocketing, and a new study suggests we should be focusing more on making purchases rather than buying things online.
A new report from global research firm eCommerce Multicanal (EMC) says the cost of the essentials is sky-rocketing in the beauty industry.
It finds consumers spend around 60 per cent of their disposable income on cosmetics, and spend around half of that on products that are only available at major retailers.
According to the report, that equates to over $3.7bn spent annually by consumers, with around half that spent in the US alone.
Ecommerce Multicananal is the latest in a string of research firms to highlight the issue of consumers spending more on cosmetics than they should.
It comes as the European Commission is set to unveil a new “cost cap” for cosmetics in 2019.
The report found that consumers are spending more than twice as much on beauty products than they are spending on clothing and other goods.
But while the average consumer spends less on beauty, it’s only when you consider products like cosmetics, that consumers actually spend more.
The average consumer is spending around $4.70 on cosmetic products, with $2.30 spent on hair and face products, $2 spent on personal care products and $2 on other products.ECommerce Multichannel found the average customer spends an average of $5.60 on cosmetic items.
However, consumers are buying more cosmetics in the UK than they were 10 years ago, as the cosmetics industry continues to grow and as the cost cap becomes more effective.EMC found that consumer spending on cosmetics was up 10 per cent between 2011 and 2017.
However, EMC said that over the same period, the UK saw a 20 per cent rise in cosmetics spending.
“This is a trend we have seen over the last few years.
The growth in cosmetics is driven by a strong consumer appetite for cosmetics,” said the report’s co-author, David Smith, who is also from eCommerce.”
But this appetite is also fueled by the growing trend for consumers to use their own funds to purchase cosmetic items.”
The report, based on data from e-commerce platforms like Amazon, Etsy and Etsy-UK, said that consumers were spending more money on cosmetics in 2017, with ecommerce spending doubling between 2011-2017, and increasing by 26 per cent year on year.EMEA-UK said the average cost of a product was $4,000 in 2017.
The average cost for a cosmetic was $6,500.
The growth in consumer spending was driven by rising demand for cosmetic products from a growing number of consumers.
“We are seeing a huge increase in consumer demand for cosmetics and cosmetics products as well as a strong increase in online purchases of cosmetics,” Smith said.
“Consumers are now buying cosmetic products in large quantities, so we are seeing the full potential of the industry to be a major contributor to the increase in disposable income and the economic growth of the cosmetics sector.”
“While there is an oversupply of cosmetics and the cost for them has gone up, it is not a problem for the cosmetics and makeup industry.
We are seeing an increase in demand from consumers for cosmetics products that consumers can actually buy at a discount,” he added.
According the report:More and more consumers are opting for online purchasing of cosmetics products, but the consumer purchasing trend is also driven by the increase of online purchasing in the last couple of years, which is likely to continue for the foreseeable future.
“The trend towards consumers purchasing online cosmetics products is largely driven by increased demand from individuals for online shopping,” Smith added.
The findings come as the EU prepares to introduce a new cost cap for cosmetics, which aims to bring down the price of cosmetics across Europe.
In 2020, the EU will introduce a cap of around €6,000 ($8,800) for cosmetics.
It will increase to €10,000 for personal care, beauty and hair products.
According in the report eCommerce says the cap will be introduced in 2020, but by 2019, there will be a “cap of €4,500 for cosmetic and hair, and €3,500 on personal hygiene”.
In 2018, the European Parliament approved the introduction of the cap, with a minimum of €2,000.
But the proposal will be reviewed at a later date and could be amended.
“The cap on cosmetics will be imposed on the cosmetic market starting from 2020,” Smith explained.