The current US economic recession is fast spreading to the rest of the world.
Russia has officially declared that their economy is in trouble too. As the fear of recession is spreading all around the world, our question is, how is it going to affect the beauty and cosmetics industry? Is it going to affect beauty and cosmetics industry at all?
The rate of purchases in the jewelry market as well as gems market has been affected already. According to the latest estimates, roughly 4% of the people who work in the gems and jewelry sector have lost their jobs. This is understandable to some extent as jewelry is pretty expensive at any time, even without recession. This is especially true about jewelry made of Diamonds, Platinum and precious stones like Ruby, Emerald and Sapphire. When people are finding it hard to hold on to their homes and paying off their monthly mortgages in time, the last thing they have in mid would be cosmetics. When people are tightening their budget, they are definitely going to reduce their jewelry purchases.
What about make up accessories? Women are certainly going to reduce the expensive cosmetic products for some extent. But most women are not going to stop using lipstick and similar affordable make up accessories altogether. They are bound to look for cheaper alternatives for their regular lipstick brands. And many women are known to indulge in lipstick purchase, as they find it difficult to afford a new dress or an expensive skin treatment. They are more prone to stop or delay more expensive beauty treatments like manicure and pedicure. But they would indulge a little more in affordable beauty accessories like lipstick. These are part of women’s affordable luxury items. They give them a feeling of empowerment. The use of these products always gives them a feeling of over all satisfaction about themselves and adds to their self-esteem.
Women can get a new look by applying a new lipstick every now and then. This is possible, even when they cannot afford to get the matching jewelry or dress to give them the princess look. Women are not going to stop buying and using lipstick. They may change from expensive brands to the cheaper varieties found in Wal-Mart, pharmacies, convenience stores etc.
Thus the beauty and cosmetics market is going to be affected in the recession. They are not recession proof. But results of recession will be affected mostly in the expensive cosmetics products categories. The cheaper cosmetic products are going to be safe from the effects of recession.
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I’ve learned a few things from this recession – (1) the importance of saving (2) the importance of not spending money frivilously on overly priced makeup. After getting to the bottom of each and every makeup product I owned (which mostly came from Sephora) I was forced to find replacements that were less expensive. I don’t have time to brave the crowds at walmart, so I do a lot of online deal hunting. Most of my stuff now comes from Ebay shops or specialty cosmetics stores online. I found a great site called Coono Babe. Their makeup is really inexpensive and really great quality. Of note are their lip glosses and face powders. An added bonus – they offer free shipping on all orders. Check them out!
Our country was also hit hard by the Economic Recession. At least we are seeing some signs of economic recovery now. I hope that we could recover soon from this recession.
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Our country had been so much affected by this Economic Recession. there are lots of job cuts and company shutdowns. We are seeing some signs of economic recovery right now and we hope that it would continue.
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during the height of the economic recession, our online and offline business in the US have suffered some major drop in sales. now our sales are getting slowly back to normal.