New research from direct-to-consumer e-commerce company ESW finds that unless you’re a brand “super fan,” exclusive or limited-edition beauty drops won’t appeal to today’s price-conscious global consumer. is not.
The study sampled more than 16,500 international consumers in 16 countries and found that 67% of Gen Z and millennials waited to purchase a product, risking running out of stock rather than paying full price. It turns out that there is ESW found that Japanese and Korean consumers are the least price conscious.
In contrast to WWD’s previous report on the rise in Gen Z luxury spending, Clarissa Scherer, Vice President of Sales, Beauty, Wellness and Lifestyle Brands at ESW said: Despite their purchasing power, they are still very price sensitive. ”
40% of beauty “power shoppers” as defined by ESW are consumers who spend at least $2,500 a year online and are still bargain shoppers. If the initial purchaser he is one, only 21% of the purchasers will pay full price and only 25% will pay full price for limited edition products.
Additionally, the study found that Gen Z and millennials are most likely to spend money on international beauty products. 23% and 24%, respectively, made a purchase abroad in the last 12 months. According to the data, China, United Arab Emirates, Switzerland, Spain and India are among his top countries where consumers spend on beauty outside their home country.Countries where they buy most often include the US, France, Germany and the UK
“In an industry rebuilt around scarcity, exclusive drops and limited inventory, this new data is very counter-intuitive to what beauty influencers tend to promote on TikTok,” Scherer said. She told beauty retailers looking to maximize the potential of their brand’s loyal fans, “creating limited-edition products or giving top customers early access to new products.” and to help brands overcome price sensitivity among key demographics in the beauty industry.”
