Clear Growth Trend of 'Luxury Beauty' This Year
Reflecting the Phenomenon of Gaining Psychological Satisfaction Through Small Indulgences
With the lifting of the indoor mask-wearing mandate, demand for cosmetics is increasing, and the number of consumers seeking luxury beauty products is rapidly growing. It is evaluated that the high 'value for money' (psychological satisfaction relative to price), which allows luxury consumption at a relatively reasonable cost, is influencing this trend.
According to the e-commerce industry on the 18th, Lotte On's total cosmetics category sales this year increased by 25% compared to the same period last year as of the 14th. In particular, the luxury beauty brand specialty section 'On and the Beauty' recorded a sales growth rate of 30%, surpassing the overall cosmetics category growth rate. Cushion, lip, and UV products led the growth, centered on department store brands such as Sulwhasoo, Dior, Yves Saint Laurent, and Lanc?me.
On Curly's beauty specialty platform Beauty Curly, the growth of luxury beauty was the most prominent. From January this year to the 10th of this month, the luxury beauty makeup line recorded a remarkable growth of 1018% compared to the previous year. Not only established luxury beauty brands like Hera, MAC, and Est?e Lauder but also recently added brands such as Bobbi Brown and Laura Mercier showed strong sales, driving the category's revenue increase.
The cosmetics category was one of the representative product groups that struggled in sales during the COVID-19 pandemic, but with the removal of the indoor mask-wearing mandate, sales are rapidly recovering, especially for makeup products. According to 11st, since the mask mandate was lifted on January 30th until the 14th, cushion compacts saw a 95% increase in transaction value compared to the same period last year. During the same period, eyeliners (49%), lipsticks (37%), and men's BB cream (17%) also showed significant sales growth.
The growth trend in makeup products is even more pronounced in luxury brands, reflecting the so-called 'small luxury' phenomenon, where consumers gain psychological satisfaction through small indulgences. This has led to an increase in customers seeking reliable luxury beauty products. An SSG.com representative explained, “Steady sellers such as Est?e Lauder Brown Bottle Serum, Est?e Lauder Double Wear Foundation, Dior Lip Glow, Kiehl’s Ultra Facial Cream, Lanc?me UV Expert, and Yves Saint Laurent Tint are driving sales.” They added, “Products prepared in exclusive packages through negotiations with brands, such as adding extra product volume or offering special gifts, are particularly popular.”
Yoo Hae-eun, head of the beauty team at Lotte On, also said, “We believe that the endemic phase and the lifting of the mask mandate have renewed interest in makeup products.” She analyzed, “The revenge buying sentiment for cosmetics that could not be purchased for a long time due to COVID-19 has led to luxury cosmetics purchases.” She added, “Especially cushion and lip products show much higher demand for luxury beauty because people do touch-up makeup outside and want to be seen by others.”
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