Beauty Round Up – Coming Out of the Recession

According to the NPD Group (market research company), the recession has produced U.S. consumers that are well versed in stretching their money by using coupons, taking advantage of sales, and shopping at discount stores more frequently. Since the price of food is rising, it is expected that consumers are going to increase their money-saving tactics once again. The Economy Tracker states that 74% of consumers strongly agree that they expect coupons and special deals will be even more important in buying decisions. Sixty-seven percent said they would shop less in general, and 53% plan to buy in bulk.

Encouragingly, rising disposable income and increasing western influence is anticipated to grow the Chinese cosmetics and toiletries market by 12% during 2011-2014. Why is this important? China is in the third position in terms of size of cosmetics and toiletries, following U.S. and Japan. Instead of luxuries, cosmetics and toiletries are now becoming necessities.

Global spending is still not the way it once was before the recession, but it is maintained that the cosmetic sector has emerged from the recession. The global market for cosmetics and personal care actually grew by 5% in 2010. In the same year the premium cosmetics sector itself grew by 2.5% and actually outperformed mass cosmetics.

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