But as the distribution landscape for beauty becomes increasingly democratized, the idea of — and expectations around — prestige beauty are changing dramatically.
You May Also Like View Gallery Related Gallery They Are Wearing: Paris Fashion Week Men’s Spring 2022 Overall, beauty is growing in-line with the luxury market, with Bain projecting a compound annual growth rate of 8.5 percent, far outpacing other segments of the market. What it’s not about is price. “The luxury of a beauty product is in the ritual and the results,” said Stellene Volandes, editor in chief of Town & Country. “Luxury beauty used to be about exclusivity — you could only buy it in certain places. But today, it is about knowing what’s best.”
Those two aspects combined help explain why Richards can barely keep. MBR’s Liquid Surgery Serum, whose price recently increased from $1,850 to $1,925, in stock. “Younger people seem more willing to spend money to buy into something that has a story to tell, that has craftsmanship and heritage, something tangible that makes it seem more luxurious,” she said. “You can do research so easily online, and we are attracting a younger customer because we do focus so much on that. It’s been interesting to see the evolution.”
Moreover, luxury sales tend to be concentrated in larger cities, primarily in New York, California, Texas and areas in Florida. The goal is to create an experience that feels completely personalized to the client, so sampling, for example encompasses 25 different stock keeping units. “We want to ensure we complement and meet the needs of clients to make them feel special, because everything should feel bespoke,” Munafo said.
“If you look at the high-end fragrance category, they are still extremely limited and Saks is doing well because of it,” said Kate Oldham, senior vice president and general merchandise manager, beauty, jewelry and home, of Saks Fifth Avenue. “The price point is differentiating as well.”