This is why one third of millionaires plan to increase annual beauty spend
UK retail sales look set to soar this year as high net worth individuals (HNWIs) plan to increase their spend on beauty products, according to a report by Agility Research and Strategy.
The report stated that 34% of UK HNWIs are shifting towards spending more on beauty products than on luxury goods such as clothing, airline tickets, and cars.
Could this be the return of the lipstick effect? The term, coined by ex chairman of the Estee Lauder group Leonard Lauder, looks at how historically lipstick prices have risen despite periods of economic crisis.
However, it seems that people not only want to look good, but now they want to feel good about their beauty spending and purchases. The report revealed that almost 90% of UK millionaires make ethics a priority, stating that they would spend more money to buy from a sustainable brand practicing responsible values.
The high network consumers’ move towards more ethical purchasing presents a huge opportunity for brands but also potential pressure for those who have not adopted sustainable and ethical values.
Brands that can effectively communicate their commitment to these values are likely to see an increase in demand from HNWIs who are willing to pay a premium for products that align with their beliefs.
Amrita Banta, managing director of Agility, Research & Strategy, said, “Our Global Millionaires 2023 TrendLens report clearly shows that HNWIs factor in sustainability when considering luxury purchases and therefore brands lacking ESG credentials could see a downturn in sales.
“But it’s not only what people are buying that is changing, it’s also where. TikTok has emerged as a growing platform and has huge potential for growing brand awareness, with customers using the platform as a source of beauty inspiration. An estimated one in five millionaires are now using the platform to shop.
The UK beauty market presents a significant growth opportunity for beauty brands that can effectively communicate their values of sustainability and ethics and have a strong social media presence.
As HNWIs continue to prioritise these values in their purchasing decisions, brands that can meet these expectations are likely to see an increase in demand and revenue.
“This is why one third of millionaires plan to increase annual beauty spend” courtesy of PB Admin from Professional Beauty (May 16, 2023). © 2024 Professional Beauty. All rights reserved.
