Maybe to a retailer’s surprise, higher income shoppers are actually more likely to purchase private-label cosmetics than lower-income shoppers. Mintel reported 64 percent of women in the $100K to $149K income bracket are still buying store-brand/private-label color cosmetics and some brand-name color cosmetics; meanwhile, only 50 percent of those in the $50K to $74K, and 48 percent in the $75K to $99K bracket said the same thing. Kat Fay, senior beauty analyst, Mintel, did note this doesn’t mean these women aren’t buying higher-end, national brands; but they’re more selective.
Thirty-three percent of Mintel respondents said they are buying store-brand/private-label cosmetics more now than they did this time last year. More than half (51 percent) purchased private label because it offered the best value for the money. And 33 percent were motivated to try a private-label cosmetics because of a coupon or special offer, and 26 percent of shoppers went on a recommendation from a friend or family member.