Beauty businesses are set to be hit hard by the increasing cost of living. Here’s how to work out where inflation could impact you
With consumers becoming increasingly conscious of their spending, the beauty industry is entering a period of uncertainty. On one hand, experts are pointing towards the ‘lipstick effect’ as a buoy for the beauty industry whilst other research shows that consumers are less likely to invest in products.
A recent survey carried out by Avon UK found that 1 in 10 people have given up their make-up due to the cost of living crisis. It doesn’t stop there, skincare brand UpCircle found that 1 in 5 UK shoppers are worried about being able to afford skincare products.
So, as we wait to see how the cost of living plays out, it’s time to get prepared for the possible consequences. The Office of National Statistics (ONS) has released an inflation calculator to help you figure out how inflation will effect your daily spending.
Covering groceries, housing, transport and leisure, the tool calculates how your personal inflation rate will be affected by the 10.1% nationwide increase in costs. This is a good place to start in calculating approximate costs related to your business.
Please note, the calculator does not store information that is entered.
WGSN predicts that nice-to-have and non-essential beauty sectors should prepare to take the biggest hit. Instead, consumers will reach for multi-use products that can be used for the whole family.
It says: ‘Data from YouGov found nearly a third of Britons have had to cut back or stop buying household essentials…Products safe to use across the household will offer solutions without having to negotiate priorities.’
On sustainability, the forecaster says: ‘Nearly 80% (of people) are concerned about their finances and 67% said that the ‘high price of sustainable products is significantly putting them off from buying them’.’ Pointing towards the anticipated popularity of no-rinse products which help save energy and water costs.
