Prestige anti-ageing beauty market in the UK fragments into price extremes

According to The NPD Group, the prestige anti-ageing market in the UK is fragmenting into a market of price extremes.

Indeed, a recent survey by the market research firm found that consumers are restricting spending on entry and middle market prestige anti-ageing products. In the year to June 2012, value sales are evolving as such:

“As products priced between £100 and £200 are declining -1.2% in value sales, we believe that the consumer that was previously buying in this segment is now trading down to the lower price bracket. Premium skincare consumers clearly see products below £100 as both high quality and a better buy in the current challenging economic environment. Although -1.2% may seem small, it is vital for premium brands to understand the causes of the drop in order to take the action that will ensure that they retain their valued - and valuable – customers,” says June Jensen, Director for The NPD Group Beauty UK.

The dynamism of the upper and super premium sectors - primarily due to the success of new launches and gift sets from brands such as Shiseido, Guerlain, Chanel, Lancome and La Mer - has led to a year-on-year growth of 6% in value sales across the entire anti-ageing category, despite the overall British economy being in recession. “Without the success of new launches and new gift sets the premium anti-ageing segment would be in a decline of 16% year-on-year in values sales,” comments The NPD Group in a release.

In parallel, The NPD Group also notes a strong year-on-year increase of anti-ageing editorial, with coverage in the luxury/premium sector up almost a quarter (24%), and almost half (47%) of the press coverage was driven by new product launches, showing just how important innovation is in the promotional mix.