Small items, makeup and fragrances are expected to take front and center this coming holiday season, according to the NPD HIGHLIGHTS: Beauty Holiday 2014 Outlook.
“The smaller items that don’t generally get the big headlines will have a big impact on the market this holiday season—taking advantage of opportunities in unexpected spaces is key in today’s shifting prestige beauty market,” said Karen Grant, vice president and global industry analyst at The NPD Group. “The positive direction that much of the U.S. prestige beauty industry is headed in this holiday season will be given an added boost by brands’ efforts to connect with and engage their consumers in inventive ways.”
More specifically, NPD's holiday outlook—which was released Nov. 11—outlined these trends:
A Beauty-Full Holiday—This holiday will see opening price-point items making an unexpected but potentially significant impact on the shopping season. As potential stocking stuffers, the little things—eyeliners, facial skincare masks, fragrance minis, etc.—will offer the great variety consumers crave but at an affordable price, and will ultimately help drive holiday sales.
'Tis the Season for Makeup—Makeup leads overall prestige beauty with dollar sales up almost 10% from last year and will continue to thrive throughout the holiday season. While the face segment remains positive, the eye and lip segments are the primary drivers, and consumers will continue to look for color and definition from these products.
Scents Ascend—Fragrance is always a top category during the holidays, and after years of lackluster results, the market is finally growing well. Fragrance has been reported as the fifth most-popular purchase of the season, and with more women’s fragrances available this year, the outlook is expected to remain positive.
Skin Care Slows—For the first time in a decade overall category performance is below that of fragrances. While sales from indie and premium-priced brands are robust, it can't overcome the softness in top subsegments such as facial moisturizers, age specialists and gifts. Capitalizing on the smaller subcategories that are growing will help keep skin care afloat this season.
[Image: www.gettyimages.com / Kemal Bas]