Over the past decade, discounting has become more widespread within the premium beauty market, according to analyst and journalist Imogen Matthews in her latest report, 10 Years of Premium Beauty. However, she has added that now that the recession is ending, it’s time for a change.
“Agreed, discounting is an effective way to draw consumers in-store, especially during the all important Christmas period,” said Matthews, but “now that it’s no longer the exception but the norm, consumers have come to expect it and are reluctant to buy at full price unless they absolutely have to.”
To avoid the long term damage to profits and brand image that discounting can cause, Matthews suggests a three-point plan, which involves favouring attractive GWP promotions over discounts, rethinking sampling and rewarding loyal customers by inviting them to become ‘brand ambassadors’.
