The Debrief

Beauty Is in Its Flop Era


Listen Later

The beauty sector historically thrived during economic downturns, earning a recession-proof reputation encapsulated in the “lipstick index.” However, recent earnings from major beauty conglomerates like Estée Lauder, L'Oréal, Coty and Shiseido indicate that beauty’s resilience is being tested. Sales are declining, layoffs are coming and consumer habits appear to be shifting dramatically. 


BoF Senior Beauty Correspondent Daniela Morosini joins Brian Baskin and Sheena Butler-Young on The Debrief to examine what's driving this slowdown and how the industry is adapting.


Key Insights: 


  • Traditionally, small luxury purchases like beauty products thrived during economic pressure. But the landscape has changed. “Prices have really, really grown, and there's just so much more to choose from,” says Morosini. The combination of escalating prices, excessive market saturation, and a shift to online platforms like Amazon and TikTok has diluted the impact of small luxury indulgences. "It's really hard to get seen. So even if you have a more affordable product that more people can afford, you still have to get people to come and look at you and come and interact with you," she adds.


  • Brands once benefited from consistent replenishment and customer loyalty. Today, consumers are more transient, constantly seeking newness. “Customers seem to have this insatiable appetite for more products and more newness,” Morosini notes.  But after years of heavy consumption, shoppers are starting to tire of new for the sake of new. “Something that’s really starting to come into focus is that, specifically, American middle-class shoppers are starting to buy fewer beauty products – and that’s having a big knock-on effect.”


  • As consumers become more price-sensitive, brands need to redefine value beyond just pricing. Morosini suggests brands return to basics, emphasising their core strengths and fostering loyalty through consistent, quality products rather than frequent launches. "People are really, really attuned to perceptions of value," says Morosini.


Additional Resources:

  • The Beauty Slowdown, Explained | BoF
  • The End of the Lipstick Index | BoF 


Hosted on Acast. See acast.com/privacy for more information.

...more
View all episodesView all episodes
Download on the App Store

The DebriefBy The Business of Fashion

  • 4.8
  • 4.8
  • 4.8
  • 4.8
  • 4.8

4.8

42 ratings


More shows like The Debrief

View all
The Glossy Podcast by Glossy

The Glossy Podcast

251 Listeners

Naked Beauty by Brooke DeVard

Naked Beauty

1,146 Listeners

The Business of Fashion Podcast by The Business of Fashion

The Business of Fashion Podcast

575 Listeners

Second Life by Second Life

Second Life

2,863 Listeners

the goop podcast by gwyneth paltrow

the goop podcast

6,729 Listeners

Let's Get Dressed by Liv Perez

Let's Get Dressed

279 Listeners

Gloss Angeles by Kirbie Johnson and Sara Tan

Gloss Angeles

686 Listeners

The Run-Through with Vogue by Vogue

The Run-Through with Vogue

699 Listeners

Retail Reborn from The Business of Fashion by The Business of Fashion

Retail Reborn from The Business of Fashion

10 Listeners

Morning Meeting by Air Mail

Morning Meeting

223 Listeners

Every Outfit by Every Outfit

Every Outfit

1,059 Listeners

The Who What Wear Podcast by Who What Wear

The Who What Wear Podcast

93 Listeners

Drive from The Business of Fashion by The Business of Fashion

Drive from The Business of Fashion

0 Listeners

Transforming Luxury from The Business of Fashion by The Business of Fashion

Transforming Luxury from The Business of Fashion

5 Listeners

Fashion People by Audacy | Puck

Fashion People

166 Listeners

Fashion Neurosis with Bella Freud by Bella Freud

Fashion Neurosis with Bella Freud

188 Listeners

The Good Buy by Harper's Bazaar

The Good Buy

70 Listeners

Aspire with Emma Grede by Emma Grede | Audacy

Aspire with Emma Grede

484 Listeners