Have you cut down on spending in recent months, but still indulged in an expensive perfume? Or maybe a couple of new lipsticks? If so, you are in good company. Biggest growth So far in 2023, the cosmetics industry has increased its turnover by 16 per cent compared to last year. This is shown by figures from Næringslivets Hovedorganisation (NHO). While large parts of the trade industry are struggling, the cosmetics industry has wind in its sails. In fact, it is the industry with the greatest growth this year. Why do we prioritize spending our money on beauty in expensive times? Elina Bertoni is one of those who contribute to the success of the cosmetics industry. – Perfume, make-up and creams to take care of skin and hair, that’s my priority. I have to smell good every day, she says. Elina Bertoni says it’s always great to find a new perfume smell. Photo: Frode Fjerdingstad / Frode Fjerdingstad news meets Bertoni while she is shopping at Lyko in Karl Johans gate. She says that she has cut down on electricity consumption, as a result of expensive time. – Is it a long way off to cut cosmetics consumption? – Yes. And you can find goods in all price ranges. You don’t have to stop taking care of yourself because time is expensive. There are reasonable alternatives. Where is the number taken from? Compared to 2022, it is the cosmetics industry that increases the most of all industries in Norway. These companies form the basis for the speech: Travel Retail Norway Makeup Mekka Normal Rituals Lyko Vita Estée Lauder Fredrik & Louisa Kicks L’Occitane Bli Vakker Linda JC Body Shop Blush Source: Næringslivets Hovedorganisation The lipstick effect – In times of recession, most people will reduce their consumption of expensive luxury products such as jewellery, clothes and bags. Then you would rather buy a quality brand of make-up and perfume, for example, says Professor Asle Fagerstrøm. He teaches consumer behavior and personal finance at Kristiania University of Applied Sciences. – This is called the “lipstick effect”. Consumption of more affordable luxury products makes consumers feel good even in times of recession. The phenomenon is not new. The name refers to how people’s consumption changed during the bad times of the 1930s. Professor Asle Fagerstrøm. Photo: Jonatan A. Quintero They also see the same thing with the payment service Klarna, says marketing director Thomas Elvestad. In the last month alone, interest in perfume has increased by 59 per cent. – In tougher economic times, less expensive luxury products are sold, but more people treat themselves to a different kind of luxury in everyday life, such as a good perfume. That seems to be the case in the Lyko store on Karl Johan. Employee Birosh Simon says that interest in make-up, perfume and skin products is great. Birosh Simon from Lyko on Karl Johan says that Korean skin care products have become very popular. He blames TikTok for that. Photo: Frode Fjerdingstad / Frode Fjerdingstad – There is particularly great interest in products that have been promoted on TikTok. They are the ones we sell the most of. On Saturdays there is always a lot of pressure and many people who stop by, says Simon. At Lyko, they don’t notice much waste, but according to Simon, they have noticed somewhat more wastage than is usual. Professor Fagerstrøm nevertheless points to the fact that consumers react differently in times of recession. – Some people put all the brakes on. For these, it is out of the question to buy luxury products. Others carry on as before and are a little worried. This usually applies to young people who live in urban areas. They tend to increase their consumption of products that make them forget that times are bad, he says. Upswing after the pandemic Linda Vist is director of trade at NHO. She says cosmetics are a reasonable luxury. – It is a luxury that we as users can continue to treat ourselves to in the expensive age. These are not necessarily very expensive products, but they give the consumer a feeling of luxury and a good experience. Therefore, she believes that cosmetics is an industry that stands up well through downturns. She emphasizes that the number was very low during the pandemic. – Then the cosmetics department went down as a result of home offices and thus less need. Vist does not think the growth this year will increase profits. – It is probably more likely that the turnover covers the increased costs. It is gratifying to see that an industry that has had a tough time for a few years now has good growth. Linda Vist is branch director for trade at NHO. Photo: Terje Pedersen / NTB
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Norwegians buy more make-up and perfume: – A reasonable luxury
