Global consumers are spending more on higher-end products as the post-pandemic “premiumization” of the beauty category gathers momentum, L’Oréal SA’s chief executive officer told a gathering in New York.
(Bloomberg) — Global consumers are spending more on higher-end products as the post-pandemic “premiumization” of the beauty category gathers momentum, L’Oréal SA’s chief executive officer told a gathering in New York.
“All around the world, people are spending more on better products,” CEO Nicolas Hieronimus told the Economic Club of New York on Wednesday. “Beauty is this category that is both a need but also an indulgence.” The average prices of L’Oréal’s products are going up, he added.
Despite the inflation that’s hitting shoppers’ wallets, “we do not see any down-trading,” Hieronimus said.
Read more: Fragrance Industry Is a Luxury Standout as Demand Keeps Roaring
Fragrance sales are continuing to boom, he added. Consumers in China, where fragrance use hasn’t been as widespread, are increasing their purchases. And the number of people who use fragrance daily in the US has increased compared to pre-pandemic, when people tended to wear perfume only on the weekends, Hieronimus said.
“The pandemic has generated this desire to pamper yourself,” he said. “A good fragrance is a feel-good moment.”
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