When CosRX is sold next to La Mer at Costco, something's amiss
There's trouble in the world of luxury skin care
Last month, we launched our BeautyVerse Momentum Tracker, where we listen to what our luxury buyers have to say about all things in the world of beauty. The focus in December was makeup.
This month, we zero-ed in on luxury skin care. And the results were, frankly, shocking. There are not one, but two forces eating away at traditional luxury skin care brands such as La Mer and La Prairie. And they’re both unreported, because the Circanas and Mintels don’t track high-end luxury beauty buyer behavior (we do).
Even WWD in its latest article on the demise of Saks, “Where Are Saks’ Global Beauty Shoppers - and Brands - Going?” sounded a little out of it.
Many industry insiders think the winners will be the other legacy players in the department store market, all of whom have upgraded their offerings in the last 12 to 24 months.
Not even close.
First of all, few luxury shoppers under the age of 35 buy beauty at department stores anymore. One in four Gen Z luxury beauty buyers purchases through social media. Others buy directly from the brand. But most are still going to Sephora, even though Saks is right in its assessment that it’s no longer a luxury experience. But it’s quick, convenient, and carries K-beauty.
K-beauty is too often dismissed as a fad from a decade ago. The truth is, the pace of acceleration has picked up rapidly in the past year, and with the adoption of TikTok shop, products like CosRX snail mucin have exploded in popularity. They’re selling a lot of snail mucin.
I’m working this week from a yoga retreat in Tulum to escape a kitchen renovation. I asked the women I’m with (all Gen X-ers) what they’re buying, and found that they are remarkably fluent in Korean skin care brand ingredients. Spicules, salmon sperm DNA, NAD+ Boosters… they know it all. In fact, one woman shared that she buys her snail mucin (and her La Mer??) at Costco.com. I checked it out, and it’s true.
The lack of an authoritative channel of distribution for luxury beauty is hurting the traditional luxury skin care brands (we see you Violet Grey but you’re only in LA! And why are you still promoting holiday bundles?)
The other dynamic that is eating into traditional luxury skin care is the growing number of science-based clinical products from plastic surgeons and dermatologists. While prices of Korean products are generally much more affordable than traditional luxury skin care, the clinical brands are uber-luxury priced.
Skinceuticals, with its iconic CE Ferulic Acid serum, is luxury-priced, has always played in this arena and continues to do so successfully. Luxury beauty buyers consistently tell us how loyal they are to the product, despite it smelling like a hot dog.
The newer development are the longevity specialists, dermatologists, aestheticians and plastic surgeons getting into the mix. Dr. Nigma Talib, Augustinus Bader, Eighth Day Skin, Angela Caglia, U Beauty and countless others appeal more to luxury skin buyers seeking evidence-based results.
As one of our BeautyVerse members put it:
“I discovered this (Dr. Jart+) through a TikTok video! Traditional European luxury brands don’t feel as worth It to me any more because of all the amazing Asian beauty products on the market.”
S, Gen Z, SF
Then there’s the biohacking trend and increased interest in all-things longevity:
“I used to spend all of my money on products like La Prairie, Guerlain, etc because I thought luxury also meant the best quality Ingredients and most Innovation. However, over the past few years I no longer think this is true and I have been transitioning towards more tech-based products that may not have the same luxurious and pampering effect and appeal... but I think have more innovative ingredients In their formulations. While I sill love La Prairie and I do treat myself to Guerlain Orchidée Imperiali Rich Cream because they do research and use Ingredients that are regenerative like caviar and blue iris stem cells, I have discovered some new brands like Young Goose that seem to compliment my wellness and oral supplements for a more holistic approach.”
J, Gen X, NYC
For more insights and data on the latest luxury skin trends - as well as recommendations on how to succeed in luxury skin care, have a look at the newest issue of the BeautyVerse Momentum Tracker, available on our website, looklook.app, for FREE, under REPORTS, now.
Stay curious, Malinda
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