The number of women buying cosmetics at Priceline has almost doubled – from around 620,000 to over 1.2 million – in the last four years, according to new research by Roy Morgan Research.
According to the consultancy, today almost one in four women (23.3 percent) of Australian women who buy cosmetics buy from Priceline (up from 12.8 percent four years ago).
Meanwhile supermarkets such as Coles and Woolworths have “stabilised” their cosmetics sales “after a dip in recent years” with nearly a quarter (24.9 percent) of Australian women who buy cosmetics now buying from them, while Chemist Warehouse, leading department stores such as Myer and David Jones, and discount department stores such as Target, Big W and Kmart have experienced “a slight drop” in sales in the same period.
Roy Morgan CEO Michele Levine says Priceline’s is fifth straight year of growth is “fuelled by a hardcore base of 18-24 year olds and a successful use of the growing online channel”.
“The cosmetics industry is a very competitive one with pharmacies and chemists, supermarkets, department stores and discount department stores all vying to increase their share of the market and looking for an edge to retain existing customers and draw in new ones,” she said.
“Staggeringly, 41.5 percent of 18-24 year old women who purchased a cosmetic product in an average six months purchase a cosmetic product from Priceline. No other retailers are seeing even close to this level of market power over a particular age group.
“Looking at the attitudes which these customers value, it’s not hard to see why Priceline has captured so much of the cosmetic market, in particular that of the 18-24 year olds. Value for money is considered important by 68 percent of 18-24 year olds.
“While supermarkets can offer low prices, and department stores can offer premium brands, Priceline is able to combine these strengths into a high-value offering, appealing to those looking for Value for Money cosmetics.”
For more news and updates, subscribe to our weekly newsletter.