First, there was the lipstick index. Now Coty Inc.’s chief executive officer Sue Nabi says it’s about the fragrance effect. Editor Trudi Brewer shares beauty news that reflects the global financial mood.
Multi-platinum selling recording artist, songwriter and @mileycyrus is the face of Gucci Flora Gorgeous Gardenia Eau de Parfum.
“Fragrance speaks to everyone – whatever the age and gender.”
Despite recession fears and sky-high inflation globally, beauty is booming. It’s no surprise; it’s an affordable luxury that instantly makes you feel good. The lipstick index is a thing. Leonard Lauder of Estee Lauder Companies coined a term to describe increased cosmetics sales during the early 2000s recession. Fast forward to 2022, post-pandemic, Coty Inc.’s chief executive officer Sue Nabi who distributes brands such as Hugo Boss, Burberry, Chloé, Calvin Klein and Gucci distributors, says luxe-y fragrances are flying off the shelves. “Fragrance speaks to everyone – whatever the age and gender. We have seen from data and statistics that this beauty market is lifted by fragrance consumption; this is not female or male. It’s both, and mainly Gen Z,” Nabi said in an interview with WWD. With strong performances, prestige beauty grew 16 per cent yearly to $662.8 million. Nabi added that Coty is not seeing signs of trade down and is instead seeing the premium category outperform, specifically on fragrances. “What we call ‘premium-ized’ beauty is the path that’s doing the best versus what we could call entry-price beauty. That’s probably more challenging, and the work we have been doing for two years at Coty is clearly to strongly premium-ize all portfolios specifically, consumer beauty,” Nabi continued. In saying that, consumer (affordable) beauty did rise three per cent to $505.5 million, with growth across all product categories and nearly all key brands. Asked about Kim Kardashian’s pricey SKKN by Kim launch earlier this year, Nabi said: “Kim’s skincare line is doing well. It’s above our expectations. One of the best-selling products is not a product but the full line. It went out of stock for almost a few days. It quickly goes out of stock every time we are back in stock.” As for Kylie Cosmetics, that too is performing well, according to Nabi, launching in Brazil and Mexico. “Today, I can tell you that Kylie's business is 50 per cent above the levels of fiscal ’21, so the brand is continuing to grow, specifically in brick-and-mortar.” While inflation globally is at an all-time high, even with the potential headwinds, Coty maintains a positive outlook and expects the fiscal year 2023 to be a year of continued expansion, in line with their medium-term growth targets.
Our favourite top-selling luxury scents
CHLOÈ Nomade EDP Naturelle, 50ml, $185. GUCCI Floral Gorgeous Gardenia EDP, 50ml, $178.
TIFFANY & CO. Rose Gold EDP 50ml, $175. Marc Jacobs Perfect Intense
100ml, $219.
A designer scent laced with vanilla.