With Poundland, the UK discount chain being symbolically sold for £1 is discount beauty and personal care going mainstream?

Written By Adam Beckett

As an agency that represents a number of beauty and personal care brands, Xenos Business Development is seeing ever more international interest in “budget” or “value-for-money” ranges. What used to be feature only of hard discounters like Poundland, B&M Bargains and Poundstretcher in the UK, Action in Western Europe and Kaufland in Germany and the East, has gone mainstream, with the more premium supermarkets and drugstores stocking an ever-increasing range of these products, particularly in beauty and personal care – historically strongly branded categories.  

 

The rise of “budget” (or “value-for-money” as I like to call them) personal care brands is a trend driven by economic pressures, social media influence, and a growing desire for affordable luxuries. Consumers are increasingly seeking affordable alternatives to premium beauty products, leading to the growth of "dupes" and private label lines. Social media platforms play a significant role in this trend, with influencers and online communities sharing tips on budget-friendly alternatives and encouraging "de-influencing". 

Here's a more detailed look at the factors contributing to this rise:

1. Economic Pressures:

  • Consumers are becoming more cautious with their spending due to inflation and other economic challenges.

  • This has led to a shift towards more budget-friendly options, as people look to save money on personal care products. 

2. Social Media Influence:

  • Social media platforms, like TikTok and Instagram, have become important sources of beauty and skincare information. 

  • Influencers and users are sharing tips on finding "dupes" (similar products at a lower cost) and affordable alternatives. 

  • "De-influencing" videos, which show products that are not worth the hype, are also gaining popularity, helping consumers make informed decisions. 

3. Demand for Affordable Luxuries:

  • Many consumers are still willing to splurge on small luxuries, but they also want to feel like they're getting a bargain. 

  • Private label lines and budget-friendly brands are meeting this need by offering premium-feeling products at lower price points. 

4. Role of Social Media:

  • Social media platforms have made it easier for consumers to discover budget-friendly alternatives and find deals.

  • They also help to create trends and shape consumer preferences, as demonstrated by the popularity of "dupes" and "de-influencing". 

5. Impact on the Beauty Industry:

  • The rise of budget personal care brands has led to a shift in the beauty industry, with retailers and brands adapting to the changing consumer preferences. 

  • Private label lines and affordable brands are gaining market share, as consumers increasingly seek cost-effective alternatives. 

 

The rise of budget personal care brands is a complex trend driven by economic factors, social media influence, and a desire for affordable luxuries. This trend is likely to continue as consumers seek ways to balance their personal care routines with their budgets, and retailers and brands continue to adapt to the changing market. 

Adam Beckett