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A Friend Stopped By | 08/02/2009 11:00 pm

Oh, the Price of Beauty, by Debra Borchardt

In economic times like these, women – and the high-end brands and stores they love – are feeling the pinch.
By Debra Borchardt
Photo courtesy of Debra Borchardt
Editor’s Note: Debra Borchardt is a financial reporter for TheStreet.com. Before becoming a journalist, Debra worked in the securities business for 20 years, most recently at Bear Stearns as a vice president working in fixed income, foreign exchange and clearing operations. Debra earned her Master’s degree in business and economic reporting from New York University and also has a B.A. from the University of Houston. Click here for more about Debra from TheStreet.com.

Recently, while walking through the cosmetics section of a department store in suburban New York, it occurred to me that the only sound was the muzak overhead, and not one customer – other than myself – was milling about. With concern in her eyes, the salesclerk acknowledged that her sales were way off and staffing was down.

Oh, the price of beauty. Apparently, the recession has caused women to trade down not only in apparel, but in cosmetics as well.

It’s widely known that specialty shops and high-end department stores have suffered, and discounters have benefited since the beginning of the recession. The cosmetic counters aren’t immune to these trends.

On the positive side, lower-priced names from trusted brands seem to be on the up and up. Johnson & Johnson recently reported its second-quarter earnings and specifically noted that its Neutrogena & Aveeno brands, sold at drugstores and grocery stores, were doing very well. The company wouldn’t comment any further, but the sheer fact that it highlighted the skin-care brands spoke volumes.

Erin Pensa, a spokeswoman for CVS drugstores, agreed. She said, “Neutrogena and Aveeno skin care are … seeing growth this year – both brands are doing well. Notable is also that our CVS Brand skin-care items are seeing unprecedented growth (double-digit) right now.”

Revlon is also a winner in the recession as its sales for Revlon and Almay cosmetics, as well as Revlon ColorSilk hair color, increased for the first quarter. That’s no surprise when you learn that Wal-Mart is its biggest customer.

Even fingernails are feeling the pinch. Pensa points out, “I can tell you that we are seeing double-digit growth in nail care (typically a category that is flat) so that is something new in cosmetics.  We attribute this to the “do-it-yourself” trend we are seeing – consumers might not be able to afford going to a salon to get a manicure so they are giving themselves manicures at home.”

While some women insist they can’t live without their favorite face cream, the reality is that if you don’t have a job, the pricey cream may be the first to drop off your vanity table. The Bureau of Labor statistics recently reported that, in June, the unemployment rate for white women was 7.1% and for African Americans was a whopping 11.7%. Even worse – for women who maintain families the unemployment rate has skyrocketed from 7.9% in June 2008 to 11.7% for this past June. Where in the budgets of these women is there room for beauty?

It’s clear that women continue to spend money on face creams and makeup, but they just aren’t going to department stores and specialty chains to do so. Makeup chain Sephora bore many of the same trends. According to its website, the top seller for makeup and skin care was Bare Escentuals, a brand that is sold in department store like Bloomingdale’s, but is also associated with the QVC shopping channel.

So long as the recession continues, value shopping is big. When the economy recovers, perhaps these women will return to the department store counter, leaving the drugstore makeup aisle behind with nary a look back. But until then, prioritization takes the lead, and chain drugstores? They take the dollar.

Tell us: What have you given up? What will you never give up? Are you finding creative ways to keep the same beauty rituals and skin-care regimes without breaking the bank? Do share.

18 Reader Comments (so far…) Sign In or Register to comment

Judy K.

Nowadays you can look up a product on the net and get feedback from people who bought it and have something to say, yay or nay.  This is like having girlfriends all over the place talking about what they use and why they like it.  For instance I like St. Ives Shea butter with oatmeal moisturizer which can be purchased in any drugstore.  It does not create an allergic reaction on me and is not that expensive.  And, I do like Avon products which can be ordered on line.  One thing that is a bit pricey that I like is Ceramide capsules ( a collegen booster) from Elizabeth Arden that I order from Macys.  But, I can use the capsule three times so it breaks down the price a lot. 

 I think the best invention has been the net.  I can get all kinds of answers that I just used to wonder about.

 

 

 

By Judy K. on 08/03/2009 1:41 am
Constance Plank

I have very fair, very dry, and very reactive skin.  I love Aveeno products!   Back in the day, when the STBXH and I made huge gobs of money, I bought Aveeno products.  I used to buy Clinique for my few makeup needs.  Now, I buy Almay. 

The packaging isn’t as pretty, but I don’t react to the products, so it works.

Since I have very short hair, and am going ashey gray at an alarming rate, I can’t afford to have my hair professionally cut and colored.  As a result, I buy professional products, and dye my own hair.  My wonderful hair-person then cuts my ends off.

(I must say- this is the reward of being a pleasant client and good tipper for years.  She is now cutting me a deal on hair cuts.  Um, my current financial restrictions are the cause of a mentally-ill soon-to-be-ex spouse.  Had he not thrown away the business I started, we were recession-proof.  If you have an unique product required by big business, it’s hard to lose market share.)

Now that I know how easy it is to dye short hair, I probably won’t go back to having it done.  I’ll save my money for pedicures which I find to be a treat I can just occasionally afford.  Better yet, massages, which I used to have regularly some 7 years ago, and really, truly miss, since I have back problems from a car accident.

Hair-coloring is no longer a luxury for me.  

I was a natural red-head.  My mom was white by age 40.  I am 48, and still ashey-gray, so I am indulging in, "better living through chemicals."  It makes me look tired and sad, which is truth in advertising, but still not my best look.  When I go true white, I’ll stop dyeing my hair.  

Constance in the Sierra Foothills

By Constance Plank on 08/03/2009 1:46 am
L. C.

I’ve always been a comparison shopper. I pay attention to a products contents. I compare the pricey with the not so pricey. Sometimes, the not so pricey is healthier and of better quality. There’s also some pricey items that are in a league all their own. I love natural soaps can be pricey. I love my old faithful Dove beauty bar.

The beauty aids that I like can be found at Rite Aid, CVS and Duane Reade. I’m not giving up my MAC lip gloss which is reasonably priced at around $16.00. I’m not giving up manicures, pedicures, waxing and threading!  

I’m reading some books on making natural products at home ( moisturizers, lotions, shampoos and conditioners etc.)

"Mother Nature’s Beauty Cupboard", Donna Lawson

"The Body Shop Book Skin, Hair and Body Care, Introduction by Anita Roddick

By L. C. on 08/03/2009 5:15 am
SURA B

It has been known for a long time that most beauty products are overpriced and contain ingredients similar to those which cost less. It’s advertising that raises the ante. Baby oil does as well as high priced items, as most of us know.

 Actually, brand names are for those who want to be trendy. A little innovation becomes the scent or cure of the week or month , and then it is replaced by another tiny  change; it’s capitalism.

 Today on this website , there is a question about accepting one’s aging, and the sale of beauty products, of course, is linked to the national fear of aging.

 Several years ago, my childen held a post-75 birthday party for me, and my friend of longest duration  (can’t call her my oldest friend) gave me a gift which made me cry, for it was a large box containing  all kinds of beauty creams to help me fend off aging. I wasn’t insulted, but upset, because it revealed her obsession. We are 6 months apart, and as she knows, I was brought up in a European-American home where aging was not a curse, and I never relied on cosmetics to erase who I am, while she began making radical changes early in her appearance to ward off looking older. I wept for my friend.   

Visiting Sephora is like going to the Magical Kingdom; it encourages us to wander and to wonder, and for a few moments to be entranced that an over-priced ointment or powder will transform us, but, of course it is transitory—-except for the bill which is inflated.

By SURA B on 08/03/2009 7:47 am
Chandara Sun
Me and makeup have had our ups and downs over the years.  I started wearing makeup in junior high because my complexion was so bad (a mix of rosacea and eczema - do everything I could to cover it up)  I’ve bought the most expensive makeup and the least expensive makeup, only to find neither worked for me.  The Bare Escentuals stuff did wonders, although my face wasn’t pleased with the brushing part of application for a while.  I have really downsized over the years when it comes to makeup - I also belly dance, so I keep some "loud" makeup set aside for doing dramatic eyes, but other than Bare Escentuals, some Larenim eyeshadow, and my perfume, I stopped buying the latest and the greatest.  (although I have to admit, I do press my face against the virtual window at the Sephora website from time to time just to see what’s out there)  I close the browser window before I find something I think I can’t live without :)
By Chandara Sun on 08/03/2009 8:54 am
Chrome Toe
My best friend never bought cosmetics at a drugstore or grocery store in her life until recently. When she decided to do that it was a big conversation between us lol! I on the other hand have never bought cosmetics anywhere BUT a drugstore or grocery store. with the exception of a tinted moisturizer that is 30$ and lasts me all year since I only use it occassionally.
By Chrome Toe on 08/03/2009 9:36 am
Kristy B
I’m not a big makeup person; I’m really not since the recession.  Who can afford expensive moisturizers, mascara, lip gloss if you are worried about job security!  I do like Avon products.  Their intensive therapy lotion is wonderful!
By Kristy B on 08/03/2009 9:44 am
Nikolette C

I don’t use makeup, just gobs of Carmex to combat the extremely dry air here in NM, but the one beauty luxury that I have not eliminated, only rare-ified, is pedicures. I love having my toes done, but even more luxurious is the process. To close my eyes and lean back against the massaging chair while my feet soak in warm water, are vigorously rubbed with salts, wrapped in a mud mask, or rubbed with creams, is a delightful experience I cannot bring myself to forego completely.

Last year I introduced my bf to the joys of (gifting) professional massages; as all the women in his life have since benefitted from this awakening, I am anticipating the enjoyment of massages for birthdays and Christmas myself. Otherwise, this is also a luxury that I would hesitate to cut out completely but have been forced to attend to less frequently.

By Nikolette C on 08/03/2009 10:15 am
J Holmes
Have always used Revlon or similiar products and have been wearing makeup since 7th grade - started with mascara.  For a few short years I purchased shampoo and conditioner from stylist. Since last summer when the price of gas started go out the roof I started thinking how to economize and hair products were on the list.  I am currently going through my arsenal of little bottles of shampoo I collected from hotels (used 1/2 in hotel and brought up bottle) and conditioners my daughters have rejected after 1 or 2 uses.  It now looks like I am good for at least a year. 
By J Holmes on 08/03/2009 2:08 pm
Wendy R

I have given up my MAC makeup, a line that is carried by Macy’s. It’s just too expensive, I have been using a Revlon foundation and powder. I will admit it does not go on as smooth as the MAC, but I just can’t justify to my self that I need to spend more in times like these. I dye my own hair, I have very long, thick blonde hair, to get it done in the salon is over $100. I go to sallies beauty supply and get the mixes and colors I want and it cost less than $20. I will say though that when things start looking up I will be returning to the MAC counter.

By Wendy R on 08/03/2009 2:44 pm
Lee Harrison
I happened to be in a number of stores in San Francisco over the weekend, including Macy’s at Union Square.  All the stores were jamed with people carrying packages!  And the cosmetic counters were busy, busy.  Sadly, we don’t see that kind of activity here in Ohio.
By Lee Harrison on 08/03/2009 9:16 pm
Susan Crawford
I’ve been a Neutrogena user for many years, so I’m continuing to buy their skin-care lines. As for eye and cheek make-up, I’ve downsized as I get older. Instead of pricey items from Dior and Chanel, I shop the drugstore and you know what? There is precious little difference between the inexpensive brand and the top of the line brand except in the fancy-schmancy packaging. Foundation is different, though. Really inexpensive brands do not go on as smoothly and evenly, I find. But I tried the L’Oreal True Match line a while back, and it is really excellent and comes in so many colors that there’s a good "fit" for women of all complexions. (And I tell myself that "Less is More" - a great mantra for these times!)
By Susan Crawford on 08/04/2009 7:42 am
Elle L

Hi,

I makes me laugh to think that we intelligent women (and now men) keep falling for these cosmetic ads. We know most of them do not work, yet we buy them anyway.  A good, simple face cream and body lotion are all most ever need.  Not a pot of chemicals which claims the earth and costs more than 6 months rent. 

It is a known fact that the average pay for women is less than their male counterparts. Yet women are more likely to spend more money than men.  Our insecurites are constantly played out by the media. And who is telling us to buy that particular expensive brand? Usually the male owners of the expensive brand companies. 

Women need to celebrate our inner and outer beauty.  If we are deemed not good enough to be higher wage earners, then our money should not be deemed good enough for these exclusive brands. 

I ask all who can, lets turn the tables around. Instead of buying more things to ease our own insecurities, lets be strong and save.  If you have a good blusher and it has not run out, why buy a new one just because it claims to be the best on the market?  If these brands want our money, make them work for it, let’s face it, you had to work very hard for yours!  

I am sick and tired of being told by the media that I need to keep looking young.  I am young!!!!. At age 25, you do not need any cosmetic which claims to hide the early signs of aging. If you do have lines and wrinkles at age 25, you dont need a cream, you need to go see your doctor - quick!  

By thinking about how you spend, you can save hundreds, or even thousands a year.  The more savings you have, the more financially secure you will be. This security will last longer than any effects of a compound applied to your body.  

Stop buying expensive makeup or cosmetics, save your money instead and work on empowering your inner makeup.

By Elle L on 08/04/2009 6:24 pm
Ashley Lytwyn

Hey ladies—you’re right..who can afford these kinds of prices in this economic climate? However, now is the time to re-evaluate what we are actually using. While holding your beloved cosmetics in your hand, you may ask yourself, do I really need this? Is this worth the price? But, a better question may be, hey wait, what are these ingredients on the back? Do they REALLY NEED to be putting all this junk in my favorite product? I have to admit, I’m a sucker for my Estee Lauder eyeliner and my lotions upon lotions but until I started reading into the Campaign for Safe Cosmetics (www.safecosmetics.org) little did I know what I was actually putting on to my skin and ultimately into my body. 

 Ladies, check out what is actually in your products and the safety rating on the Skin Deep Database (www.cosmeticsdatabase.com) and join us at the Campaign for Safe Cosmetics to make sure that those products that have become part of our family are actually safe and are as nice to us as we are to them!!

By Ashley Lytwyn on 08/04/2009 7:48 pm
Matilda Chester

One of my goals this year was to start taking better care of my appearance, like foundation and lipstick.  So I haven’t cut corners, but have always bought everything at drugstores anyway.  I’ve also just discovered the joy of relaxation massages, so I will have to put that in my budget now :)

One tip I’d like to pass on though, is I use baby shampoo to wash my makeup off.  It works to wash the mascara off without having to scrub around my eyes too hard - and it doesn’t sting my eyes like other soaps!  And then I use Apricot scrub to exfoliate once or twice a week.  I’ve also stopped using astringent because it dries out my skin.

By Matilda Chester on 08/05/2009 11:49 am