Case Study: A Deep Dive Into ‘Masstige’ Luxury for the Masses — Retail Boss
Beauty has always been a multi-billion dollar industry, and it’s no secret that consumers are willing to pay top dollar for high-end luxury products. But what about the middle ground? Masstige — a fusion of mass-market and prestige — is a new phenomenon in the beauty world, where affordable yet premium-quality products are taking over.
This approach is not only changing the way customers shop but also impacting the global retail economy. In this case study, we’ll explore the economic impact of masstige cosmetics on the global market and why businesses should take notice of this growing trend. So sit back, grab your favorite lipstick, and let’s dive into it!
Introduction to Masstige and the Beauty Industry
The beauty industry is a multi-billion dollar global market that is constantly evolving to meet the needs and wants of consumers, and one of the latest trends to emerge is masstige.
“Masstige” is a term used to describe products that combine high-end quality with affordable prices and make those products easily accessible to the mass market. These brands are usually sold in high-end department stores and luxury specialty retailers, such as Sephora and Ulta Beauty, but also at mass market retailers such as Target and Walmart.
Masstige brands have contributed to higher spending on beauty products by not only marketing premium brands but making it easily accessible to a wider range of shoppers. The growth of the masstige market has been driven by several factors, including the increased affordability of luxury goods, the desire for more natural and organic ingredients, and the growing popularity of social media.
One of the biggest benefits of masstige beauty products is that they provide an affordable way for people to experience premium or luxury brands, but are also profitable for brands and retailers. This is because they often sell for higher prices, yet still offer good value for money. This makes them attractive to both consumers and investors, and helps to drive up profits within the industry.
In addition to their financial impact, masstige brands have also had a positive effect on the way the beauty industry operates. By offering high-quality products at accessible prices, masstige brands have raised the bar for other companies in terms of clean beauty formulations, sustainability and packaging.
They have also created new opportunities for small businesses and entrepreneurs who are positioning their brands as high quality but affordable in the premium beauty space. As a result, we are seeing an increase in competition in the mass market space, which has lead to more innovation and marketing activity in major retailers, as well as a consolidation of brands within the beauty industry.
Some examples of U.S. beauty retailer ‘s embracing the rise of the masstige brands:
Sephora offers prestige-level products which include higher end brands such as Marc Jacobs Beauty, Bite Beauty and Too Faced. Its private label, Sephora Collection, offers products with moderate prices that are comparable to department store brands. The company also has its own brand of skincare products called OCC (Obsessive Compulsive Cosmetics).
Ulta Beauty offers products from more than 100 brands at its stores nationwide and online, including prestige and drugstore brands alike. This allows Ulta Beauty to create a one-stop shop for cosmetics lovers looking for anything from high-end lipstick brands like Estee Lauder and Too Faced to drugstore staples. Ulta also offering its own private label line called Ultamate Rewards which includes makeup and skincare products with moderate prices similar to department store brands like Revlon and Neutrogena.”
Sephora’s success has inspired other retailers to follow suit in offering luxury makeup at mass market prices. Walmart launched its own line of prestige cosmetics under the name ‘The All Brands Store’ (TBS) in 2012, while Target began selling prestige cosmetics under their own name in 2014.
Demand for Mass-Market Premium Beauty Brands
It’s no secret that the beauty industry is booming, it’s expected to reach a value of $805.61 billion by 2023. In the last few years, there has been a growing demand for premium beauty brands that are mass-marketed. But what exactly is the economic impact of masstige on the global market?
There are several factors that have contributed to the increasing demand for masstige beauty brands:
- The global economic recession has made many consumers more value-conscious, and they are now more likely to purchase affordable luxury products than splurge on designer labels.
- Online shopping has given consumers greater access to research information on products and brands before making an informed decision, in addition to recommendations in online forums, influencers and celebrities.
- Demographic shifts in some markets have created a new class of Gen Z and Millenials who are interested in luxury goods but may not be able to afford traditional prices.
- Social media platforms such as Instagram and TikTok have helped brands reach a wider mass-market audience with relative ease.
- Influencer marketing — where popular social media users are paid to promote products — is being used as an effective way of getting products in front of a mass audience.
How Will Masstige Change in the Future?
If there is a recession or another global economic downturn, consumers will be less willing to spend on premium items and will instead opt for cheaper alternatives. This will lead to a decline in sales of masstige products and a shift towards lower-priced options. This could lead to a decline in masstige brands and products.
In addition, we are likely to see more consolidation in the industry as smaller companies struggle to compete with the large conglomerates that dominate the market. Finally, changing demographics could also affect masstige. As populations age and become more diverse, there may be a shift in what consumers consider to be luxurious or desirable.
Final Thoughts
Beauty is an ever-evolving industry, and the emergence of masstige products has drastically changed the landscape. Not only are these economical options allowing brands to have greater reach into new markets, but it’s also creating a more versatile consumer base that looks for quality without compromising its affordability.
As companies continue to explore this relatively untapped market, there’s no doubt that we will see even more innovation in the future.
I have 15 years of experience in the retail industry including expertise in marketing, operations, merchandising, buying, shopping and technology. I am a former senior managing director of The School of Retailing, University of Alberta. My education includes a Bachelor of Commerce Degree from The University of Alberta in Marketing, Certificate in Real Estate and a Diploma in Fashion Merchandising and Buying from LasSalle College, a Canadian private school founded in 1959 by fashion designer Jean-Paul Morin.
Originally published at https://retailboss.co on March 13, 2023.
