Beauty / article
Beauty Brands Embrace Tactical Deflation to Woo Budget-Conscious Shoppers
In response to a K-shaped economy, mass and masstige beauty brands are cutting prices to drive growth as consumers tighten spending.
Recent years saw many beauty brands hike prices, but now a shift is underway. Lower-priced and masstige labels are particularly affected by rising fixed costs and cautious consumer behavior.
To counteract slowing demand, these brands are pursuing 'tactical deflation'—deliberately reducing prices to attract shoppers. The strategy marks a reversal from previous pricing trends.
According to industry observers, sustaining growth will require improved product development and more effective marketing to rebuild brand appeal.
The moves come as the broader economy shows divergent paths for different income groups, pressuring brands to adapt quickly.