Our last post we dove into different ways that self-care businesses have continued to thrive and remain profitable, despite the economic downturn. If you run a candle or soap making business, that post is for you! (click here to read it if you missed it). This week we're digging a little deeper into keeping (and even attracting new) customers as people begin to cut back on non essentials or make smart swaps to deliver value on multiple levels.
The "Lipstick Effect"
Have you heard of the "lipstick effect"? We're sure you have, but just to refresh your memory its where consumers continue to invest in small beauty luxuries, even during a recession. And it's true, even in hard economic times, such as recession and other economic stresses, people will indulge in discretionary purchases that provide an emotional uplift without breaking the budget, like a little luxury lipstick. It highlights how even in hard times, consumers are reluctant to give up on their self-care.
Scented candles, and other home fragrance like wax melts and reed diffusers, are a super popular affordable indulgence. Candles are a refuge from the stresses of the world. They are familiar and relaxing, can cozy or freshen any space, and can evoke a feeling of relaxation and wellbeing. Be sure to mirror larger trends in beauty such as wellness and aromatherapy by offering products in collections or themes that will appeal to your customers.
With #LuxuryInterios and #AffordableLuxury trending on social media with almost 4-million posts combined on Instagram alone, it confirms consumers desire for accessible products that give the look and feel of luxury. Cater to your customers by using premium feel vessels and labels (Canva is your best friend), and don't overlook simple packaging details like a velvet ribbon that can tie it all together.
Discovery sets and minis are a great way to appeal to consumers looking for a treat on a budget. They offer value and versatility, while allowing customers to dip their toe in the pool without having to fully commit to a swim. They also allow your customers to buy something they would have otherwise not been able to afford or justify.
The world we are all living in is affecting all of us in different ways, empathize and listen to your consumer. Make sure you are communicating, providing relief (where you can) and solutions to make them return. Understanding their priorities and concerns will allow you to support and meet their needs, now and for years to come.