How to Make a $250,000 Beauty Bar and Make a Big Splash
By now you’ve probably heard about the $250 million investment in the new Beauty Bar, which opened at the New York Fashion Week last week.
Beauty Bar is the latest in a line of luxury beauty brands, all of which are trying to bring their brands to a mass audience.
One of the biggest selling points for many of the luxury beauty companies is that their products are designed and crafted to be luxurious and easy to wear.
But what about the cost?
Well, the cost of the products are also going to be an issue, according to a new report from Lux Research.
Lux Research’s report, Beautiful Brands: The Price-Reversal of Luxury Brands, shows that in the next five years, the average retail price of luxury brands will be $9,000 higher than what they would be if the cost were to remain constant.
The report finds that the average price of a luxury product in 2018 is $1,068 more than it would be in 2020, and that average retail cost for the next three years will be nearly $4,000 more.
And while luxury products will be able to reach more customers and spend more, the report says the industry will face many challenges as consumers move away from traditional beauty brands.
“This trend is likely to continue,” said Lux Research President and CEO Kevin Johnson.
For the average consumer, the premium brands will offer a more tailored experience to the individual and will offer better services and products.
They will also offer a greater range of colors, textures and finishes, but at the same time, these brands will have lower margins on the higher-end products.
The beauty brands that will be most vulnerable are the prestige brands.
They have the highest margins on higher-priced products, but they will also be facing increasing competition from low-end brands.
Lux Research predicts that the premium category will see its margins decline to $6,500 by 2021.
In contrast, the lower-end prestige brands will see their margins rise to $3,000 by 2021 and will have their margins increase to $8,000.
So while the high-end beauty brands will continue to have a higher margin on higher prices, they will face more competition from lower-priced prestige brands, Lux Research said.
While the cost per product will remain relatively constant, the price of the high end products will increase to about $2,500 from $1.6, the high cost of prestige brands could increase to over $2 million by 2021, the Lux Research report said.