Budget beauty products give luxury brands run for their money

Budget beauty products give luxury brands run for their money

Supermarket makeup companies are giving luxury brands a run for their money, with consumers turning to more affordable options.

Consumers are still spending big in the beauty industry, but they are turning to cheaper makeup brands, in part spurred by social media.

Mother-of-two Rachel Manhuyod said buying budget beauty products was not only affordable, but convenient.

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“I’m able to do my groceries, and pick up makeup, skincare, baby needs, everything in one go,” Manhuyod said.

“They’re really on par with a lot of luxury brands these days, what we get is great value for money.”

Woolworths commercial director James Hepworth said the store had seen a significant increase in interest in supermarket beauty products.

He said mascara was one of the store’s best-selling beauty products, with approximately 8000 tubes sold every day.

“Customers are really loving (beauty) categories at the moment, they’re 15 per cent up year on year,” Hepworth said.

One of the surging cheaper brands, MCo Beauty, is known for its affordable “dupes”, of high-end makeup products, garnering a cult following on TikTok.

Market research company IBIS World said the products are usually very similar to luxury items.

“Dupe products are products that are replicas, have similar packaging and colours to luxury goods and usually they’re at cheaper price points,” IBIS World senior industry analyst Danny Martin said. 

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The brand is now expanding into the US after the high demand for makeup dupes.

Coles and Aldi are also cashing in on the demand, each launching their own skincare brands. 

Mecca is still the queen of Australian cosmetics, generating an estimated $1.2 billion in revenue this financial year, but experts say the market is shifting.

Myer saw an overall sales revenue that was down 3 per cent in the first half of this financial year.

“They’re being priced out as the affordable market emerges,” Martin said.

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