Cosmetics & Beauty Values and Free Gifts

Traditionally cosmetics are rarely discounted on major department stores and specialty stores.  Estee Lauder, Clinique and Lancome may offer free gifts with purchase but brands usually don’t leave additional money on the table. However, I was surprised to find several offers in the Bloomingdale’s catalog I received last week. One side of the catalog was dedicated to beauty and featured several brands with discounted sets. At Bloomingdales.com the bonus offers are even more prominent. Fragrance sets are offering the largest value. For example, Marc Jacobs’s Lola Holiday Gift Set is $70 ($105 value) and Prada L’eau Ambre Set is  $76 ($108 value). 

On the specialty end, similar values are available at both Sephora and Bliss. Sephora has even deeper value offers, with Tarte offering a Crown Jewels Lipgloss Multi-Gift Set for $39 ($165 value). By the way, almost every holiday gift reco comes with an offer. Bliss’ catalog announced "over $450 in savings on these pages" and their website is offering 15% off plus free shipping on all Bliss and Remede purchases (expires today 12/14). Despite the discounts, some gift offers may still be pricey for many shoppers, and therefore there is a risk of alienating them for other goods. Cell phones and other durable goods are priced at similar levels and may steal the beauty industry’s Christmas lunch. If this is proves to be another tough holiday season, many companies will need to rethink their product development, pricing and marketing strategies in order to stay relevant until the economy recovers.