As inflation intensifies, Americans are still buying such products crazily!

Many Americans are cutting back on spending due to inflation, but beauty products are still selling well.

Target, Kohl's, Macy's and Nordstrom all highlighted high beauty sales on their platforms in their second-quarter earnings reports released in the past few weeks.

Walmart, the largest retailer in the United States, said that sales of beauty products on the platform are becoming stronger and stronger , mainly due to the particularly high demand for makeup, skin care and hair care products.

Meanwhile, Ulta Beauty, the largest beauty retailer in the United States , said overall sales of beauty products on the platform soared nearly 17% in the most recent quarter compared with the same period last year.

There is one reason why beauty products are selling so well in the U.S. market: Americans, who were forced to stay at home during the pandemic, are now resuming socializing and want to look their best.

Another possible explanation is the "lipstick theory," which states that lipstick sales continue to rise during economic downturns.

The lipstick theory has held true, as cosmetics sales continued to soar during the Great Depression and the U.S. recession in the early 2000s.

At present, color cosmetics products in the US market continue to sell well on various platforms. According to data from market research company IRI, sales of lipstick in the US market have increased by 12%, sales of facial cosmetics have increased by 5%, and sales of eye cosmetics have increased by 2%.

Macy's CEO Jeff Gennette noted on an earnings call in late August that amid high inflation, U.S. consumers focused on necessities and cut back on other purchases, though they still managed to buy beauty products and travel-related items .

Meanwhile, Kohl's reports that U.S. consumers are making fewer trips , spending less per transaction , and turning to value-oriented brands, but they continue to spend on skincare, makeup and fragrances.

According to survey data released by NPD Group, beauty products are the only category among the 14 non-essential items tracked this year that has seen sales growth.

At more established retailers like Macy’s, Sephora and Nordstrom , the continued popularity of beauty products is driven primarily by high-earners, or consumers making $100,000 or more a year, according to Larissa Jensen, beauty industry consultant at NPD.

However, on other platforms, strong sales growth suggests that Americans of all income levels are participating in consumption.

According to Target's sales data, only beauty products showed positive sales growth, while sales of previous hot-selling categories such as home furnishings, clothing and electronics all declined.

Continued inflation has led to a decrease in disposable spending by U.S. consumers, but sales of beauty products have grown against the trend. Sellers operating in the U.S. market can seize the current opportunity and deploy related products.

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