Vanity Product Business is Booming
Monday, April 27, 2015 at 5:07PM Demographic trends firmly favor small luxuries, according to a report from Bank of America Merrill Lynch. Vanity capital is globally at $3.7 trillion, with expectations to grow to $4.5 trillion by 208. Typical products range from cosmetics and smartphones, to fitness wear and health foods. They also include high end products like art, cars and fine wine.
The demographic trends include women who have more disposable income and are particularly prone to spend on small luxuries that improve their appearance, like anti-aging cosmetics. Over 40 percent of 25 to 35 year old Americans say they are already using or plan to use anti-aging products. Sales of anti-aging cosmetics grew by 5% to $25 billion in 2013 and sales are projected to rise by another 29% by 2018. Companies selling vanity products are seeing their stocks increase. Vanity capital stock earnings are forecast to grow by 37% over the next two years.
Accelerated Analytics’ customers who sell into this space include L’Oreal, Estee Lauder, Chanel, LVMH, Shiseido, Clarins, Coty, Elizabeth Arden, Osmotics, and Strivectin.
Source: CNBC