The cosmetics industry is not known for having a particularly stable bottom line, but the company that has the most disruptions in 2017 has been top-notch.
The top-performing brands have had a tough year, according to data compiled by Cosmetics Insider, with the top performers including Estée Lauder, Guerlain, Urban Decay, L’Oreal, and Burberry.
With the emergence of online retailers like Amazon, online retailers have become the major players in the makeup industry, and the top-ranked brands have found themselves in a position of being able to raise prices on products, which is often a popular strategy in an industry where the price of a product can go up as consumers demand it.
The cosmetics industry has also been experiencing a drop in the amount of sales as consumers have been looking for less-expensive options to spend their money on.
In 2016, cosmetics accounted for $2.5 trillion in revenue, but in 2017, sales have fallen to $1.4 trillion, according the report.
“As consumers have grown more willing to spend less on cosmetics, it’s led to a reduction in the number of stores and the number, size, and number of products available,” Cosmetics Insider founder and CEO John Taggart said in a statement.
Taggart also noted that sales are down in many categories, including lipstick, skincare, and eye makeup.
“While the top five brands did not see a significant increase in sales this year, the other three had a statistically significant decrease in sales,” he said.