''As women get older, many don't mind spending an extra $10 for a product, but for teen-agers, a nickel could make the difference,'' she said.Finish your look with the perfect lip from Armani Beauty’s selection of glossy, matte and liquid lipsticks. (It is estimated that teen-agers make up approximately 50 percent of the buyers of cosmetics.) However, Miss Hill said, this demographic trend could have some positive effects on the higher-priced cosmetics. Regardless of the differences, analysts caution that the declining teen-age population will hurt both high-and low-priced cosmetics. The also cited their research and development costs for new products, more variety in shades and colors and higher advertising costs. We are not trying to be a trend-setter, with different colors we just sell a good product.''Īt the upper end of the price scale, however, company officials said that their products were indeed better. ''Because we do not advertise, our costs are much lower. ''The only difference is the price of the cap, the price of the marketing.'' he said. Berger of Hazel Bishop argues that there is no difference between his lipstick, which sells for 89 cents, and the higherpriced brands. ''That fallacy is fading.'' Reasons for Price Differences ''Before, most women thought that the more expensive a product is, the better the results,'' Miss Hill said. The relationship between price and quality has long been debated among consumers and industry experts alike. The lack of advertising and the plain packaging make the lower prices possible. Winarick and Art-Matic, which offer nail polish, lipstick and eye makeup at prices well below other companies. The 'Budget' ProducersĪnother segment of the industry, one that produces even less expensive cosmetics than the mass merchandisers, consists of no-frill companies such as Hazel Bishop Industries, A.R. ''It is essential to our growth.''Ĭover Girl, already well established in skin care products, this year introduced Oil Control Powder Blush and Marathon Mascara, and the company said sales had exceeded forecasts. ''We have to keep introducing new products,'' he said. These products have proved successful, according to David Britain, president of Maybelline. More recently, it introduced a mascara called Dial-a-Lash, with an adjustable dial that controls the amount of liquid on the tube. Last year, Maybelline entered this sector with a product called Moisture Whip, a facial moisturizer. Over the past few years, most cosmetic companies have gone into skin care products, with an emphasis on good health. Surprising the customer with bright new products is another must for the mass merchandisers. ''Retailers tend to favor brands that are heavily advertised by the manufacturer,'' Miss Landry said. High visibility is not only for the consumer it also helps to sell the products to the retailer. Maybelline spent an estimated $25 million, or close to 25 percent of sales, according to analysts. Cover Girl spent well over $20 million in 1980 in advertising, 20 percent of its sales. Last year, Cover Girl was one of the 100 largest advertisers in the United States and one of the smallest companies within the group. This easily recognizable ''look'' has made Cover Girl one of the best-known cosmetics lines in the country. ''That clean, fresh, Cover Girl look'' has blared out of dozens of full-page ads in women's magazines and television commercials over the years. Miss Hill estimated the overall industry growth at 1 percent. Frank Berger, president of Hazel Bishop, said that the company's sales had more than quadrupled over the past six months. At Maybelline, sales are 20 percent higher. Noxell's sales are running 14 percent above 1980. ''Their sales growth has been well over the industry norm.'' ''These less expensive brands are doing great,'' said Emma Hill, a cosmetic industry anaylst for Wertheim & Company, an investment firm based in New York. The Maybelline Company, a subsidiary of the Schering-Plough Corporation, and its rival, Cover Girl Cosmetics, made by the Noxell Corporation, are two examples of the flourishing among the less expensive brands. Though sales are relatively flat for cosmetics generally, mass merchandisers and the less expensive brands are enjoying record growth. Whatever the answer, as more and more people feel the effects of a souring in the economy, price differences in cosmetics are being taken more seriously by consumers. No, there's not, say the manufacturers of less expensive makeup. Is there any difference between a lipstick that sells for $2.50 in a variety store and one that costs $8 in a department store? Yes, say the premium-priced cosmetic companies.
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