Product Trend: Small Indulgences Turned Must-Haves
by Christina Lee on March 15th, 2009
Examine some of the most popular purchases in today’s retailing environment, and you may discover a common thread between them all.
They are what the industry is calling small indulgences, or even little luxuries that consumers are also refusing to give up. They offer high quality without a heavy price, while also a small dose of relief for today’s more stressed-out consumer.
Chocolate
Premium chocolate manufacturer Ghirardelli actually expects 2009 sales to exceed that of 2009, as reported by USA Today. Meanwhile, Cadbury and Nestle saw revenue increase by 7 percent or higher last month.
“Chocolate does fine in a recession, even a premium brand like ourselves,” said Fabrizio Parini, senior vice president of marketing. “Maybe our bar is double of what someone else’s is, but we’re still talking about $4 vs. $2.”
Cosmetics
As a whole, cosmetics sales have wavered less than other product categories because of a comparatively lower price and still high frequency of usage.
In an international survey reported by Skin Inc. magazine, 41 percent of respondents said they have been spending the same amount on cosmetics as they did before economists declared a recession.
And while drugstores brands are cheaper, few cosmetics consumers are giving up their department store favorites. The personalized service is an added bonus.
Fashion Accessories
For now cautious – but still fashion-conscious – customers, accessories can easily bring any outfit up to date for a smaller price. After all, while J. Crew prices a cashmere crewneck sweater as high as $145, its cashmere scarf costs $98.
As a result, demand from both retailers and consumers is still higher than expected. Last month, Hot Topic reported that accessory purchases same-store sales increase of 10.8 percent, according to the Salt Lake Tribune.
Readers, what high-quality items would you never give up, even as you cut back buying everything else?