In a global economic downturn, luxury items such as beauty products, especially those with solid brand awareness, experience high retail sales. Many believe that the cosmetics industry is a recession-proof market because history has shown that women continue to spend on items that have the ‘feel good’ factor and represent ‘value for money’.
Many parts of the beauty industry may be affected in different ways; while some consumers do not visit the hairdresser, day-spa, or beauty salon as often, they replace these visits with specialised ‘home-kits’, beauty creams, and cosmetics such as lipstick. Many beauty experts are familiar with the term coined by Leonard Lauder (Estee Lauder) — the ‘Lipstick Index’ — as a forecasting tool for cosmetics sales. As with previous recessions, this downturn may be no different; expensive global cosmetic brands and inexpensive local brands may produce sales figures that outdo other manufacturing sectors, such as the food industry.
Beauty industry producers and manufacturers continue to create and introduce new products to the Australian and international markets, many with soaring sales figures. Packserv, a service provider to the beauty industry, has observed this trend in 2009. Packserv is a packaging equipment hire and services business based in Sydney’s inner west. It offers a comprehensive range of services alongside a rental fleet. Clients can hire a variety of fillers, cappers, labellers, conveyers, and air compressors, as well as ink-jet coders, tube sealers, Stelvin cappers, induction sealers, and an on-site cool room/test facility. Producers and manufacturers can either purchase or hire these products.
Wardell, Managing Director of Packserv, has received more enquiries from beauty product producers this year than from any other industry. He has clients who cannot fulfill orders quickly, both locally and internationally. His job is to provide them with a ‘recession-proof’ packaging solution that won’t break the bank, allowing them to continue experiencing positive growth.
Spending financial resources on equipment designed to package products may be unnecessary. Many new manufacturers have the misconception that, to package orders (large or small), they either have to do it all by hand, engage a contract packer, or purchase expensive machinery. One such manufacturer, By Pure Pleasure, which produces a skin treatment range made from Himalayan and Dead Sea salt infused with essential oils, recently discovered the major benefits of hiring machinery.
By Pure Pleasure was previously mixing the ingredients and filling the jars manually—a process that was both time-consuming and limited in the number of jars they could fill. Labels were printed by an ink-jet printer on clear stock with the promise that the labels would be both waterproof and oil-resistant. Neither of these promises was kept, resulting in the manual application of ‘dodgy’ labels. As sales grew, the amount of time needed to produce enough jars to meet the increasing orders became prohibitive. This made them consider a cost-effective alternative.
Packserv showed them how to fill, seal, label (with waterproof and oil-resistant labels), and cap more product in a day than they had previously done in a month. As a result, they are now able to handle large export orders with ease.
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Read this article in Ferret website.