Skincare companies The Ordinary and Dr. Dennis Gross set to increase product prices
Starting January 1, 2023, some products from The Ordinary and Dr. Dennis Quaid will see a price adjustment. The skincare brands, known for their affordability, have announced that a majority of their products will increase in price by an average of $1.12, while a few will decrease in price.
The Ordinary, a popular brand under the Deciem portfolio, is renowned for offering relatively low-priced skincare products. The announcement of the price increase comes amid rising costs that the brand has been navigating. The exact products that will see a price hike or a decrease have not been specified.
In a similar vein, Dr. Dennis Gross, a prestige skincare brand, will increase prices by an average of 4% starting next month. This includes their 30-pack of chemical peels, which will rise from $88 to $92.
The price adjustments come at a time when the beauty industry is experiencing significant growth. Ulta Beauty, a leading wholesale retailer in the beauty and personal care category, reported a surge in sales, comps, and profits in their third-quarter earnings. This growth can be attributed to strong demand for beauty products, the expansion of their product range including exclusive brands, enhanced e-commerce and digital sales channels, and successful loyalty programs that boosted customer retention.
In the first half of 2022, consumers with a household income of over $100,000 spent $9 billion on the beauty category, indicating a strong consumer interest in beauty products. The Ordinary sells its products directly to consumers and through wholesale partners such as Sephora and Ulta.
The price increase announcements were made via Instagram posts. The Ordinary is a brand that Esteé Lauder took a controlling stake in last year. Dr. Dennis Gross, on the other hand, is an independent brand.
Despite the price increase, both brands remain committed to providing high-quality skincare products at accessible prices. The price adjustments are a response to the rising costs that the brands have been facing. As the beauty industry continues to evolve, it will be interesting to see how these price changes impact consumer behaviour and the overall market.
