L'Oréal says inflation is not yet impacting consumer demand
French cosmetics group L'Oréal has not yet seen consumer demand for beauty products being impacted by inflation, its CEO told Reuters on 24 May.
L'Oréal's CEO Nicolas Hieronimus shared this insight whilst on a panel, discussing responsible consumption at the World Economic Forum in the Swiss Alpine resort of Davos.
In comparison beauty retailer Superdrug announced this week that it was adding adding 30 more products to its 'Price Freeze Promise' to keep health and beauty products accessible to customers, while also introducing helpful initiatives for its own employees.
UK beauty brand Lush also announced late last week that in response to inflation and the cost of living crisis it was increasing its Real Living Wages.It is now increasing wages to £9.90 in the UK, and £11.05 in London, compared to the Government’s announced increase of National Living Wage for over 23 year-olds of £9.50 and Minimum Wage of £8.36.
In addition to high energy bills, UK beauty businesses are having to cope with higher National Insurance bills, business rate increases and the end of the COVID-rent debt moratorium that protected them from eviction for unpaid rent.
It is now also urging the Government to review its policy on energy rebates it announced earlier in the year, to include businesses rather than solely domestic households. The Council says that for 80% of hair and beauty businesses energy is one of their biggest overheads.
