Are luxury beauty advent calendars a rip-off?

Published On Nov 8, 2024, 8:26 PM

Beauty advent calendars are a growing trend on social media, with influencers showcasing products worth much more than their selling price. Despite the high costs (ranging from £200 to £250), many consumers see value in these calendars as a means to try premium beauty products. Retailers use them as a marketing tool to drive future purchases. However, there is a concern about the actual usage of all products within the calendars, with some buyers feeling they might waste money if they don't use every product. The popularity indicates that demand for these calendars remains high, with some already sold out, but there's also a cautionary note about scam websites capitalizing on this demand. Overall, advent calendars are perceived as a blend of luxury and practical spending for beauty enthusiasts, leading to a sustained interest in them.

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Stock Forecasts

ULView UL chart on TradingView

Positive

The rise in popularity of beauty advent calendars highlights increasing consumer interest in premium beauty products and experiential purchases during the holiday season. This trend suggests a positive outlook for companies that produce or sell beauty products, especially those with established brands or strong social media presence. Retailers like Space NK, Harrods, and Sephora could benefit from the sustained demand, particularly if they successfully increase production without leading to excess inventory after the holiday season.

COTYView COTY chart on TradingView

Positive

Beauty companies like Coty (COTY) that offer luxury beauty products may continue to capitalize from the advent calendar phenomenon. As consumers look for ways to treat themselves without overspending, brands providing high-quality, desirable products in these calendars stand to gain market share. Investors could consider Coty as it aligns with the luxury and beauty market demand observed in this trend.

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