Poles are still willing to use the services of the beauty industry. According to the data of the BIG InfoMonitor Register of Debtors and the BIK database, the situation of hairdressers and beauticians – compared to other professions – is stable. Despite high inflation, we spend more on this than on culture, entertainment or the gym. According to the chief analyst of BIG InfoMonitor, Professor Waldemar Rogowski, in Poland we are dealing with the so-called lipstick effect.
According to the data of the BIG InfoMonitor Register of Debtors and the BIK database, the outstanding debt of the beauty industry in October 2022 amounted to PLN 109 million. “This is an increase of only 7.5 percent compared to the same period last year” – it was pointed out.
The president of BIG InfoMonitor, Sławomir Grzelczak, pointed out that despite the increase in backlog, this industry “compared to the entire service sector of the Polish economy, performs exceptionally well”.
“Hence our optimism about the situation in the industry. There are entrepreneurs who have suffered much more as a result of the recent perturbations. Among them are restaurateurs who have increased their debt by almost 9 percent year on year. by 14 percent year on year, sports, entertainment and recreation activities – 45 percent, and repair and maintenance of computers and personal and household goods – over 160 percent, and examples can only be multiplied” – emphasized Grzelczak.
In his opinion, “the scale of the increase in overdue debt shows not only which industries face the greatest cost pressure, but also what Poles want to save on, and where they do not limit spending.”
Crisis-resistant beauty industry
A study conducted by Quality Watch on behalf of the BIG InfoMonitor Register of Debtors shows that inflation affects the reduction of expenses more strongly than the COVID-19 pandemic, but its impact is not so clearly reflected in the use of the services of a hairdresser or beautician. The survey was conducted on 28-31 October this year. using the CAWI method (computer-assisted online interview), 1064 Poles aged 18 and over took part in it.
As indicated, every third respondent (33 percent) spends the same amount on a hairdresser and beautician, and as much as 17 percent. respondents decided to allocate more for this purpose (increase by 7 percentage points). Only 26 percent decided to temporarily reduce expenditures on appearance improvement. It was pointed out that men spend more on beautifying their appearance than a few months ago (19 percent of respondents) than women (15 percent). “If, however, we divide the answers by age groups, we will see that young people aged 18 to 24 (25 percent), i.e. in the vast majority of students, whose finances are not yet stable, intend to spend more” – we read in the release. .
Savings are mainly not planned by residents of large cities above 500,000. residents (21 percent of those asked).
The “lipstick effect” in Poland
According to prof. Waldemar Rogowski, chief analyst of BIG InfoMonitor (BIK Group), “we can definitely say that in Poland we are dealing with the so-called lipstick effect, i.e. a mechanism of changing consumer preferences.”
“The consumption of high-value luxury goods is visibly decreasing, while the consumption of these relatively cheaper luxury products and services is increasing. If I can’t afford an expensive trip, I will emphasize my status with a weekend visit to the SPA” – he explained.
As noted by Rogowski, the trend is also observed in data from the Central Statistical Office. “In October 2022, the largest increases in retail sales year-on-year could be observed in the case of clothing and footwear (14.3 percent) and cosmetics and medicines (8.4 percent). Sales of cars and motorcycles fell, so there is a chance that the industry beauty, despite the market turmoil, can breathe a sigh of relief and look to the near future with optimism” – concluded the analyst.
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