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 so often. They replace these visits with specialised ‘home-kits’, beauty creams and cosmetics such as lipstick.
Many beauty-vistas are familiar with the term coined by Leonard Lauder (Estee Lauder) ‘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 product to the Australian and International market, many with sales figures soaring. Packserv , one of the service providers to the beauty industry, have found this trend in 2009.
Packserv are packaging equipment hire and services business based in Sydney’s inner west. Packserv houses a set of services accompanied by a rental fleet that is comprehensive in nature. Clients can not only hire a variety of fillers, cappers, labellers, conveyers and air-compressors, but also hire products such 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.
Wardell, Managing Director, Packserv, has received more enquiries from producers of beauty products this year than any other industry. He has clients who cannot fulfill orders locally and internationally quickly. His job is to provide them with a ‘recession-proof’ packaging solution that will not break the bank so that they can continue with a positive experience.
Spending financial resources on equipment designed to package the product may be unnecessary. Many new manufacturers have the misconception that to package orders (large or small), they have to either do it all by hand or engage a contract packer or purchase expensive machinery. One such manufacturer, By Pure Pleasure, who produce a skin treatment range made from Himalayan and Dead sea salt infused with essential oils, have recently discovered hiring machinery has major benefits.
By Pure Pleasure were previously mixing the ingredients and filling the jars manually. This process was both time consuming and limited in the number of jars able to be filled. 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 and so they were applying ‘dodgy’ labels by hand. As the sales grew the amount of time needed to produce the number of jars required to fill the increasing orders became prohibitive. This made them think of a cost effective alternative.
Packserv showed them how to fill, seal, label (both waterproof and oil resistant) and cap more product in a day than what they were previously doing in a month. They are currently able to tackle the problems with the reception of a large export orders.