The ‘lipstick effect’ is a term used to refer to a period of economic crisis where consumers still purchase a luxury product. With talks of a recession circulating, the theory is back in headlines again – but is it outdated now?

While the lipstick effect may not hold much sway in a modern economy, new data from global market tracking firm NPD Group found the beauty industry to be one of the fastest categories to recover post-pandemic. In particular, lipstick sales continue to surge, week-over-week. This steady growth illustrates consumers’ desire to splurge on the ‘nice-to-have’ items. However, the challenge lies in how those in the business of beauty can continuously grow and future-proof amid competition.

Below we round-up five brands mastering diversification of their products and services…

Tonic Room

Arguably one of the pioneering New Zealand businesses to stray from the typical beauty offering, Tonic Room, have been ranging a broad range of brands and products since opening in 2014.

All products stocked are guided by their ethos to bring together the best of holistic wellness and green beauty under one roof. In addition to natural health supplements, superfood powders and teas, and bath and body, they’ve also branched out with a curated home and living edit. There are candles, room sprays, essential oils, and incense, all tapping into an overarching theme of selfcare.

It’s not just the products either, alongside facialists, practitioners available to book include massage therapists, holistic therapists, and acupuncturists.

Skintopia

Opening in Wellington in 2019 and Auckland in 2020, Skintopia is relatively new to the New Zealand beauty scene. Despite this, the brand has amassed a devout clientele, thanks to its unique positioning and offering from the outset – in both treatments and products.

Skintopia clients will find everything from BePure supplements and Little Mango natural deodorants to RevitaLash and clean makeup brand Aleph. The most distinctive in Skintopia’s offering though, is its extension into women’s wellbeing and sexual wellness. From Eve’s Period Pal (a PMS support supplement) to AWWA period-proof underwear to Smile Makers –  a range of vibrators and lubricants designed for females – it’s evident Skintopia isn’t afraid to experiment and extend beyond the traditional.

This year, Skintopia unveiled their new flagship clinic and two additional locations in Auckland.

Mecca

Never one to rest on their laurels, Mecca has always been a one-stop beauty destination. Encompassing everything from skincare to makeup, haircare to body care, and services including makeup, brows, hair and styling lessons (hair services exclusive to Australia). Now, they’ve just announced FaceGym – a world-first concept based on the notion of training facial muscles to deliver instant and long-term sculpting, lifting, toning, and brightening results. MECCA’s George Street flagship store in Sydney will be home to the first FaceGym Studio in the Southern Hemisphere and the fifth city worldwide, set to open in January 2023.

Vivo

Family-run, privately owned company, Vivo, are one of New Zealand’s largest hair salon groups. Since launching in 2010, Vivo has expanded nationwide, employing 650 staff in 80 salons across New Zealand. While their roots are in hairdressing, the award-winning salon have successfully diversified into skincare through Vivo Skin Clinics. Services include advanced skin treatments, brows, lashes, waxing, and injectables. Aligned with trusted, high-performance brands, including Aspect, Cosmedix and Medik8, the clinics have garnered a loyal clientele, many who are also regulars at Vivo’s hair salons.

Caci

Caci recently celebrated a new milestone with over 80 clinics, making it one of New Zealand’s most successful homegrown franchises. While best known for skin treatments and cosmetic injectables, Caci also specialise in results below the neck. Targeting unwanted and stubborn body fat, ChillSculpt® is a non-invasive, non-surgical body shaping treatment for long-term fat reduction. Alongside this, Caci also offers laser hair removal and traditional beauty therapy such as lash tinting and waxing.

Main image: @tonic_room

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