How “Recession Glam” Is Forcing CMOs to Rethink Premium
Asia’s beauty boom meets thrifty shoppers as marketers mix lux appeal with smart pricing.
Asia-Pacific beauty brands are revamping packaging and portfolios to meet "Recession Glam" demand. Consumers want top-shelf beauty products at lower prices while insisting on safety and a premium feel.
The shift, identified by Euromonitor International, is pushing companies to balance affordability with perceived luxury.
Brands respond with smaller sizes and simpler formulas
Yang Hu, Asia Pacific Insight Manager at Euromonitor, said consumers are replacing impulse buys with value-driven choices. “Globally, consumers become more mindful of their spending, replacing the impulse purchases with more cautious and value-driven choices,” Hu noted. This reflects a broader pattern of value-driven choices.
Price sensitivity is visible in purchasing data. About 10% of Asia-Pacific consumers purchased cheaper cosmetics last year. In Indonesia, brands are answering with refillable packaging from L’Oréal and mini skincare kits from Somethinc, allowing access to luxury at lower costs.
Trade-offs are shifting toward efficacy. Younger shoppers favor mini or trial sizes. Extras like fragrance are often skipped, while safety and performance remain non-negotiable. “Recession in Indonesia is not about abandoning beauty. It’s more about downsizing smartly,” said Anastasia Gracia of Kadence International Indonesia.
Operational focus is tightening, too. Hu advised brands to streamline portfolios and concentrate on top performers. Gracia recommended simpler formulations, affordable packaging, and multifunctional products to maintain quality while trimming costs.
Ingredient transparency and online comparison reshape premium
Consumers are evaluating ingredient lists and comparing products more closely to judge value and performance, a behavioral shift aligned with Euromonitor findings that Asia-Pacific shoppers are buying less and using less.
Digital retail is reinforcing these habits. According to McKinsey, e-commerce grew from 19% of beauty retail in 2019 to 30% in 2024. The shift increased price transparency and cross-brand comparisons. Shoppers are more willing to test lesser-known or local brands and switch platforms. Many wait for discounts if the ingredient story and results match expectations.
Packaging formats are evolving to support trial and affordability. Industry reporting shows beauty minis are shaping trends in packaging and sustainability, giving younger buyers accessible entry points without sacrificing perceived quality.
Mass brands push premium cues without premium prices
Channel dynamics are also shifting as mass beauty brands are going premium, while the gap between channels narrows. Executives describe this as using elevated textures, ingredients, and packaging while keeping prices within reach.
L’Oréal CEO Nicolas Hieronimus described the push as a “strategy to democratize and premiumize mass beauty.” CFO Fernando Fernandez has noted a boost in the personal care division attributed to premiumization efforts. Refillable formats and curated mini kits will continue to be part of the toolkit to maintain a luxury feel while lowering entry prices. The tactic is particularly visible in Indonesia’s adoption of refills and minis.
Portfolio focus, transparent ingredient communication, and functional benefits are emerging as near-term priorities for CMOs. Marketers across Asia are also expected to keep concentrating on winning SKUs while value-driven shoppers reshape definitions of premium in tough economic conditions.
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