In today’s swiftly evolving beauty market, understanding the prestige beauty shopper’s behavior and expectations has become paramount. Here, Jacqueline Flam, Senior Vice President, Beauty, Drug & OTC Retail at NielsenIQ, shares a data-based perspective into how these savvy consumers navigate the shopping journey amid the blurring lines between luxury and mass-market products as well as how shifting retail preferences and the increasing influence of social media challenges retailers and brands.
Fairchild Studio: How would you describe today’s prestige beauty shopper? What are her behavioral attributes?
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Jacqueline Flam: Today’s prestige beauty shopper is a bit of a chameleon. They are shopping across a wide array of brands and retailers, seeking out products that speak to them and offer unique benefits. The brand is not always top of mind, compelling ingredients and benefits are enough to get them to splurge. As beauty is available in more retail outlets than ever before, the lines between what defines a prestige or a mass product are getting increasingly blurry.
Earlier this year, NielsenIQ conducted a study encompassing more than 800 prestige beauty shoppers to understand what drives consumers to choose one retailer over the other. Our respondents rated 30 retailers across 36 attributes, including functional, emotional, value and brand image dimensions, and using regression analysis we were able to understand what matters most to these shoppers. Today’s prestige retail shoppers prioritize convenience and reward/ loyalty programs as they are the most influential drivers of where they choose to shop, even in the luxury segment.
While prestige beauty consumers are willing to invest in more premium-priced products, value remains a key driver. They seek high-quality, effective formulations but respond well to offers that amplify value perception including loyalty rewards and exclusive bundles. Interestingly, 99 percent of prestige beauty shoppers also buy mass-market beauty, highlighting the blurring of these distinctions. Consumers curate their routines with both high-end and accessible products, valuing efficacy and versatility across price points.
Fairchild Studio: And what does she expect from a shopping experience? Online and in-store?
J.F.: With 59 percent of beauty sales still happening in-store, consumers demand a seamless omnichannel experience. Online, they prioritize convenience, personalization, and innovative features like virtual try-ons and comprehensive product reviews. A smooth, frictionless checkout process is vital, along with consistent stock availability to prevent missed sales opportunities, particularly for popular or new launch products.
In-store, the emphasis is on a premium experience, with trained and knowledgeable beauty advisers offering tailored consultations. Shoppers expect a curated, diverse assortment that meets their evolving needs—both for product assortment and also price points.
Ultimately, the prestige beauty consumer seeks an integrated experience where she can seamlessly transition from online discovery to in-store engagement. For retailers, it’s essential to deliver efficiency, high-touch service, and a well-stocked assortment that aligns with the consumers desire for quality, value and convenience.
Fairchild Studio: How has the beauty shopper’s journey changed? Where and how is she shopping?
J.F.: According to NielsenIQ data, 41 percent of beauty sales are happening online growing at almost plus-13 percent over last year and the notable driver of this growth is Amazon which is outperforming the market and is growing plus-18 percent. Amazon growth is being driven by buyers shifting beauty purchases from other retailers, including prestige beauty retailers. Amazon has solidified its dominance in beauty, leveraging its vast reach, convenience, and breadth of assortment to engage consumers across all categories, including prestige.
Fairchild Studio: What role does social media play? And how are brands engaging prestige beauty shoppers on TikTok and other similar platforms?
J.F.: The traditional marketing funnel has collapsed for the prestige beauty shopper, driven by the rise of social commerce channels like TikTok Shop. The journey from product discovery to purchase is now incredibly compressed and beauty consumers can seamlessly engage with content, be influenced, and make a purchase — all within a single platform. Platforms like TikTok have redefined the path to purchase, enabling near-instantaneous conversion. According to NielsenIQ data, TikTok Shop is the number-eight retailer in beauty, having surpassed legacy retailers in just one year since their launch. Beauty is a top category for TikTok Shop sales with the platform attracting more young buyers than beauty specialty. Social commerce is a critical channel for capturing high-intent shopper beauty shoppers and key for brands and retailers to be watching closely. In 2025, it’s essential to have a social commerce strategy.
Fairchild Studio: How do you see the prestige beauty market evolving?
J.F.: The future of prestige beauty is increasingly shaped by the blurring lines between mass and luxury as consumers seek high-quality products at accessible price points. With heightened knowledge of ingredients and sought after product attributes, beauty shoppers are becoming more discerning, often prioritizing efficacy, safety, and transparency over traditional brand prestige. This trend has led to a degree of commoditization in the industry that is already being demonstrated in skincare, where consumers view effective benchmark ingredients — like retinol, vitamin C, and hyaluronic acid — as standard, regardless of price point.
Social media has certainly amplified this shift with vast content centered around affordable prestige alternatives driving the continued surge of dupes. NielsenIQ data estimates that dupes in the cosmetics category grew 19 percent this year, amid widespread category softness. As a result, mass brands will continue elevating their formulations, while prestige brands must articulate clear, differentiated value propositions.
Moving forward, brands and retailers will need to balance product innovation, ingredient transparency, compelling brand storytelling and unique experiences to capture loyalty in a market where traditional prestige boundaries are fading.
Fairchild Studio: What are the differences between prestige beauty shoppers by generational cohort and how can brands better engage each?
J.F.: Prestige beauty shoppers vary significantly by generational cohort, influencing their preferences and shopping behaviors. Surprisingly, while Gen Z values authenticity, inclusivity, and social proof, often relying on TikTok and influencer content for discovery, this consumer also heavily favors shopping for beauty in-store. Brands can engage Gen Z through interactive, trend-driven content and community driven in-store experiences.
Millennials prioritize convenience and value; they are digital natives who shop across online and in-store channels. They respond well to personalized recommendations, loyalty programs, and hybrid experiences like virtual try-ons with in-store pickup.
Gen X are the most important contributors to beauty spending in the coming years and this consumer focuses on quality and efficacy, favoring well-established brands with proven results. They prefer a more traditional shopping approach, relying on in-store consultations and expert advice.
Boomers seek simplicity and are often drawn to classic, trusted products. They appreciate clear product benefits and responsive customer service.
To effectively engage each cohort, brands must tailor their strategies: leveraging social media and digital tools for younger consumers, while emphasizing quality, trust, and service for older shoppers.
Fairchild Studio: What are some other notable trends in beauty?
J.F.: Despite a growing beauty market, short-term unit growth remains a challenge for beauty brands. Of the top 100 global beauty brands, 68 percent are growing dollar sales while only 38 percent are growing unit sales. In 2025, the most critical focus for brands and retailers remains how to effectively drive loyalty in a crowded marketplace where beauty is available at more outlets and price points than ever before.