Both citing rising costs, skincare brands The Ordinary and Dr. Dennis Gross announced on Friday that they would be increasing prices on some products starting in January, according to company Instagram posts.
The Ordinary — a brand within the Deciem portfolio that Estée Lauder took a controlling stake in last year — is known for selling relatively low-priced skincare products directly to consumers and through wholesale partners such as Sephora and Ulta. The brand’s post noted that it has been dealing with rising costs, some of which have been absorbed internally, which included parent company Deciem getting rid of four other brands in April.
The Ordinary noted that a few products will actually decrease in price, but most will increase by an average of $1.12 starting Jan. 1.
Dr. Dennis Gross — a prestige brand also sold directly to consumers and through partners such as Sephora — said the rising costs of raw ingredients and supply chain logistics have led it to increase prices next month. The average increase will be about 4%, the company said, with popular items like its 30-pack of chemical peels going from $88 to $92.
Even with many consumers cutting back on discretionary purchases due to inflation, plenty of high-income shoppers have continued to spend on beauty throughout the year. A report from the NPD Group in August showed that $9 billion had already been spent on the category during the first half of 2022 by consumers with a household income of over $100,000.
And while some brands may be hiking up prices further to deal with rising costs, some wholesale retailers in the beauty and personal care category have thrived off this environment. Ulta’s third-quarter earnings, for example, showed sales, comps and profits were all up double digits.