Lancome, Armani, and SK-II have increased their prices from September!

Recently, many brands, such as LANCOME, Armani, SK-II, etc., will increase the price adjustment letter in September. The document shows that products related to Lancome and Armani and brand will implement new prices from September 1, and some SK-II products will rise on September 13.

01：Average 5 %, as high as 16.95 % 

According to the “Lancome price adjustment notice in September” issued by the industry in the industry, from September 1, 2022, Lancome will adjust the recommended retail price of multiple products. 

According to the notification information, the price adjustment product covers skin care, makeup, fragrance and other categories, with a total of 209 SKUs, including star series products such as Black Jin Zhen Chong and Jingchun Series. 

It is understood that this is the second price increase in Lancome this year. The brand also raised its price in April this year, covering the essence, eye cream, mask, cleansing, water milk and other products. Compared with Lancome’s proposed retail price in April, the price of this makeup product was raised by 10-30 yuan, and the price of skin care products was raised by 30-150 yuan.

Armani Beauty will also increase the retail price of some products on September 1, mainly involving a variety of products such as lip glaze, perfume, foundation, eye shadow, blush, sunscreen, and some perfume gift boxes. Within 7%.

 In another international brand, the SK-II of Procter & Gamble also increased its price. According to the official price adjustment letter, it will adjust the retail price of some products from September 13th, covering a variety of star products and some gift boxes such as cleansing, essence, eye cream, etc. The price increase is basically within 5%, of which SK- II Men’s Live Skin Care Essence Relica 75ml increased by 16.95%.

02：High -end beauty and daily chemicals have been promoted many times this year

It is understood that high -end beauty has made many price adjustments this year. Estee Lauder previously issued three price adjustment letters, and the start time of the price increase was January 28, April 1, and July 1st, respectively. Among the price increases starting in July, the high-end skin care brand Hailan Mystery price increase products are mainly classic products such as cream, eye cream, and essence milk. Estee Lauder brand skin care has also been adjusted, an increase of 50-100 yuan. 

In addition, the brand of L’Oreal’s brand Hina and LVMH brand Guerlan also carried out prices in July, and the increase in skin care products was about 5%. 

Not only is the price of high -end beauty, but the daily chemical brands have also carried out prices this year. 

Personal care giants such as Procter & Gamble and Unilever have mentioned price increase plans many times this year, releasing price increase signals. In the second quarter of this year, the overall price of Unilever Group rose by 11.2%, an increase of 290 basis points from the first quarter. 

Earlier, some retailers reported to the cosmetics newspaper that the purchase price of Unilever’s Lux shower gel products has increased by about 10%, and the stock is seriously out of stock. 

Yang Jianguo, general manager of Chongqing Huaqing Shenghong Co., Ltd., told reporters that the latest price increase of P&G daily chemical products began in June, mainly involving soap, shower gel, soap, washing powder and other products, and the price increase ranged from 10% to 15%. , of which soap is about 30%. He said that the main reason for the price increase is the increase in the price of raw materials.

Jia Rui, general manager of Henan Yueyan Trading Co., Ltd., also said that Huirun, Shuizhiyu, Sibeiqi, Fenong, Sanke, Keyouran and other washing and care brands have all raised their prices in July. In addition, skin care, men’s care, hand cream, and sunscreen brands including muscle water, Wunuo, Runkelin, and Mentholatum have increased their prices.

03：Is it forced or active?

“It’s normal for brands to adjust their prices, especially international big brands that basically only go up and not down, but the cyclical price adjustments won’t increase too much,” said the trader above. He told reporters that this price adjustment is related to the increase in product costs and overall operating costs. 

The price adjustment of brands one after another is not unrelated to the rise in the price of upstream raw materials. Previously, chemical companies such as BASF, DuPont, and Dow have successively sent letters to announce price adjustments, and Swiss flavor and fragrance giant Givaudan has announced price increases three times this year. 

As for the reasons for the price increase, L’Oreal, Estee Lauder, Procter & Gamble and other groups have mentioned raising prices to deal with rising costs and inflationary pressures. Nicolas Hieronimus, CEO of L’Oreal Group, previously said that L’Oreal may continue to raise prices in the second half of the year to offset rising production costs, but will adjust prices in a more precise way. 

Tracey Travis, chief financial officer of the Estee Lauder Group, previously said that due to the impact of China’s business, the group’s annual sales growth will be narrowed to 7% to 9%, lower than the previous forecast of 13% to 16% growth. In July and August this year Product prices will be raised again to deal with inflation. 

At the beginning of this year, the Procter & Gamble brand announced that due to the rise in transportation, material, labor and other costs during the epidemic, as well as rising raw material prices due to global inflation, all of its ten major categories of products have increased prices. 

However, according to a person in charge of a trading company who did not want to be named, the price increase of big brands is more of a strategy. “The cost of raw materials accounts for a very low proportion of big-name products, and the increase in raw material prices has little impact on the cost.” He believes that the current industry is seriously involved, “Estee Lauder’s anti-blue eye creams have been shipped at a 40% discount.” To maintain sales, you have to invest more in online and offline marketing. After the price rises, not only can more marketing investment space be obtained, but also more discount space can be obtained in subsequent promotional activities, which is the core reason for the price increase of big brands.