Even when times are tough, women still buy lipstick.
If you’re Clarins, maker of fancy French beauty products, that sentiment may be outdated.
On Wednesday, June 26, Financiere FC–the family holding company which controls 64.9% of the cosmetics brand–suspended public trade of the stock at 43.72 euros ($68.90) midday. That’s a 14.47 euro ($22.79) drop from its year high of 58.19 euros ($91.65) on February 1, 2008.
In the past, beauty brands have been virtually immune to economics woes. When handbags and watches are too expensive, female shoppers often look to high-end beauty products as a quick shopping fix.
Suzanne Hader, principal at 400twin, a New York-based consulting company with a focus on luxury brands, says that when the U.S. faced a recession in the early ’90s, beauty did well. But the market today is much more saturated than it was then, which means brands have a tougher time getting noticed.
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