a blog about investing


Read A Few Dollars More articles

30 Minutes

Watch Bill Schmick’s TV series

Latest Posts

A tale of two charities

As Senate Republicans unveil their version of a new health care law replacing the Affordable Care Act today, Democrats are already crying foul. But while politicians are busy back-stabbing each other, there are real people out there who are sick and getting sicker. read more…

Markets in pullback mode

Technology stocks continued to consolidate while the Dow made new highs and the S&P 500 Index hovered just below historical highs. Throw in the fact that the markets are notoriously slow and biased to the downside during the summer months, and you have a recipe for further consolidation. read more…

A tale of two charities

We are a country divided. Washington is paralyzed. Half the country considers our president a joke and any and all legislation is dead on arrival, according to the TV talking heads. Social media is filled with outrage and despair. As a result, Americans are supposedly wringing their hands, or worse, hiding under the covers. Don’t you believe it! read more…

30 Minutes

All Posts

Cosmetics survive and prosper despite competition

As the clash between brick and mortar retail enterprises and the mighty Amazon escalates, the internet shopping colossus is laying waste to one store or mall after another. One of the few areas that have not only staved off the internet shopping giant, but has actually turned the internet and social media to its advantage is the cosmetics industry.

There is a combination of fortuitous developments, some peculiar to the makeup industry, and others the result of adept marketing that has allowed the beauty trade to grow unencumbered. Social media, as you might imagine, has played a big part in growing an industry that has revenues of $62 billion and climbing.

For decades, women would pay a visit to their local department store, drugstore, or shopping mall and head for the cosmetics counter. They did so because most women consider makeup a necessity of life. They received a quick lesson in cosmetics application from the clerk or salesperson. At the same time, they could also see and experience these products on their own skin. The only alternative to the beauty shop was to sign up for a cosmetology class, hire a makeup artist or rely on a girlfriend who knew her way around makeup.

Today, social media has become both the new beauty counter as well as a place to show off the results. Just check out the number of YouTube tutorials available on make-up. Now that the industry can post videos on Instagram as well, industry experts can hawk their wares easily and directly, but can also show consumers exactly how a new product is intended to be used as well.

A whole new industry has sprung up around selling cosmetics on social media. There is now what are called “Beauty Vloggers,” enterprising women who are internet businesses in their own right. Some are models or ex-models; others come out of the makeup industry and set up shop as beauty gurus. They dispense beauty advice as well as tutorials on how to apply specific types and kinds of makeup.

Another new phenomenon is the “haul girls.” These are women who take the viewers on an extreme shopping spree and explain on camera what products are ‘hot,’ while giving their opinion of the products. Today, fully 95% of consumers looking for beauty products will search out YouTube first. Some of these beauty mavens have millions of subscribers and can make or break a brand. In the beauty business, influencers like these Vloggers and haul girls carry a great deal of weight.

And with the popularity of posting photos on Facebook, Twitter and other social media, more and more women don’t want to be caught “naked” when it comes to makeup. That simply fuels more and more demand for cosmetic products.

While women use social media today for cosmetic instruction and to learn about the latest products offered, many still need to “test-and-trial” as the industry calls it. Video is fine, but how do you really know what that new blush or nude lipstick is going to look like on you? Buying many cosmetic products online is tricky. The subtlety of shades and colors abound and once it arrives in your mailbox, it is too late.

Unlike clothes or that DVD player, cosmetics, once opened, cannot be returned. This becomes problematic, especially at some of the price points these products command. Sure, some products that a woman will use over and over again can be ordered over the internet, but styles and new developments in cosmetics change rapidly.

That’s why testers and samples are a large part of any brick and mortar beauty store’s inventory. Many, if not all, of the basics undergo a revamp every so many years, so most women will check out the newest offerings on a fairly regular basis. And even your most hard-bitten internet buyer will succumb to buying a new product, especially after using the free consultation or makeup classes offered by these beauty centers. Unlike other industries, the beauty store still manages to deliver an “experience” as well as a place to buy products. Remember too, that there are no seasons in makeup, it has year-round fashion demand.

Discounts are also not high on the list of cosmetic company marketing tactics. Prices remain relatively stable, which is anathema to what usually occurs to a product once incorporated into the Amazon fold. So far, few, if any, of the luxury beauty brands have developed relationships with the internet giant. For now, the beauty business is thriving despite Amazon, and they hope that continues, at least until they can build their own e-commerce presence.

Only the rich are saving

Last quarter, the percentage of Americans’ personal savings rate stood at 5.9% of their disposable income, according to the Bureau of Economic Analysis’s. Given that number had fallen to as low as 1.9% in 2005, that’s a large improvement. But who is saving and who is not is the real question to ask. read more…

The world’s bread basket no more

The recent controversy over dairy trade policies between the Trump Administration and Canada is only the tip of the iceberg. While Trump is selectively picking on one particular product, the truth is that the United States is losing its competitive advantage in many areas of agriculture. read more…

Should college be free?

Recently, New York became the first state to offer a tuition-free college education to middle-class students at two and four year public colleges. Tennessee, Oregon and the city of San Francisco have also given similar benefits to students attending community colleges in their states. It’s about time. read more…

Follow A Few Dollars More

About Bill

Bill Schmick was born in a blue-collar neighborhood of Philadelphia, just a few blocks north of “Rocky Balboa” territory where most of his Catholic schoolmates grew up to be either cops or criminals. He narrowly escaped both professions by volunteering to fight in Vietnam as a U.S. Marine... Read More


    Sorry, no Tweets were found.


Post Categories

Print Friendly