Reduction of non-essential products such as cosmetics but also fashion itemsdo Greek consumerswho entered the process of self-limitation due to the speed price increase recent months. The cost cuts are also having an impact on businesses such as cosmetics companies, some of which (particularly those that make more premium products) are already seeing lower sales in the first five months of 2022 driven by rising costs to consumers. Meanwhile, the impact of the rise in prices in Greece compared to other countries is more pronounced, as Greek households have already been hit by the decade-long Greek crisis.

This is evidenced by a recent EY survey titled “EY Future Consumer Index Greece 2022”, according to which, compared with last year, the trend towards a reduction in purchases of certain goods has intensified. 70% of survey participants say they spend less money on items they don’t need, and that percentage has increased by 10 percentage points (60%) compared to 2021. Compared to other European countries, this percentage is significantly higher than in the world (47). %), but also the European survey sample (40%). In Spain and Italy, two countries also facing financial problems, the figures are 47% and 49% respectively.

According to research, now one in two buys only the essentials, compared with 43% last year.

In fact, one in two now buys only the essentials, up from 43% last year, and 55% say they are spending more time at home than before the pandemic. In terms of businesses, although estimates (May 2022) by the Panhellenic Association of Cosmetics and Perfume Producers and Agents show that the domestic cosmetics market will move upwards this year, they indicate that the main challenges for businesses in this sector are increasing costs. raw materials, but also an increase in energy costs, which will also affect the prices of cosmetics. The geopolitical crisis due to the war in Ukraine raises additional concerns about rising prices for imported cosmetics and supply chain disruptions. Industry representatives note that over time, the impact of inflation is becoming more pronounced, as a result of which more and more consumers prefer private label cosmetic products, refusing more expensive products. This trend has begun to be reflected in the sales of some companies that sell high-demand branded cosmetics.

The Greek subsidiary of multinational cosmetics giant Estée Lauder is estimated to have recorded a 15% decline in sales in the first five months of 2022 (through May) compared to the same period in 2021. According to the published financial statements for the period 1 / 07.2020-30.06.2021, the increase in energy and fuel prices, the crisis in Ukraine, as well as a significant increase in inflation led to a decrease in sales due to the impact of these events on the purchasing power of the consumer. For the year ended June 30, 2021, Estée Lauder Hellas sales were €86.3 million, compared to €89 million, which was affected by store closures from November 2020 to February 2021, with net income up to 7. 6 million euros from 6.5 million euros. million euros.