More Reasons Why You Should Buy From Us!
Australian women paying twice as much as US counterparts for popular brands of cosmetics such as MAC, Dior and Chanel.Article link HERE
Adapted from article:
"AUSTRALIAN women are paying up to twice as much as their US counterparts for their favourite cosmetics, despite the strong Australian dollar and healthy online competition.
While duty-free shopping was once the only way to avoid paying exorbitant prices at home, the rise of online retailing has done little to dent inflated prices locally.
And the strong Aussie dollar seems to have had no effect on the price of cosmetics, despite parity being reflected in lower prices on other imported items.
A Sunday Mail investigation has found popular brands including MAC, Dior, Bobbi Brown, Chanel, Elizabeth Arden, Shiseido, Clinique, and Revlon were vastly more expensive in Brisbane than in shopping mecca, New York City. Even Australian brand Napoleon was cheaper there.
While a MAC lipstick will set you back $46 at Myer, the same product costs less than $24 over the counter in New York.
Even on MAC's online Australian store a basic lipstick costs $36 plus $10 shipping; for US website shoppers MAC charges $US14.50 plus $US5 shipping.
A Dior nail colour in New York is just $22. In Brisbane, it will set you back $39.
Brand loyalty and high quality products mean many women are willing to part with a large chunk of their hard-earned cash.
While industry insiders have blamed import costs and taxes, research shows local retailers are making greater profits than their US counterparts.
But retailers and industry groups alike refuse to be critical of businesses charging high prices as long as they are competitive and not colluding.
A spokesman for the ACCC said if businesses were not working as cartels, nothing could be done to address the price variation.
Specialist cosmetic and toiletry retailers in Australia, which make up 20 per cent of total cosmetic retailers, are worth $2.4 billion, with profit making up 5.5 per cent of the total revenue. Their major cost is stock, which utilises 58 per cent of revenue.
In comparison, US specialist cosmetic, beauty and fragrance retailers are worth $12.6 billion, with profit making up 4.3 per cent of the total revenue.
Their major cost is also stock, at 61.4 per cent.
Craig Shulman, a senior analyst with market researcher IBISWorld, said higher prices here were often dictated by the realities of a smaller market.
"When a market is bigger, retailers can push prices down," he said. "But if a company can make extra profit it will try to."
Choice Magazine's Ingrid Just said online cosmetic shopping had become very popular."
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