It’s not often that we’re contacted by a brand asking us to update their product listing because they’re lowering prices. So when Guinot got in touch with us recently to do just that, our ears pricked up. Shortly after, Kiehl’s announced they too would be making price reductions across their stable of products. It’s at that point we really started paying attention.
Why is it that two luxury brands are lowering prices within weeks of one another? I went straight to Jonathan Pritchard, director of Jonathan Pritchard International, the PR company for Guinot to find out.
Guinot made these changes because the world is changing. As a global company, we have recognised that internet sales have been on the increase for a while, and as the world is getting smaller, the marketplace is getting more competitive,” he explains. We wanted to honour the 220 salons that we have nationwide, and make our prices more evenly skewed across the board.”
Pritchard insists that the price changes weren’t taken as a means to increase sales, but rather to change people’s conception of what it means to be able to afford luxury”: People want a luxurious experience with beautiful products, but they want them at a competitive price.”
Meanwhile, Tere Heathcote-Love, general manager of Kiehl’s Australia claims the brand simply wanted to give something back to consumers by dropping its prices across various product lines, including Creme de Corps body lotions (down from $89 to $68) and Ultra Facial skincare (Ultra Facial Cream is down from $105 to $52).
Heathcote-Love says the changes have come about as a result of the brand’s ongoing success. In fact, the brand has experienced growth of 51 per cent in a tough local market, achieved with no advertising budget. Kiehl's has always been a non-advertising company. In fact we have zero dollars for advertising and this will never change.”
Not surprisingly, both brands have received positive feedback on the changes so far. However, Pritchard claims that the prices aren’t the only thing Guinot is focusing on. He refers to another luxury Guinot hopes to give consumers: time. He says consumers place a lot more value on professionals taking the time to get to know them and tailor an experience to suit them.
Time management is important to everyone today. Anyone can walk into a department store and have a product given to them by a sales assistant,” he says. We’re trying to get our salons to take the time to treat the client properly and offer the proper diagnosis. We want beauty professionals to take the time out to make our clients feel special. Time is luxury.”
We couldn’t agree more with him there. Consumers and salon owners alike have generally been very positive about the changes – and why wouldn’t they? Pritchard says the strength of the Aussie dollar wasn’t an important factor in the price changes, rather they were able to take place after lots of research into the management of the brand and in some cases finding more affordable sources of the same ingredients.
Heathcote-Love agrees that the Aussie dollar wasn’t a major reason for the changes at Kiehl’s, either. The dollar is as we know a variable and will always change. The lower Kiehl’s prices are here to stay because that is part of our heritage – to give back.”
Now that’s a brand philosophy we can get on board with… Here’s hoping more brands follow suit!