YCD News – Recently, Circana released U.S. sales data and trend research for the footwear and fragrance categories, with the two categories showing completely opposite demand trends. With the holiday season approaching, it is important for sellers to understand market trends to help capitalize on market opportunities while taking the road less traveled.
Holiday Season Sales Fear Cold as Footwear Demand Slumps
Circana data shows that from January through August 2023, U.S. footwear sales revenue declined 3% year-over-year, and sales volumes were significantly lower. So far this year, U.S. footwear sales have leveled off, but overall demand is more subdued. Footwear sales are also expected to decline this holiday season as consumer spending shifts to other necessities.
In addition, consumer preference for footwear is also shifting, and is now more inclined to choose more diverse and less seasonal styles, such as sneakers, Louboutins and ballet flats, which have seen a significant increase in sales and volume in these subcategories.
Running shoes are quite popular among consumers as they offer both performance and fashion advantages. Data shows that from January to August 2023, sales of adult road running shoes increased by 6% year-on-year. As a result of this trend, sales of basketball shoes increased by 13%, tennis shoes by 42%, and sales of soccer shoes by 16% during the same period.
In fashion, penny loafers and loafers are among the hottest categories, with both the men’s and women’s segments of these categories growing, with the category up 19% year-over-year through August; ballet flats are also popular, with year-over-year sales up 14%.
According to Circana’s latest “Future Footwear Trends,” footwear sales are expected to decline in the fourth quarter of this year compared to 2022.
Despite early promotions by brands and retailers, demand for various footwear categories is expected to trend differently, with some items peaking early in the season, and others, suitable for gift-giving, likely to peak towards the end of the season. Looking forward to 2024, both sales and the number of sales are expected to level off, as average prices will also stabilize.
Perfume sales climb as young people buy with strong demand
Perfume usage in the U.S. has increased slightly year-over-year as of September 21, 2023, influenced by younger consumers, according to the data. In fact, according to findings from Circana’s Perfume Consumer Report 2023, Gen Z saw a significant increase in usage, rising 5% to 83%.
Compared to other consumer groups, Gen Z purchases perfume most frequently, with consumers between the ages of 13 and 26 using perfume at least three times a week, significantly more than Millennials, and Gen Z is also the consumer group most likely to purchase perfume for themselves multiple times a year.
Gen Z’s purchases in the fragrance category are most influenced by social media, with the second highest percentage of consumers citing TikTok as an influencing factor in their purchases. Additionally, the percentage of men applying TikTok as an influencing factor on purchases is significantly higher this year compared to 2022.
Additionally, the primary factor for Gen Z and Millennials to purchase perfume is the ability to enhance mood, with 80% of perfume users reporting that perfume helps to lift or enhance my mood. According to Circana’s retailer sales data, from January through August 2023, perfume sales revenue in the high-end beauty market increased 13% year-over-year, with increases in both average price and number of units sold.
Given the favorable state of perfume sales in the U.S. to date, sales for the holiday season are also expected to rise significantly.