Despite economic conditions and the indicators of a looming recession, luxury shoppers continue to pull out their pocketbooks, especially when it comes to luxury cosmetics and skincare. According to a study by the NPD Group, prestige beauty sales in the U.S. grew to $6 billion in the third quarter of 2022 alone, a 15% increase in sales for the same period in 2021.  
 
The growth outlook in the prestige beauty category isn’t expected to change as we enter a new year either. In fact, during recessions, sales in cosmetics, especially lipstick, tend to increase. This is more commonly known as the ‘Lipstick Index’, a term coined in the early 2000s by the chairman of Estée Lauder’s board, Leonard Lauder.  
 
It’s clear that beauty brands have heavily invested in bringing the exceptional, white-glove customer experience that shoppers were so used to receiving in stores, online. High-end beauty brands now offer virtual consultations and have leveraged AI and other technology to allow customers to ‘try on’ products or receive a personalized product recommendation. NARS even offers 30-minute virtual consultations with a makeup artist who can offer one-on-one technique support along with personalized product recommendations. 
 
But what happens after a luxury shopper adds to cart? The white-glove, personalized, exceptional shopping experience must continue through the remainder of the customer’s order journey. If it doesn’t, brands risk losing customers, and even serious reputational damage.  
 
Brands can’t manage the entire customer journey on their own, especially in the face of rapid growth. In fact, many are partnering with third-party logistics providers (3PLs) to help deliver their brand promise and surprise and delight their customers from click to doorstep.  
 
Luxury brands should be focusing all of their attention on what they do best–designing and selling luxury products. Here are some reasons why best-in-class beauty brands choose to partner with trusted 3PL partners to do the rest.  

A Memorable and Branded Unboxing Experience

Even with the little luxuries, like lipstick, perfume and skincare, customers are looking for an experience. Luxury beauty shoppers want to feel pampered and special, like they do when they walk into a physical store. A lack of attention to details in the packaging of an online order can cheapen the experience and make a luxe, top-of-the-line product feel like it came from a drugstore.  
 
A high-quality 3PL provider will ensure that your products are being stored, sorted, picked and packed with care. Offering things like climate-controlled facilities, and support for expiration planning – a good 3PL partner knows how important it is to make sure the products and the packaging support the brand promises made. 
 
From the box itself to the tissue paper, ribbon, personalized messages, samples and more, the unboxing experience should surprise and delight your customers with the same attention to detail as an in-store experience. A 3PL that specializes in providing luxury experiences can work with your brand to design memorable custom packaging that is on-brand and creates a rich unboxing experience at scale.  

A Personalized Touch

Personalization is a hallmark of many luxury brands. Luxury shoppers want to feel like they are the only customer that matters and brands that get personalization right will inspire brand loyalty for life.
 
From embossing, engraving, and embroidery to mixing a custom, perfectly matched foundation, a 3PL partner can add that special touch that helps a customer give a one-of-a-kind personalized gift or elevates a personal purchase to a new level.

On-Brand, High-Touch Customer Service and Returns

At every step of the way, a quality 3PL provider understands that the customer journey doesn’t end when the package arrives at a customer’s doorstep. A best-in-class 3PL partner can support your brand beyond delivery, offering seamless and responsive customer service, order management and returns that center your brand and care for your customers just as you would.  
 
If the lipstick index predictions come true again in 2023, prestige beauty brands need to be ready to deliver a memorable customer experience at scale to capture and retain customers during a potential increase in demand. Finding a 3PL partner that is capable of supporting the unique requirements of beauty and cosmetic products, one that understands the incredible value of your brand and brand promise, who can partner with you to deliver a reliable and scalable luxury experience should be your top priority in the lead up to the next recession.  
 
About the Author
Patrick Lowe is the Area Vice President of Business Development at PFS. PFS, a business unit of PFSweb Inc. (NASDAQ: PFSW) fulfills orders behind some of the most well-known cosmetic brands worldwide including L’Oréal, NARS, Rare Beauty, Yves Saint Laurent, Shiseido, Drunk Elephant, Anastasia Beverly Hills, Bare Minerals, and more.