The beauty industry is notoriously secretive, with many cosmetics companies refusing to release their earnings figures and the details of their revenue streams, and the only way to gain an understanding of their business is to ask.
But now, thanks to a new survey by UK cosmetics retailer BH Cosmetics, it’s possible to know for sure how much beauty products the company makes in a given month.
The cosmetics giant’s survey revealed that, at the end of the month, its sales for September were up by 9 per cent on the same month last year, bringing its total sales for the month to £5.2bn.
The company also revealed that its net profit for the first three months of the year was £2.3bn, a jump of 6 per cent.
And that’s just for the UK, where BH is based.
A spokesperson for BH said the results were the result of an extensive survey of 1,000 of its customers, and a full analysis of the business’ sales and profits.
BH has been doing this for years, the spokesperson told Business Insider, and is very confident that its sales growth is driven by two key drivers: The cosmetics industry has grown, and it’s getting better at capturing the value of every dollar of sales, in addition to providing value for its customers.
This means it’s easier to deliver value to its customers through a range of ways.
In the UK alone, the cosmetics industry generates more than £30bn in revenue each year, with brands like BH and Lancome making huge profits from their cosmetics, and other companies like Huda Beauty making millions.
BN’s data shows that BH’s UK business has already increased sales by 17 per cent over the past three months, with the company expecting that growth to continue in the coming months.
BOH says the growth is largely down to its new customers, who are also coming into the business looking for a way to get their products into the homes of their friends.
They’re now using the loyalty points on their loyalty cards to buy a range, including its top-selling products.
“We’re seeing the biggest growth from our customers over the last three months,” the spokesperson said.
“Our customer base is increasing from 2.2 million in September to 4.6 million in October, and we expect that to continue to grow.”
As for the products BH sells, BH says it is now focusing on products that customers want to buy.
The spokesperson said that its focus is on the cosmetics business, but that it is also looking at the broader beauty and personal care market.
“There are many other brands doing good business, as well as the beauty industry in general, and I think this is a very important time for BHC to focus on that business,” she said.
For its part, BHC says that it has more than 400 million members, and has a long history of providing its customers with great value for money.
“This year we are focused on the beauty business, and there is a lot of growth happening in that sector,” the BH spokesperson said, adding that BHC has also seen a 20 per cent increase in members over the same period last year.
The brand also says that its revenue from the beauty and skincare categories, as a whole, has increased by a further 6 per in the last year alone, from £5bn to £6.5bn.
So far, so good.
But what do these sales figures mean for the future?
For now, the only real question is whether or not BH will continue to deliver on its promises to the cosmetics market, which have so far failed to materialise.
The growth is not sustainable, according to BH, and BH suggests that the cosmetics company will have to scale back its business.
“I would be surprised if our growth rate continues to grow this way,” the company spokesperson said in an emailed statement.
“The beauty industry has become a lot more sophisticated over the years and it is not as simple as just doubling the amount of products.”
BH did, however, acknowledge that its loyalty program has seen growth, with its sales up by 11 per cent in September.
“Over the past 12 months, our loyalty program grew our business by 20 per% to $4.2 billion,” the spokeswoman said.
So if the beauty sector is growing, is it sustainable?
According to BHC, the answer is yes, as it has already begun scaling back its loyalty programme.
The beauty brand has already told members that it plans to “restructure” its loyalty scheme, which it claims has led to higher levels of membership.
“As part of this restructuring, we are going to remove our current membership and return to the loyalty model.
We will introduce a new membership that will include more value-based rewards and more generous rewards for loyalty,” the representative added.
“For our existing customers