She's On The Money - Beauty on a Budget

Episode Date: September 20, 2024

Have you ever wondered why your beauty drawer is overflowing with products you barely use? It’s not just you—It’s V too. And it’s all part of the game beauty brands play to keep you spending. This episode V is here to break down the marketing tricks that get you to hit ‘add to cart’ and how to shop smarter without falling for the hype.  SIGN UP FOR THE INVESTING MASTER CLASS! Use the code PODCAST for a cheeky discount. Acknowledgement of Country By Natarsha Bamblett aka Queen Acknowledgements. The advice shared on She's On The Money is general in nature and does not consider your individual circumstances. She's On The Money exists purely for educational purposes and should not be relied upon to make an investment or financial decision. If you do choose to buy a financial product, read the PDS, TMD and obtain appropriate financial advice tailored towards your needs.  Victoria Devine and She's On The Money are authorised representatives of Money Sherpa PTY LTD ABN - 321649 27708,  AFSL - 451289.See omnystudio.com/listener for privacy information.

Hello, my name is Natasha Nabanunga-Bamblett. I'm a proud Yorta Yorta, Kernai, Wolperi and Awadjeri woman. And before we get started on She's on the Money podcast, I would like to acknowledge the traditional custodians of the land of which this podcast is recorded on Awadjeri country, acknowledging the elders, the ancestors and the next generation coming through. As this podcast is about connecting, empowering, knowledge sharing and the storytelling of you to make a difference for today and lasting impact for tomorrow. Let's get into it. She's on the money. She's on the money.

hello and welcome back to she's on the money the podcast that's here to help you keep more of your hard-earned cash where it belongs, in your pocket. Have you ever wondered why your beauty drawer is overflowing with products you barely use? It's not just you, it's me too, sadly, and it's all part of the game beauty brands play to keep us spending. I'm Victoria Devine, here to break down the marketing tricks that get us to hit our Descartes and how to shop smarter without falling for the hype. Have you ever noticed how two beauty products with the exact same ingredients can have $100 difference in price. Let me break down why that happens. It's all about pricing strategy. Brands often leverage their image, their packaging and marketing to create perceived value,

allowing them to charge a premium even when the formula is nearly identical to a cheaper alternative. You often find that parent companies use this to their advantage, right? They have both a luxury and a budget brand in their portfolio, each targeting different customer segments, Procter & Gamble, for example, owns Olay, a popular mass-market skincare brand, and also SK-II, a luxury skincare line. Olay caters to budget-conscious shoppers, and me, for like ever, who still want effective skincare solutions, whereas SK-II targets customers willing to pay a little bit more for a luxury experience. This way, they capture both ends of the market. Whether you're splurging on a high-end serum or saving with a chemist version, they're maximizing their profits for every type of shopper. And the psychology behind pricing

plays a huge role in how we perceive products, especially in the beauty space. We are often wired to think that if something costs more, it must be better. And this is known as the price quality heuristic. A study published in the Journal of Consumer Research found that participants rated identical skincare creams as more effective when they were presented with a higher price tag even though guys the products were exactly the same. This shows exactly how easily price can influence our perception of quality tricking us into spending more than necessary just because of the cost. This perceived value is also because luxury brands aren't just selling a product right they're selling an entire experience. Everything from the sleek packaging to the in-store displays

and even the unboxing can make a product feel more valuable. That prestige comes with a hefty price tag though. And as consumers, we sadly are paying for that brand story just as much as the actual ingredients. And my friends, then there is marketing, the celebrity endorsements, the glossy ads, influencer partnerships, it all costs money. And those costs, they get passed down to us. On top of that, luxury brands often invest heavily in research and development, which, while important, doesn't always mean that the formula is groundbreaking. In fact, many high-end and chemist products nearly share identical ingredients lists. So let's talk about another marketing strategy that gets us every single time, literally me,

every single time, buzz ingredients. You've probably seen a million different products flaunting hyaluronic acid or retinol right on the packaging, right? They sound impressive and they make us feel like we're getting cutting edge skincare. But my friends, here's the catch, Often those ingredients are included in such low concentrations that they won't actually deliver the promised results if the results were even promised. Maybe it was just we have hyaluronic acid in this product. It's all about tapping into the hype of popular ingredients without necessarily backing it up with any type of effectiveness. Skincare brands also like to use terms like filler or lift to create the illusion that their products can deliver really

dramatic treatment level results like those of cosmetic procedures. However, these words often lack substance. There's no laser technology in skincare or actual filler ingredients in that jar. It wouldn't even get into your skin. It's clever marketing tactics that play on our desire for being youthful, having lifted skin without the expense or invasiveness of the procedures that would actually afford us those. Then my friends, there are the dupes who doesn't love a good bargain. I love a good dupe. We've talked about them before on the pod. They're budget-friendly alternatives to high-end products, which offer similar results without the hefty price tag money win, which makes them so damn popular. But there's a fine line. While replicating a product's general

effect is perfectly legal, it really crosses into murky territory when brands start copying specific elements like their packaging, their branding, or patented formulas. That's where we get into IP theft. Emco Beauty is a company that has built its brand on providing dupes of popular products, and for them, it's paid off big time with an estimated, get this, annual revenue of $12.1 million. Their version of Charlotte Tilbury's Hollywood Flawless Filter doesn't just draw inspiration. Guys, it's a near replica with the rounded glass bottle and the fluted rose gold lid. It's so close that it had the internet screaming, how on earth are they getting away with it? And honestly, I'm sitting here wondering exactly the same. But I saw an ABC

story where Emco Beauty's IP lawyer explained that they make very small tweaks to avoid breaking trademark laws. So for example, while Charlotte Tilbury has Hollywood flawless filter trademarked, The word flawless on its own, it's not protected. So, Emco Beauty uses it freely and liberally. And for the packaging, Charlotte Tilbury's diamond logo is trademarked. So, Emco Beauty swapped it for a simple circle, just enough to stay on the right side of the law. These very minor tweaks have allowed Emco Beauty to skirt legal boundaries by avoiding direct copies of protected elements while they're still creating products that look almost identical to the originals. But even if they're not technically breaking the law, to me, it raises a pretty big

ethical dilemma. Is it really fair to piggyback off the hard work and creativity of brands that have invested so much into developing something truly original? For me, let's be honest, it gives me the ick. In the same ABC story, when asked about the ethics of copying high-end products so closely, Emco Beauty's owner shrugged it off with a really dismissive, if you don't like it, don't buy it. It's like she's sidestepped the entire ethical conversation, focusing solely on the legalities and consumer demand. But for me, it's more than just about following the rules. They're capitalizing on someone else's creativity without adding anything new. I'm one for market research, so I have tried both the original and the dupe. And in my opinion,

the similarities actually end at the visuals. It feels like Emco Beauty has leaned heavily on the social media hype, banking on the visual appeal to luring consumers into thinking that they're getting a really comparable product. But in reality, the dupe doesn't deliver the same quality or results as the original, making it feel like a cheap trick rather than a smart and savvy alternative. So how do we outsmart the beauty aisle and avoid falling for all these marketing tricks? Well, after the break, I'm going to be talking savvy shopping strategies. all right my friends we are back and we are talking beauty now let's get into the good stuff how to keep your paycheck from disappearing on beauty products that just don't deliver

here are some savvy shopping tips to help you make better choices first my friends you need to know your skin type and your specific beauty needs what works for an influencer on tiktok might be a perfect recipe for clogged pores or it might even break you personally out. Beauty is unfortunately, unfortunately, not one size fits all. So understanding what your skin needs can save you from wasting money on trendy products that aren't the right fit for you. And another thing, which is a bit sad because nobody wants to admit that they are getting a little bit older, but your skin's needs change over time. So understanding these shifts based on your age can help you adjust your routine accordingly. Next, my friend, we're going to focus in on

ingredients that are proven to work for your specific skin type and the concerns that you have. So instead of chasing the latest buzzwords, no laser here, look for products with effective concentrations of ingredients that are then backed by science. Don't be swayed because everyone's using it. What matters is whether it actually suits your skin or not. Another tip is read the ingredients list, not just the front label. Brands love to highlight the buzzworthiness ingredients on the packaging, but the real story is often in the fine print on the back of the bottle. In Australia, beauty brands are required to list ingredients on their product labels in descending order of quantity. So if that star ingredient is listed way down the bottom,

there might not be enough of it to actually do anything good for your skin. The other thing that I think is really important is beware of the dupes. They're often clickbait. Dupes can be tempting because they promise the luxury look for less, but they don't always live up to the hype. Many dupes are marketed heavily on social media, creating a buzz that can be more about getting clicks and sales than delivering quality results. While some dupes do genuinely do a good job, others might fall short in performance, quality, or longevity. But for buying, look for a really thorough comparison and some honest reviews to see if the dupe is truly worth it or if it's just a really clever marketing ploy. So one of the smartest ways to save money on beauty

products is actually finding your own dupes. Look for budget-friendly alternatives that contain the same key ingredients as high-end items. So start by identifying active ingredients in your favorite luxury products like hyaluronic acid, niacinamide, or even vitamin C. Then search for more affordable brands that feature those same ingredients in similar concentrations. By focusing on ingredients rather than brand names, you can build a really effective skincare routine that works for both your skin and, importantly for me, your budget. Another big money-saving hack is to test it before you invest it. Ask for samples or buy travel sizes to see how your skin reacts before committing to a full size, especially for pricier items. All you have to do is ask at Mecca. They are so kind.

And don't forget to know the difference between your needs and your wants. That's something that I need to remind myself of time and time again, but just because something is all over social media, my friend, it doesn't mean it's an essential. Be sure to read unbiased reviews and be skeptical of influencer promotions that might just be sponsored. Influencers are often paid to hype products, so look for the opinions of people who aren't necessarily financially tied to the brand. And remember, just because a product is popular, it doesn't actually mean that it's better for your skin or even your wallet. And here's a little bonus shopping trip that I just learned. My producer, Emma, was telling me that she was buying mascara and

foundation at Chemist Warehouse, right? And even though they were on sale, money win, she's a genius. So she checked online and she saw that the products were half price at a different store. And since, I'm sorry, Chemist Warehouse, we're outing you here, but since Chemist Warehouse price matches, instead of paying $37, she paid 25 bucks. A quick online search when she was in store made all the difference and that is a total money win. And you know what? Ultimately, your beauty routine should be about what makes you feel good, inside and out. Shopping smart means knowing when a dupe is a good deal and when it's just hype. And I want you to stay really critical of flashy promises that just don't deliver. It's less about the price tag and more

about making thoughtful choices that serve your skin and importantly, your budget. Thank you for joining me today on, I don't know, a very fun beauty rant. I'm heading straight back home to sadly clean out my beauty drawer and part ways with those barely used products that over promise and let's be honest have under delivered they're out have a good saturday guys the advice shared on she's on the money is general in nature and does not consider your individual circumstances she's on the money exists purely for educational purposes and should not be relied upon to make an investment or financial decision. If you do choose to buy a financial product, read the PDS, TMD and obtain appropriate financial advice tailored towards

your needs. Victoria Devine and She's On The Money are authorized representatives of Money Sherpa, PTY, LTD, ABN, 321-649-27708, AFSL 451-289. Thanks for watching!