How Gift Sets Became Big Beauty Business

Amanda Denise had a dilemma with her $38 Summer Fridays set. The influencer had originally purchased it to give as a holiday gift. But when she unwrapped its contents — a miniature gel cream, a blush and a diminutive version of one of its best-selling Lip Butter Balms — she changed her mind. “There’s no way I’m giving this away,” she told her 9,000 TikTok followers in her unboxing video.

Her predicament shows how gift sets have shifted in the public perception, from bargain bundles to luxuries in their own right. Gift sets generally contain a mixture of full-sized and miniature products with a savings claim attached, but niche and premium brands are using the gift set format with more sophisticated touches, like limited edition items, pochettes or personalisation to make them into desirable standalone purchases.

“It’s like a roll of thunder when the gift sets hit the counters in October,” said Mia Collins, head of beauty at the prestigious London department store Harrods. At the premium UK retailer Space NK, makeup and fragrance gift sets are up 43 and 69 percent respectively; sets helped drive a 7 percent year-on-year increase in cosmetic sales in the US over the Black Friday weekend, netting $500 million on Cyber Monday alone.

Collins said many brands now use the holiday gifting season to create items and bundles more targeted to their superfans who shop with them throughout the year. Harrods offers opulent options: a La Prairie skincare gift set for $2,500, a “festive hamper” stuffed with fragranced sundries from Jo Malone London for $635 and a “Guilty Treasures” chest of body care products from niche brand Joonbyrd for $465, though Collins said seasonal offerings from megabrands like Chanel drum up some of the most excitement.

Over at Sephora in the US, a representative for the retailer confirmed that its best-selling sets overlap with its overall top hitters: the aforementioned Summer Fridays set, One/Size On Til’ Dawn Big and Bitty Duo, $34, a full- and travel-size version of the viral setting spray, alongside offerings from Rhode and its own line. Cult retailer Violet Grey has pricey offerings from the likes of Fara Homidi, Eighth Day and Westman Atelier, helpfully merchandised under headings such as “The Consummate Host” or “The Luxury Lover” (the latter of which contains a $2,135 “liquid surgery” skincare serum.)

But competition is hotting up. To stand out, Collins said brands need to signpost that their offering is the “definitive gift” that will surprise and delight its recipient.

“We’re at a stage now where the traditional gift set format doesn’t deliver against that goal,” she said.

Standing Out From the Pack

Value is still a key part of a good gift set, but that value comes from getting an item that’s limited edition or otherwise specially designed, rather than from dollars saved.

There’s still a place for the more traditional format, but Collins said most of the dynamism came from brands who were able to excite customers with a special format or unique offering. “If you don’t offer [something time-limited], all you’re doing is updating the box,” she said, saying that some top items including advent calendars will often sell out as early as October. Top-performing gifts often include a hero product, she said, rather than a new innovation. Creative packaging, an extra-large size or other artistic elements can help turn a mainstay product into a must-have purchase, she said.

At both Space NK and Sephora, multi-brand assortments are popular. These feel more curated and thoughtful to some customers, and give a sense of being a bigger gift than a single brand, said Margaret Mitchell, Space NK’s chief commercial officer. Scarcity also works, she said: Limited runs from the likes of premium cosmetics brand Hourglass, which releases an annual gift set of its cosmetics, usually sell out quickly.

Ultimately, pretty packaging and jumbo sizes might catch a shopper’s eye, but Mitchell said top-selling gift sets offer something that feels exclusive. That can be created through limited availability, but most successfully, through a thoughtful curation of products.

“Value is much more than just price these days,” she said.

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