$2,000 a bottle for skin cream?! Yes - and sales are up

La Prairie's latest skincare sells for $500 a popWhen La Prairie introduced its latest skincare product -- at $500 a pop -- Saks had to limit purchases to six at a time. By Jessica Dickler, staff writer


NEW YORK (CNNMoney) -- Call it a clear sign of a recovery: Sales of luxury skincare have rebounded sharply.

In 2010, sales of prestige skincare products sold in U.S. department stores reached $2.7 billion, according to the NPD Group, an 8% increase from 2009.

"That market has seen as resurgence at the end of the recession," noted Alexis Wolfer, editor-in-chief of online magazine the Beauty Bean.

When Saks Fifth Avenue celebrated the launch of La Prairie's latest skincare product, Cellular Power Infusion, last month, demand was so high that they had to limit customers to purchasing no more than six at a time. The price? Nearly $500 for four quarter-ounce bottles.

"We see a strong customer response any time a new and advanced product arrives in our stores," said Deborah Walters, senior vice president for cosmetics, fragrances and intimate apparel at Saks.

Tracy Brennan, the owner of Los Angeles-based Kalologie Skincare, says her customers have been moving into some of the higher price point products in recent months or buying the entire line instead of just one jar. Some products are constantly selling out.

"As much as we want to keep the shelves full stocked, we have to accommodate people via wait list sometimes," Brennan said.

But unlike other luxury products, the value of a face cream can be even harder to measure. Some of the priciest products on the market -- like Kanebo Sensai eye cream, which costs $320 for half an ounce and is currently backordered, or ReVive's Peau Magnifique which costs $1,500 for a four week supply -- credit complicated ingredients that claim to regenerate skin cells. But that's hard to measure.

"You are paying for this expensive ingredient, but there's not a ton of science behind it," Wolfer said. "There are really few clinical studies; you are really taking a brand's word for it."

Still, Wolfer says she also indulges in the pricier products for herself. "I am a big believer on your skin being your largest organ, but I think it's a personal decision," she said. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Overnight Avg Rate Latest Change Last Week
30 yr fixed3.57%3.69%
15 yr fixed2.78%2.93%
5/1 ARM2.64%2.82%
30 yr refi3.55%3.76%
15 yr refi2.77%3.02%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 14,802.32 128.86 0.88%
Nasdaq 3,297.25 59.39 1.83%
S&P 500 1,587.72 19.11 1.22%
Treasuries 1.81 0.06 3.32%
Data as of 4:04pm ET
Company Price Change % Change
Bank of America Corp... 12.32 0.06 0.48%
Microsoft Corp 30.21 0.61 2.06%
Intel Corp 22.38 0.62 2.87%
Micron Technology In... 10.08 0.50 5.23%
EMC Corp 23.24 0.08 0.35%
Data as of 3:48pm ET

Sections

For the first time, Facebook ads will target specific users based on their past buying history -- even if the purchases happened offline. More

Oops. The Federal Reserve accidentally emailed the minutes from its March meeting to about 100 people a day early. More

As many doctors struggle to keep their practices financially sound, some are buckling under money woes and being pushed into bankruptcy. More

In most parts of the country home sellers have finally regained the upper hand. To get the best price, you need to finesse your timing, list competitively and understand local conditions. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2013 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2013 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2013. All rights reserved. Most stock quote data provided by BATS.