The Market Logic of Luxury Skincare Products: A Study on the

Synergistic Effect of SK-II's Pricing Strategy and Consumer

Psychological Driving Forces

Yusen Wang

BinHai School of Foreign Affairs of Tianjin Foreign Studies University, Tianjin, 300270, China

Keywords: Case Analysis Method, Luxury Skin Care Products, Pricing Strategy, Consumer Psychology.

Abstract: This study takes the luxury skincare products market as the background and focuses on the synergy between

SK-II's pricing strategy and the psychological driving forces of consumers. Through literature analysis and

case studies, it explores the characteristics of the luxury skincare products market, SK-II's pricing strategies,

and their interaction with consumer psychology. The research finds that SK-II has successfully established a

high-end brand image through high-price positioning, differentiated pricing, and price maintenance

strategies. At the same time, psychological factors such as consumers' self-identity, social identity, and

emotional experience form a synergy with the pricing strategy, jointly promoting the brand's market success.

This study provides theoretical basis and practical guidance for the pricing strategy formulation and brand

management of luxury skincare products enterprises. The luxury skincare market, as an important part of the

high-end consumer goods industry, has been in a growth trend and demonstrated unique market logic. With

the upgrading of consumers' pursuit of a quality life, luxury skincare products not only carry out basic skin

care functions but also become a part of identity symbols and consumption culture. In this market landscape,

SK-II, with its high-end positioning, unique brand story and pricing strategy, has occupied an important

position in the global luxury skincare market. Its success is not only reflected in the recognition of product

efficacy, but also in the deep interaction between pricing strategy and consumer psychology.

1 INTRODUCTION

The development trends and competitive landscape

of the luxury skincare market are currently receiving

significant attention from enterprises. The current

market environment requires luxury brands not only

to maintain their unique brand charm and offer

high-quality products but also to be flexible in

responding to rapid market changes to meet the

diverse needs of consumers in the new era (Wang,

2006). With the rapid development of the global

economy and the increase in consumer purchasing

power, the luxury skincare market is showing a

vigorous development trend. In this market, pricing

strategies are not only important means for

enterprises to make profits but also key factors in

shaping brand images and conveying product values.

As a globally renowned luxury skincare brand,

SK-II's successful pricing strategy and its synergy

with consumer psychological drivers play an

indispensable role in its position as a giant in the

international luxury skincare market. The influence

mechanism of price on consumer psychology

(anchoring effect) is indispensable in brand pricing.

When consumers make decisions on whether to

purchase products in live-streaming rooms, the hosts

will provide a reference anchor value during the

decision-making process, using a higher original

price to create a sense of urgency and shake people's

assessment of the product's monetary value (Zhao&

Lu, 2024). SK-II, through in-depth research on

consumer psychology, analyzed consumers'

consumption motives and incorporated them into the

consideration of product launch and pricing

strategies, forming a close synergy with consumer

psychological drivers. Regarding consumption

motives, luxury consumers usually seek high-quality

and exquisitely crafted products. For them,

purchasing luxury goods is also an expression of

personality and aesthetics (Meng, 2025). Consumers

in the luxury market usually have a much higher

brand loyalty than those in fast fashion or ordinary

consumer goods markets. They often follow a

Wang, Y.

The Market Logic of Luxury Skincare Products: A Study on the Synergistic Effect of SK-II’s Pricing Strategy and Consumer Psychological Driving Forces.

DOI: 10.5220/0013833300004719

Paper published under CC license (CC BY-NC-ND 4.0)

In Proceedings of the 2nd International Conference on E-commerce and Modern Logistics (ICEML 2025), pages 87-93

ISBN: 978-989-758-775-7

certain brand for a long time, and this loyalty usually

stems from the brand's long history, superior quality,

and unique brand story. In contrast, consumers in

other markets tend to consider price and

convenience more when making purchases (Meng,

2025). Current research on the luxury skincare

market mainly focuses on brand building, consumer

behavior, and marketing strategies, but there is a

lack of systematic studies on the interaction between

pricing strategies and consumer psychological

drivers. The way of SK-II's pricing strategy building

brand value perception, the reason that consumers

are willing to pay high prices for it, and the method

of price signals shaping consumers' psychological

expectations remain issues worthy of in-depth

exploration. This study aims to explore the

characteristics of the luxury skincare market,

analyze SK-II's pricing strategy and its interaction

with consumer psychology, and thereby reveal the

internal logic of the luxury skincare market.

Through literature analysis, case studies, and other

methods, taking SK-II's successful foothold in the

luxury skincare market as an example, this study

analyzes how consumer psychological drivers

interact with pricing strategies in the luxury skincare

market.

2 BRAND INTRODUCTION

2.1 The Origin of SK-II

SK-II was born in Japan and is the perfect result of

Japanese skin experts applying cutting-edge

technology to the development of skin care products.

For 30 years, SK-II has continuously introduced

innovative skin care technologies and products,

encouraging women to embrace the "beauty of bare

skin" and exude confidence with both radiant skin

and a rejuvenated spirit. Since the launch of its first

skin care product in 1980, SK-II has been a pioneer

in combining advanced technology with pure natural

essences in skin care products, introducing many

groundbreaking products. The core ingredient of

SK-II, PITERA™, has seven magical effects.

2.2 The Promotion of SK-II

In January 2015, SK-II launched the "Change Your

Destiny" campaign in Japan and invited the

renowned ballet dancer Misa Kuranaga to shoot a

theme promotional short film for the brand. Misa

Kuranaga used her personal experience to interpret

the successful path of challenging oneself and

reversing fate, thereby supporting and encouraging

female friends to bravely take control and change

their own destinies. In March 2015, on Women's

Day, SK-II launched the limited edition of the Facial

Treatment Essence, representing the perfect

combination of the rose symbolizing love and the

classic PITERA™. In 2016, SK-II released a

promotional short film titled "She Finally Went to

the Matchmaking Corner" to raise awareness of

women's rights, focusing on the real-life issue of

Chinese women being pressured to marry before the

age of 25. The short film "She Finally Went to the

Matchmaking Corner" has been viewed over 46

million times and won the Glass Lion Award at the

Cannes International Festival of Creativity, which

honors efforts in promoting gender equality. In June

2017, SK-II launched the "I Never Expire" campaign

to initiate a dialogue again, encouraging women to

challenge social norms related to age and take

control of their own destinies. SK-II premiered the

short film "I Never Expire", a touching film about

age-related pressure, which powerfully demonstrated

the so-called "expiry date" many women experience

and sparked a heated discussion on age pressure

across social media in Asia. It is evident that SK-II

is a luxury brand that focuses on anti-aging and skin

rejuvenation with advanced skin care technology at

its core.

3 STP ANALYSIS OF SK-II

The STP theory is one of the core strategic

frameworks in modern marketing, consisting of

three key steps: market segmentation, targeting, and

positioning. This theory was proposed by American

marketing expert Philip Kotler in his book

"Marketing Management" and aims to help

enterprises more effectively formulate marketing

strategies and meet the needs of different consumer

groups.

3.1 Market Segmentation

3.1.1 Geographic Segmentation

SK-II's market layout has distinct regional

characteristics, mainly focusing on the Asian

market, especially in regions such as China, Japan,

and South Korea, where there is a strong demand for

high-end skin care products. Consumers in these

regions have a high awareness and pursuit of the

efficacy and brand value of skin care products.

Taking the Chinese market as an example, SK-II's

ICEML 2025 - International Conference on E-commerce and Modern Logistics

offline stores are mostly located in the bustling

commercial areas of first- and second-tier cities in

China. These areas usually have a large flow of

people and the consumer groups there generally

have strong purchasing power, high income levels,

and high demands for quality of life. The decoration

of offline stores is mostly exquisite and luxurious,

and they exude an upscale atmosphere, which

enables SK-II's offline stores to stand out in

comparison with other stores.

3.1.2 Demographic Segmentation

SK-II's target consumers are mainly adult women,

especially mature women over 25 years old, who

have a pursuit of skin care product quality. The

brand tends to target customers who pursue high

quality, who attach great importance to the

performance and effect of the products and are

willing to pay a high price for them. At the same

time, SK-II is gradually expanding into the young

consumer and male markets. The demand for skin

care products among young consumers (aged 20-30)

is gradually increasing, and the male market has

become a new growth point for SK-II. In addition,

SK-II mainly targets middle and high-income

groups, who are willing to pay a premium for its

high-quality skin care experience.

3.1.3 Psychographic Segmentation

Luxury goods are consumer products that go beyond

basic living needs and integrate functions such as

use value, social and cultural symbolism, and

personal display (Wiedmann, Hennigs & Siebels,

2009). Most existing studies are based on the

perspective of motivation, suggesting that

materialists are keen on luxury consumption to

showcase their social status, identity, and self-worth

(Fitzmaurice & Comegys, 2024). SK-II's target

consumers value the quality of life and pursue a

refined and elegant lifestyle. They tend to choose

brands that can showcase their personal taste and

social status, and SK-II's high-end image is highly

consistent with their values. Through emotional

marketing and cultural communication, SK-II has

successfully attracted consumers with such concepts.

3.1.4 Behavioral Segmentation

SK-II focuses on addressing consumers' deep-seated

skin care needs, such as anti-aging, skin brightening,

and skin barrier repair. Through high-quality

products and emotional marketing, SK-II has

cultivated a group of highly loyal consumers. These

consumers not only have a high level of trust in the

brand but are also willing to pay a premium for it.

3.2 Target Market Selection

3.2.1 Core Target Market

SK-II's core target market is mature women aged

25-25, who have a high demand for skin care

products and usually have high income levels and

are willing to pay a premium for the brand.

3.2.2 Regional Target Market

SK-II's market is mainly distributed in East Asia and

Southeast Asia. Consumers in these regions have a

high demand for and acceptance of skin care

products. Thanks to the rapid economic growth and

the expansion of the middle class in East Asia and

Southeast Asia, as well as the long-standing tradition

and high regard for skin care in these cultures, the

demand for luxury skin care products in this region

has become increasingly intense, making it the

third-largest luxury consumer region globally.

Reports show that in the entire Asia-Pacific region,

more than half of the respondents believe that

wearing luxury brands is a way to display their

social status: 67% in China, 75% in Indonesia, 70%

in Thailand, and 67% in India. The age range of

luxury consumers in China is from 20 to 50 years

old, while in Europe and America, it is generally

around 30 to 40 years old. Moreover, Chinese

consumers aged 20 to 30 are becoming the main

force in luxury consumption, and the number of

people in this age group is 11 times higher than that

in Japan (Wang, 2006).

3.3 Positioning

3.3.1 Shaping a High-End Brand Image

In the highly competitive skin care market in China,

SK-II has increased its brand awareness and

expanded its market share by opening stores both

online and offline, thus entering the view of a wide

range of consumers. Gen Z consumers not only

share their knowledge and opinions and entertain

themselves but also shop on social networks. Media

channels influencing Gen Z consumers the most to

choose luxury goods include social networks, mobile

applications, the press, and celebrities (Juodzbalis,

2018). In its online promotion, taking TikTok as an

example, SK-II has released a large number of

close-up videos of the skin condition of celebrities

The Market Logic of Luxury Skincare Products: A Study on the Synergistic Effect of SK-II’s Pricing Strategy and Consumer Psychological

Driving Forces

and athletes using SK-II products on its brand

account, allowing consumers with skin care needs to

directly experience the product's effects. The halo

effect of celebrities and athletes has enhanced the

high-end image in consumers' minds. Additionally,

it has used the slogan "Simple, I Dare" as the video

cover, attracting widespread attention and increasing

brand awareness.

3.3.2 Product Function and Technology

Positioning

The core ingredient of SK-II, Pitera™, is a natural

fermentation product made from yeast. It contains

various vitamins, minerals, amino acids, and organic

acids, which can deeply nourish the skin, promote

cell renewal, and enhance skin luster. Pitera™ also

has a strong moisturizing ability, locking in moisture

and keeping the skin hydrated. Moreover, Pitera™

can improve skin texture, reduce fine lines and

wrinkles, making the skin look younger and

healthier. Besides Pitera™, SK-II products also

contain other beneficial ingredients.

3.3.3 Emotional and Cultural Positioning

SK-II continuously innovates in product iterations,

aiming to provide consumers with a more complete

purchasing experience. SK-II has refined its product

functions and launched products such as facial

cleanser, toner, facial essence, whitening essence,

and face cream, providing more choices for

consumers to purchase based on their skin care

needs. SK-II has also launched various limited

edition gift boxes. Taking the Valentine's Day gift

box in 2024 as an example, it connects with

consumers through emotional appeals, giving rise to

the idea that "receiving an SK-II gift box usually

symbolizes care and protection for women." SK-II

has also enhanced the favorability of specific

consumer groups towards its brand by releasing

multiple public service advertisements that speak for

women.

4 ANALYSIS OF SK-II'S PRICING

STRATEGY

4.1 High-End Brand Positioning

4.1.1 High-End Brand Image

Since its establishment, SK-II has positioned itself

as a high-end skincare brand, and its pricing strategy

is highly consistent with its brand positioning. The

high-end brand positioning is not only reflected in

the product prices but also conveyed through

advertising and user experience in various aspects.

4.1.2 Brand History and Culture

The brand history and culture of SK-II are important

supports for its brand heritage. The discovery story

of its core ingredient, Pitera, and the historical

development of the brand have attracted consumers'

interest in learning about the brand and enhanced

their trust and loyalty to it.

4.2 Product Value and Uniqueness

4.2.1 Core Ingredient Pitera

Pitera is the core substance ingredient of SK-II

products, which has multiple functions such as

anti-oxidation, moisturization, and repair. This

unique substance makes SK-II stand out in the

competition with other luxury skincare products.

4.2.2 Research and Development Investment

SK-II has made significant investments in product

efficacy and safety, ensuring its products' efficacy in

the luxury skincare market and seeking opportunities

to surpass competitors. This also provides a strong

support for the high prices of SK-II products.

4.2.3 Rich Product Range

SK-II offers a wide range of products, catering to

diverse purchasing needs of different customers. The

product range includes essences, face creams,

masks, etc. Each product category undergoes strict

quality control, greatly ensuring customers' interests

and SK-II's commitment to protecting consumers'

rights.

4.3 Market Demand and Consumer

Psychology

4.3.1 Target Consumer Group

In economics, luxury goods are generally regarded

as representing an owner's refined and elegant

lifestyle, fulfilling not only practical needs but also

spiritual ones. The target customer group for such

products is often the elite class with high income and

social status (Zhang, & Wang, 2020). SK-II

positioned its products as "beautiful and effective"

skincare products from the beginning. The exquisite

ICEML 2025 - International Conference on E-commerce and Modern Logistics

design of the products plays a crucial role in

attracting consumers who want to showcase their

refined and elegant lifestyle through SK-II, meeting

the demands of the luxury skincare market.

4.3.2 Consumer Psychology

SK-II's high pricing strategy creates a sense of

luxury for the brand, while also satisfying

consumers' needs for identity recognition and

self-reward. Social status is a concept that exists in

human group interactions and is difficult to exist

independently. Judgments of an individual's social

status often depend on the observer's perception and

inference. Therefore, the purpose of showcasing

social status is to make the observer infer a high

social status (Anderson, Hildreth & Howland, 2015).

SK-II's high-end brand image enables consumers to

concretize their social status, creating a mutual drive

with consumer psychology, enhancing consumers'

trust in the brand, and thereby expanding the brand's

influence and market size.

4.3.3 Brand Loyalty

SK-II enhances consumers' brand loyalty through

membership programs and customized services.

Consumers can register as members through online

and offline platforms and enjoy more prestigious

services than ordinary customers. They can also

enjoy discounted prices and various festival gifts

during brand events.

4.4 Pricing Strategy

4.4.1 Promotional Activities

Although SK-II is positioned as a high-end skincare

brand, it still conducts promotional activities on both

online and offline sales platforms. For instance,

during festivals such as "Double Eleven",

anniversary celebrations, and Valentine's Day, the

brand releases limited-edition gift sets and offers

discount coupons and gifts to consumers. However,

the products themselves do not undergo significant

price reductions to maintain its luxurious and

high-end market positioning.

4.4.2 Exclusive Benefits for Members

SK-II provides personalized services and greater

discounts to its members to enhance consumer

loyalty. This also prevents the impact of high brand

prices on sales and maintains SK-II's luxurious

image.

4.4.3 Sample Trials Online and Offline

SK-II uses the sale and experience of sample

products in its product sales to attract consumers.

Through online platforms, consumers can purchase

SK-II sample products at extremely low prices to

understand the product's efficacy and decide whether

to purchase. Offline, consumers can go to stores for

trials and directly experience the product's efficacy.

The launch of SK-II sample products not only

expands the brand's influence but also protects

consumers' rights and optimizes their purchasing

experience.

5 THE INTERACTIVE

RELATIONSHIP BETWEEN

SK-II’S PRICING STRATEGY

AND CONSUMER

PSYCHOLOGICAL

MOTIVATIONS

5.1 The Interaction Between

High-Price Strategy and Consumer

Psychology

5.1.1 Psychological Motivations: Identity

and Self-Reward

The high price of SK-II makes it synonymous with

"luxury". The formulation of SK-II's high-price

strategy is usually measured by whether consumers

are willing to pay for it. SK-II's marketing strategy

precisely captures the psychology of its consumers.

By comparing itself with its competitors such as

Lancôme, La Mer, and Clé de Peau, it highlights its

powerful skin care effects. Through endorsements

and trials by celebrities and models, it further

enhances consumers' brand loyalty, thereby

promoting consumers to purchase SK-II products to

achieve self-identity and self-reward.

5.1.2 Scarcity Marketing

SK-II launches limited-edition gift boxes on both its

online and offline platforms to emphasize the brand's

luxury. By creating a sense of scarcity, it endows

products with emotional value, interacts with

consumers' psychology, and enhances their

purchasing desire, thereby boosting sales. For the

wealthy, even essential goods or services far exceed

the needs for maintaining life and health. The goods

The Market Logic of Luxury Skincare Products: A Study on the Synergistic Effect of SK-II’s Pricing Strategy and Consumer Psychological

Driving Forces

or services they consume are carefully selected and

specially processed. At the same time, the honor

principle plays a crucial role. Any improvement in

consumer goods or services that conforms to the

honor principle will be welcomed by the wealthy

and will continue. Using these more exquisite

consumer goods or enjoying these more considerate

services is a proof of their wealth, and consumption

becomes a glorious act (Gu, 2023). SK-II's products

meet market demands and, through scarcity

marketing, distinguish consumers with different

purchasing powers, enabling consumers to purchase

products based on their own purchasing power and

enhancing their loyalty.

5.2 The Interaction Between Product

Value and Consumer Psychology

5.2.1 Product Technology and Efficacy

One of the strong supporting factors for SK-II's high

price is its core technology cost, Pitera. Pitera is

SK-II's patented ingredient, a liquid extracted from a

special yeast called Saccharomyces Ferment Filtrate

during the fermentation process. It contains essential

natural components such as free amino acids,

minerals, organic acids, and inorganic acids for

healthy skin, and has excellent moisturizing and

special hydrating functions. Moreover, the formation

of this substance is extremely difficult, which makes

SK-II one of the most unique brands in the luxury

skincare market. Strong technological support lays a

solid foundation for the high price of SK-II products

and enhances consumers' trust and loyalty to the

brand. This has led to a large number of "repeat

customers" for SK-II, which is a powerful proof of

its status as a luxury skincare brand.

5.2.2 Brand Story and Culture

The origin of SK-II and the discovery of Pitera not

only laid the foundation for SK-II's core technology

but also endowed the brand with a mysterious and

precious cultural heritage. Consumers, through using

SK-II products, not only pursue skin improvement

but also yearn to experience the "miraculous

transformation" and "confident beauty" conveyed by

the brand. This resonance makes SK-II a symbol in

the high-end skincare field, satisfying consumers'

dual expectations for quality, technology, and

emotional value. It has a large number of loyal

consumers in the Asian and Southeast Asian markets

and is gradually expanding into the European and

American markets, attracting a large number of

European and American consumers interested in

Asian technology.

5.3 The Interaction Between Regional

Pricing Strategy and Consumer

Psychology

5.3.1 Regional Differentiated Pricing

SK-II formulates differentiated regional pricing

strategies based on the consumption levels and

market environments of different regions. For

example, the pricing in the Chinese market is higher

than in other Asian markets, which is in line with the

purchasing power of Chinese consumers.

5.3.2 SK-II Pricing Aligns with Consumers'

Purchasing Power

The offline stores of SK-II are typically located in

high-end shopping malls and large duty-free shops,

which aligns with the activities of its target

consumers and attracts more consumers who match

the brand. Zhou (2025) proposed that differentiated

pricing, which sets different prices for the same

product or service based on consumers' different

needs, purchase intentions, and payment capabilities,

has become one of the commonly used marketing

strategies for enterprises. This pricing strategy not

only meets consumers' personalized needs but also

helps enterprises allocate resources more effectively

and improve market efficiency.

6 CONCLUSION

There is a close interactive relationship between

SK-II's pricing strategy and the psychological

driving forces of consumers. The brand satisfies

consumers' needs for identity recognition and

self-reward through high pricing strategies, scarcity

marketing, product technology and efficacy, brand

stories and culture, etc. Consumers are more willing

to accept the brand's high prices due to these

psychological driving forces, forming a virtuous

cycle. This interactive relationship not only

consolidates SK-II's position in the high-end

skincare market but also provides a favorable

support for its long-term development. Through the

establishment of a brand story with profound

cultural background, an image of high-end luxury,

and the introduction of product functions, SK-II has

achieved a huge success in the Asian market and

shown signs of growth in the European and

ICEML 2025 - International Conference on E-commerce and Modern Logistics

American markets. SK-II covers mature women,

young consumers, and the male market. With a clear

brand positioning, SK-II has established a unique

high-end image and technological efficacy

positioning in the luxury skincare market. This

series not only meets consumers' functional needs

but also establishes a deep connection with

consumers through emotional and cultural values.

SK-II's success lies in its clear high-end positioning,

emphasizing luxury through high pricing strategies

and a high-end brand image to attract consumers

who pursue quality and status; the uniqueness of its

products, with Pitera as the patented ingredient and

Asian technology at the core, creating an irreplicable

product in the market; precise control of consumer

psychology, satisfying consumers' needs for identity

recognition and self-reward through scarcity

marketing, emotional resonance, and identity

recognition; innovative promotion, attracting

consumers through celebrity endorsements and

membership systems, and enhancing brand loyalty;

high-end sales channels, opening offline stores in

high-end malls and large duty-free shops, and

maintaining consistent prices to prevent damage to

the brand image.

This study specifically analyzed the interactive

relationship between SK-II's pricing strategy and the

psychological driving forces of consumers. Through

STP analysis and pricing strategy analysis of SK-II,

it explained how SK-II forms driving forces with

consumers' psychology, providing a theoretical basis

for the construction of connections between other

brands and consumers. However, existing research

often focuses on macro-level market analysis and

lacks in-depth research on micro-level consumer

behavior and demand changes. Future research can

delve into how luxury brands utilize pricing

strategies and consumer psychology to expand

market share and conduct comparative analyses of

their outstanding performance in diverse market

environments.

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The Market Logic of Luxury Skincare Products: A Study on the Synergistic Effect of SK-II’s Pricing Strategy and Consumer Psychological

Driving Forces