As frivolous a sector as it may seem to some, the beauty industry = fantasy + escapism and with the way world markets are going, it seems that is precisely were the consumer wants to be. The truth is, beauty products make us look and feel good and that is just what we need more of in these uncertain times. Today’s post is about what’s happening in the unstoppable world of hair care, skin care, spa, makeup and nail care as we enter the new year with a fresh new perspective.
New Emerging Markets
According to the McKinsey Quarterly, Africa represents a large and growing opportunity for fast-moving consumer goods companies and retailers. In 2008, the combined GDP of African countries was nearly $1.5 trillion—larger than that of either India or Brazil. Africa’s real compound GDP growth, about 5 percent annually between 2002 and 2009, was on par with Russia’s and significantly higher than those of developed countries.
In Africa, the three largest beauty categories are hair care — especially straightening and relaxing products — body care and deodorants. In personal care, body moisturizers and facial concealers are equally so.
Latin American Markets
Like many visionaries in the beauty business, Sephora is planning on expanding their Mexico presence and will begin looking at other key markets like Brazil, Argentina, Chile and Colombia.
Look for beauty packaging that packs a multi-sensory punch, while appealing to sight, touch and smell. One of the major players in the business is 3SP Tri-Sensory Packaging.
LF Beauty’s Jackel Group has created the Beauty Bracelet (pictured on today’s post), a silicon band that can hold a mini lipstick or a mini fragrance. This company sets the pace for novelty packaging as cosmetic companies deliver a unique “wow” effect. This trend will continue with future products like a makeup compact with an integrated video screen so people can be taught makeup lessons on the go.
Left to their own devices, self-service beauty gadgets like those launching from Silk’n™ bring doctors’ high-tech weapons home.
Silk’n FaceFX is a hand held skin rejuvenation DIY device that uses fractional infrared light phototherapy with thermal heating to achieve long-term radiant skin. HF (Home Fractional) is the synergy of healing heat energy and optical energy combined to produce long-term clinical results. Just after eight weeks of using Silk’n FaceFX users reported – 91% improvement in skin texture, 69% reduction of fine lines and wrinkles, 47% fading of skin patches and 78% reduction of pore size.
Silk’n Flash & Go Permanent Hair Removal system from the makers of Silk’n Sensepil promises to make removing hair from the face, under arms, legs, and other parts of the body simple and in the convenience of your own home. Silk’n’s Flash&Go is a mid-sized handheld tool that is shaped like a laser gun, making it easy to grip and reach around the body. Silk’n Flash & Go has gathered proven results which include 90% hair reduction.
Digitally Driven Brands
As with most brands, beauty companies are evolving their marketing strategy. It was only a few years ago that bigger brands would launch a new product with a 30-second television spot and a print campaign. That’s totally different these days as the digital realm is exploding and the consumer is much more aware and sophisticated. Now, marketing a new product is all about a Facebook launch that place products into consumer’s hands so they can try them, rate them and review them online.
The focus for many companies has moved to creating content and storytelling. It’s not about self-promotion either. It’s about communicating with customers, who are talking anyway. Companies looking to create a strong social media strategy should study the makeup marketing masters at MAC.
In fact, forward-looking brands are seeking more innovative ways to reach their target customers amid the increasing fragmentation of the modern media landscape. For brands looking to keep their customers loyal, it’s about figuring out what they want to say and how they can program that to the people they have. It’s about giving customers something that interests them outside of pushing brand products and services.
Monitoring Claims in Beauty advertising
Whether it’s a new anti-aging eye cream or a “natural” skin care collection, a new panel of dermatological experts has been appointed in the UK to advise advertising standards bodies on approving skincare and cosmetic claims made in advertisements. This panel will advise print advertising regulator the Advertising Standards Authority (ASA); TV ad standards regulator Clearcast, and commercial radio ad clearance body RACC. The panel of experts will provide advice on the adequacy of evidence supporting claims in ads, both before an ad appears and afterwards if the claims are challenged.
Spa treatments must also live up to their “healing” claims. Check out SpaEvidence.com – the site is said to be the web’s most comprehensive resource on the hard science behind spa therapies and is part of a growing trend to hold alternative therapies up to scientific scrutiny.
Pretty Pitstops. The spa and beauty industry is thinking of new ways for time-strapped customers and clients on a budget to change up their looks with high-impact beauty fixes – walk-in make-up applications, ten minute manicures and quick eye and brow treatments will all be on your menu lists.
Hot Products New rich vibrant eye and lip colors (think orange for spring/summer 2012) and improved formulations at mass level satisfy shoppers trading down from prestige.
Mascara sales are still huge. Check out Eyeko, one of the newest players with a cult-like British following, soon to hit the US market.
According to The NPD Group / BeautyTrends® the (US) eye segment gained nearly 10 percent dollar growth during January through May 2011 vs. the same time period in 2010. Sub-segments like eye shadow and mascara both grew 11 percent in dollar sales, while eyebrow products grew 10 percent. In mascara, all the products with benefits showed growth. The two benefits that experienced the largest growth in mascara were volume and definition, growing 17 and 14 percent respectively.
Top Three Best Selling Prestige Mascara Brands January thru May 2011 * #1 Lancome Definicils High Definition Mascara #2 Clinique High Impact Mascara #3 Lancome Hypnose Drama Mascara
According to the figures, total nail sales were up 59% for the first 10 months of this year. All other color categories were up 10%. All sets were up 9%. Total lip business was up 8% and total face products were up 7%.
And finally, The Sweet Smell of Success
Sales of celebrity endorsed fragrances are still booming. Although this study recently published in GCI shows that scents, not celebrities, drive fragrance consumption.