BEAUTY CARE

Brands revive the smell of success

BY Antoinette Alexander

The pressures on mass market fragrances have yet to ease, and as industry players work to determine whether the current downturn is a long-term secular decline or the result of recent consumer behavior, manufacturers are not resting on their laurels.

(Click here to read the full Category Review.)

According to IRI, sales of men’s fragrance declined 2.4% for the 52 weeks ended May 17 at total U.S. multi-outlets, as sales of women’s fragrance dropped 7.3% during the same period.

But despite the drop in sales, manufacturers remain upbeat and have set their sights on reviving the smell of success.

During Coty’s third quarter, fragrance net revenues decreased 2% like-for-like, as incremental net revenues from new launches could not offset the decline from existing product lines.

“On fragrance, I would say the net revenue indicator of -2% is picturing a more negative situation than it is in reality, because fragrance has shown substantial volume growth, but at the same time has a negative price mix, which takes it to -2%. That already tells you, from [a] promotional investment point of view, we have optimization possibilities and that is also something which needs to happen,” Bart Becht, Coty’s chairman and interim CEO, told analysts.“So, I think we have good initiatives on our plate going forward. We have the opportunity to invest where it counts in the brand equities of the brands. And we gradually need to release the tension on the trade spend without clearly impacting the volumes.”

Meanwhile, giant beauty brand Revlon sees the fragrance segment as a significant opportunity, president and CEO Lorenzo Delpani told analysts.

“In seeking opportunity for growth in the future, we are obviously keen to diversify our options for growth and also to diversify our risk,” Delpani told analysts. “And, therefore, we, after deep investigation, consider that being active in the fragrance segment is an opportunity for us.”

After investigating a platform for growth, Revlon set its sights on CBBeauty, a U.K.-based global fragrance management company that distributes and markets perfumes and beauty products under the One Direction brand. The acquisition, announced May 1, also included the U.K. distributor, SAS & Co., which distributes and markets perfumes and beauty products from a portfolio of such brands as Burberry, Carven, One Direction and Rihanna.

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Foreo debuts stateside with Luna

BY Antoinette Alexander

NEW YORK — Late last year, Swedish beauty company Foreo announced its global expansion into the United States.

(Click here to read the full Category Review.)

The brand’s first stateside introduction, the Luna, delivers T-Sonic pulsation (trans-dermal sonic pulsations) technology with 8,000 pulsations per minute channeled through Luna’s soft, silicone touchpoints. While in cleansing mode, these pulsations create a “patting” motion directed across the skin’s surface, subsequently dislodging dirt and makeup from the pores. Through this tap-like movement, the skin can be cleansed deeply, yet gently, without the rotating or oscillating action of existing bristled devices that might irritate the skin or harm its elasticity due to their pulling and pinching effects, the company stated.

The Luna also features an anti-aging surface on its reverse side that channels lower-frequency pulsations that deliver a gentle massage.

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Convenience, innovation drive category

BY Antoinette Alexander

The skin care device market is brimming with opportunities as usage remains low but interest is quickly growing. And now new research further supports that claim.

(Click here to read the full Category Review.)

According to new research from Mintel, women in search of convenience and the promise of professional results are taking a closer look at the skin care device market, which continues to be dominated by cleansing brushes.

The research comes on the heels of a report by Kline and Co., which found that at-home devices continue to heat up, increasingly globally by nearly 14% in 2014.

So, who is using such devices? According to Mintel, they tend to be younger. This is especially true for cleansing brushes, which are most popular among U.S. women ages 18 years to 24 years, due to several factors including skin needs (i.e., oily, more acne prone) and a general tendency to be more engaged in the beauty category. Household income is a significant category driver, with those in the $75,000 and more group reporting above average usage of skin care devices.

It should be noted, however, that skin care devices have a broader audience among women who are interested in trying out new products, suggesting that the device market has room to grow. Women ages 18 years to 54 years reported similar levels of interest for most devices, though interest does skew significantly younger for skin massagers and airbrush makeup applicators, according to Mintel.

Outside of replacement (49%), beauty device users are motivated to purchase new devices by a variety of factors including special offers (28%), reviews (28%) and family/friend recommendations (26%). When asked what the top reasons for purchasing a beauty care device were, 36% of U.S. women referenced trying a product out and liking the results, while 30% were impressed with product results on someone they know.

There’s good news for mass merchandisers. While women are seeking information from a variety of sources, the in-store experience also remains important. And, regardless of product type, skin care device shoppers are most likely to cite mass merchandisers as their top destination for beauty devices (55%) likely due to their accessibility, affordability and convenience. Online retailers are also a popular choice for 35% of beauty product shoppers, while 13% prefer to browse beauty products online and buy in-store, Mintel stated.

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