BEAUTY CARE

Economy’s a beast for prestige beauty industry, research concludes

BY Antoinette Alexander

PORT WASHINGTON, N.Y. Despite a few beacons of light, the economic downturn is taking its toll on the U.S. prestige beauty industry, as sales dropped 3% to $8.38 billion during 2008 compared with the year-ago period, according to market research company The NPD Group.

The decline in the U.S. prestige beauty industry was driven largely by fragrance, which experienced a 6% decline to $2.68 billion. Fragrances for both genders experienced a decline, with women’s fragrance down 5% and men’s fragrance down 8%, according to NPD.

However, sales of higher priced gift sets, those priced between $60 and $100, were a bright spot for the fragrance category. This category represented 65% of gift set sales in 2008, compared with 40% in 2005, and experienced a growth in both dollars (+12%) and units (+11%).

Thanks to new brands like Viva La Juicy, Estee Lauder Sensuous, Ed Hardy and the Harajuku Lovers collection, women’s new fragrances posted a 9% boost in 2008, according to NPD.

Fragrance sales have struggled for the past few years, but what is a bit of a surprise, according to NPD, is the decline in the makeup category. Annual 2008 marked the first time makeup products posted a decline, dropping 3% in dollars and 6% in units. All segments in the makeup category (eyes, lips and face) experienced a decline in 2008.

Natural makeup did experience a boost in the past year, while premium-priced products in the face segment also showed strength in 2008, even as other makeup segments struggled with their premium-price offerings, the research stated.

Prestige skin care managed to stay afloat, capturing 29% dollar share, an additional share point over 2007, of total prestige beauty sales. Total prestige products, which include face, body, sun and hair products, generated $2.4 billion in 2008.

In addition, anti-aging and specialization products (e.g. allergy relief, redness and whitening/brightening) were up double digits and premium priced facial products (priced $70 and up) increased 4% from 2007.

Natural/spa/wellness skin care brands showed the strongest dollar growth of the distinctive brand types, up 6% versus the year-ago period to $304 million.

“The economic realities of 2008 have created fundamental shifts in the behavior of our consumers and the way they approach beauty. In 2009, we recognize that while consumption will not stop for prestige beauty, it has changed. It has become and will become more careful, more selective and more meaningful,” stated Karen Grant, senior global industry analyst and VP beauty for NPD. “Across all three prestige beauty categories, there were areas that experienced growth despite overall soft performance. We saw growth in premium price, natural and new innovations among trusted brands as well as alternative brand types.”

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Scandle spa products expands its overseas market

BY Antoinette Alexander

DALLAS Scandle LLC, a manufacturer and wholesaler of massage candles and complementary spa products, has announced the availability of its Scandle Body Massage Candles at Barneys New York, in Japan. The Scandle Body Candle will be marketed under the name LuxuryAroma MassageMode.

“Many retailers are falling in love with The Scandle Body Candle, which produces an all natural, soothing and healthy body oil that can be used to enhance the health of the skin, while simultaneously providing fragrance and ambiance to any setting,” stated Christine White-Stanton, owner and founder of Scandle LLC. “In today’s market we are seeing more and more customers wanting all natural skin care, beauty products, and home products. Our Scandle Body Candles fit that niche perfectly by combining a body lotion that can be used for massage, manicures/pedicures, or as a daily moisturizer with the added benefits of an environmentally safe soy candle that emits less sooth and toxins into the environment than traditional paraffin candles.”

Since its inception, Scandle LLC’s Body Candles and complimentary spa products have become a treatment and retail product in more than 200 spas, boutiques, and retailers across the United States, Japan, Dubai and The Netherlands.

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Loblaw and Joe Fresh Style launch cosmetics collection

BY Antoinette Alexander

TORONTO Canadian retailer Loblaw Companies and the Joe Fresh Style brand have teamed up to launch a collection of lower-priced cosmetic products dubbed Joe Fresh Beauty.

The collection of face, lip and eye products have been created to be comparable to prestige lines that are frequently used by makeup artists and can be found in department stores and boutiques. The collection features more than 60 shades for lips and eyes, and the color palettes are designed to work effortlessly with seasonal color introductions.

“The partnership with Joe Mimran [creative director for Joe Fresh Style] and our design team lets us enhance the shopping experience of all of our customers,” stated Elizabeth Margles, VP marketing, Joe Fresh Style, Loblaw Companies. “The response to the Joe Fresh Style collections has been immediately positive, from apparel and jewelry to sunglasses and accessories. We want to continue to surprise and delight our customers with every shop.”

The Joe Fresh Beauty collection has 200 SKUs with prices ranging from $4 to $8 (Canadian) for makeup and $2 to $16 (Canadian) for brushes and accessories.

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