Facial cleansers drive growth across food, drug
The skin care/facial category saw a 2% growth in sales for the last 12 months compared with the previous year, driven by the cleansers segment, which was up 9% in the food and drug channels. Moisturizers saw 7% and 9% growth in drug and food, respectively. The anti-aging segment decreased 2% in drug and 4% in food sales year over year (Figure 1).
In the anti-aging segment, Neutrogena saw the highest percentage of sales on promotion, and was the only leading manufacturer to see growth in total sales year-over-year in this segment (up 5%). Of the leading manufacturers in cleansers, growth was driven by Kao Brands, which saw an impressive growth of 52%, despite seeing the lowest percent of sales on promotion (28%) (Figure 2).
Margins for Olay consistently were the lowest in mass, food and drug channels, with 24% in the mass channel and 34% in the drug channel. Bioré saw the highest margins in the mass and food channels, while Clean & Clear saw the highest margins in the drug channel (Figure 3). Also, P&G’s Olay saw list price increases on several SKUs in March, averaging 9%.
Neutrogena dominated the number of feature ads across all channels. Despite driving growth in this segment, Bioré has seen the lowest activity in feature ads in all three channels (Figure 4).
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Rimmel London adds Cara Delevigne as brand ambassador
LONDON — Rimmel London recently added to its portfolio of celebrity brand ambassador. British model and actress Cara Delevigne has been named as the latest addition, with plans to start in various ad campaigns for the brand. In addition to her modeling and acting roles, Delevigne has more than 36 million social media followers.
“Cara Delevingne is the perfect embodiment of the trend-setting Rimmel brand and its edgy, streetwise personality,” Coty chief marketing officer of color cosmetics Johanna Bussinelli said. “With her bold, modern look, fierce fashion sense and confident stance that true beauty comes from within, Cara is globally admired for her individuality and self-expression. She will be a powerful addition to the brand, inspiring a new generation of women and showcasing a different facet of the eclectic London look.”
To mark the new partnership, Rimmel held the brand’s first-ever global Snapchat press conference, which allowed fans to interact with Delevigne as the new face of the brand, posing their questions on social media with the hashtag #RimmelxCara for Delevigne to answer live on Snapchat.
“I’m honored to be working with Rimmel,” Delevigne said. “It’s the first make-up brand I was introduced to as a teenager. I’m a London girl through and through and Rimmel truly captures and represents the city’s edgy, cosmopolitan beauty styles.”
Asian influence: Korean beauty is the next big thing stocking drug stores’ shelves
Drug chains are editing existing product assortments to clear more space for up-and-coming brands that court back shoppers who may have migrated to specialty stores. Several categories are heating things up in the beauty aisles, especially Korean beauty. Kline research reveals the category is growing at a 30% annual clip, and chains are seeking the right items to introduce more shoppers to the innovative and effective Korean entries.
CVS Is about to have more stores than any other retailer in the world with K-beauty stocked on its shelves. The journey started when its VP merchandising manager of beauty, Alex Perez-Tenessa, took a wrong turn. Always scouting the world for beauty Innovation, Perez-Tenessa found himself off track and ended up in Manhattan’s Koreatown. “It’s difficult to get lost in New York, it is a grid city,” Perez-Tenessa joked. “But I walked into a beauty store and saw products that were different than anything I’d seen from other manufacturers.” The Korean-produced items, he said, were unique because they were fun, sophisticated and high quality.
Recently, CVS linked up with one of the leading experts on K-beauty, Alicia Yoon. Yoon founded Peach & Lily, which started as a website to purchase Korean beauty success stories, but has blossomed into a resource to curate selections for retailers. She’s handpicked about 100 that will be merchandised in 2,100 CVS doors on either a new Trend Wall or in a specially created fixture.
Perez-Tenessa noted that BB creams whet appetites for the imported beauty hits, but he feels the acceptance of sheet masks signaled the K-boom hit critical mass.
The selection at CVS includes a sister brand of Peach & Lily called Peach Slices. There also is Frudia, a waterless fruit-based collection; Elisha Coy with snail mucin; the pore-focused JJYoung by Caolion; and the unique Ariul EGG Collection, which introduces egg oil to America. Rounding out the 4-to-8 ft. sections are other items that haven’t been easy to purchase in the mass market. These include: The Saem natural products; Holika Holika items, such as the whimsically named Pig-Nose Clear Black Head Kit; and masks from Ariul.
CVS isn’t the only chain Yoon has helped move into the segment. She also identified 13 items now in select Target doors. Yoon had been consulting with Target, assisting the chain with sprinkling its mix with the right products. Based on that success, she curated a larger program now in 800 doors.
Dawn Block, SVP beauty and essentials at Target, said, “Peach & Lily is known as the authority on Korean skin care. Bringing this curated assortment to Target provides us with a chance to test new offerings and expand on our positioning as a go-to, credible source for beauty must-haves.”
The attraction to K-beauty goes hand in hand with consumers’ quest for natural choices. Brands once only found in natural product stores are crossing over to mass. Walgreens Boots Alliance, for example, is rolling out The Plant One campaign for its modernized botanics line. The collection also got a repackage and reformulation hitting Walgreens shelves. “Naturals is growing superfast,” said Lyle Tick, managing director at Boots Retail USA. With mounting competition, he said it was time to overhaul botanies.
The latest report published by Kline [in 2016] about the natural personal care market pegged it at $5.4 billion in wholesale dollars in the United States. That was up 9% versus the year before, but it is projected to grow by 40% over the next five years. Hair care is a big category for natural.
To be transparent, many consumers don’t necessarily want — nor can they always find — 100% natural. But what they seek are items with as few harmful ingredients as they can find. Retailers said they would merchandise natural products near general market rather than outdated strategies of plunking those items in natural-food sets.
While much action is in skin care, there’s no denying the sales boost from brows. CVS added Wunderbrow this year, while Rite Aid created an entire brow and lash department. According to IRI, eyebrow makeup sales for the 52-week period ended March 19, in multi-unit doors soared more than 30%. The major companies were quick to jump on the category with brisk sellers on shelves from L’Oréal, Maybelline and Cover Girl. Other volume builders include NYC, Milani and e.l.f.