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Kline study: Ethnic beauty market gives way to increased competition

BY Antoinette Alexander

PARSIPPANY, N.J. — The multicultural beauty market continues to outpace growth of the overall market for cosmetics and toiletries, posting a 3.7% increase in 2014, as many ethnic brands broaden their reach to target a wider audience, regardless of ethnicity, according to a report by global consulting and research firm Kline & Co.
 
According to Kline’s report, "Multicultural Beauty and Grooming Products: U.S. Market Analysis and Opportunities," rapidly growing ethnic populations have given way to intensified competition and catch multicultural beauty marketers breaking boundaries between general and multicultural beauty. On one end, there are such brands as Carol’s Daughter that are positioning away from being an exclusive ethnic brand to also target a broader audience, regardless of ethnicity. This holds particularly true in the natural personal care segment where ethnic hair brand Shea Moisture now is rebranding to become suitable for all consumers.
 
“This widening approach helps move multicultural brands beyond the ethnic section of the beauty aisle to sit side-by-side nationally advertised brands,” said Donna Barson, senior associate at Kline’s Consumer Products practice. “However, this audience expansion needs to be done without alienating long-time consumers who might feel deserted if they feel like their brand no longer speaks exclusively to them.”
 
Concurrently, mainstream brands continue to develop tactics to capture a growing percentage of the ethnic personal care market. While such mainstream brands as Revlon, Lancôme and CoverGirl have long reached ethnic consumers with the creative use of spokesmodels and targeted advertising, the approach for many brands has become even more savvy and genuine. Some marketers, including Estée Lauder and Shiseido, use beauty advisors who speak the language of the local ethnic community, whether it is Mandarin, Vietnamese or Spanish, to create a greater connection with these consumers. Some also launch products targeting certain ethnic groups in the United States that are simultaneously released in that group’s country of origin.
 
According to Kline, the movement of mainstream companies into the multicultural space will not only open possibilities of more M&A in the coming years, but it will also be beneficial for consumers as they will be provided with a wider array of products targeting their needs.

For smaller multicultural companies, this means a need to innovate in order to gain sales and create a niche for themselves or position themselves for a potential acquisition. In addition, the competition coming from the general market is also blurring the lines and having a challenging impact on the multicultural marketers, according to Kline.
 
During the forecast period through 2019, researchers project that the ethnic beauty market will continue to face intense competition from general cosmetic and toiletry brands, and the fine line between mainstream and multicultural markets will continue to blur. However, competition will give an incentive for a surge of innovative, quality products entering the market.

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H. D. Smith named a finalist of the 2014 Illinois Family Business of the Year Awards

BY Michael Johnsen

SPRINGFIELD, Ill. — H. D. Smith was recently announced as a finalist of the 2014 Illinois Family Business of the Year Awards in two categories. H. D. Smith was a finalist for the Large Family Business of the Year Award and the Community Service Award, the wholesaler announced Tuesday.
 
Presented by Loyola University Chicago, the Illinois Family Business of the Year Awards have been supporting family-owned businesses in the state for the last 24 years. The awards program recognizes exceptional Illinois-based family businesses that demonstrate a strong commitment to business development, family and Illinois communities.
 
“It is quite an honor to be named among the best in family businesses throughout Illinois,” said Dale Smith, H. D. Smith chairman and CEO, whose father started the business in 1954 with a staff of three. “To grow from such humble beginnings to a nationwide leader in the healthcare industry is something the Smith family is very proud to continue.”
 
The company first opened a distribution warehouse in Springfield, Ill., and expanded to reach all major U.S. markets throughout the last 60 years. Now, the company has 16 locations, including three in Illinois, and employs more than 1,000 associates.
 
The Smith family instilled a rich heritage of caring for each community, whether that’s through reliable distribution of pharmaceuticals or supporting community organizations like the United Way, the company stated.
 
“Giving back to the community was instilled in our family values long ago,” said Chris Smith, H. D. Smith president and COO. “We recognize the value of supporting each community we are part of, and support any H. D. Smith associate who wishes to do so with us.”
 
An awards gala honoring the winners and finalists, as well as the tradition, dedication and success of the family enterprise, will take place Nov. 12 in Chicago.
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Sanofi US survey reveals differences in opinion about diabetes

BY Michael Johnsen

BRIDGEWATER, N.J. — Sanofi US announced Wednesday the findings of a new survey that reveals striking differences in opinion among various age groups about diabetes and available treatment options. In particular, the generation known as "millennials" (those ages 18 years to 34 years) shows an uneasy mix of fear and ability to handle managing their diabetes, which is being diagnosed at a rate of 1.7 million new cases every year.
 
Millennials rate themselves having better knowledge of diabetes than do Americans ages 35 years and older, with 72% of millennials indicating they are well-versed about the condition versus the 64% of non-millennials who expressed some knowledge about diabetes. Despite this self-reported understanding, millennials are less likely than older populations to think that diabetes is a serious health condition; overall, 74% of millennials think it is serious compared with 84% of the older survey respondents.
 
An estimated 29.1 million Americans, or 9.3% of the population, are living with diabetes, including an estimated 8.1 million who remain undiagnosed. If current trends continue, 1-in-3 Americans could eventually be diagnosed with diabetes. With diabetes an increasingly common health concern, it is more important than ever that those living with the condition have an understanding of disease management and treatment options. 
 
Millennials' attitudes towards managing diabetes prove unique. More than two-fifths of millennials (43%) report they are scared of pricking their finger to monitor blood sugar levels, compared with 28% of older respondents. And more millennials living with diabetes confess that they think having to take insulin is the end of the road; half (54%) think this, compared with one-third (36%) of older respondents.
 
"With high levels of education and unprecedented access to information, millennials have the means to know more about diabetes than any generation in history," said Elissa Violino, registered dietician and certified diabetes educator with CDE Help Team, Sanofi US. "Diabetes is becoming more common, so it is necessary that we provide all people, including millennials, with the information and tools they need to help reduce the risk of or help manage their diabetes, as well as understand treatment options."
 
Medical advances have led to numerous treatment options that can help manage blood sugar levels, an essential task for people living with diabetes, and insulin continues to be among the key medications prescribed by healthcare providers to people whose bodies either do not produce insulin (Type 1 diabetes) or do not use insulin properly (Type 2 diabetes). As the prevalence of diabetes increases, an understanding of insulin therapy (in conjunction with a diabetes treatment plan, which may include diet, exercise and other diabetes medications) is essential. The survey findings show that many young people and others living with diabetes believe insulin is the end of the road is concerning, and it reinforces the need to educate people that insulin may be an important component, Sanofi US noted. 
 
Market Probe International fielded the survey online on behalf of Sanofi US in August 2014. The survey achieved a random and representative sample of 1,002 respondents from the continental United States plus Hawaii.
 
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