BEAUTY CARE

Kline study shows consumers opting for competitively priced cosmetics, toiletries

BY Antoinette Alexander

LITTLE FALLS, N.J. Consumers are opting for competitively priced cosmetics and toiletries from the mass market and direct trade, thereby hampering sales of premium products. This has resulted in market growth of only 0.3% in 2008 in the United States — the lowest since 1991, according to a recent study by research and consulting firm Kline & Co.

According to Kline, sales have reached a total of $35.6 billion at the manufacturers’ level, but consumer concerns about the recession may ensure that these levels do not rise higher during 2009-­2010.

“The new frugal mindset imposed by the recession has altered spending and product consumption habits, some of which will probably continue into the foreseeable future,” stated Nancy Mills, industry manager, consumer products practice, at Kline. “Many people have traded down on certain products, and as they get accustomed to buying some lower-priced or private-label products, and shop more in the lower-priced channels, they might well continue with those habits after the tough times have subsided. To be successful, companies will likely continue to infuse the mass segment with more sophisticated products to compete with luxury products.”

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

POLLS

Which area of the industry do you think Amazon’s entry would shake up the most?
BEAUTY CARE

David Babali for WildAid now available at Sally Beauty Supply stores

BY Antoinette Alexander

LOS ANGELES Actress Kate Hudson and her hairstylist David Babaii have introduced David Babaii for WildAid, an eco-friendly line of hair care products, at Sally Beauty Supply stores nationwide beginning June 1.

The products are currently sold within several mass-market retailers including Rite Aid and Duane Reade.

The hair care products are free of sulfates, parabens and petrochemicals and are not tested on animals. In addition, the line supports wildlife conservation by donating 10% of profits to WildAid, a global wildlife conservation organization.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

POLLS

Which area of the industry do you think Amazon’s entry would shake up the most?
BEAUTY CARE

Three brands to advertise with StoreBoard Media

BY Allison Cerra

NEW YORK Three brands have signed on to advertise on StoreBoard Media’s security pedestal media.

Coca-Cola’s Nestea and Cadbury’s Dentyne gum are being featured on StoreBoard’s EyeCurve billboards at the entranceways to chain drug stores nationwide. The campaigns will run through June 14. Meanwhile, Johnson & Johnson’s Aveeno is a returning brand.

Douglas Leeds, StoreBoard’s CEO, said, “Our in-store billboard media opportunity has emerged as an ideal solution for stores looking to become more customer-centric, and for brands that want to reach out-of-home shoppers at the point-of-decision.”

Retailers who join the StoreBoard media network generate a new source of revenue, Leeds said, since StoreBoard shares its revenue with retailers and sells its product as media rather than promotion, enabling retailers to gain access to new marketing dollars from brands.

StoreBoard advertising runs in four-week cycles. The Nestea, Aveeno and Dentyne campaigns comprise the sixth cycle for 2009.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

POLLS

Which area of the industry do you think Amazon’s entry would shake up the most?