Mintel Beauty Innovation affirms ‘recessionista’ trend
CHICAGO The years of indulging every beauty whim appear to have fallen by the wayside, as shoppers watch their dollars in light of the current economic crunch. As a result, Mintel Beauty Innovation predicted that “econo-chic” is the big trend for 2009.
“Cosmetic companies are quickly responding to the needs of the Recessionista,” stated Taya Tomasello, senior analyst for Mintel Beauty Innovation. “Effective and affordable multi-use products, and products offering convenience, allow women to continue using their favorite brands, but at a reduced cost.”
Mintel added that those products claiming multiple benefits or uses in one bottle are becoming especially popular, as are convenient products for busy beauty mavens on the go. Mintel found that 27% of skin care products launched in the first quarter of 2009 boasted “convenience” claims.
It is predicted that drug stores and discount retailers will fare well in this challenging market. Women will remain brand loyal to masstige and prestige products, but will likely slim their repertoire to only a few of their favorites, according to Mintel.
SkinWear extends its U.S. launch
TORRANCE, Calif. SKWPartners announced Tuesday the extended launch of SkinWear.
SkinWear boasts itself as the only extended-protection, all-in-one hand cleanser, sanitizer and moisturizer which has been proven to kill germs for as long as eight hours with a single application. This non-alcohol-based product picks up where commonly available anti-bacterial soaps and “instant sanitizers” leave off by killing 99.9% of all germs that can make people sick, and continues to kill bacteria for up to eight hours, drastically decreasing the potential spread of germs and contamination.
“SkinWear is a radical departure from hygiene products available to date,” said SKWPartners’ Tom Guzek. “Not only is SkinWear more thorough and cost-effective than current anti-bacterial soaps and alcohol-based hand sanitizers, SkinWear’s eight hour extended efficacy actually continues to kill germs between washings, reducing the spread of germs.”
Inter Parfums reports double-digit loss in Q1
NEW YORK Inter Parfums, which manufacturers and distributes licensed prestige perfumes, cosmetics and personal care products for specialty retailers, and supplies mass market fragrances, reported a double-digit drop in first-quarter sales and affirmed its 2009 guidance.
“As we previously indicated, year-over-year first quarter sales comparisons were impacted by several factors. The continued strength of the U.S. dollar relative to the euro, had the net effect of depressing 2009 first quarter sales by about 6% as compared to last year,” stated Jean Madar, chairman and CEO of Inter Parfums. “Additionally, last year?s first quarter included our largest ever global launch of our largest licensed brand, Burberry The Beat for women, pushing European-based sales up 46% as compared with the first quarter of 2007. With regard to U.S. operations, the comparable quarter sales decline also factors in an exceptionally strong first quarter in 2008, with sales up 31% from the first quarter of 2007. These factors combined with the impact of the global economic crisis on discretionary consumer spending produced the first quarter sales decline.”
Net sales for the first quarter were about $90.4 million, down 27% from $123.2 million in the year-ago period. As comparable foreign currency exchange rates, net sales were down 21%.
The company is expected to issue its full first quarter results on May 11, after the close of the market.
Assuming the dollar remains at current levels, the company continues to expect 2009 net sales of $390 million, with net income of roughly $21 million, or 70 cents per diluted share.