NPD Group presents 2013 review of beauty sales at ‘Hot off the Press’ event
PORT WASHINGTON, N.Y. — Total beauty sales within the U.S. mass channel rose 1% in 2013, versus 2012, with makeup experiencing the greatest growth at 2%, according to The NPD Group, citing IRI data.
The NPD Group, a global information company, presented the beauty industry’s first look at 2013 global year-end results for skin care, makeup, and fragrance at their 14th annual “Hot Off The Press” event at the Union League Club in New York in late January.
Cosmetic Executive Women, a professional organization in the beauty, cosmetics, fragrance and related industries, partnered to host the event for the second consecutive year.
Also in the mass channel, sales of skin care rose 1%, but fragrance struggled with a 6% decline in dollars compared with 2012, NPD stated.
In prestige beauty, the industry grew 5% in dollar sales in 2013, compared with 2012. Skin care and makeup each experienced healthy gains of 7%, while fragrance dollars remained flat last year.
“Beauty is among a handful of industries showing growth in 2013,” stated Karen Grant, VP and senior global industry analyst for The NPD Group. “Consumers continue to struggle with lower income levels, but the global economic environment continues to stabilize. The social trends all around us indicate an improving outlook and a willingness to invest when the associated risk is low; this is a real opportunity for our industry.”
“The direction today is for flawless appearance and self-assured choices. The look is flawless, with perfected faces, defined eyes, and evolved anti-aging applications. From primary care focused skincare, to bold red and even blue or green lips, and artisanal fragrances, the feel is self-assured,” added Grant. “However, the attitude across the board reflects a new era of immediacy, looking for the quick fix of alphabet creams, masks, and illuminators, and the instant indulgence of classic and couture scents.”
Value is important to consumers, but premium-priced offerings are thriving is U.S. prestige beauty. Even though sales for the total prestige fragrance category were flat, fragrances priced $100 and over grew 30% in dollars, while face makeup priced at $60 and up increased 28%, and skin care for the face gained 15% in dollar sales compared with 2012. In addition to the premium segment, the direct-to-consumer channel helped to drive growth for the beauty industry in 2013, growing 19%.
“The beauty industry has a unique opportunity to seize the moment, embracing the evolution and blurring of lines at retail, category experience, and brand leadership. Prestige has the advantage of offering more of the quality of life experiences in beauty. When we give consumers the products that fit them, their wants, and their needs for results ‘now’, we deliver a winning combination,” Grant stated.
P&G to help set up dental clinics to support Olympic athletes, coaches
CINCINNATI — Procter & Gamble has announced that Oral-B, Blend-a-Med and Crest are setting up dental clinics in each of the three Olympic Winter Games villages to provide dental screenings, routine dental care, emergency care and products for athletes and coaches for the duration of the Sochi 2014 Olympic Winter Games.
“This partnership is part of P&G’s commitment to improving lives worldwide. We believe that every day is full of opportunities to open up to the world and that the more confident you are in the health of your mouth, the more confidently you open up to the world around you,” Paul Warren, director of Global Professional and Scientific Relations for P&G Global Oral Care, stated. “As such, Oral-B, Blend-a-Med and Crest offer a comprehensive line-up of toothpastes, mouthwashes, toothbrushes and flosses and provide consumers with innovative, targeted solutions designed to meet specific oral care needs.”
P&G Oral Care has developed their dental program with the advice of Dr. Tony Clough, who was the lead onsite consultant during the Beijing 2008 Olympic Games and has been a key consultant to P&G Oral Care in all Olympic Games since. He calls the implementation of the on-site resource an important milestone. In fact, in an International Olympic Committee evaluation of the health of athletes following the Beijing 2008 Olympic Games, it was determined that dental care is of utmost importance to promote good athletic function and the ability of the athlete to compete at an optimal level without being compromised by dental disease or an otherwise preventable emergency, P&G stated.
Up to 600 Olympic athletes, coaches and officials are expected to visit the dental clinics during the Sochi 2014 Olympic Winter Games.
TPG Growth acquires majority stake in e.l.f. Cosmetics
FORT WORTH, Texas — Putting the industry buzz to rest, TPG Growth, the equity investment platform of TPG, announced that it has acquired a majority stake in e.l.f. Cosmetics from company founders and equity investor TSG Consumer Partners.
Existing management will continue to have an investment in and an ongoing role with the company. Terms of the transaction were not disclosed.
"Through its differentiated approach, e.l.f.’s offering has resonated among a key segment of the cosmetics market,” stated John Bailey, principal at TPG Growth. “We believe that many opportunities lie ahead, and are happy to partner with e.l.f. to build the company and accelerate its already impressive growth trajectory.”
“Our team is proud of what we have built and are extremely excited to have a value-added partner like TPG Growth to help us scale the business,” added Joey Shamah, co-founder of e.l.f. Cosmetics. “Their track record in building consumer businesses, international distribution relationships, e-commerce capabilities, global operational resources and access to incremental talent make them an ideally suited partner for our company. We are very excited to build upon our strong foundation and deliver even more value to our consumers and retail partners.”