BEAUTY CARE

NPD Group sheds light on 2011 U.S., global beauty sales

BY Antoinette Alexander

PORT WASHINGTON, N.Y. — The total U.S. prestige beauty industry experienced an 11% increase in dollar sales during 2011, according to market research company The NPD Group, with skin care and fragrance sold in U.S. department stores posting double-digit gains.

“In the [United States], [United Kingdom] and China, prestige beauty is enjoying one of the most robust sales periods ever,” stated Karen Grant, VP and senior global industry analyst for The NPD Group. “In the [United States], for example, beauty sales in both the mass and prestige channels were positive month after month in 2011. And while both channels were positive, prestige beauty reigned supreme. From the stellar increases in prestige skin care to the continued gains in makeup to the double-digit rebound of fragrance, prestige beauty is experiencing a time of unprecedented growth.”

In 2011, skin care and fragrance sold in U.S. department stores both posted double-digit dollar growths of 14% and 11%, respectively, while makeup grew 9% compared with 2010.

“In continental Europe,” Grant continued, “where the prestige market is more mature, growth is more tempered, and performance among the categories has not been as dynamic as in the [United States] or [United Kingdom]. But nonetheless, prestige beauty managed to flourish thanks to brand media investment, bigger in-store animation and price promotions.”

In addition, the U.S. food/drug/mass channel experienced a 4% increase in sales for total beauty in 2011 versus 2010. Makeup sales posted the biggest increase at 8%, followed by skin care at 3%, while fragrance sales declined 5% in dollar sales compared with 2010. In national chain stores, fragrance sales grew 5%, according to NPD.

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SymphonyIRI breaks down the digital consumer with new analysis

BY Michael Johnsen

CHICAGO — SymphonyIRI Group on Tuesday unveiled its latest segmentation solution called DigitaLink, which leverages SymphonyIRI’s Consumer Network Panel, MarketPulse research and analytic capabilities to segment shoppers into unique profiles, enabling suppliers and retailers to better manage marketing efforts with online consumers.

“With DigitaLink, we identified five distinct groups of Internet users, all of whom are active online in one way or another, but access the Web in different ways, have different comfort levels with technology and various attitudes about how much they want to engage with it and the role they want the technology to play in their lives,” SymphonyIRI EVP and GM consumer insights Larry Levin said. “Digging a level deeper, DigitaLink helps assess purchase patterns for each segment while also providing a tool that can be used to classify these shoppers.”

The five segments defined by SymphonyIRI include:

  • Show Me the Money — These shoppers focus on using digital technology to save money by frequently searching for and downloading coupons online. They may occasionally write product reviews or post comments on blogs;

  • Digitize Me! — These shoppers have incorporated digital media across the board in their lives and participate in various online activities. They have a higher tendency of interacting with companies and brands on social networks and also are more willing to post their opinions online;

  • Technophobes — This group rarely searches online for product information or coupons, or interacts on blogs, leaving most online activity to email;

  • Socializers — Socializers use the Internet primarily as a means of communication versus a shopping resource; and

  • Wired for Work — Most consumers who fall in this segment own a smartphone and are driven by digital media, but use the technology primarily for work-related tasks.

Two of these five shopper segments, “Show Me the Money” and “Digitize Me!” are most likely to search online for information about a variety of categories in addition to spending a higher percentage of their money online overall, providing the best short-term opportunities for manufacturers and retailers seeking to expand their online activities.

The remaining three segments make up 65% of the online population and don’t appear to provide as much near-term potential for marketing activity based on their attitudes and digital consumption behaviors.

The DigitaLink segmentation survey was completed in October 2011 through SymphonyIRI’s Consumer Network Panel of 100,000 households. A more specific survey of 47,000 households was also completed to provide more detailed segmentation analysis.


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Schick adds eco-friendly razor to Xtreme3 line

BY Allison Cerra

SHELTON, Conn. — Schick is touting a disposable razor that features a handle made of 100% recycled plastic, in addition to 100% post-consumer paper in its packaging.

Available for both men and women, Schick Xtreme3 Eco, the company said, will save more than 103,000 lb.s of virgin plastic material and 15,500 lbs. of virgin paper from going into landfills each year through the use of the recyclable materials.

“We know consumers are doing their part to live more sustainably, and we wanted to provide a simple way for them to do so with their shave,” said Suma Nagaraj, brand manager for Schick Xtreme3. “At Schick, we’re taking proactive steps to minimize the impact of our products and manufacturing processes on the environment, and we’re continually looking for ways to improve—creating this product was the next step in our journey.”

Schick Xtreme3 Eco is available at Walmart and will be distributed nationwide in April.

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