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NPD: Sales of U.S. prestige beauty up 5% in Q2

BY Antoinette Alexander

NEW YORK — Sales of U.S. prestige beauty products increased during second quarter 2014, according to the NPD Group, and the momentum is expected to continue.

In second quarter 2014, sales of U.S. prestige beauty products were $2.5 billion, a 5% increase, with sales growth across each of the three primary categories.

“The robust performance of prestige beauty in the second quarter is quite encouraging. Primary prestige segments continue to be market drivers, but the industry is realizing the opportunities and revenue that lie among smaller, more specialized segments,” saidd Karen Grant, VP and global industry analyst at the NPD Group. “With the current momentum as a platform, we expect the next two quarters to be positive, leading to annual performance a bit softer, but in line with the low- to mid-single-digit growth trend of 2013.”

Face products were the growth drivers in makeup, accounting for nearly half of category sales and outpacing category growth slightly. Eye and lip makeup combined account for nearly 46% of the category dollar sales, almost as much as face makeup, and their combined growth was greater than their face counterparts. Nail was the only makeup segment with sales declines during the quarter, according to the NPD Group.

As in makeup, face products were skin care’s growth drivers, representing more than one-third of the sales and setting the pace of the category performance. Sets/kits represent just 10% of skin care dollar sales, but their 4% growth outpaced the category.

Juices account for 65% of total prestige fragrance sales, and they continue to drive the category with 7% dollar growth compared with the year-ago period. Fragrance ancillary sales add to the prestige category growth with a 3% increase in dollar sales, though at just 6% of the market.

“Consumers are looking for something new and fresh with each season. Delivering on this demand while sustaining engagement with established products is the balancing act that will continue to prove its benefits for the prestige beauty industry,” Grant said.
 

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Jif launches contest to promote new dippers

BY David Salazar

ORRVILLE Ohio — Peanut butter maker Jif is rolling out tow new varieties of its new Jif To Go Dippers with a social media contest. To promote the new product, which pairs two varieties of peanut butter comes in two varieties—chocolate peanut butter with chocolate flavored spread, and creamy peanut butter — with pretzels, the company has launched the #GetGoing photo promotion.

“We know that peanut butter fans are always looking for convenient snacking options, and Jif To Go Dippers are the perfect portable solution for busy families,”  said J.M. Smucker’s VP corporate communications Maribeth Burns.

The promotion runs through Oct. 1 and encourages customers to share photos of them getting going on social media and using #GetGoing. Every week, one participant will win $1,000.

“We can't wait to see all the fun and memorable moments our fans create and share through their photos while they are on-the-go this summer,” Burns said.

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Ahold USA’s Peapod sees double-digit growth in Q2

BY Antoinette Alexander

ZAANDAM, the Netherlands — During the second quarter, Ahold USA experienced a dip in sales while its online grocery operation, Peapod, achieved double-digit sales growth.

Secondquarter net sales were €4,408 million, 1.7% lower than last year at constant exchange rates. Identical sales growth excluding gas was down 1.8%, which included the negative impact of the post-Easter week falling in second quarter 2014. The retailer’s overall market share was slightly down, particularly in New England and at Giant Landover, the company stated.

Peapod, however, again achieved double-digit sales growth. The recent opening of warehouse in New Jersey will almost double Peapod’s capacity and will consolidate its position as a top online grocer in the United States, the company stated.

Furthermore, the company improved its Fresh offering across its four U.S. divisions, enhanced the customer experience through more engaged store associates and introduced targeted price reductions. The company stated that it is on track with the accelerated rollout of the program, expanding to an additional 130 stores this quarter, with 320 stores participating by the end of the quarter. It still expects to have the program implemented in more than 50% of its stores by the end of 2014, largely funded by Simplicity cost savings in the United States.
 
"In a challenging competitive environment, we remain focused on executing our Reshaping Retail strategy and continue to make investments in our customer and value offering, making our stores a better place to shop,” said CEO Dick Boer.
 
Boer added, "In the United States, the roll-out of our program to improve our customer proposition is progressing well, bringing better quality, service and value to our customers. By the end of this quarter, the program was active in 320 stores and will be rolled out to more than half of our stores by the end of this year. The accelerated roll out of the program, together with our decision to absorb commodity price increases, resulted in an investment in margin that was partly offset by cost savings from our Simplicity program.”
 
 
 

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