Q&A: World of success
Pacific World is a provider of nail care products and beauty accessories and sells its products in more than 85,000 doors in more than 80 countries. Joel Carden, EVP of Pacific World, recently talked with Drug Store News about what has led to the global beauty company’s success and how it continues to achieve growth through retailer partnerships, innovation and mergers.
DSN: Pacific World is known for its category management and ability to provide insights and analysis. What sets Pacific World apart from rivals when it comes to category management?
Joel Carden: It is going to sound basic, but I really think that the key to success in category management is a true understanding of what the consumer wants and what the consumer is communicating. We do this through both insights and data to help the retailers sort through information to provide them the best possible shopping experience for their consumers based on the knowledge that we’re able to accumulate. In this process … trust between the retailer and category partner is really critical. … There are a few steps to insure that the category management process is maximized for each retailer. This includes: A clear understanding of each specific retailer’s departmental goals and objectives. We want to make sure that we don’t approach category management for each retailer as a cookie-cutter approach. … And we want to combine consumer insights (forward view) with the analytical insights (historical view) in an objective manner. … Of course, once you make the recommendations and implement the recommendations, you want to make sure there’s a process by which you measure results and make adjustments as needed.
DSN: For 2012, the company has brought to retail its new SensatioNail gel polish. Why is SensatioNail an important launch for the nail segment at mass?
Carden: SensatioNail is a great example of an idea that had taken off in the salon industry, and we were watching it carefully because we believed it was a huge opportunity for the mass market. … The opportunity was to provide the mass market consumers with a DIY approach to what the consumers were experiencing in the salon with great results but for a fraction of the cost. We were well aware of the salon trend and were watching it closely in conjunction with working closely with our vendor partners to ensure that we could achieve the best possible result. … It includes LED lights, which cure the gel polish, and it was crucial that these LED lights worked well with the polish formula. … Fortunately, we were very successful with achieving great results and, most importantly, we were successful in achieving a “first to market” with this product.
DSN: In October 2011, Pacific World merged with the W.E. Bassett Co., which is a supplier of beauty implements. Why was this merger important and what does it mean for Pacific World?
Carden: The merger really allowed us to bring two very good companies together to make one great company. The combined expertise of both companies working together today is much more powerful than either company, by itself, could have been. Additionally, it places Pacific World into a significantly more important role for all of our top retailers. We are either the No. 1 or No. 2 provider of total nail care products and beauty accessories in most, if not all, of the top retailers in the United States and internationally. It places us in a very strong position to really provide the key elements of best practices to our retail partners, including, but not limited to, innovation and category management.
For the full audio Q&A, click here.
Bonkers for BB creams
Beauty mavens are going bonkers for BB creams!
Exactly what is a BB cream? It is a relatively new multifunctional product, also referred to as ‘blemish balm’ or ‘beauty balm,’ that combines the functionality of primers, SPF and moisturizers, along with the anti-aging benefits of skin serums.
BB creams, which are not a foundation or a tinted moisturizer, were invented by German dermatologists in the 1960s as a soothing post- treatment cream. The item then caught on in Korea as movie stars sought a flawless complexion without looking made up.
While the incidence of buying BB creams within the United States is still pretty small, there’s no doubt that they are quickly growing in popularity and more manufacturers are jumping on the bandwagon.
“About half of all beauty shoppers are sitting on the fence, saying they may or may not buy BB creams in the future. Why does that matter? Almost 7-in-10 BB cream purchasers have replaced either a makeup or skin care product with a BB cream. Even though usage is low right now, as more brands enter the market and the category grows, cannibalization could become a much larger challenge,” stated Karen Grant, VP and senior global industry analyst for the NPD Group.
According to the market research firm, in the 12 months ended March 2012, BB creams sold in U.S. department stores generated nearly $9 million. Women told NPD that, while they expect BB creams to provide skin care and makeup benefits, they want to understand more about the product and how it works. According to NPD, about 8-in-10 beauty shoppers like beauty products that offer multiple benefits, and that rises to just more than 9-in-10 for BB cream purchasers. The top five benefits expected from a BB cream include: natural looking coverage (52%), moisturizes/ hydrates skin (47%), nourishes/treats skin (42%), provides SPF sunscreen protection (42%) and improves skin texture (38%). NPD stated that, although the incidence of purchasing BB creams is still small (2% of total beauty shoppers), the majority of purchasers said they’re extremely or very satisfied with their last BB cream purchase, and 77% expressed positive repurchase intent. According to the NPD report, almost 4-in-10 beauty shoppers overall said that they would consider buying a BB cream in the future.
Browse prestige beauty departments and you’ll find a handful of BB creams from such brands as Estée Lauder, Too Faced, Clinique and Smashbox. However, mass market beauty companies are taking notice. L’Oréal USA has brought to retail its Garnier Skin Renew Miracle Skin Perfector BB cream, which promises to even tone, hydrate, renew, protect and brighten skin in one application.
More recently, L’Oréal USA has announced the June launch of Dream Fresh BB from Maybelline New York. This 8-in-1 skin perfector is oil-free and is 70% water. The sheer color promises to provide a natural finish and evens out skin imperfections, eliminating the need for heavy foundations or tinted moisturizers. It also protects skin with SPF 30. It comes in five skin-adjusting shades and has a suggested retail price of $8.99.
“Maybelline New York’s Dream Fresh BB has been a phenomenal success throughout the world. We are proud to bring this innovation to our U.S. consumers,” stated David Greenberg, president of Maybelline New York-Garnier-Essie. “Today’s consumers are hyper-attuned to the latest global beauty trends. The introduction of Dream Fresh BB brings a new category to our face portfolio of products so that we offer our consumer the most comprehensive portfolio to address her face needs.”
NewsBytes, Part 2 — Chain Pharmacy, 6/25/12
DEERFIELD, Ill. — Walgreens in May named Alan London chief medical officer of Take Care Health Systems Consumer Solutions Group. In the newly created position, London will have leadership responsibility in building and maintaining external physician and health system relationships for Take Care Clinics while also providing strategic direction and leadership for the group’s service expansion, quality, clinical education and training, and collaborative practice agreement functions.
London is a family physician with more than three decades of experience in patient care delivery, healthcare strategy and business development, including 12 years at the Cleveland Clinic.
LEESBURG, Va. — RxAlly, a coalition of more than 22,000 pharmacies around the country, has appointed Peter Duran VP and chief privacy officer, responsible for ensuring that the group’s privacy practices comply with laws and regulations. Prior to that, Duran spent 15 years at Medco Health Solutions, where he helped build the company’s privacy program.
LONDON — Telemed Ventures has partnered with Walmart to deliver a managed visual collaboration solution for the retailer’s in-store medical clinics.
BSC Global enables remote video consultations between a patient and doctor through a life-like, virtual face-to-face video interface over a secure video network. The telemedicine technology will be implemented in Walmart’s retail medical clinics, which are operated by Telemed Ventures’ Smart Care Doc brand. Users of the BSC Global service have the ability to conduct telepresence-quality face-to-face interactions over the Internet using existing laptops, smartphones or tablets — making it a very affordable solution for patients, doctors and healthcare providers, the companies said.
NEW YORK — More patients are actively looking for and expecting to find mobile health solutions, according to the global Economist Intelligence Unit report released in June.
Roughly one-half of patients surveyed for the report, commissioned by PricewaterhouseCoopers, predict that mHealth will improve the convenience, cost and quality of their health care in the next three years. Meanwhile, 6-in-10 doctors and payers believe that its widespread adoption in their countries is inevitable in the near future.
The top three factors that would drive patients toward greater utilization of mHealth in managing their own healthcare — more convenient access (46%), lower healthcare costs (43%) and greater ability to manage individual health care (32%).