Report: personalization and social media driving U.S. beauty sales
PARSIPPANY, N.J. — A new report from Kline shows that the U.S. beauty market is being driven by technological advancements that allow personalized engagement between retailer and shopper.
High double- to triple-digit growth is seen among those brands that manage to capitalize on personalized approaches in 2015, according to Kline’s Cosmetics & Toiletries USA report. Driven by these high growth brands and particular product categories, sales of cosmetics and toiletries increase by 3.8% in 2015.
Personalization starts at the product level when brands such as Skin Inc., Lancôme, or Mix-o-logie offer their custom beauty regimens or scents, and continues through personalized products suggestions offered by beauty apps or targeted marketing messages through various social media platforms.
Both large and niche brands utilize the power of social media to connect with target consumers. Large brands such as Neutrogena, Clinique, or Estée Lauder have become key social influencers as they turned to beauty social media celebrities to appeal to millennials. Smaller brands, such as Tarte, Too Faced, E.L.F. Cosmetics, Anastasia Beverly Hills, and IT Cosmetics, among others, often choose to make relationships by appealing to their target audience through the girl-next-door type of social stars.
“Smaller brands have a distinct advantage as they are very nimble and can listen more closely and adapt to consumers’ demands quicker,” said Naira Aslanian, the research project manager. “The fact that smaller brands, particularly in the makeup products class, grow the strongest confirms the power of social media leveling the playing field among large players with hefty advertising budgets, and small, niche brands that do not have the larger marketing budgets. It also demonstrates the power these companies have in terms of sales.”
Recognizing the efficiency of direct engagement with consumer, large brands are also shrinking their traditional marketing and advertising budgets, indicating a move towards digital and social campaigns.
Mobile devices play a crucial role in personalizing a consumer’s beauty routine. Sephora launches its online Pocket Contour class, a mobile-only experience that helps beauty newbies gain knowledge of how to properly contour. Apps like Beautiful Me or Plum Perfect can digitally identify the shoppper’s skin tone and suggest the ideal makeup match from the user’s social media photos. Moreover, “selfie approved” products like Covergirl’s Outlast Stay Luminous foundation, along with various bold lipsticks, are introduced due to the high impact of social media on consumers.
Resonating with the selfie generation desiring bold lips and driven by innovative products, lipsticks and lip glosses is the fastest-growing product category, recording over 8% growth in 2015. The key drivers are multi-functional/hybrid products like liquid lipsticks, which provide skin care benefits, as well as bold, long-lasting lip color.
With more men paying more attention to their personal appearance, skin care products for men record the highest growth of 9.5% in 2015. While skin care is driven by a gender focus, the fragrances category moves away from being gender-specific, especially niche scents.
JD Beauty Group, Popband London recognized at ECRM
The award was presented during ECRM’s 2016 Hair care & Multicultural EPPS held June 6 to 9 in Orlando. UK-based Popband London took the 2016 finalist award for its Popband hair ties.
The two products were selected from dozens of entries in the award program, samples of which were displayed in the ECRM hospitality area during the EPPS meetings. Buyers cast their votes based on product innovation and packaging.
Wet Brush’s Pop Fold is a full-size folding detangling brush, designed for travel or use on the go. The company’s exclusive IntelliFlex bristles are protected when the brush is closed so they won’t bend or break. Users just lift the handle and push the button on the back of the brush to pop out the retractable cushion. The bristles are designed to glide through wet or dry hair with no pulling tugging or pain.
“We are extraordinary proud of the brand we have created and the impact it's making worldwide,” said Jeff Rosenzweig, CEO of JD Beauty Group. “We saw a need in the market and our creative team worked very hard at overcoming design challenges to create an innovative product with a great aesthetic and function.”
Popbands are soft, stretchy 'no dent' hair ties that were developed to hold ponytails up tight, but still leave hair fresh and kink-free when it’s taken down – without ripping or damaging hair in the process. They are designed to be worn on the wrist as a bracelet when not in use.
"Its not often that awards are judged by the actual people you are trying to impress so this was a real big one for us,” said Stevie Craig, International Brand Director for Popband London.
Founded in 2013, Popband London is the brainchild of Louisa Booth and Keli Craig, and in addition to hair bands, offers headbands, fashionable shoe laces, ties, and other functional accessories.
“We congratulate JD Beauty Group and Popband London on their awards,” said Lisa Carrillo, SVP of Beauty Care for ECRM. “Our goal at ECRM’s is to help buyers connect with the sellers of products that will drive category sales, and this recognition in strong trade media brands like Drug Store News helps to drive such connections.”
Global Beauty Care, InnovaDerma win accolades at ECRM
At top from left: Judy Ard, VP of HBC, ECRM; Jack Savdie, Vice President of Sales and Albert Savdie, President, Global Beauty Care; Alex Tomas, Area Manager, DSN. At bottom right, from left: Judy Ard, VP of HBC, ECRM; Peter Mulholland, General Manager Australasia at InnovaDerma Aus & NZ Pty Limited, Louise Ferguson co-founder of SkinnyTan; Alex Tomas, Area Manager, DSN.
ORLANDO, Fla. — Global Beauty Care, a N.Y.-based wholesaler of skin care products, and Australian-based company InnovaDerma won top awards this month at ECRM’s 2016 Skin, Bath, Cosmetics & Fragrances show.
GBC was named the winner of the 2016 ECRM/Drug Store News Buyer’s Choice Award for its Spascriptions DEAD SEA Wash-Off Mask. It was the second year in a row in which the company earned an award (it was a finalist last year for its So Fresh So Clean GROOVY Green Tea Wash-Off Mask).
InnovaDerma, PLC, earned the 2016 finalist award for its Skinny Tan brand, a sunless tanner that reduces the appearance of cellulite.
The two products were selected from a dozen entries in the award program. Samples of the products were displayed in the ECRM hospitality area during the show. Buyers cast their votes based on product innovation and packaging.
Global Beauty Care’s Spascriptions DEAD SEA Wash-Off Mask is formulated with a blend of salts and minerals from the Dead Sea in Israel. This mud treatment was developed to draw out dirt and impurities from skin and peel away dead skin cells. According to the company, it helps to restore elasticity and fortify the skin with essential moisturizers.
In addition to masks, GBC offers cleansing and makeup remover wipes, face brushes, creams, oils, nose strips, and pore scrubs, and has just expanded into the color cosmetics category, which will be available in the coming months.
InnovaDerma, PLC’s Skinny Tan is a new sunless tanning brand that uses natural ingredients and is PETA-approved, gluten-free and suitable for vegans. According to the company, it offers the only clinically-proven claim of visible reduction in the signs of cellulite. The brand, which has seen strong sales in the UK, Australia, and Korea, made its U.S.-debut at the Orlando ECRM meetings.
InnovaDerma, PLC is an Australian-based, publically-traded, beauty innovation company that acquired a majority stake in Skinny Tan last year. It also offers the Leimo hair system and Tri Pollar Stop & Pose devices for skin tightening and rejuvenation.
“We congratulate Global Beauty Care and InnovaDerma on their recognition at this year’s event,” said Lisa Carrillo, SVP of Beauty Care for ECRM. “ECRM’s platform and process was developed to drive growth for suppliers – particularly new and emerging ones – and this recognition in strong trade media brands like Drug Store News helps to further their reach into the market.”