BEAUTY CARE

Report: Shoppers want more buy-America options and Walmart aims to give it to them

BY Michael Johnsen

TYSONS CORNER, Va. — More than 80% of Americans are willing to pay more for Made in the USA products, according to a USA Today report published online late Monday night. 

Out of those shoppers actively seeking to buy all things American, 93% reported that they wanted to keep jobs in the U.S. as their primary reason for doing so, the report noted, citing a survey released in November by Boston Consulting Group.

The movement has even captured the hearts and minds of retailers. In conjunction with the National Retail Federation, Walmart U.S. president and CEO Bill Simon recently identified a three-prong strategy to help grow America’s economy — employ Americans, employ American soldiers especially and buy from American producers. Right now, 2-out-of-3 products sourced by Walmart come from domestic suppliers. Simon pledged that Walmart would spend $50 billion on U.S. products over the next 10 years .

 

 

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Club retailers to see higher growth over next three years, Deloitte study finds

BY Alaric DeArment

NEW YORK — Club retailers could be in for a good time over the next three years, according to a new study.

The study, by Deloitte, found that consumer products executives expect growth through warehouse club retailers to outpace those of other retail channels, including mass merchandise, supermarkets and online retail.

According to the study, for which Deloitte polled 79 consumer packaged goods manufacturers and 53 retailers between Oct. 30 and Nov. 6, 2012, 89% of consumer packaged good executives expect their company’s sales through warehouse retailers to increase during the next three years, while 49% expect to see such an increase in grocery channel sales, and 18% expect to see sales in the grocery channel decline.

"Consumer products companies are responding to the increased sales and branding opportunities in the warehouse club channel, particularly in expanding segments traditionally dominated by grocery and mass merchandise channels," Deloitte vice chairman and consumer products leader Pat Conroy said. "Club retailers have been remodeling existing stores, including allocating more space for food, particularly organic, healthy and fresh offerings, and personal care products. These retailers also continue to provide a variety of services and benefits to members, whether it is for personal consumption or for the members’ business."

Seventy-nine percent of those surveyed expected warehouse clubs to increase the number of food, household goods and personal care product SKUs, while 75% expect them to increase their geographic presence and add space allocated to health and wellness products. In addition, many executives said club stores were increasing their appeal to a wider array of consumers, with 77% saying members make more trips, 78% saying they spend more and 63% saying consumers find the stores more appealing than three years ago. The stores are most frequented by affluent and high-income consumers, with 46% of respondents saying they themselves shopped at the stores, and 71% of those making more than $100,000 in household income saying the same.

"Unlike past recessions, where consumers eventually returned to their previous shopping habits, this recession left a scar, not a bruise, and consumers remain hesitant to break from their cost-conscious routines," Conroy said. "Economic uncertainty and consumers’ focus on value has made club stores a more important channel for many consumers, including those who are at the higher end of the income scale and represent a more lucrative target customer for retail and consumer products brands."

Seventy-one percent of surveyed executives said pricing differences between warehouse club products would increase conflicts with traditional supermarkets and mass merchandisers, while 53% of consumer packaged goods executives said they viewed sales to the warehouse club channel completely or primarily as a shift from other channels like grocery and mass merchandisers.

 

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Alterna Haircare announces actress Katie Holmes as global spokesperson, co-owner

BY Antoinette Alexander

NEW YORK — Alterna Haircare, whose products are sold at Sephora and Ulta, Sephora.com, Ulta.com, Beauty.com, QVC and salons, announced on Tuesday its official partnership with actress and entrepreneur Katie Holmes as co-owner and first-ever celebrity spokesperson.

Launched in 1997 and now owned by TSG Consumer Partners, Alterna has been recognized by beauty and industry insiders for cutting-edge formulations that are “free of” harsh chemicals and formulated with globally-sourced, often sustainable, and organic ingredients.  

Over the course of her multi-year relationship with Alterna, Holmes will be sharing her creative and consumer insights to help the brand continue to grow and expand its consumer following around the world, as well as inspire salon and retail partners.

Consumers will get their first glimpse at the partnership with the Spring 2013 integrated marketing campaign, which will appear in March women’s beauty, lifestyle and salon trade publications. This will be the largest ad campaign for the company since its inception.

In support of the campaign, Alterna will be distributing product samples and merchandising materials featuring the campaign image globally across all of Alterna’s distribution channels, including salons, specialty beauty retailers (Sephora, Ulta, select Nordstrom, Douglas) and all e-commerce outlets, including the brand’s own e-commerce site slated to launch in February 2013.


 

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