Study: At-home beauty devices represent ‘significant opportunity’ for marketers
PARSIPPANY, N.J. — Women who use at-home skin care devices report high levels of satisfaction with these high-tech gadgets; however, the penetration rates remains largely because of a lack of awareness, according to new research by consulting and research firm Kline & Co.
Nearly 70% of the respondents from the newest consumer research — which queries women from China, France, Germany, Japan, the United Kingdom, and the United States — that own devices for aesthetic benefits are either “satisfied” or “very satisfied” with these high-tech gadgets, according to the recently published "Beauty Devices: Global Market Brief" by worldwide consulting and research firm Kline & Co. Meanwhile, awareness is low with “didn’t know about them” as the second most-commonly-given reason from those who have not yet tried an at-home beauty device.
“Our research shows that women who use skin care devices have a high level of satisfaction. However, the penetration rates of these high-tech gadgets are low across most regions due to lack of awareness about them, indicating significant opportunity for marketers to attract new consumers,” stated Karen Doskow, director of Consumer Products at Kline.
Penetration rates of device usage are low across all surveyed countries except for China, which indexed well above the average at 60%. Usage was particularly low in Japan and the United Kingdom for cleansing devices, the leading beauty device used by those surveyed. Lack of knowledge about these products is among the key factors for limited use. The challenge for marketers of at-home skin care devices is to introduce and educate consumers to the merits of devices.
“Building greater awareness of device benefits and growing consumer confidence in the efficacy and value of devices is essential for market growth,” Doskow said. “Leveraging the satisfied customers and getting them to talk about devices within their social circles could be a key factor for success."
The high penetration rate in China solidifies the country’s status as a beauty mecca and hotbed of opportunity for marketers of beauty devices and topical skin care products alike, Kline stated. Such global brands as L’Oréal’s Clarisonic and Nu Skin’s Galvanic Spa continue to infiltrate the Asian market, placing more pressure on regional and local players with their dominant product portfolios and strong marketing activities. However, a few leading local players, such as Talika and SKG, are forecast to perform positively through 2018. The level of dissatisfaction with topical products also is indicating significant market potential for devices. More than half of those surveyed agreed that there is only so much that topical products can do to fight aging and acne.
Another salient research finding is that the greatest incentive to try an at-home device is by receiving it as a gift, signaling a huge opportunity for positioning at-home devices with increased marketing efforts during the prime gift-giving holidays, according to Kline.
Globally, the at-home beauty devices market grows by nearly 20% in 2013. While the United States continues to grow at a moderate pace, the focus is shifting to Asian markets geared up by increasing competition from the global brands, such as Clarisonic, Silk’n, TRIA and Galvanic Spa. Clarisonic is the market leader globally; moreover, it is the only brand to have usage by 50% or more of cleansing device users in all countries examined, according to Kline.
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Henkel to acquire three U.S. hair care brands
DÜSSELDORF, Germany — Henkel has signed an agreement with TSG Consumer Partners to acquire three U.S. hair care brands — SexyHair, Alterna and Kenra — for about 270 million euros in cash.
These businesses will strengthen the Henkel U.S. Hair Professional portfolio, especially in the categories of care and styling, Henkel stated. In the fiscal year 2013, the acquired companies generated sales of about 140 million euros.
“This acquisition is part of our strategy to invest in attractive country category positions in mature markets,” stated Henkel CEO Kasper Rorsted. “North America is the biggest single market for Henkel, and with these companies, we will further strengthen our presence in this region.”
The acquisition is subject to approval from antitrust authorities.
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Report: R.I. health department revises ruling on CVS’ MinuteClinic, drops some conditions
WOONSOCKET, R.I. — After CVS Caremark was given the green light to open MinuteClinics in Rhode Island — with imposed conditions — the state’s Department of Health has now revised its ruling and dropped some key conditions.
“We are pleased that the Rhode Island Department of Health has approved the application of MinuteClinic to open seven retail clinics in Rhode Island, and we are appreciative of the diligence of all of the parties that have been involved in the review of our application. We have accepted the conditions related to the amended decision and look forward to opening clinics in Rhode Island later this year,” said company spokesman Mike DeAngelis in a statement sent to Drug Store News.
As previously reported, health director Michael Fine approved plans to open retail clinics in the state, but did impose 22 conditions intended to address physician concerns that such clinics could fragment care and interfere with the physician-patient relationship. However, Fine did note that there is no evidence of such damage elsewhere in the country, and he acknowledged that demand demonstrates a need by patients.
That ruling has now been revised to eliminate specifics about the amount of free care the clinic operator needs to provide to the poor and no longer limits the type of health problems that the clinics can address, the Providence Journal reported. The revision also drops a provision intended to encourage CVS Caremark to establish MinuteClinics in areas where it can be difficult to find a family doctor.
Finally, a state official puts the well being of the public ahead of government-protected private practices.