What Women Want
Market research firm Mintel thinks U.S. cosmetics sales will, surprisingly, rise as a result of the ongoing recession. In fact, its recent reports have stated there will likely be a higher growth rate for makeup than the firm previously predicted eight months ago — of 10 percent over the next five years versus 7 percent.
Mintel thinks there are some beauty categories that are recession proof. Director of research Joan Holleran said many women have “deep emotional ties” to their appearance. “These women may trade down on other purchases or forgo expensive vacations, but they will still treat themselves to small, feel-good luxuries like makeup and beauty products,” she said. Trading down continues to be a mantra and even The New York Times ran an article this week on how to survive on beauty products purchased at (egads!) the drugstore Duane Reade.
Holleran also thinks antiaging skin care is also a segment women just won’t give up. Mintel expects sales of antiaging products to increase 20 percent over the next five years. Health concerns have made sun care a must buy, too. Mintel predicts healthy growth for sun care products, with sales expected to increase 36 percent from 2008 to 2013.
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There are categories, however, taking it on the chin in the recession. “Shoppers are trading down to save money on purchases they don’t deem necessary. So everything beyond deodorant, shampoo and razors is at risk,” said Holleran. “Personal care companies need to focus on value, feel-good benefits and new product innovation to keep shoppers interested.”
Industry consultant Allan Mottus agreed that there are categories where women are trading down, but he also thinks there are beauty categories where women are simply tuning out. He also suspects that some shoppers are flirting with dollar stores, which are growing and adding more beauty.
Mottus also proposes that mass merchants have too much duplication. The only retailers who have made the beauty model work recently, he noted, are Sephora and Ulta. With shoppers trading out, down and into specialty, it is no wonder mass market beauty retailers and suppliers are struggling. The question remains, when wallets start opening again will shoppers return?
People, Places and Things
A few words with Steven C. Anderson president and chief executive officer of the National Association of Chain Drug Stores as he plans for the upcoming annual meeting
Anderson: The NACDS Annual Meeting is always a highly interactive and productive meeting for the industry’s leaders. As we come together for this year’s Annual Meeting, the health care debate is on in Washington, and NACDS is highly engaged in efforts to promote the value of pharmacy as the face of neighborhood health care. Working together as an industry is crucial and the Annual Meeting will offer the opportunity to collaborate and engage in discussions to help further the industry and the challenges we face in this changing economic climate.
Anderson: Beginning Saturday, attendees will have the opportunity to conduct meetings through the “Meet the Retailer” and “Strategic Exchange Appointment.” The “Meet the Retailer” program consists of a sessions with senior retail executives from an NACDS chain member company, while the “Strategic Exchange Appointment” program provides numerous opportunities to meet and discuss strategic issues with key trading partners.
What’s In Store
Whole Body: As part of its “Be Good to Your Whole Body” program in its Whole Body departments, Whole Foods Market will focus on cosmetics throughout the month of May. In-store lectures and podcasts will help educate consumers on the benefits of cosmetics with natural ingredients, minerals and vitamins.
Westine New President and CEO of PCPC: Dan Brestle, chairman and president, The Estee Lauder Companies, North America and chairman of the board of directors of the Personal Care Products Council, announced that Lezlee Westine will be the new president and ceo of the Personal Care Products Council. Westine is currently president and ceo of TechNet, a bipartisan political network of ceo’s and senior executives of leading U.S. technology companies that promotes the growth of the innovation economy by building long-term relationships between technology leaders and policymakers.