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Skin Care Benefits Gain Ground As Makeup Use Evolves

October 1, 2010

Skin Care Benefits Gain Ground As Makeup Use Evolves

Skin Care Benefits Gain Ground As Makeup Use Evolves

Recent shifts in makeup usage point to alternative areas of interest among makeup users, according to data from Port Washington, NY-based The NPD Group.

According to the firm’s new Makeup In-Depth Consumer Report, usage of makeup products among 18-64 year old women is down five percentage points in 2010, relative to 2008. Among women who do wear makeup, a growing number (up 1%, equivalent to about an estimated, additional one million women, based on projected population taken from the U.S. Census)
 are wearing only one makeup product per given day.

But while overall usage is down, an area of growing interest is cosmetics that boast skin care benefits. According to NPD, 86% of consumers have used a makeup product that contains a skin care benefit in the past year. Moisturizing (54%) and SPF protection (51%) are the most cited skin care benefits found in the makeup products women used. Other attributes were oil-free/won’t clog the pores (32%), reduces wrinkles/fine lines (30%), and natural/mineral-based (27%), according to NPD.

“As consumers seek to simplify their beauty routines, the opportunity is ripe for products that provide the benefits of both the makeup and skin care categories. Over the past few years a greater number of makeup products are incorporating skin care benefits that consumers would previously seek to get from a skin care product,” said Karen Grant, vice president and global industry analyst, The NPD Group. “From protective benefits to increasingly advanced anti-aging ingredients to the more specialized focus of anti-acne and redness reduction benefits, more and more makeup manufacturers are offering consumers a wider variety of skin care options today.”

Approximately six in 10 women who used makeup with skin care benefits are using these types of makeup products in addition to using skin care products with the same benefits. Nearly two in five are using makeup products with skin care benefits instead of skin care products with the same benefits, according to NPD.

“While the beauty industry continues to look for new opportunities, this convergence of makeup and skin care is a burgeoning platform to build upon. Our younger consumer is still learning and experimenting to determine what works for her and our older consumer is facing the ever-changing needs of her skin along with the need for a pragmatic, time-saving approach to beauty. Understanding the way consumers are now approaching their beauty regimen and where their needs cross categories will help guide us in re-engaging both the younger consumer and older consumer,” Grant concluded.
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Women at Work (and Shopping, Too)
With spending power of more than $2.5 trillion and decision-making influence for 73% of their own household spending, working women are prime targets for any marketer, especially these in beauty and household care.But pressed for time between their careers and family life, when do they find time to shop for a gallon of milk, let alone a new lipstick?

Many use the workday hours—and their commute time—to shop, according to data from WorkPlace Media, Mentor, OH.According to the company, 75.2% of women have regularly/occasionally shopped on their way to/from work or during their lunch break. Nearly 94% have done the same for groceries, while only 65.5% have squeezed in a little shoe shopping.

“This pattern of using the workday to shop, and ultimately save time, is the reason we’ve seen more marketers trying to engage with working women right in the workplace, whether that be in an office, a hospital, a school, a library or wherever they may work,” said Stephanie Molnar, chief executive officer of WorkPlace Media. “Reaching them there puts the brand top of mind just as these workday purchases are being planned and executed.”

In a new study conducted by WorkPlace Media, a high percentage of working women don’t spend time during the day using traditional forms of media such as newspapers (55.42%) and magazines (56%), compared to only 9.17% who don’t spend time using the internet.

While internet advertising is what many marketers have used to compensate for the decline in traditional media usage, 38.19% of working women say that their hectic schedule has caused them to reduce their online surfing too.

“As working women continue to shift away from traditional forms of media to compensate for their hectic schedules, marketers are compelled to find media that stands out and gets noticed,” said Molnar. “What better place to do that than right in the workplace where they are focused?”
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Pay Day Purchasing Decisions
As any nine-to-fiver will attest, a new paycheck brings with it a familiar sense of freedom. And while that euphoria often dwindles, it’s not a checking account balance that influences consumer behavior—it’s how close pay day is, say researchers studying consumer spending habits. Payday proximity actually changes consumer motives, response to messages and purchase behavior, according to University of Utah marketing professors Himanshu and Arul Mishra. And this has implications for CPG firms given that more consumers are reportedly living paycheck to paycheck in the current economy.

The findings, which were published in the September issue of the Journal of Marketing, examine how consumers’ behaviors change as the length of time from their last paycheck increases.

“We find that not only do preferences change during such a short duration paycheck to paycheck, but also that they fluctuate between a promotion and a prevention focus,” said Himanshu Mishra.

According to the research, newly paid consumers are more likely to spend money on “promotion-focused” products and services—those that make their lives better, if even in a small way. As the previous payday gets further away, though, consumers are motivated to choose products that are“prevention-focused”—those that preserve their current standard of living.

“How Salary Receipt Affects Consumers’ Regulatory Motivations and Product Preferences,” co-authored with Dhananjay Nayakankuppam of the University of Iowa, examines how consumers’ behaviors change as the length of time from their last paycheck increases.

The study’s results could have several real-world applications. For instance, companies launching products might be well served to advertise them earlier in the month, when customers are more likely to have just been paid and are more receptive to new ideas. In addition, products with promotion- or prevention-focused characteristics (whitening toothpaste vs. cavity-fighting toothpaste, respectively) might be more effectively advertised at different periods of the month.

In the two-part study, 61 participants with full-time jobs were asked to document their buying choices over a month-long period, categorizing purchases as things they “aspired” to buy or “ought” to buy. In the second segment, they asked 152 participants to choose between a series of identically priced and sized products.They found that the proportion of“aspired” products declined and the proportion of“ought” products increased, as participants got further away from their paychecks.
The team also demonstrated that these results were not related to declining checking account balances during the month or to product prices. Although participants ranged in age from 21 to 45, their ages made no discernable difference. Similarly irrelevant were family size and the presence of children.

In the current economic downturn—with more Americans living paycheck to paycheck—Mishra contends that the trends seen in this study could become even more pronounced.

“We do believe that when people are more reliant on receipt of paycheck, we will see a stronger effect emerging,” he concluded.