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DTC Beauty Sales Approach $2B

July 16, 2013

NPD launches new service.

Direct-to-consumer beauty sales is big business. How big? Nearly $2 biliion, accoridng to The NPD Group, which has launched a new service to track  direct-to-consumer sales of fragrance, makeup, and skin care products sold on department store websites, in key online-only beauty retailers, and through TV/home shopping retailers.

"We are excited to share a more well-rounded analysis of the beauty market with this new tracking service,” said Diane Nicholson, president of U.S. Softlines, The NPD Group. Inc. “This is an opportunity for our business partners to get insights into this competitive landscape and understand the unique dynamics of this beauty channel.”

NPD BeautyTrends® Direct reveals the direct-to-consumer beauty sales increased 18% in 2012, to $1.96 billion, compared to 2011. Skin care represented more than half of those sales, followed by makeup with almost a third of annual dollars.

Here's a breakout of sales by category:
Skin care: 55%
Makeup: 32%
Women's fragrance: 11%
Men's fragrance: 2%

“At nearly 20% of the U.S. prestige beauty market, the direct-to-consumer channel is increasing, and playing a larger role in shaping leading market trends,” said Karen Grant, vice president and senior global industry analyst, The NPD Group. “Growing ever more connected, consumers will continue to take advantage of, and benefit from, the competitive and specialized offerings made available to them through this convenient channel.”

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