Online Exclusives

Wishful Thinking On-Counter

By Melissa Meisel, Associate Editor | March 29, 2010

The prestige beauty industry is seeking a turnaround for 2010, according to NPD.

Portable fragrances, sensitive skin care and mineral makeup may just save the beauty biz, according to industry insiders.

After the Recession of 2009, pockets of growth—as seen with the products above—show signs of hope for the U.S. prestige beauty industry, noted The NPD Group, Inc., a Port Washington, N.Y.-based market research company in recent findings.In 2009, the prestige beauty marketplace saw a 6% decrease in sales to $8.19 billion—so 2010 is going to be a tough nut to crack.

“This year was indeed a very challenging year for the beauty industry,” said Karen Grant, vice president and global industry analyst, NPD. “And now in 2010, the reality is that business will still be challenging.”

The overall industry decline was primarily driven by fragrance, said NPD in its market investigation. Total sales of fragrance fell 10% to $2.48 billion in 2009 in both men’s and women’s categories. One segment that performed slightly better than the overall market was gift sets, which dropped the least, down 8% in women’s and 5% in men’s, offset somewhat by the increase in average price, reaching an average of $64.50 for both genders.

 
Sensitive skin care SKUs like Dermelect Cosmeceuticals targeting common issues such as redness are selling well.
In women’s fragrance juices, sales of smaller sizes (1oz. and under) worked for both men’s and women’s fragrances. Women’s fragrance juices under one ounce grew 8% in units, versus annual 2006. Looking at new smaller SKUs in 2009, growth came from new items like the Harajuku Lovers Snow Bunnies, as well as existing SKUs like Beautiful and Pleasures.Innovative styles like the Romance and Ralph rollerballs and the solid perfume necklace from Daisy all performed well at retail. For men, growth came from 1oz. SKUs from Polo Blue, Polo Black, the One, Light Blue, and the original Polo.

So, do good things come in petite packages? According to Grant, absolutely.

 
Classic fragrances such as Estee Lauder Beautiful are holding strong in recent market declines, noted NPD.
“Smaller sizes are a great way for consumers to get a taste of what’s new or to remember a loved favorite scent.When someone is purchasing for his or herself, smaller sizes are also smaller investment and allow you to try even more premium priced options without making a huge investment,” she told HAPPI in an interview.

Additionally, when someone considering fragrance as a gift, smaller sizes are not only a thoughtful option, but a budget friendly one, added Grant.

As for the next big sector, prestige makeup, it posted a second year of declines—down 5% to $3.16 billion, noted NPD in its report. The only two segments to outperform the category were gift sets (+2%), fueled by new face-focused sets and the face segment (-2%), which was driven by mineral-based products.

The leader in face focused sets is Bare Escentuals, noted Grant.Also helping boost sales of face-focused sets were Lancome, Trish McEvoy, as well as Clinique.
“The popularity of these sets is that they all provide both value and a natural makeup look,” Grant told HAPPI.

This was aided in part by the fact that there was 50% more new mineral products introduced in 2009. Standouts among the newer mineral makeup offerings were MAC Mineralize and Lanome Ageless Minerale, Grant told HAPPI.

“It is important to point out that prestige only captures a small slice of the mineral makeup pie, but this product remains a big focus and a major driver of the face segment in prestige,” said Grant.

Limited edition rollouts from leading makeup brands like Bare Minerals entice consumers.
The prestige skin care category posted its first year of declines, down 4% to $2.47 billion. Even though the category struggled overall, on a positive note, skin care was the only beauty category to see a 2% rise in the fourth quarter (October-December 2009). The key driver to the quarter’s results was basic care skin care, specifically dedicated to sensitive skin, which saw positive growth - outperforming anti-aging growth for the first time, noted NPD.

And in skin care, it’s all about Estee Lauder. According to Grant, the leader in basic and sensitive prestige skincare offerings is Clinique.For sensitive skin, there were also offerings from brands at the highest end of the market like La Mer and also at entry price points like MAC – all Estee Lauder brands, by the way.

Whether skin care, cosmetics or fragrance, Grant added that the other “absolute reality” is that consumers—as many as three in five women—tell NPD they are buying beauty products because “they make me feel confident” and “even in these tough economic times, I will still buy beauty products because they make me feel better about myself.”
 
“As our consumers increasingly seek the best product for the price or the best price for the product we must continue to stay focused on what will increase our relevance to them,” said Grant.
  • Supply-Side Innovations

    Supply-Side Innovations

    Tom Branna, Editorial Director||March 1, 2017
    Raw material suppliers roll up their sleeves and roll out their new products for the global cleaning industry.

  • New Faces in Familiar Places

    New Faces in Familiar Places

    Tom Branna, Editorial Director||March 1, 2017
    The American Cleaning Institute officially welcomed its new president.

  • Special Delivery

    Special Delivery

    Tom Branna, Editorial Director||March 1, 2017
    UV protection is important, but what good is that sunscreen if consumers won’t apply it?

  • It’s Magic!

    It’s Magic!

    Melissa Meisel, Associate Editor||March 20, 2017
    Argan oil-infused ‘Moroccan’ lip care brand jumps from WholeFoods into CVS.

  • On the Cutler Edge

    On the Cutler Edge

    Melissa Meisel, Associate Editor||March 13, 2017
    Top brand source at Redken forecasts up-to-the-minute hair trends.

  • Take The Hint

    Take The Hint

    Christine Esposito, Associate Editor||March 13, 2017
    Water brand forays into sun protection by capitalizing on scent and experience.

  • What’s Up with Brexit?

    What’s Up with Brexit?

    March 9, 2017
    During In-Cosmetics, industry experts from the CTPA will weigh in on what’s ahead for the beauty industry.

  • Shine On

    Shine On

    Christine Esposito, Associate Editor||March 6, 2017
    Jelmar’s Tarn-X tarnish remover celebrates 50th anniversary.

  • How We Clean

    How We Clean

    Tom Branna, Editorial Director||March 6, 2017
    Consumers describe what makes them tick and what ticks them off about household cleaning products.

  • Care for Your Hair

    Care for Your Hair

    Melissa Meisel, Associate Editor||February 27, 2017
    Salon expert Richard Jay talks about protecting tresses.

  • Fit for Fitness

    Fit for Fitness

    Christine Esposito, Associate Editor||February 21, 2017
    Kinx Active is a new brand targeting women who want beauty products that can stand up to their fitness routines.

  • Cargo Says Aloha To Spring/Summer

    Cargo Says Aloha To Spring/Summer

    Christine Esposito, Associate Editor||February 13, 2017
    Cargo Cosmetics has rolled out its new Spring/Summer collection with Hawiianan singer Anuhea.

  • Cashing In on Coconuts

    Cashing In on Coconuts

    Melissa Meisel, Associate Editor||February 6, 2017
    Organic to Green is making waves for its new oils and eco-friendly packaging.

  • Monday Morning Quarterback

    Monday Morning Quarterback

    Christine Esposito, Associate Editor||February 6, 2017
    Super Bowl commercials are big business. Let’s look at some of personal and household care brands that bought spots this year

  • Catch These Rising Stars of Beauty

    Catch These Rising Stars of Beauty

    Nancy Jeffries, Contributing Editor||February 6, 2017
    Who won what at Fashion Group International's Rising Star awards show

  • Coast To Coast

    Coast To Coast

    Melissa Meisel, Associate Editor||January 30, 2017
    Natural hand wash brand is aiming to make an environmental difference.

  • Switch It Up

    Switch It Up

    Christine Esposito, Associate Editor||January 30, 2017
    Chicago startup seeks to shake up the AP/deo category with a new launch that meshes sustainability, style and scent.

  • Skin of Color Society Connects Experts

    Skin of Color Society Connects Experts

    Melissa Meisel, Associate Editor||January 16, 2017
    Dermatologists from across the nation share information and ideas.

  • Erasa

    Erasa's New Evangelist(a)

    January 9, 2017
    Impressed by the performance of its hero SKU, supermodel Linda Evangelista joins the company in a hand's on role.

  • Discourse on Disclosure

    Discourse on Disclosure

    Tom Branna, Editorial Director||January 6, 2017
    Transparency impacts the cleaning industry.

  • The Top Stories of 2016

    The Top Stories of 2016

    December 26, 2016
    The companies and topics that grabbed headlines and your attention this year.

  • Positive Influence

    Positive Influence

    December 19, 2016
    Co-founder Elizabeth Scherle talks about her growing consumer review platform, top beauty products and more.

  • Pro Pigments

    Pro Pigments

    Melissa Meisel, Associate Editor||December 12, 2016
    Makeup brand Kryloan has a rich history in the industry and now open doors at a NYC flagship.

  • Fast Forward

    Fast Forward

    Melissa Meisel, Associate Editor||December 12, 2016
    Doug Cooper of IP Brands is thinking ahead when it comes to beauty trends.

  • Olivia Care Pays It Forward

    Olivia Care Pays It Forward

    Christine Esposito, Associate Editor||December 12, 2016
    Seeking post-election unity, a small natural personal care company hopes to cause a big wave of giving.

  • Patent Activity: Colgate-Palmolive

    Patent Activity: Colgate-Palmolive

    December 6, 2016
    New oral care compositions, the use of radish root ferment filtrate in a cleanser and more.

  • Sparkle & Shine

    Sparkle & Shine

    Melissa Meisel, Associate Editor||November 21, 2016
    Glam packaging and upscale scent combos are big at Yankee Candle for Holiday 2016.

  • Cos Bar: Turning 40 and Hitting Fast Forward

    Cos Bar: Turning 40 and Hitting Fast Forward

    Christine Esposito, Associate Editor||November 21, 2016
    With a recent investor infusion, a new CEO and rebranding effort underway, this luxury beauty retailer has big plans.