Lipcolor Sales Surge in Prestige Channels

After a long period of decline, prestige lipcolor sales are growing again, according to new research conducted by The NPD Group. From January through April 2011, the total prestige lip segment grew 7% to $185.2 million in U.S. department stores and increased 4% in units to 9.8 million. The lip segment includes lipcolor, lipliner, lipgloss and lip applicators. But according to NPD data, the real star of the segment was lipcolor, which increased 11% to $92.1 million in sales.

“What is particularly noteworthy of the trend in lipcolor is that we are seeing these significant increases in sales at a time when overall usage of lipcolor appeared to be dropping off. Coming out of the recession, it seems that the consumers thirst for color and play was reawakened,” said Karen Grant, vice president and senior global industry analyst, The NPD Group. “In 2010, we saw the preference for rich as well as retro colors and in 2011 we are seeing new neutrals come to the fore. As the fashion industry increasingly features bold as well as understated lip statements on the runway and in advertisements, lip color appears to be getting its groove back.”

According to NPD data, after nearly a decade of declining sales, lipcolor began to show growth again last year. Since February 2010, lipcolor has experienced 15 months of steady dollar growth, with seven of those months posting double-digit increases, including April ’11 (+30%). Annual 2010 results were the first time since 2002 that lipcolor saw a unit increase (8%), the highest increase since 1998.

The top 5 brands are: MAC Lipstick, Lancôme L’Absolu Rouge, Clinique Long Last Soft Shine Lipstick, Lauder Pure Color Lipstick New and Chanel Rouge Coco Shine.

More info: www.npd.com