The recently published inaugural edition of Beauty Retailing USA: Alternate Channel Monitor covering the period from January 2014 to June 2014 finds that consumer purchasing from social media is finally becoming more of a reality. This use of beacon technology is increasing in specialty stores, and lipsticks are selling nearly as much as skin care products through mobile technologies. This service will be updated every six months to provide marketers with the regular insights and dynamics on the ever-evolving alternate channels like direct sales and specialty stores.Continue reading
The direct sales channel for cosmetics and toiletries has posted a compound annual growth rate (CAGR) of almost 6% over the last five years, considerably above the average all-channel growth rate, according to Kline’s latest Beauty Retailing USA report. Driving this growth is e-commerce, which has exploded with over 25% annual growth over the past five years. Infomercials and home shopping networks also show robust growth.
The retail landscape for cosmetics and toiletries in the United States has evolved substantially over the past five years, with retailers no longer considering themselves bound by a particular channel, but instead many realizing themselves as omni-channel, looking to create a seamless shopping environment whether the consumer is in-store, on a computer, or using a mobile device.
With sales of cosmetics and toiletries in department stores declining over the past five-years, the channel remains challenged as the destination of choice for beauty product consumers due to growing competition from specialty stores, direct merchants, and mass retailers expanding their selection. Department stores are consequently refashioning their beauty departments to offer a more modern shopping environment. Various department stores are merging beauty counters, enabling sales and beauty consultants to fluidly sell more than one brand. By contrast, niche brand in-store boutiques are continuing to expand at stores such as Macy’s, Dillard’s, and Bloomingdale’s. Read more…
Written by Donna Barson, Senior Associate at Kline
The Bed Bath & Beyond chain of home goods stores isn’t the first place one might think of as a key retail channel for beauty and grooming products, but that may be changing in the future. Since the company purchased the Harmon health and beauty care chain in 2002, it has been putting Harmon departments in its other stores. The company is becoming more aggressive with acquiring new companies, as well as opening new locations, and is further focusing on a cross-pollination strategy, bringing themes from one type of store into another.Continue reading