The world of beauty moves fast. A short decade ago, mass outlets and department stores were practically the only places U.S. consumers shopped at for beauty products. The Internet was in its infancy and touted by many in the cosmetics and fragrance industry as being “negligible” or “insignificant” since the play and scent factors were missing. Specialty stores emerged as a channel to be taken seriously, but to this day, these outlets continue to mystify industry players while their market share steadily rises. Television shopping has also since established itself as a credible outlet, thanks to the seemingly overnight success of infomercial brand Proactiv. Today, these newer, alternate channels have become even more important, while fresh retail concepts like mobile shopping have emerged.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.
Despite the generally challenging economic climate, the U.K. professional beauty market remains among the fastest paced across all European countries. Today’s cautious, more enlightened, and empowered British consumer is demanding more affordable products and better in-store services to complement their beauty regimes and not tax their budgets.
Taking the biggest cut, the hair-care segment continues to keep ahead of the United Kingdom’s professional beauty market with a 65% total market share, generating £370 million (USD 560 million) in sales at the retail level in 2012. However, consumer visits to hair salons continue to decrease, particularly in the lower-end segment.Continue reading
On a glorious fall day, we set out to explore the latest and greatest in beauty retailing formats on Wall Street. We had heard that the iconic Duane Reade opened last year on 40 Wall Street, but never imagined what we would be in store for.
To begin, we entered a magnificently renovated building with an interior reminiscent of the art deco era. We were amazed at all the options right in front of our eyes. We were welcomed by a Tensator Virtual Assistant that greets customers and provides information on this 22,000 square foot store.
New types of shopping experiences and enhancements have altered the way consumers purchase beauty products. Both men and women are enthusiastic about trying different ways to buy their personal care products, giving way to an even greater number of new formats for retailing. This heightened interest has been responsible for the growth of beauty purchases electronically and in specialty stores.Continue reading
The direct sales channel in BRICs outpaced the worldwide beauty sales growth of 4.7% CAGR from 2006 through 2011 by more than double! In China alone beauty sales through the Internet have grown by nearly 200% over the last 5 years and are valued at $3.5 billion in retail sales.
Seize these opportunities!
Karen Doskow, Kline’s Industry Manager, Consumer Products Practice, will share key findings from our recently published report: Beauty Retailing Through Direct Sales in Emerging Markets 2011: Channel Analysis and Opportunities in a webinar on Wednesday, March 28, 2012 9:00 am (U.S. Eastern Daylight Time).Continue reading
Grab your calendar quick!
Clear July 11 and 12 for InnoCos USA in New York City – an essential Cosmetics and Personal Care Industry rendez-vous!
Kline is proud to be part of this must-attend event for innovation, new product development and marketing for executives in personal care and cosmetics. InnoCos USA is a compelling and valuable opportunity to meet and mold the future, maximize knowledge exchange and to generate actionable results.Continue reading
With over 25 years of industry experience, Kline’s Eric Vogelsberg, Senior Vice President of the M&A and Corporate Development Practice, brings an authoritative and qualified perspective.
While 2011 ended in uncertainty, Eric sees the M&A environment as remaining fundamentally strong and fecund.
On April 18, 2012 at in-cosmetics Barcelona Eric will discuss the current M&A environment and key underlying trends and drivers and share his views on the impact on the personal value chain. He will examine how the continued consolidation and evolution of players will alter the structure of the business and the competitive landscape, and he will help you understand why personal care remains one of the hottest spaces in M&A.
Hear Eric speak on Future M&A Trends and Drivers Across the Personal Care Value Chain at in-cosmetics Barcelona, April 18, 2012 at 12:30PM in the Marketing Trends Theatre.
Kline’s Nikola Matic, drawing upon many years of extensive and international market-research, will be at in-cosmetics Barcelona on April 17, 2012 where he’ll share timely specialty actives insights and trends gleaned from Kline’s recently published report Specialty Actives in Personal Care 2011: Multi-Regional Market Analysis and Opportunities.
Within the specialty actives market, consumers are often the trend-setters. A growing consumer understanding of active ingredients in personal care products driven by extensive media coverage is compelling active ingredients manufacturers to innovate. Continue reading
The savvy shopper of today often doesn’t bother making a trip to a drug or department store when the products they want to buy are just a few clicks away.
Traffic? Change for a parking meter? Not issues when shopping’s effortlessly done from home or the office.
On January 31st at 1:00 PM US ET, catch a video recapitulation of a panel of leaders in the world of virtual beauty as they discuss beauty retail options outside the traditional bricks-and-mortar model in the Virtual Beauty Retail Webinar. Topics will include: what virtual retailers are looking for, different models for success, and how to capture the short attention span of the digital-age consumer.
Karen Doslow, Kline’s Consumer Products Practice Industry Manager will participate and discuss trends and insights gleaned from Kline & Company’s recently published report Beauty Marketing 2011: U.S. Promotional Activities and Strategies Assessment. She will also be available during the live questions-and-answers session after the webinar.
Virtual Beauty Retail: Video Recap from HBA, Tuesday, January 31st 1:00 PM US ET.
To register for this timely event, click here.