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Private Label Magazine - July/August 2002

More Than Cosmetic Changes For Private Label

By Sean Ryan

Topco and Hannaford cut into disposable razors and razor cartridges, while Ahold and Family Dollar lather up with the profitable shaving cream. CVS pushes Essence of Beauty to facial discs, and Brooks unveils its new acne body wash.

The advance of premium cosmetic lines for nail care shows a gutsy approach to competing on quality, not just price.

Face and nail care normally focuses on nail polish remover, cotton balls, and accessory items. Nail polish itself was never mentioned, because private label wasn't making any. This year, there's not one, but four new private label nail polishes.

First comes Sonia Kashuk, the veteran PL cosmetics from Target, Minneapolis, MN. That line has recently expanded into nail polish (it already has an expansive selection of facial cosmetics, like lipstick, blush and eyeliner).

JCPenney, Plano, TX, has entered the fray with Mixit cosmetics. Mixit already has name recognition: a large amount of exclusive label women's clothing from Penney carries the Mixit name.

apt. 5 is new from Duane Reade, Mixit is new from JCPenney, No Boundaries is new from Wal-Mart, and Sonia Kashuk nail polish is new from Target. Wal-Mart and Ahold correspondingly cover the bases with nail polish remover. Kmart offers a nail brush from its new Image Essentials.

Duane Reade, New York, NY, is using its New York base as the theme for its new cosmetic line, Apt. 5. "Color for the City" and "Around Town Essentials" are two of its Apt. 5 slogans. Apt. 5 is a bold step for Reade, which has a little over 200 stores in New York and New Jersey. Most PL cosmetic launches (if there have been enough so that an average profile exists) are from national retailers.

Wal-Mart, Bentonville, AR, is sure to be a market leader in whatever they do, and currently it's a cosmetic label for teenagers called No Boundaries. These items are differentiated from grown-up cosmetics by the glitter in every product, from the nail polish to the blush to eyeshadow. The slogan is "Girl Tested, Boy Approved."

These cosmetic lines join up with the Quo line from Shoppers Drug Mart, Toronto, ON. Quo preceded Sonia Kashuk by a number of years, although Quo hasn't branched into nail polish as of yet.
The new lines are too new to make a blip on the IRI data, although PL nail polish sales are up 25.9% regardless.

Sonia Kashuk bottles are cylindrical, also with the brush top taking half the packaging space. Each is $3.39. Apt. 5 bottles are rectangular, evenly half and half of glass bottle and brush top. They sell for $4.50 each. Nail polish from Mixit comes in round bottles with flattened edges, and are $5.00 each.

The selling points for all of them come from quality. Although all are competitively priced, price is not the sole selling point. Women will price up for the cosmetics they like, and will return for those items if they're only available at one store. It's a huge market, and every further step private label takes into it is a chance to capture new sales.
Skin Care

The rest of face and nail care had a largely positive year. Shaving cream leapt 25.4% to $12.3 in sales. Nail accessories and implements rose 18% to $16.1 million. Facial cleansers were propelled 13.4% to $14 million.

Essence of Beauty, the expansive premium bath and body line from CVS, Woonsocket, RI, offers several bath accessories. Loofah facial discs and body sponges are stocked along with Essence of Beauty's many soaps and lotions.

Kmart, Troy, MI, is also getting into bath supplies, with its Image Essential bath line. Two different nail brushes are offered, for example: one for fingernails and hands, the other for toenails and feet.

Wal-Mart's grown up beauty line, Simply Basic, has expanded to now include nail polish remover. The liquid comes in cylindrical containers, a noticeable difference from the tapered bottles that represent most stores' private label. The scents are some of the more popular ones to grace Simply Basic products, like Cucumber Melon.

The NEW AT BROOKS sign is up on shelves around the Acne Body Wash from, appropriately enough, Brooks, Warwick, RI. The price is $4.99, compared to Neutrogena's Body Clear at $6.49.

Rite Aid, Harrisburg, PA, is expanding its Soaked in Tickles line of children's bath products (with a fish theme) to include Soaked in Giggles (with a hippo as the signature animal, and sour apple as the dominant scent) and Soaked in Cuddles (with a bear as mascot, and a sugar cookie scent). Each item is $4.99.

Razor Bucks

Private label disposable razors and razor blade cartridges both had slight downturns this past year (3.9% and 3.6%, respectively), but PL razors had a 39.9% increase from sales a year ago, up to $2.5 million.

Hannaford, Scarborough, ME, has a 4-count of Tri-Flexxx triple blade cartridges for razor blades. The price gap is a wide one: $3.97, versus $8.99 for Gillette Mach 3.

Topco, Skokie, IL, has disposable Twin Blade Plus razors (the Plus being a lubricating strip along the edge). A 5-count is $2.69, but much reduced with special coins Big Y distributes to store card holders. The razors are $1.44 with a silver coin, and free with a red coin. Other coin deals are throughout the store.

Aldi, Batavia, IL, has a 10-count of disposable Carlton twin blades for 99 cents.

Family Dollar, Charlotte, NC, has men's and women's shaving gel for $1.50.

Cotton

Food Lion, Salisbury, NC, has cotton swabs in traditional containers, but also stocks them in a 300-count round plastic canister. The plastic is transparent, and the swab sticks come in blue, red, yellow and the traditional white. The 300-count is $2.39, the same price as Food Lion's 500-count in traditional packaging. Q-Tips are $2.49 for a regular 300-count, and $2.99 for a 500-count.

Dollar General, Goodlettsville, TN, has jumbo sized cotton balls in a 125-count for a dollar. In a special sale presumably to get customers in the store, Kmart had its triple sized 100-counts of cotton balls for a quarter.

Fact Finder- Private Label Face & Nail Care
Item Sales* Change Share**
Cotton Balls/Swabs
Total $112.9 2.2% 45.3%
Food $54.4 2.0% 46.6%
Drug $36.6 4.2% 45.0%
Nail Accessories/Implements
Total $16.1 18.0% 10.9%
Food $4.5 21.3% 15.5%
Drug $11.6 17.6% 13.7%
Nail Polish Removers
Total $28.7 5.8% 48.4%
Food $11.0 6.3% 57.2%
Drug $12.3 4.5% 42.3%
Nail Polish
Total
$1.4 25.9% 0.4%
Food
$0.2 33.2% 0.4%
Drug $1.2 77.4% 0.6%
Disposable Razors
Total $31.5 -3.9% 7.9%
Food $16.7 -7.0% 7.9%
Drug $11.6 4.8% 10.5%
Refill Razor Blades
Total
$28.2 -3.6% 4.1%
Food
$14.2 -3.6% 4.3%
Drug $11.3 1.3% 5.2%
Shaving Cream
Total
$12.3 25.4% 4.3%
Food
$3.9 35.4% 2.7%
Drug $5.6 14.1% 6.7%
Facial Cleansers
Total $14.0 13.4% 2.6%
Food $2.4 11.9% 1.3%
Drug $10.8 14.8% 4.5%


* millions
** by sales dollar
Source: Information Resources, Inc. 52 Weeks ended 5/19/02 Total sales include mass merchandisers data (excluding Wal-Mart) but cannot be included as a separate line item in the report

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