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 Cover Story - March/April 2009  |
Beauty Boom
Beauty care remains popular despite economic woes. New store formats highlighting beauty care and innovative skin care products focusing on anti-aging and premium skincare take center stage. Women will always care about their appearance and purchase beauty care and skin care items in order to keep up a youthful look, enhance their beauty or attempt to slow the signs of aging. Recent reports support this idea, as the beauty care segment hasn’t been hit as hard by the recession as other retail sectors. For example, according to Euromonitor, in 2008, skin care sales in the U.S. were $8.3 billion, with the mass-market sector growing 1.5% to $5.6 billion and premium product sales creeping up 0.3% to $2.7 billion for the year. The Fountain of Youth In recent years, the beauty care market has been increasingly targeted towards Baby Boomers. However, as the younger end of Generation Xers enters their late twenties, retailers have been showcasing anti-aging products on their shelves, left and right. Drugstores and mass merchandisers alike are adhering to the anti-aging trend. At the moment, there are approximately 78 million Americans that were born from 1946 to 1964 and approximately 83.8 million born from 1965 and 1981–that is a whole lot of people who may be searching for the fountain of youth, or at least skin care remedies that will prolong the look of youthful skin. There are a few important ingredients being added to skin care products which promote youthful skin. According to Shannon Nelson, corporate communications director at Pierce Mattie PR, a New York City-based company known for predicting beauty trends, a few ingredients that will continue to appear in anti-aging skin care products and gain popularity are: Acai, a Brazilian berry, which contains antioxidants, amino acids, essential omegas, fibers and protein that positions itself as a formidable fighter in anti-aging products; Blueberries, which are chock full of amino acids, vitamins, antioxidants and essential fatty acids. Also known as a “super fruit,” blueberries have long been known for its ability to revitalize the skin; and Palmitoyl Tripeptide-3, a cosmeceutical that is becoming found more often in anti-aging products to fight fine lines and wrinkles. Both L’Oreal and Oil of Olay have rolled out skin care lines that cater towards providing consumers with products containing some of these ingredients, especially Palmitoyl Tripeptide-3, as well as pro-Retinol and Vitamin A. L’Oreal offers such products as an Advanced Revitalift Eye Day/Night Cream, containing Pro-Vitamin A, a Collagen Filler and an Advanced Revitalift Face & Neck Cream. Oil of Olay offers products such as a deep penetrating foaming moisturizer and a line called Regenerist which contains Palmitoyl Tripeptide complex.
Many retailers have responded with PL versions of these products. Wal-Mart, Bentonville, AR, CVS, Woonsocket, RI, and Walgreens, Deerfield, IL, all offer most of the products in the two national brand lines. For example, under its Equate line, Wal-Mart features a “Collagen Treatment Wrinkle Reducer, which diffuses and fills in the depth and length of facial lines. Plumps and visibly smooths wrinkle creases. Targeted wrinkle reducer. With advanced collagen dermacare system and dermaxyl.” This product compares to the L’Oreal Wrinkle De-Crease Collagen Filler item.” While retailers such as Rite Aid, Harrisburg, PA, and Walgreens, do offer many private label skin care items that compare to national brands, CVS seems to offer the largest variety, with items that compare to almost all of the major brands: Olay of Olay, Neutrogena, L’Oreal and Aveeno. For example shoppers can find items such as a luminous daily moisturizer that contains SPF 30, soy complex and light diffusers. The moisturizer is similar to Aveeno’s Positively Radiant Moisturizer SPF 30. Also, the retailer features a cream cleanser comparable to Olay Definity illuminating cream cleanser. The cleanser contains a luminous formula with glucosamine, beads and moisturizers and aims to clean dirt and makeup for more radiant skin. Shoppers can find an entire range of items comparable to L’Oreal’s anti-aging and anti-wrinkle lines including an advanced anti-wrinkle & firming formula that contains pro-retinol encapsulated vitamin A. The CVS brand competes with L’Oreal’s advanced revitalift eye day/night cream. Finally, CVS offers a few products that are similar to the Neutrogena brand items. For example, there is a CVS brand foaming cleanser and make-up remover in one for cleaner skin. This product compares to Neutrogena’s Fresh Foaming Cleanser. Kmart, Hoffman Estates, IL, also exhibits an array of store brand items comparable to the popular national brands mentioned above. However, instead of using the store name for its brand the retailer uses the name Image Essentials, which enable the products to standout on shelves and provide a brand image. Products that can be found on shelves include Image Essentials regenerating eye lift serum, comparing to Oil of Olay brand; Anti-wrinkle cream comparing to Neutrogena; and a continuous control acne cleanser with 10% benzoyl peroxide which compares to Clean and Clear, just to name a few. Exhibiting Exclusively Another trend that seems to be here for the long run is exclusive and premium lines. Drugstores and mass merchandisers alike have been increasing their exclusive and premium product ranges. Target, Minneapolis, MN, CVS, Walgreens and Rite Aid, are healthy competitors amongst themselves and with national brands. Target has remained a front-runner with its exclusive partnerships with well-known make up personalities. Sonia Kashuk designs a line of beauty care products that has been a mainstay at Target and now Target offers lines from Petra Strand and Jemma Kidd – both make up artists from England. Target had inked a deal with Napoleon Perdis, a make up artist from Australia, but that partnership has now ended and his NP line can be found at a few other retailers. Celebrating the tenth anniversary of their partnership, in March, Sonia Kashuk introduced a new Limited Edition Collection, exclusively at Target. Inspired by treasures of the ocean, the collection combines innovative design with exotic marine life and luxurious materials, for a treasure trove of collectible products at guilt-free prices. Options include a Treasure Chest Bag, Hidden Treasure Brush, Coral Reef Highlighter Brush, Pink Sands Highlighting, How to Create the Freshness of Spring Cosmetic Palette. Along with the partnerships, Target also offers an extensive skin care line from Boots, a brand from England. Options include N°7, with cosmetics, skincare and bath & body products; Botanics with cosmetics, skincare and bath & body items; Mediterranean, and Amazon Forest, both including bath & body products; expert, which includes skincare and bath & body items; and time dimensions which offers skincare items. Beauty Abounds
Walgreens and CVS have grown to become the top players within the drugstore segment. Both retailers have remodeled many of their locations and have rolled out premium and exclusive beauty care lines, thus making them standout amongst the other drugstores. In addition, a strategy that both retailers are employing is opening flagship locations in the “beauty capital of the world” – New York City. CVS opened a location last year by Grand Central Terminal in NYC, which has a bright, well-organized interior with wide aisles and vibrant colored signage. Walgreens recently opened its flagship store in midtown, NYC, on the first three levels of the legendary One Times Square building. The store features a large Walgreens billboard – according to the retailer, the nation’s largest, most advanced digital super-sign soaring 341 feet above the street on three sides of the building. By opening these modern, locations, both retailers are building a presence in a city that regards beauty regimens as a crucial category. Shoppers will flock to these locations and consequently enjoy the retailers’ wide variety of beauty care products. At Walgreens, shoppers can find exclusive lines including Skin Essentials, c.Booth, Details and Apothecary All of these lines encompass the newest and steadfast trends: natural, organic, premium and exclusive products. Walgreens caters to the natural beauty product trend with its Skin Essentials Mineral Matters product lines. The Details Bath and Body line, which is comprised of a 36 SKU collection of body washes, hand gels, body lotions, body mists and hand washes available in six different scents, as well as small travel kits complete with sponges. CVS’ impressive selection includes lines Lumene, Essence of Beauty and Skin Effects, Boots and 24.7 Skincare. The 24.7 Skincare line features items such as Targeted Wrinkle Treatment, Firming Anti-Aging Eye Serum, Daily Purifying Facial Scrub, and Instant Plump Volumizing Lip Shine. The Lumene line now offers a wide assortment of innovative products, which all contain natural ingredients. Consumers can find items such as Lumene arctic touch deep cleansing peat mask, Lumene Time Freeze instant lift serum and Lumene premium beauty age spot treatment, to name a few. Skin Effects by Dr. Jeffrey Dover exhibits such products as Skin Effects lip effects complete lip care system which is a 1-2-3 regimen for lips exfoliates, repairs and moisturizes while reducing the appearance of fine lines and wrinkles around the lips. The Boots line includes an array of products containing exotic ingredients. For example, the Boots Botanics line includes body washes with ingredients such as milk, almond and pistachio. Still in the Race Rite Aid has fallen behind CVS and Walgreens a bit, but still offers beauty care seekers a range of products under its Pure Spring line, as well as its c.booth line. Well-known skin care specialist Colleen Booth, who has played a key role in bringing some of today’s best-known beauty brands to America’s high-end specialty and department stores, has developed an exclusive high-end branded line for Rite Aid: c.booth clinically formulated skin care. Each product is under $20. The exclusive c.booth derma line is designed to improve the overall health of skin for teens and adults of all ages, including men. Because healthy skin requires both preventive and corrective care, the line includes derma P-17 for problem skin, derma C-24 for everyday healthy skin maintenance and protection and derma M-36 for mature skin. Rite Aid’s Pure Spring bath and body products features four distinct scents based on current customer demand and trends. All fragrances are available for the four-step daily bath ritual: shower gel, hand cream, body lotion and body mist. Specialty body treatment items include body cream, body butter and shimmer lotion. Beyond the Norm Even limited assortment stores such as Aldi, Batavia, IL, are jumping into the high-end store brand beauty care trend; the retailer recently launched Lacura, a skincare line developed by German skincare specialists. The cosmetics are made with the same top-quality ingredients found in expensive labels, without the price tag. Available in a variety of brilliant shades packaged in sleek silver casing, Lacura items offer low-cost luxury for just $1.99 to $3.99 per item and can be found in its store in 30 states. “Today’s woman is looking for an alternative to high-priced cosmetics, without surrendering quality,” said Joan Kavanaugh, Aldi’s vice president of corporate purchasing. “We are pleased to introduce these exclusive products to the marketplace, a natural progression following the successful launch of the Lacura skincare line in the U.S.” Lacura products are engineered with natural, nurturing ingredients including candelilla wax, jojoba wax, avocado oil, seed oil, lecithin and vitamin E. The collection is available in a variety of brilliant, long-lasting shades and includes eye shadow, mascara, foundation, compact powder/blushes, lipstick and nail polish. Targeting Trends To further push beauty products, many retailers are implementing special programs for their beauty care aisles. Beauty care is one category that women will always splurge on; therefore retailers are stepping up their game and implementing creative ways to appeal to the female demographic. Within these special sections, retailers are introducing more premium and exclusive and private label beauty care items, perhaps indicating that many women are switching from their expensive department skin care regimens to drugstore and mass merchandiser brands. For example, several retailers such as Target have expanded their beauty care aisles and private label selections or in the case of CVS, along with increasing its private label range has also introduced stand-alone stores to promote this category. Target is testing an innovative new beauty concept in a number of Chicago-area stores. Eight stores in the city’s western suburbs are piloting a new beauty layout that brings together Target’s cosmetics, skincare and haircare categories in a stylish and easy-to-navigate department. According to www.instoremarketer.org, the concept is based on research that “shows women are looking for more information and solutions to better achieve their beauty needs,” said a Target spokesperson. The new design presents “a more visual environment, which invites [guests] to browse a mix of everyday essentials and exclusive beauty brands,” she said. The layout utilizes elements from Target’s existing beauty departments – including backlit gondolas, in-line displays for exclusive brands and special presentations for premium products – but otherwise offers a unique design. Catering to Consumers In November 2008, CVS debuted Beauty 360, a creative store concept designed to change the way women shop for beauty care products. According to the retailer, the innovative concept offers an upscale shopping destination for the multi-faceted, time-starved woman. The first location opened at 1350 Connecticut Avenue NW (Dupont Circle) in Washington, D.C., and the second Beauty 360 location at 25272 Marguerite Parkway in Mission Viejo, CA. Both locations are adjacent to CVS/pharmacy stores and can be accessed via a breezeway as well as a separate store-front entrance. More locations are being explored across the country for 2009, in markets where beauty performs exceedingly well. Beauty 360 features a wide range of prestige and niche beauty brands from the skincare, cosmetics, men’s grooming and fragrance categories. Beauty 360 will be staffed with trained and licensed professionals offering a unique suite of brand-specific signature services including mini-manicures, express facials, hand massages and make-up application. Beauty 360 Beauty Consultants receive extensive training across all categories and brands, ensuring customers a superior shopping experience. “Beauty 360 is the natural evolution of CVS/pharmacy’s leadership within the beauty category,” said Mike Bloom, senior vice president of merchandising at CVS/pharmacy. “This new concept will redefine the beauty shopping experience by providing customers with access to prestige and niche beauty brands as well as an unparalleled level of service.” The portfolio of brands launching in the first two Beauty 360 locations include CVS’ exclusive 24.7 brand as well as national brands such as Dr. Brandt Skincare, Clean, P&G fragrance, Laura Geller, Coty Fragrance, Sampar, Paula Dorf, Elizabeth Arden Fragrance. CVS has spent five years working to improve its beauty shopping experience. Since 2003, Healthy Skincare Centers stocked with European brands have been implemented in 545 stores, inked exclusive distribution deals with Finnish beauty line Lumene and Boots of the U.K., launched a chainwide marketing program called Reinventing Beauty and developed exclusive lines including Cristophe Beverly Hills hair care, Skin Effects by Dr. Jeffrey Dover, and, most recently, 24.7 Skincare. All of those efforts have set the stage for Beauty 360, according to executives. “We think of it as the evolution of beauty. We believe we’ve always been a step or two above everybody else in our class of trade,” said Bloom. “Beauty has always been part of our DNA so we spend a lot of time thinking about strategy.” Viewing all of these initiatives – new store concepts, revamped beauty aisles, premium and exclusive products and trendy ingredients, it is clear that the beauty care category seems to be soaring in popularity and retailers are taking advantage. In the future we are sure to see retailers debuting even more initiatives to keep consumers satisfied. |
