BOSTON — The search for value continues, but it doesn’t always mean cheap. It means “make my life better.” And when it comes to the $45 billion beauty market, the opportunities are aplenty. That was a key message from Sunday morning’s Insight Session “Putting the Polish on Your Value-Oriented Shopper.”
To help retailers and suppliers see how this trend is playing out within the dollar store segment, presenters Larry Levin, EVP of IRI, and Jessica Kalinger, Coty Beauty’s director of consumer marketing and shopper insights, shared how they collectively identified value-driven consumers to understand their shopping preferences
It is no secret that today’s consumers remain cautious and that their shopping behaviors have been altered to reflect a “new normal.” What this means for shoppers — especially beauty shoppers — is that value is extremely important. In fact, as Levin pointed out, today’s wealthiest shoppers love deals, those economically concerned shoppers want accessible indulgence and new innovation, and beauty shoppers are trading down from premium brands.
“It is chic for people to drive a Mercedes in front of a dollar store. Dollar stores delivered 4% growth, significant growth in beauty because people saw the value,” Levin said.
Added Kalinger: “This growth trajectory has been going on for the past three to four years. So a couple of years ago, my team noticed this trend and took a step back and investigated what within beauty was causing these dynamics.”
Coty found that year-over-year it was the same three segments really growing the category within the dollar store channel:
- Hair care, mainly shampoo and hair coloring, is the leader bringing in two-thirds of the total dollar growth within the last year;
- Nail enjoyed 3.8% growth, representing $4.2 million — thanks, in part, to increased points of distribution; and
- Color cosmetics grew 2.7%, representing about $6.4 million.
Other points included: innovation sparks excitement, so innovation must remain strong; connect with your savviest shoppers and know your segmentation; and don’t forget about