NEW YORK Over the years, the beauty industry has undergone a great deal of change and going forward it will be critical that companies understand the four “P’s,” was a key message Karen Grant of the NPD Group had for attendees of her keynote address at this year’s HBA Global Expo held here this week.
The 15th annual event, produced by CMP Information, is a product development event and educational conference for the beauty, health and wellness industries. In addition to more than 40 educational sessions, the event features an exhibit floor that boasts more than 600 exhibitors. This year’s conference kicked off Tuesday with Grant’s State of the Industry address and wraps up Thursday at the Jacob K. Javits Convention Center in Manhattan.
During the presentation aptly titled, “Beauty: Through the Looking Glass of … Time,” Grant, a senior beauty industry analyst for the NPD Group, explained how the industry has changed over the years.
Today’s beauty shoppers have more choices than ever whether it be where they shop—specialty, drug store, mass or warehouse clubs—or which product they desire. As a result, customer loyalty is essentially a thing of the past.
In order for companies to successful tap into the beauty industry—which NPD Group estimates stands at $42 billion and grows at a rate of $1 billion annually—they must understand the four “P’s,” explained Grant.
- Preferences: What kind of product information does she want? How does she want to receive that information? What products does she want?
- Place: Where does she shop? For example, it is important to understand that many ethnic women will buy their beauty products at a beauty supply store.
- People: Today’s society is very diverse and it is important to understand that different people have different preferences. It is not a one-size-fits-all.
- Products: What claims should be on the product? What is the right messaging? What is the most effective marketing?
- In addition to the sessions, the HBA Expo debuted a New Product Showcase, featuring new products from exhibitors ranging from the latest in skin care formulations to unique packaging design and matiarials.