Appetite for skin care fattens up prestige sales
Following a dismal year in 2009, U.S. prestige beauty categories experienced an upswing in 2010 and, judging by the numbers, 2011 looks to be a positive year for prestige beauty.
“What a difference a year makes. If there were any doubts of the continued appeal of prestige beauty products and the tenacity of the beauty industry after the declines of 2009, then 2010 provided a loud, clear and most encouraging answer,” stated Karen Grant, VP and senior global industry analyst for the NPD Group, which defines prestige beauty as products sold mainly in U.S. department stores.
According to NPD, the total U.S. prestige beauty industry showed an increase of 4% in dollar sales in 2010 compared with 2009, after two consecutive years of decline.
In 2010, all the U.S. prestige beauty categories experienced dollar growth, as opposed to 2009 where all categories, including the total prestige industry, declined.
Beauty mavens continue to have an appetite for skin care products, as prestige skin care posted the biggest increase, followed by prestige makeup and prestige fragrance.
By the first half of 2010, anti-aging had captured the bulk (61%) of the facial skin care market. In the face category, anti-aging outperformed the overall segment and was up 9% compared with the first half of 2009. Of the anti-aging dollars, the majority was spent on facial moisturizers (44% dollar share), with age specialists representing the second-largest segment (25% share) followed by eye products (19% share).
The article above is part of the DSN Category Review Series. For the complete Prestige Buy-In Report, including extensive charts, data and more analysis, click here.
THE WEB: Multichannel shoppers
There’s a reason Walgreens’ leaders are pushing so hard to upgrade communications capabilities and reach consumers through every channel, from stores and drive-through pharmacies to social media and smart phones. “Multichannel shoppers are three times more valuable to a retailer than a single-channel shopper,” president and CEO Greg Wasson said in January.
The explosion of mobile technologies and social networking has unleashed new revenue possibilities for Walgreens. All the more so, chairman Alan McNally said, because the company has made “exceptional progress in advancing our e-commerce business during the last two years.” Those related developments, he added, have given Walgreens “an enormous opportunity to become the nation’s leading multichannel retailer.” Underscoring the critical role Walgreens sees for the Internet-based end of its multichannel spectrum was the promotion in January of Sona Chawla to president of e-commerce.
Walgreens is pursuing a three-pronged cross-channel strategy. “We want to give [consumers] what they want, which may be a broader selection of products offered on our website than what we carry in our drug stores; where they want it, which may be delivered to their home or to pick up in our drug stores; and when they want it,” Wasson said.
To make that happen, Walgreens continues to develop and refine its websites, and is testing an online shopping and store-pickup service called QuickShop. It allows customers to buy online, then e-mail the product order to the test store of their choice for pickup, sometimes within the hour and in some cases right at the curb.
On the health front, the company now offers mobile applications for iPhone, Android and Blackberry devices. More than 1 million customers already subscribe to the service, giving them access to text alerts and to Walgreens.com for pharmacy and retail purchases and health information. Subscribers also can use their phones to scan the bar code of their prescription bottle for electronic refills.
Other applications, like the Walgreens RxAdvisor tool for online patient consultations with a pharmacist, and a growing ability to leverage e-prescribing data are boosting Walgreens’ ability to help patients manage chronic conditions and adhere to their medication therapy, chief medical officer Cheryl Pegus said. “By using technology to improve the patient experience and coordination of care, we can … improve measurable outcomes, adherence and quality,” she said in January.
With programs like European Beauty Club, Walgreens also is becoming increasingly adept at creating Internet buzz about its products and services. Bloggers, for instance, trade tips about special product offers provided to Beauty Club members, free samples and free advice offered in stores by Walgreens beauty advisers.
In early February, Walgreens went a step further, launching a new interactive website, Walgreens.com/BeautyWithin. The site offers “step-by-step advice from beauty pros” about makeup, skin care and other topics, along with videos featuring real Walgreens customers and their personal beauty challenges. The site also offers deals and information about featured beauty brands.
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P&G extends Have You Tried This Yet? campaign to reach Hispanic consumers
CINCINNATI — Procter & Gamble is extending its Have You Tried This Yet? campaign through a partnership with the League of United Latin American Citizens.
Have You Tried This Yet? (¿Ya Probaste Esto?) will be supported through Entre Comadres, a multibrand platform created as a partnership between P&G and LULAC, one of the largest, national nonprofit Hispanic organizations. P&G will implement posters and product samples at participating laundromats and check cashing centers in select locations throughout Los Angeles, Dallas and Houston.
According to the U.S. Census, Hispanic spending power is estimated to total $1.2 trillion in 2011, making Hispanics the largest minority group in the United States.
“As the U.S. Census shows, the Latino population has become the nation’s largest minority, and this growth is bringing an increased demand for products and services to meet our specific needs,” said LULAC national president Margaret Moran. “We are proud to continue supporting P&G in its efforts to meet the needs of the growing Hispanic population through innovative products that help make their lives easier and better.”
In related news, P&G also will distribute its latest edition of BrandSaver on Feb. 27, a complimentary coupon booklet that features more than $131 in savings on the campaign’s featured innovative products, in local newspapers throughout the country.
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