Kline: Once again, professional skin care market sees boost
PARSIPPANY, N.J. — The professional skin care products market realized a 5.3% gain in 2011, according to a new report from Kline.
In the latest "Professional Skin Care Global Series: Market Analysis and Opportunities" report, Kline found that sales for the European market came close to pre-recession peak levels, rising 4%, while China and South Korea posted growth of 9.3% and 9.5%, respectively, within the professional sector.
Klien said that spas, salons and medical care providers were stimulating traffic by modernizing facilities and implementing new communication tools, such as social networking, and tablet devices that enable therapists to complete medical questionnaires or recommend products without interrupting the treatment. The increase in the number of locations through franchised networks or chains, particularly in Europe, and increasing skin care product distribution through other professional-type outlets, such as hair salons or medical care providers, is successfully increasing revenues, the report noted.
Spas and salons, which is the largest channel in the United States, did experience a sales decline as spas continued to reduce the number of brands carried, underperforming spas were closed down and more salons and hotels divested their spa business to refocus on their core businesses. Another factor, a surge in at-home beauty devices, reportedly has impeded business in the spas channel, Kline said.
Kline also noted that while sales through beauty institutes and salons — the largest purchase channel in Europe, representing almost 60% of the market — increased by 3.7% in 2011, the strongest growth was seen in the medical care providers channel in both Europe and the United States.
"What’s interesting to note is that professional products in South Korea are sold comparable to the U.S. market through the Internet and home shopping channels, where especially local brands actively develop e-commerce by operating their own online shopping websites, as well as entering larger platforms run by Internet home shopping channels, such as G Market and GS Home Shopping," Kline industry manager Karen Doskow said. The channel posted nearly 18% growth in 2011.
Meanwhile, the European market was highly fragmented with leading brands Guinot and Clarins. The U.S. market is relatively consolidated, with the top five brands accounting for a 38% market share. Brands entrenched in the medical care providers channel, such as SkinCeuticals and SkinMedica in the United States and Dermaceutic and Pangaea Laboratories’ Medik8 in Europe, posted the strongest gains in 2011.
The Little Clinic expands into Atlanta area with four new clinic openings
NASHVILLE, Tenn. — The Little Clinic on Monday announced the opening of two convenient care clinics within Kroger in the Atlanta area. Two additional clinic openings are slated for August, which would bring the total number of locations in Georgia to six.
“With the addition of four more locations in 2012, there will be a convenient location of The Little Clinic in several Atlanta-area communities,” stated Johnett Thompson, regional clinical director for The Little Clinic. “Our quality of care is further supported by our convenient and affordable services, and we see that these benefits resonate with our patients’ busy schedules.”
“Our goal in offering The Little Clinic in Kroger stores is to provide more convenience and fulfill the unique needs of our customers,” added Glynn Jenkins, director of communications and public relations Kroger’s Atlanta division. “Shoppers can visit The Little Clinic, fill their prescription and pick up their groceries, which is a great one-stop shopping experience.”
In related news, The Little Clinic also opened a location inside the Stapleton King Soopers store in Denver, Colo. There currently are 12 Little Clinic locations within King Soopers stores in Colorado.
The Little Clinic is a wholly owned subsidiary of Kroger.
GNC names Philip Mallott to board
PITTSBURGH — GNC Holdings on Monday elected Philip Mallott to its board to fill the seat vacated by Norman Axelrod’s resignation.
Mallott served as VP and chief financial officer of Intimate Brands, a former subsidiary of Limited Brands, and most recently provided retail stock research as an independent consultant to Westminster Research Associates and, prior to that, as an analyst for Coker & Palmer. He is currently a director of Big Lots.
"We are excited that Phil has joined the GNC Board," stated Joseph Fortunato, president and CEO GNC. "His wealth of experience, particularly in the retail sector, should be an invaluable resource to GNC as we move forward."