Lasers, Asian market key to growing at-home beauty devices
The at-home beauty devices market continues to gain prominence globally as manufacturers tout improved technologies among existing brands and completely new entries hit the scene.
(To view the full Category Review, click here.)
According to research from consulting and research firm Kline & Co., the at-home beauty devices market grew nearly 20% in 2013. Despite the solid double-digit gains, there remains room for further growth — especially within the United States.
In looking at the performance for 2014, Karen Doskow, director of consumer products at Kline, told Drug Store News that she expects to see similar growth rates as seen in 2013.
“Some things that we need to consider are the two new anti-aging laser devices that have been launched in the prestige market by Iluminage, which is a joint venture between Unilever and Syneron, as well as Tria’s anti-aging lasers. I think that those definitely will drive the market,” Doskow said. “Clarisonic continues to do well, and that is really the cornerstone of the market.”
While cleansing is a sweet spot for marketers, anti-aging devices are no doubt a significant area of opportunity, Doskow said.
The at-home beauty device market within the United States continues to grow at a moderate pace; however, the Asian markets — where women take a tremendous interest in skin care and are willing to spend money on it — take a strong lead.
Players on both the manufacturer and retailer side within the United States who are looking to grow sales should focus on increasing awareness and education, especially mass market players.
“Mass market has been an area that has really been hard to break. … It is very hard to educate consumers in mass outlets about these devices. It takes a lot of education,” Doskow said.
What drives creditability of a device? Kline’s research found that nearly 83% of those surveyed indicate that the most important factors are clinical trials, a brand’s reputation and Food and Drug Administration approval.
According to research, the greatest incentive to try an at-home device is by receiving it as a gift — that means huge opportunities for positioning at-home devices with increased marketing efforts during prime gift-giving holidays.
Hair care shifts to natural
There’s a shift happening within the ethnic beauty market — specifically in the hair care segment — as competition in the category becomes more intense and as multicultural beauty marketers increasingly recognize the importance of breaking the borders between general and multicultural beauty.
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“A lot of brands are looking to cross over the different racial lines and not target one in particular, but talk texture. From my perspective, that makes sense because textured hair knows no color,” said Mahisha Dellinger, founder of hair care brand CURLS. “For me and my brand, we talk texture and not color. It is really about making the best product for textured, curly hair. … We target women with natural textures, natural hair from waves, curls and kinks.”
The widening approach among multicultural beauty products seems to be resonating; however, there is a balancing act, as the audience expansion must not alienate longtime consumers.
Further fueling the shift is the continued focus on natural or non-chemically treated hair styles among African-American beauty shoppers, which has given rise to such styling products as styling moisturizers, setting lotions, curl creams and pomades. Unfortunately, the shift also has spelled sales declines of hair relaxers for the past several years.
According to the most recent data from IRI, sales of hair relaxers continued to decline during the 52 weeks ended Nov. 2 at U.S. multi-outlets, dropping more than 10%.
“For [hair relaxers] to be showing the double-digit declines … across most channels is a little alarming, but it is shifting because, even though the relaxers are designed to give the woman a straight-style look, she still goes to that straight-style look. It is just that many are choosing to go there chemical-free. So, you have this natural trend,” Roslyn Chapman, founder of sales, marketing and distribution firm The Chapman Edge, told Drug Store News. “… She also is becoming more hair independent because YouTube and the Internet [are] teaching her how to do that.”
“It is important to keep [ethnic] as a department in the right stores because it can fuel sales on other aisles. … I think there needs to be more cross-promoting. … There are adjacencies that can be modeled past beauty so the store looks more like an ethnic store, so to speak.”
Shifts in trends and market share growth: Liquid body wash
Market data reflects growth in the liquid body wash category for 2014 as compared with 2013. DSN has partnered with Competitive Promotion Report and IRI to create an exclusive report, “Shifts in Trends and Market Share Growth: Liquid Body Wash.” The analysis looks at market performance of the top five brands within the liquid body wash category for the past 24 months. Following are the major findings in the analysis.
(Click here to download additional data.)
Axe is currently the leader in the liquid body wash category in terms of retail dollar sales; however, a closer look at the market share and change in retail sales shows a different perspective. In the last 52 weeks, Axe’s market share change has been declining as much as 1.42%. Old Spice has consistently increased in retail sales since March 2014, with aggressive promotion of up to 28% in average percentage discount on promotion. This has resulted in dollar sales growth for both promoted and non-promoted products. Old Spice Body Wash has shown accelerated growth in market share consistently since September 2013 with 27.88% change in dollar sales compared with the previous year.
On the other hand, Softsoap has shown a decline in both dollar and unit sales in the last 52 weeks. In July 2014, Softsoap displayed a sharp drop in market share with a 5.03% reduction in market share compared with the previous year (see Figure 3). With the current competitive market, the analysis shows that other competing brands are starting to gain market share with greater retail sales attributed to Old Spice and Dove Men Plus Care Liquid Body Wash.
Dove Men Plus Care significantly increased promotional spending in the last 24 months ended October 2014 with total promotional spending of $4.5 million. Dove Men Plus Care greatly increased average discount on promotion from 6% in August 2012 to almost 20% in October 2014. This aggressive promotional strategy has resulted in increased retailer margins (18.3%). Year-over-year, market share growth for Dove Men Plus Care has averaged 0.18%.
Other findings include:
- Softsoap promotional spending was approximately $2.5 million with an average discount of 15.39%. Despite promotional spending, Softsoap shows a drop in retail sales of 11.79% compared with 2013.
- Axe has total promotional spending of $3.1 million in the last 24 months. This promotional spending showed a direct correlation with total retail sales for promoted products with a peak in December 2013 at $1.6 million in retail sales.
- For the past 24 months ended October 2014, Axe has the highest average retailer margin (21.42%) among the five top brands. In terms of margin growth, Dove Men Plus Care and Old Spice have displayed consistent increases in margin. Softsoap and Suave sustained declines in retailer margin, with average margins of 9.04% and 8.43% respectively.