Study: Beauty cos. must tackle online ‘beast’
With more than half of U.S. online shoppers buying beauty and personal care products online, beauty brands and retailers must embrace multichannel marketing in order to succeed and reach consumers where they are, according to a new study by A.T. Kearney and its Global Consumer Institute.
The study, dubbed “Beauty and the Beast,” examined the shopping behaviors of consumers and the implications of retailers and beauty brands. The findings are based on survey responses from 1,381 participants across 50 U.S. states and Canada.
“The world of e-commerce has been, for quite some time, ‘The Beast’ that beauty retailers and brands were trying to avoid. We are at the point where we have to ‘beat the beast.’ There is simply too much at stake if businesses do not address this opportunity,” stated A.T. Kearney partner and study leader Hana Ben-Shabat.
The study found that 62% of respondents shop online regularly, and of these, 60% purchase beauty and personal care products online. Among the most frequently purchased categories by online shoppers are skin care, personal care and hair care.
Nearly half of respondents listed Amazon and Sephora as their favorite online destinations.
Those who shop online identify product selection, price incentives and convenience as their key motivators, while those who avoid shopping online cite the need to “look and feel” and the “social experience” of shopping as key demotivators for online shopping.
The study also highlighted two main implications for retailers and beauty brands:
First is the increasing need to create a seamless multichannel experience as consumers split their budget almost in half between online and store purchases. According to the study, brands must work with retailers to make sure that the e-channel is not “just another door,” but a place where consumers can find what is offered in stores and more.
Second is the need to maintain control over brands. In the e-commerce environment — where many third-party players sell brands that, in the past, could only be found in stores — they take the freedom to place, price and display products in a way that is not always in line with the brand aspirations and values, according to the study.
Longer-lasting results aid in depilatory growth
Sales of depilatories are on the upswing as manufacturers roll out new products that promise silky smooth results.
Sales of depilatories at food, drug and mass (excluding Walmart) rose more than 10% to about $117 million during the 52 weeks ended April 15, according to SymphonyIRI Group.
Looking to further bolster the segment, manufacturers are churning out products that aim to provide longer-lasting results, have a pleasant fragrance — depilatories have been known for their strong odor — and are infused with ingredients that bring the spa experience into the home.
One such example is Church & Dwight’s Nair brand. For 2012, the brand has developed a line of hair removal creams and waxes for the body and face that are inspired by the hair removal and skin care secrets of Brazil. The new products are infused with mineral-rich clay and natural extracts for spa-smooth skin that is promised to last.
The new Nair products include a Brazilian Spa Clay Roll-On wax, which is a microwavable roll-on sugar wax for legs and body with 10 reusable cloth strips; Brazilian Spa Clay Sensitive Face hair removal cream, which is a specially designed sensitive formula depilatory for the upper lip, chin and face; and a Brazilian Spa Clay Shower Power hair removal cream, which is an in-shower depilatory for legs and body.
Sally Hansen rolled out for 2012 its new Odor Less Simply Smooth hair remover for in-shower use. It is a water-resistant formula that works to remove hair during one’s regular shower routine. It features an exclusive odorless technology and promises to leave skin hair-free for up to six days.
Last year, Reckitt Benckiser’s Veet brand expanded its depilatory creams and gels offerings with the launch of Veet Ready to Use wax strips for face and body. This year, the brand is celebrating the 2012 launch of its new Veet High Precision facial wax, which provides users with precise and efficient removal of facial hair. It is housed in an easy-to-use tube and features a precision applicator for control over the flow of the wax. The brand also launched for 2012 the new Veet Ready-to-Use wax strips for bikini, underarm and face kit.
In the second half of 2011, Olay introduced its first system to remove unwanted facial hair. The Olay Smooth Finish facial hair removal duo is a two-step system to remove fine to medium unwanted facial hair on the upper lip and jaw line, while minimizing irritation.
Suppliers let their hair down
Whether women are sporting poker-straight hair, rocking sexy beach waves or perfecting soft, elegant curls, it typically requires several styling products to achieve the look and lock it in place. These trendy looks are spelling a bump up in sales in the mass market and an onslaught of new products on shelves.
Sales of hair spray/spritz at food, drug and mass (excluding Walmart) rose more than 1% to about $422 million during the 52 weeks ended April 15, according to SymphonyIRI Group. During the same period, sales of gel/mousse climbed nearly 2% to about $649 million.
Manufacturers are looking to add volume to the market and help beauty mavens easily achieve their desired look by developing new products or introducing to the U.S. market brands never before available stateside. One example of the latter is British celebrity hairstylist Lee Stafford, who has brought his line of hair care products to the United States.
Launched in 2001 and available in more than 20 countries across the globe, Stafford’s line of hair care products recently launched at Duane Reade locations throughout New York City and at Ulta locations nationwide.
From shampoos and styling products to hair growth treatments, Stafford and developers have spent years crafting the line referred to as The Pink Range. The products are housed in signature pink packaging. With such names as Messed Up and Ruff As You Like It, each product is an example of Stafford’s signature edgy style. Driven by innovation, Stafford’s products, including newly launched argan oil products and the Hair Growth range, are at the front line of development.
Meanwhile, Henkel announced earlier this year the launch of its göt2b POWDER’ful back 2 bed texture powder. On the heels of the release of göt2b POWDER’ful volumizing styling powder, the new texture powder is a weightless texturizing powder that creates an effortlessly natural, tousled look in seconds.
Lornamead launched for 2012 its new Finesse Color Lock styling products, which offer a new advanced system to get longer-lasting color as part of a regular home styling routine. The line includes a Color Lock mousse and hairspray.
According to the company, Finesse Color Lock styling products contain a patented polymer system with water-resistant, film-forming properties. The polymer sets hairstyle and also helps seal in hair color pigments, allowing hair to retain up to 75% more color through repeated shampooing.
With the launch of new styling aids in the fall, and a limited-edition offering of a 40-oz. shampoo and conditioner, Salon Selectives is looking to continue to build on its heritage. Made popular by Helene Curtis in the 1980s and 1990s, Salon Selectives was the first salon-inspired brand available in the mass market and still features its signature apple fragrance. Today, CLT International Inc. owns the Salon Selectives trademark.
Meanwhile, Desert Essence is expanding its Coconut Hair Care line with the June launch of new styling products to help meet the styling needs of hair, from smoothing to defining curls and heat protection. All three products are 100% vegan and free of silicones, wheat and gluten.