Are You Telling Your Shopper that Beauty is Important?
A lot of recent buzz in the beauty products industry and marketplace this week! Particularly where shoppers are and aren't going to fulfill their beauty needs, now and in the future, and who the players are with influence.
If you're paying close attention, this should spark important and defining questions about the beauty category...
Why does beauty matter and who should it matter to?
Let's start with research from Integer Group and Marc Research indicating that fewer shoppers are turning to grocery for beauty products (8.7% in 2014 vs. 11.6% the previous year) and dollar stores (2.5% vs. 5.8%), but more are doing so at specialty (7.4% vs. 6.6%), club (3.5% vs. 2.4%), and department stores (7.6% vs. 2.5%) and Amazon.com (3.2% vs. 1.6%).
Is that shocking?
“Grocery is reported to be struggling in the beauty department for a number of reasons; multiple SKUs to manage, color and product changeovers, theft issues, high price points of new items/technology, especially within skin care.” – Keith Wypysynski, VP Business Development, Global Market Development Center
So where's the good news?
Here it is...
Market research from Lucintel shows that “rising consumer incomes and changing lifestyles are driving the global beauty care products industry, which is forecasted to reach around $265 billion by 2017.”
Sounds like there's two sides to the beauty coin. Which side are you going to be on?
With growth still taking place overall and beauty is struggling in some channels, that can mean only one thing: It's time for grocers to begin re-engaging with their shoppers - and - beauty and personal care suppliers need to prove that the beauty category is still a destination opportunity and experience for the customer!
According to Bruce Weitz, former CEO of Kings Supermarkets and Duane Reade Drugstores, the highest unit volume in grocery pharmacy is birth control pills. That spells d-e-s-t-i-n-a-t-i-o-n for the grocery marketing executive who is tracking reasons for repeat visits through the HBC aisles.
That's not all. There's more proactivity that can help shape the beauty shopping experience and showcase cosmetics and toiletries to win back the female shoppers from mass and specialty channels.
Many retailers have already been jumping on the “bringing beauty back” bandwagon. CVS, for example, is now rethinking their beauty shopping experience. Some of their new stores now feature upgraded endcaps and displays to elevate the beauty shopper’s experience.
“What we are trying to do in the beauty department is respond to her unique needs as a customer. This is an area where she is looking for inspiration and she is looking for fun and excitement and we want to make sure that our customer finds what’s new and exciting easily in our store.” - Alex Perez-Tenessa, VP, beauty and personal care, CVS.
Omni-channel tactics can no longer be ignored by grocery retailers either. An increasing role in filling the trip mission with what the consumer sees and feels prior to entering the store must be harnessed. By creating parallel marketing programs inside stores with strong supplier merchandising for a solid defense and growth against competitive channels, is essential. It's all about consistent messaging and branding -- building upon the pre-purchase experience and taking it all the way to the basket-fill.
“Savvy brands are employing a mix of complementary channels, including online sales, catalogs, and social networking to maximize their reach and target consumers in the format that’s most comfortable for them,” explains Karen Doskow, industry manager for consumer products research at Kline.
While the global beauty industry forecasted at $265 billion annually, today the U.S. market is mature with sales at $42 billion simply at the manufacturers’ level. And it's revenue is growing for the fifth year in a row. The healthy performance of all its product classes is being fueled by a combination of novel product introductions, growing competition, and new retailing concepts.
Know more about these U.S. beauty opportunities, and go deeper into Kline research, by registering for a FREE video cast taking place on July 23rd, 1PM eastern: http://www.gmdc.org/gmdc-connect/events/upcoming-events
What will you learn?
• How various beauty categories are performing
• What the latest product trends and hot launches are
• How the competitive landscaping is changing
• How retail channels are shifting
• What's in store for the future of beauty
You can also immerse your company in face-to-face meetings with executives that can grow your business. World-class and innovative beauty suppliers and retailers find strategic opportunities and partnerships at GMDC’s Health Beauty Wellness Marketing Conference --- held this Oct. 1-5 in Phoenix, AZ. Find out more here:http://www.gmdc.org/conferences/2015-hbw-conference