Store Brands

JAN 2017

Store Brands delivers unprecedented strategic and tactical information needed by retail executives to develop and support compelling, differentiated store brand programs to build customer loyalty.

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Category Intelligence: Cosmetics & Beauty Care Products 6 8 Store Brands / January 2017 / Looking good Women also want to feel good about the cosmetics and beauty care products they choose By Dana Cvetan omen have many reasons for using beauty products. Some are expressing their individuality. Others are indulging in fashion trends, aiming for a more youthful look, enhancing their gifts or covering their flaws. The goal however, is pretty much the same — to look good. Seventy-one percent of women who use beauty products say that it's important to always look their best when they walk out the door, and 69 percent say that using beauty products boosts their self-esteem, according to global market research firm Mintel Group Ltd. Retail beauty product sales have been on an upswing for several years, reaching $46.2 billion in 2015, Mintel notes in its March 2016 report "The Beauty Consumer — US." Furthermore, Mintel projects sales will grow at an annual average rate of 2 percent to 3 percent through 2020, driven by an improving economy and population growth. Performance, price, loyalty Because cosmetics are used as a means to an end, performance is all-important in the category, says April Vignone, president of product and packaging development for New Windsor, N.Y.-based Verla International Ltd. Retailers want performance-driven color cosmetics and skin care products using the latest and newest natural raw materials and the most advanced technology to deliver results, she notes. Cost-savings are another important factor, says Aileen Vitale, marketing and sales manager for Clifton, N.J.-based Disposable Hygiene. "Retailers consistently ask us if we have the ability to supply like/kind products under a private label offering, whether it be in the cosmetics category, skin care or personal cleansing categories," she explains. "They are always looking to be able to offer their customer base a cost-saving alternative that performs as well and sometimes better than brand." Retailers want their own-brand beauty programs to be successful, on-trend to consumer desires, and able to produce high profit margins, observes Karen Combest, executive vice president of Prospect, Ky.- based Louisville Ladies LLC. Body lotions, soaps, cotton balls, facial towelettes and polish removers have performed admirably under store brand banners, Combest says. But retailers can do better in the overall cosmetic and beauty products category. The key? Don't fear innovation, she advises. "Make bold statements in store for beauty," Combest urges. "While there are fiscal risks with being bold and aggressive, the bigger and scarier risk is your competitor doing it first." Beauty products are more about desire than need, and the category's consumers are usually on the lookout for what's new and improved, Combest observes. "Even if a woman has been using the same foundation for 10 years, she is still looking for something more, something that will work better," she says. Because a long-term strategy is necessary in this category, retailers need to collaborate with their suppliers to build the brand, Combest says, noting that minimally a five-year strategy and plan of action is required. Retailers should use basic brand building tactics: promotion, price, planogram, in-store presentation and advertising, she says. "It should be about creating, building and marketing a Do make bold statements with beauty merchandising. Don't fail to leverage fashion trends when developing new cosmetics and beauty products.

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