Published in GCI Magazine, May 2009

1. MARKETING matters by alisa marie beyer
Savvy Beauty Marketers
Can Thrive in Challenging Times
Consumers can’t resist the need to look and feel their best despite
the current gloom and doom of the economy. To stay ahead,
marketers must be savvier than ever.
I 2. The End
n boardrooms across the country, naturally or scientifically, women are
marketers are asking the same question, fighting Father Time with all they’ve got.
“How can we compete and grow in this According to Euromonitor International, of the Shopping Stigma
economic environment?” Turn on the the worldwide market forecast for antiaging No longer are department stores the primary
television, open a newspaper or tune into and nourishing products is accelerating destination for beauty product shopping.
your favorite radio station—it’s hard to not get upward, expected to reach $15.8 billion Beauty dollars are being spent across multiple
depressed listening to all of the bad news about by 2010. outlets—including the Internet, TV home
our ailing economy. Even with the promise of Those who choose the natural route are shopping channels and infomercials. Various
bailouts and the hope of stimulus packages to part of a growing movement of demanding factors contribute to this shift, including the
come, those in the beauty business are getting choices that they deem better for their ever important feature of convenience, but
nervous—and with good reason. bodies and for the environment. While there one important reason that cannot be ignored
Thankfully, there is one true constant that still remain no real guidelines or definitions is that women demand to be educated about
will keep you in business. Women (and a for many terms used in this segment, the products they are purchasing. These
growing number of menfolk, too) can’t resist companies continue to develop products mediums have a private, captive audience.
the need to look and feel their best despite across all categories. Now the consumer can hear directly from
the current gloom and doom of the economy. The antiaging category is the newest the founder, dermatologists and other
Vanity continues to grow even while wallets natural segment to gain real attention. professionals discussing the products,
shrink. Botanicals, specialty teas, herbal extracts as ingredients and benefits at length, turning
To stay ahead, companies must be savvier well as vitamins, antimicrobials, minerals passive audience members into buyers. These
than ever. “Out” are the days of wasteful, and a sea of marine-based organisms have nontraditional retail outlets have certainly
whimsical product development; “in” are found their way into skin care and cosmetic been legitimized and are here to stay.
the days of consumer-conscious marketing, products. They promise revolutionary
research and development. Your consumer
knows what she wants, and if you’re listening,
antiaging results using ingredients that
have been available since the dawn of time.
3. Skin Care is Manly
you’ll stay ahead of the game. Successful brands will be those that work. Brands understand that men are also
During the last year, The Benchmarking Even the most dedicated environmentalist interested in turning back the hands of time
Company (TBC) has collected data on, will pass up a natural antiaging product if and looking younger for longer. In fact, men’s
researched and identified 14 key beauty she does not see real results. prestige skin care growth during a period in
trends that wise and nimble cosmetic And not since the U.S./Soviet space 2006 outpaced women’s prestige skin care,
companies should incorporate into their race have there been more scientists and which was flat at that time. The secret to
future marketing plans for 2009 and beyond. R&D departments working harder. In the increased sales in this marketplace is to target
These trends are not quick fixes, nor are they case of antiaging brands, companies are the women in men’s lives, as 40% of men’s
“beauty Ponzi schemes.” They are intended trying to find the perfect formulations skin care products are purchased by women.
to help direct today’s companies gain larger that promise to reduce the appearance of Men’s skin care promises to be a continued
market share, grow new areas of business and wrinkles, fine lines and other general aging force in the beauty industry.
speak the same language as their consumers. concerns. This will continue to be a trend,
1. Natural, Scientific and
but developers beware—the products will
have to be efficacious to be distinguishable
4. The ABCs of SPF
among the countless antiaging products out We have been inundated with warnings about
Trendy Antiaging Ingredients on the market. This is non-negotiable—the the dangers of harmful sun exposure, and
Time stands still for no one, and whether products must work and cannot make mass and prestige brands alike have aligned
you decide to attack the aging process unsubstantiated claims. themselves to that fact. Through repetitive
26 Marketing Matters GCI May 2009

2. advertising and marketing, women now brands, as well as mass brands such as Olay, looking. Look for more co-packaging of
believe that safe, smart sun exposure is the have already launched lines. Companies will beauty products with ingestibles, as well.
only option. TBC’s recent study, “Survival of be challenged with building credibility in
the Prettiest: Face and Body Skin Care Pink
Report,” showed that more than a quarter
this arena; consumers will have to establish
trust in product efficacy to switch from a
7. From the Face to the Body
of women use products with SPF, regardless topical solution to an ingestible one. While It used to be that mass bath and body brands
of age. And of those, nearly half use SPF clinical studies and claims of product were able to dominate by simply offering
products at least once daily, and this is an efficacy are in their infancy, there will be products that provided aromatic luxury and
evolution of the trend toward multifunctional a rise in this concept and sales, as long as pampering at a low price point. To compete
products. For example, she doesn’t simply women truly see the results for which they’re in this saturated market place today, mass
want a facial moisturizer, body lotion or
self-tanner; she demands that her products
also contain a minimum SPF 30, as well as
equal protection from UVA and UVB rays.
Opportunities exist in this category, especially
for those brands offering natural formulations
coupled with sun protection.
5. Sunless Tanners
on a Rainy Day, or Every Day
That sun-touched glow from the beach is
still desirable. But how do we reconcile that
desire with legitimate fears of skin cancer,
premature aging as a result of UVA and
general dryness? Welcome to the ever-
growing instant and self-tanning category,
where multifunctionality is also the name
of the game. Sunless tanning products
that serve multiple purposes and provide
body benefits will be those that sustain and
grow. Look for sunless tanning products
that incorporate SPF, tan extender agents,
natural ingredients and antioxidants, and
antistreaking properties—all while doubling
as a moisturizer. With the growth of self-
tanners, salons will ramp up services to
compete. Look for salons to update their
professional tanning delivery systems by
adding more services such as “portable
spray-on” applications where the salon pro
comes directly to you.
6. Inside Out Beauty
With Pretty Potions
Drink and eat your way to a more beautiful
you? This is what companies such as Borba,
Glowelle and Murad are touting with their
newly offered product ranges of ingestible
nutricosmetics. Each brand promises various
benefits by delivering valuable nutrients
directly to the body to effectively combat
specific skin issues. Datamonitor projects
that ingestible nutricosmetics will be a
$1.3 billion business by 2012—possibly the
hottest-growing segment the beauty industry
will see in the next few years. Prestige
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3. MARKETING matters
brands are revving up and enhancing their 8. Procedures No Longer in no small part to mass advertising and
formulations to include antiaging ingredients, availability. Gone are the days of sneaking
which were once only reserved for facial
Hush-hush off to an obscure location for a little nip/
products. For a one-year period ending Plastic surgery patients in the U.S., unlike tuck; instead, consumers openly brag about
March 27, 2007, Information Resources patients from other countries, still remain their latest injection of Restilin and obsess
claims sales of antiaging body care products relatively hush-hush when it comes to frank, over TV shows such as Dr. 90210. The stigma
in U.S. supermarkets, drugstores and mass open talk about their personal, cosmetic of antiaging procedures such as Botox,
merchants (excluding Wal-Mart) rose more procedures. In recent years, however, more microdermabrasion and facelifts is no longer
than 6% to $26.7 million. Clearly, huge and more Americans have become familiar there. Women as young as ages 18–29 openly
opportunities exist in this segment. and more comfortable with the topic—thanks admit they’d be willing to consider antiaging
procedures for prevention or correction.
A continued marriage of nonsurgical and
surgical procedures and the growth of topical
skin care extension product lines for use post-
procedure is expected.
9. Growth of the Retail/Salon
Channel
As the holistic view of beauty and wellness
continues to pervade the news media and
find shelf space in retail channels, the salon
channel is one that will continue to sneak
upward in importance for selling skin care.
According to the ISPA 2006 Report on Spa-
goers Study, 17 million Americans received a
facial at a spa in 2005, ranking as the second
most popular spa service after body massage.
Skin care services at spas, namely facials,
have increased 24% in popularity since
2003. Combined salon/retail outlets are
booming as women find their new hub for
complete relaxation and pampering—along
with prestige skin care supplies. That said,
opportunities for distribution and expansion
of these types of free-standing salon/retail
outlets exist in niche markets.
10. Science in a Bottle
Women are increasingly insistent that their
skin care products be dermatologically
approved, and there’s a saying, “Hope in a
jar has given way to science in a bottle.” She’s
impressed with founders who have medical,
dermatological or other clinical credentials,
hence the growth in “doctor” skin care brands.
Having an impressive credential will get her to
try a product at a premium price, but for her
to keep buying it, it needs to provide results
better than non-doctor brands or procedures.
Otherwise, she won’t buy it at any price.
11. Delivery Systems
of the Future
To effectively deliver actives to the skin,
cosmetic formulators can choose from a
28 Marketing Matters GCI May 2009

4. wide variety of systems. One of the newest, skin care label. And she is looking for more with mass-market brands hyping claims
and most controversial, are nanoparticles— on a product’s “non-ingredient” list—phrases of product superiority through advanced
particles so small that their size is measured such as paraben-free, fragrance-free, technologies and proven “clinical” brands.
in nanometers, or billionths of a meter. The hydroquinone-free and noncomedogenic— Drugstore beauty aisles are becoming
personal care industry was one of the first to terms that make her feel comfortable enough more upscale with displays of exclusive
successfully commercialize nanotechnology to give a product a try. brands and previously not-offered beauty
and figure out how to use it to enhance beauty services, giving them more of a prestige
products. When manipulated, these nano-
sized agents have many cosmetic benefits 13. “Me” Skin Care feel. Department stores are doing all they
can to remain relevant to the masses while
due to the ease with which they infiltrate the to “Family” Skin Care still offering a younger, hipper version of
body. They can potentially deliver any active prestige, as the recent JCPenney/Sephora
ingredient, including those in antiaging, anti- Since mothers are the primary purchasers
partnership suggests. While prestige skin care
acne, moisturizing products and over-the- of their family’s personal care needs, it’s no
sales remain highly profitable and command
counter pharmaceuticals for greater efficacy. accident that their growing interest in natural
a huge segment of the market, this trend is
Nanotechnology is seen as a promising new and organic beauty care products has spilled
making prestige skin care brand marketers
technology if handled judiciously in carefully over to their choices for their families. Baby
nervous, and for good reason. n GCI
formulated products. However, there is already care, in particular, has benefited. According to
a movement underway to have the U.S. Food & Euromonitor, while birth rates remain steady,
Drug Adminstistration to regulate engineered baby skin care products are skyrocketing,
particles more rigorously. Stay tuned! reaching sales of more than $220 million since
2006. Baby sun care products are predicted to ALISA MARIE BEyER is CEO
of The Benchmarking Company (TBC),
12. Buy Me. I’m Free of … grow another 16% by 2011. a research and branding firm focused
on the beauty industry. TBC’s women-only,
What’s not in a woman’s skin care and
cosmetic product is just as important as what
14. Masstige-itis permission-based Pink Panel provides beauty
consumer data for the award-winning Pink
Report, the quarterly research report that reveals what consumers
is in it. Hypoallergenic is still a key buzzword The line between a mass-market brand of female beauty products want, what they’ll buy and why.
for her and a term she finds desirable on her and a prestige brand continues to blur, E-mail: alisa@benchmarkingco.com; www.benchmarkingco.com
www.GCImagazine.com Marketing Matters 29