Chain Drug Review, June 4, 2018

BEAUTY CARE REPORT Multicultural shoppers continue to raise the bar NEW YORK Americans eyes were glued to the wedding of Meghan Markle a biracial American woman and Prince Harry in England In many ways Markle represents more of the shoppers who pass through retailers doors According to the U S Census Hispanics or Latinos now comprise 18 of the population African Americans 133 and Asians close to 6 Almost 3 of Americans check off they are two or more races and one in 10 have a spouse of a different nationality or ethnic background On top of that consumers of mixed ethnicities tend to over index in beauty spending The changing American consumer is prompting retailers to change the products they stock Over the past 10 years much of the innovation for multicultural shoppers has been in hair care But most recently the need for products in cosmetics and skin care is bubbling to the top There are a number of unmet needs and the industry is starting to respond says Esi Eggleston Bracy executive vice president and chief operating officer for personal care at Unilever North America There is another area of beauty business that has shifted that we need to rethink Lets step up our game and be a full service to all of the new American people That means not just embracing the influence and trendsetting of multicultural communities but providing authentic products that deliver on real needs One of the most notable categories where there is a need for more inclusive shade ranges is foundations While Rihannas Fenty may have created the buzz mass brands and retailers have been beefing up shade ranges for the past year Walmart for example made shade extensions a priority investing in more shades from Milani Cosmetics and Hard Candy Walmart was also the first to debut exclusive medium to dark shades in Maybellines Fit Me CoverGirls launch of True Blend Match Made Foundation which has 40 shades is being credited by Coty Inc as a successful collection that is helping turn sales around for the legacy brand Target Corp just introduced eight brands created by women of color The brands feature inclusive shade ranges and debuted first online and then in selected stores in May Target invested in prominent endcap displays to promote them Target hand picked its new entries using trade shows and monitoring social media Our merchants are entrepreneurial in their pursuit and of course brands come to us and in this case it is a combination of both It is a lot of boots on the ground said Targets Christina Hennington senior vice president of merchandising for essentials beauty pets and wellness One of the brands is The Lip Bar created by former Wall Streeter Melissa Butler who was frustrated when she couldnt find stylish yet organic lip products in shades that complemented her skin Butler is a beneficiary of the New Voices Fund established in the purchase of Sundial Brands by Unilever New Voices is a 100 million fund to invest in and empower women of color There is a big need according to Sundial because women of color secure an average of 36000 in venture capital funds while more than 13 million of funding on average goes to male run firms While makeup might be making new noise the hair care brands continued to make cash registers ring Among those that retailers said they are extending are Mielle Organics The Doux The Mane Choice Noughty and TGIN In skin a brand called Urban SkinRx is selling its cleansing bars in Target Palmers body washes and stretch mark formulas are staples in the category And of course no mention of the category is complete without a nod to the double digit year overyear growth of Sundials skin care range SheaMoisture has eight of the top 20 SKUs in the multicultural category Mielle is also a cornerstone in the embellished CVS Pharmacy hair care assortment with the retailer identifying Mielles Organics as a major brand especially the Mielle Organics Mongongo Oil Thermal Health and Protectant Spray Founder Monique Rodriguez is a success story having started the business tinkering in her basement The brand is now available in more than 50000 points of distribution including Sally Beauty Supply Walgreens CVS Rite Aid Corp Kroger Co J C Penny Co and most recently Walmart Diverse hair care products are making cash registers ring K beauty display at CVS Deals are leading to major market change NEW YORK Mergers acquisitions and investments continue to alter the beauty landscape The most recent deal involves Milani a fast growing brand that recently expanded in Walmart and Ulta Beauty Inc The brand received a majority investment from private equity firm Gryphon Investors Also Michelle Taylor will become interim chief executive officer She comes armed with prestige experience from companies including Kate Somerville Skin Care Kiehls Lancome LOréal USA Chanel and Elizabeth Arden According to brother and sister team Ralph Bijou and Laurie Minc who have been running Milani for the past 32 years the Gryphon deal will help the business expand Minc will be a senior advisor to Milani and Bijou will be president of Jordana Milani marks Gryphons entry into color cosmetics The firm made a move into personal care with a deal for C B Fleet Co owner of Summers Eve in 2014 which it sold to Prestige Brands Holdings Inc in 2016 for 825 million While not naming which properties Coty Inc sold or terminated 14 brands as part of a planned portfolio rationalization according to the company Some of the deals including Cutex and the Guess and Jennifer Lopez fragrances licenses were already completed The brands made up about 6 of the Coty consumer divisions revenues not including sales from Younique There are already signs of progress from Unilevers purchase earlier this year of Sundial Brands To boost growth under the newly merged power Sundial recently named Kimberly Evans Paige to the newly created position of chief operating officer and brand building officer Paige who was most recently chief marketing officer at Coty U S brings more than 20 years of experience to her new role including positions at Procter Gamble Co and Coca Cola Co She will report to Sundial founder executive chairman and chief executive officer Richelieu Dennis The company said she will partner with Dennis and the executive team to craft the overall strategic direction of the company and develop a plan for continued growth including the existing product portfolio innovative products and line extensions and building the business K beauty fascination showing persistence NEW YORK From CVS Pharmacy and Target Corp to Ulta Beauty Inc and Sephora USA Inc K beauty has muscled its way into the merchandise assortment And according to Alicia Yoon the founder of Peach Lily and a leading resource bringing Korean products to the U S American consumers are snapping up the products which are known for being clever yet effective Beauty coming from South Korea has penetrated nearly every aspect of skin care over the past few years and with the Winter Olympics being held in the country Google searches for the term K beauty reached an all time high in the first quarter of 2018 says Jennifer Famiano manager industry analyst for beauty at NPD Group Inc Not only have K beauty trends encouraged manufacturers from Korea to add U S distribution but several domestic brands have borrowed the innovations in the form of cushion compacts and facial masks CVS has been one of the biggest of the movers and shakers in mass K beauty Buoyed by success in skin more and more color cosmetics and even fragrances are being implemented into the mix Ulta has also cleared more real estate for Kbeauty entries as it reflows its mass market area By far masks have been the biggest category to date There has been a race for manufacturers to come up with the latest twists in masks including everything from ones made using gold to do it yourself custom mixes Masking used to be a luxury now it is part of daily life said Ingrid Jackel the CEO of Yes To a leader in mask innovation Although not a Korean brand Yes To stays abreast of innovations produced throughout Asia But now K beauty is facing competition from products nurtured in Japan according to Famiano That leaves some wondering if J beauty is the next hot category on the horizon Whereas K beauty is known for its playful approach Japanese beauty is more about low key luxury time tested ingredients and is steeped in rituals While there might be more than seven steps to Korean skin care Japanese skin care is minimalistic in comparison she says Shes quick to add J beauty isnt exactly new Brands such as Shiseido and SK II are already established names But with the 2020 Olympics scheduled for Tokyo a renewed focus on the region is invigorating sales and inviting consumer interest And newer emerging brands like Tatcha are gaining awareness she says A line using ostrich egg yolks is also gaining attention for antiaging capabilities But will J beauty play in the mass market It is too early to tell say retailers who admit they are sniffing around the segment 30 Chain Drug Review June 4 2018