Chain Drug Review, March 16th, 2020

Both mass and prestige beauty markets reinvent NEW YORK Is it time for a mass market beauty revival For the past three years the prestige beauty market outperformed mass Additionally drug and mass marketers lost share to direct to consumer and specialty stores that offered beauty lines perceived by many consumers as more fashion forward Entering 2020 there are signs the landscape is changing For the first time in three years mass sales are breaking out of the red while higherprice retailers are slumping BEAUTY CARE 2020 Larissa Jensen vice president and beauty industry advisor for NPD Group Inc shared data revealing that total prestige beauty was flat in 2019 compared to 2018 That was the first speed bump in several years A downturn in makeup sales was the culprit for the flat sales as the category dipped 7 Consumers gravitated away from heavy contouring in favor of no makeup looks The upside was that skin care grew but Jensen just warned that this category is about to even out as well Its skin care been growing for so long and we see it flattening out through 2020 she said Prestige beautys woes could be the mass markets opportunity With shoppers looking to spend less on beauty drug discount dollar and even food stores tout newly upgraded assortments and stores The presence of pharmacies and an overall health image that mass chains enjoy should be able to dovetail with the ongoing wellness revolution so prevalent with American shoppers There is also fertile territory with the barriers coming down in regard to sexual wellness opening up incremental sales opportunities for drug chains And finally cannabis is poised to continue to have an impact in beauty especially for its benefits in skin care Mass stores are polishing their shelves popular priced brands are upping their game by launching innovations such as vegan formulas and technology on par with more expensive contenders And in the spirit of if you cant beat them join them mass brands adopted compelling social strategies such as e l f Cosmetics recent use of the emerging platform Tik Tok After almost five years of flat sales or even declines there a blip of life in mass Nielsen numbers for the 52 week period ended December 29 show overall health and beauty care sales in mass doors edged toward a 2 increase Thats nothing to uncork the champagne for but it is meaningful Retailers believe the gains come from their in store efforts such as CVS Pharmacys Beauty IRL stores that feature in store makeovers once only a luxury in department stores CVS teamed up with Glam Squad to offer the service as well as an eponymously named collection of tools Walgreens is trying out smaller Birchbox installations as an avenue to upgrade its assortment while also tweaking the assortment to focus on legendary brands as well as its homegrown logos Target Corp continues its elevated departments with in store features like hot trend displays that showcase styles made popular on social media The chain has also evolved into a hair care destination merchant Walmart is upgrading with more natural choices and a wider assortment of exclusives or first to market launches Even supermarkets are upping the game H E B is scoring big with brands like Smashbox that in the past never sold in a mass merchant Tired of watching specialty doors siphon off customers mass brands are moving swiftly with launches that hit upon consumer wish lists No longer are the innovations coming from only indie players Revlon for example was just the first legacy brand to unveil a product that bears the EWG Environmental Working Group seal EWG has become a popular resource for consumers looking to sniff out brands with potentially dangerous chemicals and many use the organizations app while strolling beauty aisles Coty aims to get back on the profit course with its buy of Kylie Cosmetics while selling off other divisions And joining the movement ignited by CVS Olay announced it will halt the alteration of its images Starting with a campaign led by actor Busy Philipps model Denise Bidot and comedian Lilly Singh the companys advertisements will be paired with an Olay Skin Promise logo assuring buyers that the ad was completely untouched There is still a long haul for the mass beauty business According to IRI data for the 12 weeks ended January 26 there are categories bringing in customers and posting gains including eye combos makeup combos lip gloss lip treatments false eyelashes and for the first time in almost 10 years nail care Skin care continues to be a bright spot too with gains in most subcategories especially moisturizers Manufacturers are responding to the demand with Nielsen reporting there were more than 3100 new skin care launches in the mass market last year Categories that still need a push to escape the negative columns include eye products face makeup and lip Those sectors are taking a hit as consumers seek a no makeup look that is reliant on skin care Skin care continues to be a bright spot While hair is gaining in premium channels the category is somewhat stalled in mass A barrage of new products such as TPH Taraji P Henson a Target exclusive and Emerge a brand created by Unilever and Sundial Brands are headed to shelves to shake up sales Addressing a gathering of beauty executives earlier this year Genevieve Aronson vice president communications for Nielsen outlined the most bountiful opportunities for mass marketers In particular she recommended retailers looking to trade shoppers up in price points Looking for what categories to push Aronson pointed out that contouring and highlighting are out Big gainers include facial products body items and for the first time in many years hair color She also suggested building online beauty sales to complement the physical store While brick and mortar still rules with sales of 39 billion the mass market players have built a respectable 14 billion online beauty business There is a 54 billion online beauty opportunity because 46 of beauty and personal care shoppers say they buy both online and in physical doors New categories could provide a mass market spurt More than ever inside health and outside beauty are interlocked Retailers are reacting with more holistic products such as Ayurveda skin care or anti taboo items like feminine wellness Healthy was the No 1 definition for beauty for consumers last year said Hannah Symons global head of beauty research at Euromonitor She also sees potential in expanding the reach of mens products sold at mass When Euromonitor asks guys why they dont use a particular product often they said it was a lack of understanding of the items usage she said Improved education and communication could be a pathway to higher mens sales she added The payday the cannabis industry could deliver to beauty also cant be overlooked Nielsens Aronson says the hemp industry will hit 6 billion by 2025 and beauty could nab a 9 share of that In This Section Retail 36 Cosmetics 40 Skin Care 44 Hair Care 48 Multicultural 51 Chain Drug Review March 19 2020 35