NPD PAINTS A ROSY FACE ON DEPARTMENT STORE MAKEUP SALESDespite Economic Slowdown, Lip Gloss, Eye Shadow and Mascara Drive the Prestige Beauty Market UpwardPORT WASHINGTON, NEW YORK, September 24, 2001– Leading market information provider, The NPD Group, announced that although sales of fragrances in U.S. department stores were sluggish from February through July of 2001, makeup sales went against that trend by increasing nine percent in dollar volume. During this period, prestige makeup sales were $1.1 billion while total prestige beauty sales, including makeup, skincare and fragrances, amounted to $3.1 billion. "Despite the tentative consumer outlook these days, shoppers appear to be pampering themselves with ‘affordable luxuries’," said Timra Carlson, vice president of NPD BeautyTrends®. Lip gloss, eye shadow and mascara led the upswing in sales, surpassing the impact of traditional growth drivers – foundation and lip color. Since 1997, lip gloss has posted double digit gains and tripled its share of lip-related product sales (i.e., color, liner, gloss). Eye shadows registered double-digit growth from February through July of this year, increasing four share points in the eye segment from 1997. Similarly, mascara sales, which have posted consistent moderate gains in the past three years, picked up speed with a strong 11 percent increase. Several factors have contributed to the strong performance of these prestige beauty categories. Lip gloss, eye shadows and mascaras average $15 per piece as opposed to an average price of $24 for foundation. With lower prices, these items are perceived as more economical choices. Also, as Armi Rowe of NPD BeautyTrends states, "Much of the excitement in the department store cosmetic area has been due to the many advanced technologies coming from the heavy hitters as well as up-and-coming niche brands. New makeup products represented four percent of total makeup sales this year, slightly ahead of new launches last year." For example, five of the new mascara products that were introduced in the past 12 months alone quickly hit the top 25 best-seller list. There’s been a shift away from regular lip color products toward lip glosses that offer rich hues, moisturizers, long wear and lightweight properties. New eye shadows feature super-fine powder that provides long wear and smooth application. The fastest growing of the best-selling eye shadows now come in either single packaging or as palettes with four or more colors, making them even more economical and convenient. As for the future, according to Ms. Rowe, "Given the makeup category’s stable growth trend over the past 12 months and the increased impact of new launches, sales should stay well above 2000 levels." About NPD BeautyTrends BeautyTrends is the beauty business unit of The NPD Group, Inc. The service offers three types of tracking methodologies covering retail POS, consumer attitudes and usage and e-tail/Internet tracking. Categories covered are fragrances, makeup, skincare, bath and body, and hair care. For more information about BeautyTrends, contact Timra Carlson, vice president, at 516-625-2319 or timra_carlson@npd.com or Armi Rowe at 516-625-4136 or armi_rowe@npd.com. About The NPD Group, Inc. The NPD Group is the leading provider of comprehensive marketing information collected and delivered online for a wide range of vertical markets. By tracking both purchasing behavior and attitudes among the same consumers, NPD offers subscribers unique insight into what’s happening in their industries and why. NPD also measures both retail product movement and e-commerce for a complete view of each market tracked. Consumer data are collected through the firm’s Online Panel, which has access to over 3 million individuals, and will be delivered through a series of marketing information portals, launching throughout the year. Markets tracked by NPD include apparel, automotive products, consumer electronics, cosmetics and fragrances, food, foodservice, footwear, housewares, information technology, interactive entertainment, toys, music and more. NPD is the developer of the revolutionary Web audience measurement technology now marketed by its successful spin-off Jupiter Media Metrix. The firm has offices and affiliations in 36 countries, covering North America, South America, Europe, Asia and Australia. For more information on The NPD Group, visit For more information on this press release, contact Elaine Weiss at 516-625-2443, e-mail elaine_weiss@npd.com |