Since 1996, the prestige beauty industry has relied on NPD’s comprehensive beauty market research and business solutions to deliver insights into what is selling, where, why, and at what price. Our research includes information for the U.S., Canada, France, Italy, Mexico, Spain, and U.K. beauty markets. It helps companies address the emerging trends, needs, and behaviors of the next generation of beauty consumers.
We monitor global beauty industry trends – from the “big picture” down to the category, geographic region, and store levels. We can even help you look for opportunities or evaluate pricing strategies.
How do we do it? We bring our robust data assets, along with our industry expertise, and combine them with your data or third-party data to find solutions to your business issues.
Scentiments is a new suite of consumer insights on fragrances and scented products that delivers a robust view of consumers, their attitudes and lifestyles, and shopping and usage behaviors. Brands and retailers use this information to guide product, point-of-sale, and marketing strategies that resonate with consumers and drive growth. Enhanced by our fragrance experts’ industry knowledge and keen insights, Scentiments offers the industry the most comprehensive understanding of the U.S. fragrance consumer.
Learn More About Scentiments
Store-Level Enabled Retail Tracking
Store-Level Enabled Retail Tracking complements BeautyTrends®. It can help you determine whether sales are distribution-driven or whether certain parts of the country are contributing more to national share or driving growth. The velocity measure set that is part of Store-Level Enabled Retail Tracking takes into consideration sales volume (Annualized Industry Volume or AIV) rather than considering store count alone, for a more meaningful read on where products are selling and how they are performing.
BeautyTrends® is the point-of-sale (POS) tracking service measuring the performance of fragrances, makeup, and skincare products. SKU-level detail is captured monthly for more than 75 product categories. Channels reported on include prestige department stores, mid-tier national chain, fine department stores, TV/shopping, and dot-com/Internet pureplay retailers. Evaluate purchasing trends so you can make better business decisions and take full advantage of emerging opportunities across these key channels.
Fragrance data is also available on a weekly basis. Having a faster read on what’s happening in the marketplace is essential for tracking new launches – during the holiday season and all year round.
Beauty Cross Channel Monitor
NPD and Nielsen have partnered to produce the Beauty Cross Channel Monitor. This comprehensive report on the beauty market provides the only total market view spanning both the prestige and mass channels. The Beauty Cross Channel Monitor combines Nielsen and NPD point-of-sale data across a range of retail channels, providing a precise read on sales and performance for all beauty categories including dollar sales, unit sales, and average retail price, in addition to a ranking of the top 75-100 brands. Brand marketers can evaluate the performance of categories, segments, and brands across major beauty distribution channels to better understand and respond to new U.S. beauty market opportunities.
Beauty Multi-Country Topline Report
This report provides consistent, comparative, cross-country views of prestige makeup, fragrance, and skincare sales in the U.S., France, Italy, Spain, and the U.K., from a single source. It looks at the performance of top corporations, divisions, brands, categories, and segments in these key global markets. Use this report to evaluate brand performance across countries to guide marketing and product strategies, understand how product mix differs by country, and guide assortment and distribution plans.
NPD’s Analytic Solutions group includes senior leaders with extensive experience developing and delivering analytic solutions that help clients predict areas of risk and growth to improve marketing and product development. By combining NPD’s unique data assets and industry expertise with state-of-the-discipline research techniques and proprietary solutions, our Analytic Solutions team is able to answer clients’ most pressing business questions.
This quarterly report was created by a team of NPD analysts known for their experience, knowledge, and passion for the beauty industry. It puts data into context, giving you the story behind the data with detail on category drivers and industry insights across makeup, skincare, and fragrance. Use it to uncover opportunities and refine your strategies.
Polish up your nail care consumer knowledge. This report's information and analysis will help to ensure your marketing tactics are aligned with consumers' needs. Use it to understand the roles color and brand play in at-home nail polish purchase decisions, and see what sets at-home nail care consumers apart from their salon-oriented counterparts.
Spending expectations. Attitudes toward spending on beauty. Shopping dynamics. Emotional motivators. And more. Now you can explore the consumer mindset related to beauty and today’s economic reality in the 2015 edition of the Annual Beauty Consumer Economic Indicator Report. The report covers the impact of today’s economy on beauty spending, featuring select data originally presented at our February 2015 Hot Off the Press event. Produced since 2008, the report includes comparisons between our latest insights and previous years’ findings.
Avoid relationship trouble. See inside the relationship between women and their makeup — discover what consumers want, why they buy, how they use your products, and more.
Women in the U.S. have become increasingly selective about the ingredients in their facial skincare products over the last two years, according to Women’s Facial Skincare Consumer Report 2017* from global information company The NPD Group. The report found that 40-50 percent actively seek natural or organic ingredients in their products, and those free of ingredients including fragrances, parabens, phthalates, sulfates, and gluten.
Women in the U.S. are 35 percent more likely than men to let their moods dictate the scent they will wear each day, encouraging a stronger emotional tie to fragrance than their male counterparts, according to the latest data from Scentiments*, a suite of consumer insights and tools on the U.S. fragrance industry from global information company The NPD Group. Guided by their moods, this close personal relationship leads women to be more frequently engaged with fragrance, and contemplative when it comes to deciding on the right match.
The U.S. prestige beauty industry is off to a slightly slower start this holiday season, with year-to-date sales up 6 percent through October, or 1 percentage point less than this time last year, according to global information company The NPD Group; however, this should not be interpreted as discouraging news. It is a case of ‘feast or famine’ for the industry this holiday season, and while consumers may not indulge in every makeup, fragrance, and skincare category, they will have more than their fill when it comes to others.
It’s Beginning to Smell a lot like Christmas: Home Fragrance Most Important When Company is Expected, NPD Finds
In preparing their homes and minds for the holidays, and the festive family gatherings they bring, consumers turn to scent and décor to get into the holiday spirit. Home fragrance is most important to consumers when company is expected, as scents are a way of honoring their guests and ensuring they have a pleasant visit, according to Scentiments, a new suite of consumer insights and tools on the fragrance industry from global information company The NPD Group.
The Internet Surpasses Print and Broadcast Advertising as Preferred Source of Makeup Product Information, According to NPD
Defining many of the most popular, growth-driving trends in makeup today from contouring to draping, the internet went from the least-frequented source of product information four years ago, to the fastest-growing in 2016, swaying both styles and sales, according to global information company The NPD Group’s Makeup In-Depth Consumer Report 2016. More women today are looking to the internet for information on makeup products and brands, up 11 percentage points versus 2014, or more than any other information source.
The American Academy of Dermatology (AAD) recommends sunscreen that offers not only broad-spectrum protection and water resistance, but a Sun Protector Factor (SPF) of 30 or higher. According to global information company The NPD Group, sales of prestige skincare and makeup products with any SPF reached $1.4 billion in the 12 months ending May 2016 (June’15-May’16), growing by 7 percent over the last two years. Coinciding with the AAD’s guidelines, such products with an SPF of 30 or higher are seeing the greatest growth and outpacing the total SPF market by at least twofold
While the U.S. prestige fragrance category as a whole has been experiencing increases in both dollar and unit sales, the greatest lift is coming from the $49.9 million niche of the home scents market*, according to global information company The NPD Group. The heightened popularity of prestige candles and diffusers combined with their higher price tags is driving much of the growth within fragrance.
Over the last decade, skincare led the gains within the prestige beauty industry, fragrance was challenged as consumer usage declined, and Boomers drove demand and influenced innovation within the industry. However, 2015 marked a turning point for the beauty industry, driven largely by shifts taking place within skincare and the heightened importance of Millennials, according to data from global information company The NPD Group.
The U.S. prestige beauty industry reached $16 billion in 2015, a 7 percent increase over 2014 sales*, according to global information company The NPD Group, Inc. Makeup experienced the healthiest sales growth (13 percent), while the fragrance category outperformed skincare for the first time; fragrance dollars grew by 4 percent, and skincare by 3 percent.
NPD Mexico, a subsidiary of The NPD Group, has purchased Segmenta’s prestige beauty point-of-sale retail tracking service for Mexico. The acquisition extends NPD’s global reach and expertise in prestige beauty, complementing NPD’s beauty tracking services in the U.S., Canada, France, Italy, Spain, and U.K.
Reliable, detailed information about skincare consumers' attitudes and motivations is a critical part of making data-driven business decisions. Now there's a way to get a winning advantage in the skincare market: the new 2017 Women's Facial Skincare Consumer Report.
Learn how Scentiments lets you deconstruct fragrance consumers’ emotions, attitudes, and preferences, to give you a clear understanding of how to market fragrances more effectively. Learn more about Scentiments.
The future of fragrance is uncertain. Consumers are engaging with scent in a different way. How can you think about scent differently to help guide messaging and product strategy, so you can elevate awareness and inspire fragrance usage?
Discover where Millennials shop for fragrance, what influences their purchase decisions, and how mood affects their fragrance choices.
There’s a lot to learn about today’s fragrance consumer. In this new video series Kissura Craft, Industry Analyst – Beauty, discusses consumer behavior, fragrance wardrobing, and how men and women interact with fragrances differently.
Fragrance is facing the challenge of continuing to engage and excite young people so they’ll wear scent daily. What will it take for fragrance to make a big comeback? Karen Grant, Global Industry Analyst – Beauty, shares her perspectives.
Fragrance usage is shifting and changing. In this new video series Karen Grant, Global Industry Analyst – Beauty, discusses why fragrance and the need for scent still matter in the beauty industry.
Sales Territory Management Tool: How a Beauty Brand’s Sales Team Improved Their ROI (and Got Bigger Bonuses)
A strong Sales function is critical to success – particularly when distribution spans multiple retailers and markets. When growth is good, management looks to the Sales teams to keep it going; when revenue slips, they’re on the front lines to reverse the slide. Our client, a leading beauty manufacturer and licensor, was experiencing a sales slowdown despite healthy category growth. The Sales team knew what had to be done, but wanted fact-based confirmation before requesting the additional resources necessary to help turn things around.
Get an inside look at one of the key features of Scentiments from The NPD Group, your source of data and insights about how consumers shop for, think about, and use scented products. This video shows how you can create customized views of survey data based on your specific needs, so you can make data-driven decisions with confidence. Learn More About Scentiments
There's a lot to learn about today's fragrance consumer, and we've compiled all the insights for you. Scentiments, our next generation of U.S. fragrance market intelligence, brings you a new perspective on consumer's emotions, attitudes, and preferences toward scented products and their fragrance purchasing process.
Insights and Opinions from our Analysts and Experts
Within skincare, there has historically been a point of difference not only between mass and prestige, but also between prestige and luxury. Traditionally, luxury brands were selectively distributed in fine department stores such as Saks Fifth Avenue, Bergdorf Goodman, and Barneys. Yet, the differentiators were not solely limited to distribution and higher price-points; luxury skincare also offered notable services to clients. From a one-on-one in-depth analysis of the clients’ skin issues, to facials and personal follow-up calls to enquire how the purchase was treating her, luxury had many attractive points of distinction.
Previously impenetrable in its consistent growth and contributions to the overall market, skincare priced at $100 and above has declined for the past two years*. With skincare’s drivers shifting from larger brands to smaller and more natural brands, and retail shifting to a more experiential model, the very definition of luxury has changed in consumers’ minds.
It comes as no surprise that while overall luxury skincare is trending down, natural luxury skincare is increasing at a rate of 9 percent*. According to NPD’s Women’s Facial Skincare Consumer Report 2017, 40 percent of U.S. women report that they actively seek out facial skincare products that are free of parabens, sulfates, phthalates, and/or gluten. This number increased by 7 points in the last two years. The brands helping to really drive this trend in the luxury space have a stronger presence in specialty stores and boutique retailers, and are able to give consumers a truly luxe feel with products encased in minimalistic glass bottles of handcrafted elixirs in small batches. Taking a page from the fine department store playbook, boutique retailers offer consumers one-on-one attention, expertise, and services beyond what a counter is able to do -- and consumers are responding; more facial skincare consumers are reporting they prefer one-on-one consultations when visiting a store.
It’s not only the smaller boutiques and specialty stores creating competition for skincare’s luxury brands. There’s also an increased focus on service and personalization, the hallmarks of luxury skincare, coming from lower priced brands. Through the end of September, St. Ives has a pop-up shop in downtown NYC, where the consumer can create a customized facial scrub and body lotion. You’re met at the front of the store by a menu specialist and personally walked through the options. Once you’ve decided on your scent, texture, and benefits, you watch as each ingredient is added to a jar that has a customized label detailing your personal choices. For $12 a jar, its service, customization, and the more fun side of skincare all wrapped up in a very inexpensive bow.
In the past, personal service and quality product was enough to give luxury an edge over prestige skincare. But with a shifting retail environment and a consumer whose definition of luxury includes technology, health services, and nutrition as part of her beauty routine, luxury skincare has to push the boundaries to remain relevant.
*Source: The NPD Group, Inc. / U.S. Prestige Beauty Total Measured Market
I am a proud Millennial. I look fondly on memories of playing with my Skip It, being obsessed with gel pens, playing MASH with my friends to find out what my future would hold, and having what seemed like a million Tamagotchi’s that all inevitably died when parenthood exhausted me. These memories are part of who I am, and also characterize my distinct recollection of times before social media and smartphones dominated our daily interactions. These memories not only impact who I am, but also what I purchase.
According to a Forbes article I read recently, “The best marketing campaigns are timely and relevant but also authentic with a strong emotional hook to capture the heart.” It only seems obvious, then, why brands leverage emotion and nostalgia within the makeup category, especially as a means of reversing makeup’s slowed growth by 9 percentage points to 5 percent.*
This emotional strategy is already taking hold. In late 2016, indie brand Storybook Cosmetics launched a collection of five makeup brushes inspired by magic wands from the Harry Potter series for $55, with a limited quantity and online-only strategy. As a fan of the book series since I was in third grade, I can understand why the brushes were quick to sell out and why the brand has amassed a total of over 9,000 consumer-generated posts on Instagram tagged #storybookcosmetics. More recently, Benefit Cosmetics launched their five-piece Benefit x Wonder Woman collection to celebrate the superhero film. The HSN-exclusive kit contains hero products (pun intended) like the Benetint Lip & Cheek Stain and They’re Real! Mascara in a Wonder Woman-inspired cosmetic bag for a steal of $49. Sticking with the movie theme, Bésame Cosmetics has recently begun teasing its upcoming September launch of the 1937 Snow White Collection that will include lipsticks, cream rouges, and lip balms with colors identical to those original animators used in the film. GlamGlow is also preparing for a nostalgic fall 2017 launch, as the brand’s GravityMud Treatment will be released in green and gold limited edition colors inspired by the Power Rangers. The nostalgic and emotional trend in makeup seems to be coming full circle as Storybook Cosmetics, notably a brand whose entire strategy leverages this trend effectively, will be launching a Mean Girls eye shadow palette this fall.
One might argue that the excitement surrounding these products lies within the fact that they are new launches. My rebuttal to this is that they represent so much more than just products. Harry Potter introduced us to a world where anything is possible; Wonder Woman and the Power Rangers taught us the power of confidence; the original Snow White instilled in us the meaning of friendship and a statement red lip; and Mean Girls represents everyone’s high school experience in one form or another. Brands like the aforementioned are leveraging these franchises in a way that not only captures our attention with intriguing product, but also resonates with us on a deeper, more emotional level. An emotional connection is, at the end of the day, what all brands strive for.
*Source: The NPD Group, Inc. / U.S. Prestige Beauty Total Measured Market, January-June 2017
As a kid, I used to watch my dad shave his face. I especially loved it when he would clap his face with aftershave, look into the mirror and say, “Damn, I’m handsome,” signaling the completion of his manly ablutions. I once watched my husband shave his face, but his ritual lacked the panache that my dad’s did. The childish merriment was gone. I later realized he didn’t do the triumphant slap of aftershave. Actually, he didn’t use aftershave at all!
Sadly, aftershave within prestige has experienced declining sales for the past few years. The last 12 months saw dollar and unit sales down -11 percent and -8 percent, respectively.* One thing that could be affecting the sales of aftershave is the rise of men sporting facial hair. It has been reported that more than half of American men ages 18-34 have a beard or stubble, and thereby not needing aftershave.** NPD’s fragrance consumer survey, Scentiments, shows that almost three in 10 men have cited that they have used more fragrance in the past year because they have a new grooming routine. The key would be getting whiskered men to incorporate something fragranced into their grooming routines.
I’ve been noticing a few brands introducing beard-related items into their lines, like beard oils and softeners. The number of introductions in the market has quadrupled since 2014. While still small in dollar sales, (less than 1 percent of the men’s prestige market), these products have increased sales by 10 percent.* Furthermore, 54 percent of men ages 18-34 want a scent that others might be able to smell on them or be barely noticeable.*** In other words, they prefer a fragrance that can only be experienced while standing within their personal space. Scented beard oils and softeners fit the bill as they are more subtle in strength.
Fragrance can certainly become more innovative by introducing new formats that will nicely dovetail with the lifestyle changes of its consumers. Changing with consumer habits is the only way we as an industry will stay current and relevant.
*Source: The NPD Group, Inc. / U.S. Prestige Beauty Total Measured Market, 12 months ending June 2017
***Source: The NPD Group, Inc. / Scentiments: Scented Mind 2016
Recently, my mother broke both of her wrists and had casts from her hands to her elbows for two months. One of her main concerns was her nightly ritual of potions and lotions that my step-father was relegated to slathering on for her. Not only does she have a specific order for how to apply each of the creams, but she prefers to smooth them on in an upward motion because she would like her skin to be “lifted.”
There is a marked difference between my mother’s generation and the current gen-du-jour. My mother didn’t think about age spots or sun damage until she saw it on her skin. My 17-year old cousin, however, has never spent a day in her life without sunscreen. The transition from solution-oriented to preventative, like the shift in overall skincare, was slow and then sudden.
The question we are currently facing is: how can consumers and brands get on the same page? Industries and franchises have been built on the solution-oriented approach to aging. They have centered their personae on the premise of plumping wrinkles and lifting sagging skin. Based on NPD data, the age specialist subsegment is responsible for nearly 10 percent of total U.S. prestige skincare sales, and represents 15 percent of the facial skincare market. Age specialist declined throughout 2016 and this trend continued into the first quarter of 2017. While other subsegments like facial moisturizer have made a turnaround, age specialist still hasn’t been able to make any traction in the market and posted a $4 million decline so far in 2017.
The U.S. anti-aging market is at its tipping point. The skincare industry must strike a balance between the older consumers who are looking for skincare experts to tell them how to correct their issues, with the younger consumers who would like to understand each ingredient on the label and the reason for it being included. Younger consumers are also more likely to look at skincare as part of their wellness routine, complete with anti-aging supplements that include ingredients like collagen and hyaluronic acid.
This fundamental shift in thinking has already happened; it’s the brands that need to catch up.
One of the things that I love most about my job is that there is so much data available at my fingertips. When I’m looking for a new product to buy, I always turn to NPD data first to see what the best sellers in the category are and then determine if those products need to be added to my consideration set. This is good and bad because, for anyone who knows me, once I start looking into something I get obsessive and then need to learn everything about that product from top to bottom. I know what I like and what I buy, but what about other people? I am curious to know if I am behaving similar to the general population. And that’s how a 5 minute task last week to find out what the best-selling self-tanner is turned into a 3 hour research session on suncare products.
I shouldn’t have spent more than 5 minutes on this task, but of course my curiosity got the best of me. After seeing what the #1 and #2 best-sellers were, I needed to know if self-tanners were still a thing in Canada, and how popular they are. Surprisingly, nearly 40 per cent ($9 million) of the $23 million Canadian Prestige Suncare category can be attributed to self-tanning products. This means that for every dollar that is spent on Prestige Suncare, forty cents goes to self-tanners. This makes you wonder if anyone has an actual sun-kissed tan or if we’re all just creating that glow in the comforts of our bathrooms! I’m going to go with the latter seeing as how 30 per cent of purchases were made in the months of May and June. Seems that everyone has the same mindset I do: disguise that glow-in-the-dark pale skin before putting on that first tank top or pair of shorts for the season.
One might also wonder why it is better to fake a tan instead of getting a real one by sitting outside in the sun. Well, as we’ve heard from just about everyone and everywhere, the UV rays from the sun aren’t exactly healthy for us. In fact, tanning is a defense mechanism by our skin and is actually an indicator of sun damage. Damage from UV rays can also cause premature aging of the skin - this effect isn’t immediately apparent but slowly manifests. Education in this area has changed our usage of suncare quite a bit in the last few years. Consumers have been reaching for products that have a higher SPF rating. Last year there was an increase of +10 per cent in sunscreen sales, and all the growth came from sunscreens with an SPF rating of 45 or higher. This shift to a higher protection factor was also seen in facial moisturizers where sales of those with an SPF rating of 30 or higher grew +20 per cent and sales of those with lower SPF ratings have been flat.
Finding this info made me feel much more assured with my routine and product choices. I’m a supporter of high SPF sunscreen and reapplying throughout the day so I’m happy to see that it’s becoming the norm and not the exception. Now I just need to wait for Mother Nature to cooperate so I can show off my fake tan while I sit in the sun with my SPF 60 on.
If you weren’t able to visit the annual Macy’s Flower Show in Herald Square earlier this month, you missed a real treat. If you experienced it then you know what I’m talking about. The carnival flower theme was beautifully displayed, but it was the Scent Event in collaboration with the Fragrance Foundation that really got my co-workers and I excited.
The event was aimed at educating consumers on the different aspects of fragrance in a refreshing, fun, and interactive way while, of course, being Instagram and Snapchat worthy.
There were three different aisles that brought fragrances to life. One aisle played video interviews with master perfumers explaining the power of scent, how they became acquainted with their profession, or how they approach creating a scent. A second aisle explained the notes of a perfume with an interactive world map that indicated where different notes, like pine needle and Sichuan pepper, came from whilst allowing you to smell the ingredient straight from the source. In the same aisle was another exhibit that broke down what notes are usually in the base, middle, and top layers of a fragrance. As you walked through each corridor--which equated to a different part of the fragrance accord--a scented mist filled the air.
The third aisle was my favorite part of the exhibit, and it focused on matching fragrances with a mood. There were six scent pods that misted you, on entry, with a scent that represented each emotion. This part of the exhibit aligned perfectly with what we are seeing in NPD’s new consumer survey, Scentiments, in terms of how consumers choose the fragrance they will wear each day. According to Scentiments, close to 60 percent of the total U.S. population of men and women ages 18+ will choose their fragrance based on how they feel. They see fragrance as an extension of their ever-changing emotions, and women are even more likely than men to choose their scents this way*.
The Scent Event encouraged consumers to shop for fragrance in a way that is meaningful to them. A sheet was provided to attendees, which named all the different fragrances available at Macy’s that corresponded to each mood. Taking this a step further, it would be beneficial to see more mood descriptors or fragrance classifications marketed at retail counters to help consumers match with a new fragrance.
In my opinion, the Scent Event was wonderfully executed as it turned fragrance into an experience. I hope Macy’s will bring it back in some fashion for each successive Flower Show. It would be interesting for the senses of taste and touch to be incorporated as well. This event was a great example of why retailers should consider unique ways to help consumers interact and connect with scent in a more experiential way.
*Source: The NPD Group, Inc. / Scentiments: Scented Mind 2016
I like my things a certain way. I order a Grande Iced Caramel Latte with extra caramel at Starbucks; I jump at the opportunity to choose products that I’ll receive in my FabFitFun subscription box; and I appreciate that my social media platforms keep me informed of events happening around me. Customization influences my shopping decisions, and I’m not alone in this. Today’s consumers demand the ability to control the types of products they purchase, and how they interact with them.
While customization is not particularly new to the makeup category, recent initiatives have proven that this trend is ramping up. Customization is core to Bite Beauty’s Lip Lab, which offers customers the ability to make a custom lipstick or lip gloss in store and experience the production firsthand. While the first Lab opened in New York City in 2013 as a temporary establishment, its popularity with consumers resulted in the Lip Lab becoming permanent. Bite Beauty’s Lip Lab has since expanded to two locations in California (Santa Clara and San Francisco) and Toronto as well – a testament to the consumer desire for customized product offerings.
Another testament to the trend is Shiseido’s recent acquisition of MatchCo, a California-based startup that developed a mobile app that scans users’ skin and creates individualized shades of foundation. Customization capabilities factored into the acquisition, according to a Fortune article, as Shiseido CEO Masahiko Uotani remarked that the acquisition would enable the company to “offer more value to its customers through accelerated innovation in rapidly evolving digital tools and customized products.”* As another example, Lancôme recently launched their Le Teint Particulier foundation in select Nordstrom stores, allowing customers the ability to purchase a personalized and custom-blended foundation in the shade that matches their skin perfectly and retails for $80. This custom foundation is packaged in a bottle with the customer’s name on it, as well as a unique complexion ID that allows for easy replenishment. A search on YouTube for reviews on the foundation returns over 1,800 reviews, including those done by influencers Jeffree Star and Jackie Aina.
While makeup continues to lead the pack as the fastest growing prestige beauty category, slowed growth in dollar volume and average price indicate an opportunity for innovation.** Brands can leverage capabilities to offer consumers customized product offerings that fit perfectly into their makeup routines and lifestyles. Coupling this offering with an in-store experience further strengthens the appeal of brick-and-mortar to consumers as well. Overall, pursuing a customization strategy would enable brands to capture part of the innovation pie while remaining relevant with consumer expectations.
*Fortune, “Shiseido Just Bought a Makeup App That Scans Your Skin and Creates Custom Foundation”
**The NPD Group, Inc. / U.S. Prestige Beauty Total Measured Market, February 2017
Growing up in New York City I had access to many things the common teenager did not. Around the corner from my apartment was the city’s first Whole Foods Market. I remember the opening very well and how crowded the natural and organic specialty food store was. But my focus was not the food part of the store. To the right of the main store, in a separate entrance, was a smaller sister store called “Whole Body.” I was obsessed. I more than likely spent more time there than at school (sorry, Dad!).
What I loved about the Whole Body experience was the education I received on ingredients -- not just the naturals that I could use to help solve my skin issues, but the ingredients that were not included in their products and the reasons why. Naturals are having a big moment in skincare. Natural brands are responsible for 55 percent of the overall gains in prestige skincare*, and 85 percent of any gains in the declining brick-and-mortar space**. But there’s this new underbelly of brands that are not making the claim of “natural” and are instead eliminating “unsafe” ingredients.
Beautycounter is perhaps one of the more popular skincare brands that have their feet firmly planted in the “clean” beauty space. The brand is completely transparent with their consumers, telling them that 80 percent of their ingredients are organic, natural, or plant-derived and 20 percent is synthetic. The brand has a download-able “never list” that it has compiled through the more regulated European Union and Health Canada, as well as an additional 100 chemicals that the brand itself has deemed questionable.
But it’s not just smaller brands that are paying attention to potentially harmful ingredients. Retailers like Whole Foods have encouraged its vendors by creating the Premium Body Care Campaign. Walmart and Target have both pushed to include safer, more natural brands in their product mix. Procter & Gamble released a “preservative tracker” just a few weeks ago. The website tracks preservatives that consumers might be trying to avoid but are used by various brands across their portfolio in categories like hair care, personal cleansing, and skincare.
Skincare is a very intellectual and emotional category. Have you ever watched someone talk about how acne affected their teen years and shaped their life? Or have you ever seen the desperation of someone so eager to figure out what is responsible for the red patches on their face? Brands like these are able to speak to that consumer. They provide information, dialogue, a potential resolution, and a cocoon of safety for the consumer to explore. While natural is certainly taking up the spotlight in skincare, brands with a “clean” approach are certainly waiting in the wings.
*Source: The NPD Group, Inc. / U.S. Prestige Beauty Total
**Source: The NPD Group, Inc./U.S. Prestige Beauty Department Store/Specialty Brick & Mortar
My grandaunt always said, “A lady needs to have a signature perfume.” So, for years I have been on the hunt for a fragrance that I could call my own. I always dreamed that in the wake of my signature scent, people would say, “Kissy was here” when they walked into any room I once occupied. But the problem is that I have found too many fragrances that I’m in love with and can’t choose just one to wear for the rest of my life. Realizing I have fragrance commitment issues, I have given up trying to find “the one” and have amassed a wardrobe of scents. Still, I’ve felt guilty for not being ‘loyal’ to just one fragrance.
Data from NPD’s fragrance consumer survey Scentiments, however, tells me I shouldn’t feel this way. Through the survey, we see that consumers who have a signature fragrance are in the minority, accounting for only 10 percent of the fragrance-wearing population. They are more likely to be 45-years old and older, men, and White. I’m actually part of the majority, where close to 90 percent uses more than one fragrance. Forty-three percent are very engaged like me and have a wardrobe of fragrances, as we like to try new and different scents. These wearers are more likely to be under 45 years old, women, and Black or Hispanic. The other 46 percent tend to be White, and are somewhat engaged with a narrow selection of fragrances, as they stick to just a few favorites.
If fragrance marketers communicated the mood or feeling of a fragrance, doing so would speak to the nearly 70 percent of wearers who like to let their moods dictate which fragrance to wear. The idea of a signature fragrance has been eschewed for a more liberal view; if consumers want to wear a different scent each day, they can. I’m glad to know that there are others like me who believe that having several favorite fragrances is acceptable. The more the merrier, I say. Fragrance is supposed to be fun.
Source: The NPD Group, Inc. / Scentiments: Scented Mind 2016
Impossible! Unprecedented! For all the naysayers and doubters, what a wakeup call this is. The discounted “one-hit wonder” is now at the top of the hill.
Like a game of thrones, the little guys and gals in beauty have come to the fore as they are the ones increasingly making the loudest noise.
While these may sound like headlines pulled from the political stage, they quite fittingly describe the upheaval we are experiencing in the world of beauty. The changes that we saw rumbling in prior years have gained energy and reached a magnitude that has toppled the established order of things. In 2017, we can expect more of the unexpected.
At a high level, we see that the “next gen” influence, like a force of nature, is at the forefront driving the fundamental shifts across industries and in beauty. Beyond being defined by the traditional, generational boundaries—“young Millennials” or “Gen Z”—this ‘gen’ is upending every facet of our industry – manufacturing, retailing, marketing, packaging, and messaging – in their wake. Beauty today is in many ways unrecognizable to the beauty we knew just a few years ago.
Offsetting the proliferation of “indie brands” is a surge in industry consolidation. While one or two giants once controlled much of the market, the wave of acquisitions across beauty is leveling the playing field. As a result, lines are crossing between the prestige and mass markets. In 2017, we can expect accessibility in price and channels to play a bigger role.
Look who’s smiling now! Trends are moving, it seems, at the speed of thought, and beauty has become revolutionized. Embracing change as never before, this industry is harnessing the energy of healthy disruption. In beauty, here is the lesson learned: never discount the little one, as they may be the next champion to rule the hill.