Euromonitor International recently released its Five Key Trends in the beauty and personal care industry for 2011. In 2010 consumers returned to premium beauty and luxury brands were catapulted into positive growth territory after a disappointing 2009.
1. Price points and Brand Positioning
Cosmetic companies are generally focusing on the mass market. Latin America has become increasingly important in the area of fragrance. In more mature and premium-dominated markets, like Japan mass markets are also seeing an increase as consumers are embracing the perception that upper end luxury items like skin care and color cosmetics may be deliverable in the same quality but in lower price points and more mass applications.
While value growth is driven by mass beauty innovation is still governed by premium brands introducing new mascara packaging formats in color cosmetics. Super premium brands retained their exclusivity and high pricing, with some putting in a consistently positive performance despite the steady economic downturn. The demographic of wealthy consumers have remained resilent in their spending habits.
2. Time Saving and Long Lasting
As derived from the do it at home mantra for frugal spa goers. Time-saving beauty and long lasting application are all the rave. Time-poor consumers who want to cut the amount of time and money spent on their daily personal care routine have encourage the much needed research into areas like fast-drying nail polish, 3 in 1 shower gel and hybrid personal care items which incorporate color cosmetics, skin care and sun care into one item. Super long lasting beauty items are seen as a value because the application is fast and the product is hassle-free and long wearing.
3. Home care sales at the spa are more important than ever because spa-goers are frequenting the professional care of spa treatments less and less and delaying professional treatments. It is imperative that they maintain the health and beauty of their skin by opting for professional home care treatments that will mimic the professional spa services routinely offered in a resort or day spa setting.
4. Digital Beauty sales are projected to reach more than $14 billion in 2011. With e-tailers expanding their ranges pressure on department store and spa beauty sales will only amplify. The key draw to internet purchasing for consumers remains price. Consumers know the quality of the product from previous usage or visit physical stores or spas to try the product off-line and then return to a website for a lower priced purchase. Make up tutorials and smartphone applications will assist in driving consumers back to the more human and experiential point of purchase. Skin care facilities can help their sales by making the purchase of retail and home care as simple as possible to spa-goers.
5. Conscientious beauty is naturally positioned organic and fair-trade beauty products that have moved from niche market to mainstream status. This category of care is being positioned in specialty outlets as well as more mainstreamed stores such as supermarkets. Changes are also taking place in the regulation of organic skin care. The European-wide Cosmos standard was introduced in February of 2011 and is expected to see a more harmonized standard in organic cosmetics.
As changes are made within the standard personal care genre consumers will begin to see more and more innovations based on genomics involving a particular string of genes responsible for aging. From more high tech color cosmetic applications to nonprescription lash enhancement serums technology has only begun to court the personal care and cosmetics industry.