JANUARY Beauty. Trends Report

JANUARY 2017 Beauty Trends Report BEAUTY | TRENDS From brows to lashes and lips, color cosmetic sales are trending up From the hot color segments...
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JANUARY 2017

Beauty

Trends Report

BEAUTY | TRENDS

From brows to lashes and lips, color cosmetic sales are trending up From the hot color segments to new product launches, here is what you need to know about the beauty business in 2017. Mass market color cosmetics sales continue to climb, driven primarily by adventurous millennials. For the sixth continuous time period, the most explosive expansion is coming from eyebrow makeup. For the 52-week period ended Oct. 30 across multi-outlets, as measured by IRI, the sector’s dollar volume soared more than 34%.

marketing at Kiss Products. According to IRI, Kiss’s eyelash adhesives and artificial eyelashes both churned out sales increases exceeding 50% for the most recently tracked 52-week period. “We have our ear to the ground for beauty trends,” DeVita-Goldstein explained, adding the company noticed celebrities and beauty icons were wearing mink artificial lashes to achieve a fluffy and luxurious look.

To that end, chains are rushing to add more brow entries while building out brow departments. Maybelline’s Eyestudio Brow makeup showed sales gains of more than 142%, while its EyeStudio Brow Drama contributed another almost 40% increase. Milani burst into the category with its Stay Put Eyebrow Makeup, which is up more than 250%.

Total sales: $2,114.3

n Mascara: $934.9/44.2% n Eye liner: $601.1/28.4% n Eye shadow: $310.4/14.7

n Eyebrow: $226.4/10.7% n Eye combo: $42.7/2.0%

* In millions Source: IRI for the 52 weeks ended Oct. 30, Total U.S. Multi-Outlet (supermarkets, drug stores, mass market retailers, military commissaries and select club and dollar retail chains)

Top 10 eyebrow makeup products

CVS is the exclusive mass merchant source for Wunderbrow brow gel, a one-step solution allowing women to easily fill, define and shape their eyebrows with natural-looking color in under two minutes. Wunderbrow achieved fame on the Internet, and is hitting CVS stores in five shades, priced at $22. The focus on eyes is helping women discover the beauty of artificial lashes. Kiss Products unveiled new product innovations for 2017 designed to keep the momentum. “We want to be category drivers,” said Annette DeVita-Goldstein, SVP of global

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Eye cosmetic sales* and share



Salon Pefect Perfectly Glamorous false eyelashes, available exclusively at Walmart, can now be tried on — virtually — with the Perfect365 app.

With a goal of making non-fur options that would be lighter and more affordable, the Kiss team created Lash Couture, Faux Mink Collection. New technology with a knotless lash band was implemented to create a natural, layered look. The lashes, which mimic the look of mink without using real fur, are sold in six lash styles retailing for $5.99. CONTINUED ON PAGE 4

BRAND Maybelline EyeStudio Brow Drama

SALES* $30.8

% SALES CHG 39.3%

UNIT SALES* 3.6

Maybelline EyeStudio Brow**

17.2

142.1

2.4

Maybelline Eyestudio Brow Precise

15.7

27.4

2.2

CoverGirl Brow and Eye Makers

12.7

2.2

3.2

Revlon Brow Fantasy

11.1

-4.2

1.5 1.2

L’Oréal Brow Stylist Definer

10.1

NA

Maybelline Define-A-Brow

10.1

-8.4

1.5

8.4

-8.0

2.3 1.3

Maybelline Expert Wear NYX

7.9

13.9

L’Oréal Brow Stylist Designer

6.8

-10.5

TOTAL

$226.4

34.1%

0.9 40.1

* In millions ** Maybelline EyeStudio Brow Define + Fill Source: IRI for the 52 weeks ended Oct. 30, Total U.S. Multi-Outlet (supermarkets, drug stores, mass market retailers, military commissaries and select club and dollar retail chains)

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BEAUTY | TRENDS CONTINUED FROM PAGE 2

The lashes are reusable up to 10 times. “Lashes are instantly transformational,” said DeVita-Goldstein, who believes the advantages of the faux mink will attract more users to the false eyelash category. To complement the new lashes, Kiss also rolled out a new strip lash adhesive that is strong but gentle, thanks to the infusion of biotin and blueberry extract. A new lash app is expected to help women virtually “see” lashes before applying. Salon Perfect, which is exclusive at Walmart, now can be tried on an app from Perfect365. Ardell lashes will be added to the app in the next month. “Easy application is absolutely one of the biggest obstacles concerning false lashes today, and has been for decades. Many women buy the lashes, but either end up having a professional apply them or they don’t use them at all,” explained Vickie Wei, director of marketing for Perfect365. “The nature of eyelashes and how they are sold makes it almost impossible to try them on before purchasing them. Most users purchase a number of ‘wrong’ lashes before finding their perfect pair.” Wei said eyelash-related enhance-

Lip cosmetic sales* and share

ments are a $1 billion-plus category that will benefit from the further education provided by digital solutions. Perfect365 app users can experiment with five one-tap lash looks and view videos on how to apply lashes in real life. Perfect365 is a free makeup app with more than 80 million users. It uses facedetection technology for accurate virtual makeup placement on photos and live videos. Perfect365 app users will be teased about the lash addition.

Total sales: $902.6

From lids to lips — women also want to make a bold statement with their lip shades. The lip category is still shining for mass merchants with sales of lip combos up 140%, gloss up 4%, lip liner rising 4.5% and lip treatment soaring 100%. Among the standout products in the sector are LA Colors Lip Combo, Maybelline Baby Lips lip gloss and NYX lip liner. The final category with the most positive results is concealers. Dollar sales of concealers are up almost 11%, propelled by a trio of Maybelline items — Instant Age Rewind, Fit Me and Superstay Better Skin. Also, NYX Wonderstick powered a 163% growth spurt.

n Lip stick: $660.3/73.2% n Lip gloss: $163.5/18.1% n Lip liner: $65.1/7.2%

n Lip treatment: $9.5/1.0% n Lip combo: $4.3/0.5%

* In millions Source: IRI for the 52 weeks ended Oct. 30, Total U.S. Multi-Outlet (supermarkets, drug stores, mass market retailers, military commissaries and select club and dollar retail chains)

Top 10 lip combo products % SALES CHG

UNIT SALES*

$1,701.3

NA

144.8

1,082.9

382.9

244.8

Private label

513.9

171.2

51.7

E.l.f.

494.2

NA

68.8

Nivea A Kiss of Care and Color

235.9

-32.7

59.1

Black Radiance Perfect Tone

95.6

-34.8

28.7

ColorMates

62.1

-42.3

57.7

Cherry Chree

56.0

NA

23.2

Black Radiance Perfect Tone Lip**

55.0

-44.1

17.1

4.5

-97.0

BRAND

SALES*

NYX L.A. Colors

Wet N Wild Perfect Pair TOTAL

$4,307.4

141.3%

1.4 699.0

* In thousands ** Black Radiance Perfect Tone Lip Definer Source: IRI for the 52 weeks ended Oct. 30, Total U.S. Multi-Outlet (supermarkets, drug stores, mass market retailers, military commissaries and select club and dollar retail chains)

140%

Lipstick sales were up 8.8% compared with last year, according to IRI data for the 52 weeks ended Oct. 30.

4 / January 2017



lip combo sales saw impressive triple-digit growth at mass merchant retailers. DRUGSTORENEWS.COM

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SheaMoisture Hair continued to grow the category up 33% YTD October. With 21 different hair collections, SheaMoisture addresses diverse need states, is Number 14 in Hair Care* and the fastest growing Brand in the Top 20 (Latest 12 Weeks, Ending Oct. 30th, 2016). SheaMoisture is the Number 1 Natural Brand in Body Care* in major retailers: 17 diverse collections for face and body and a full line of women's shave products. In Men's Hair and Skin Care, SheaMoisture for Men demonstrates consistent growth - building the two core collections. Source: IRI October 30, 2016

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BEAUTY | TRENDS

Beauty app-splosion

Brands, stores bustle to offer beauty apps to encourage engagement and experimentation, decrease product returns Beauty brands are rushing to add apps as a ploy to allow shoppers to experiment with beauty more often, while also eliminating the need for consumers to return products because of disappointment in shades. If a brand doesn’t have an app now, it probably will this year. L’Oréal kicked off the trend two years ago with Makeup Genius, but many others have been quick on its heels. The latest is e.l.f. in conjunction with YouCam. E.l.f. Cosmetics is the first mass market brand to launch on YouCam, a beauty app offering virtual makeup application with more than 300 million downloads. YouCam features about 50 e.l.f. SKUs on its platform, highlighted by three e.l.f.-curated holiday looks, the brainchild of e.l.f.’s makeup artist Achelle, which will be extended quarterly. The debut also represents the first time YouCam is offering “shoppable” looks. “You can buy as you are trying on, [which has been available], but for the first time you can shop the entire look and purchase right from there,” said Mara McCune, VP of marketing for e.l.f.

As one of the first beauty brands to launch an app, L’Oréal’s Makeup Genius offers realtime makeovers using one-of-a-kind technology that recognizes facial characteristics to ensure a seamless virtual makeup application experience.

“We believe our consumer is increasingly connected. She gets her information and is influenced by bloggers and what she sees online. We see virtual beauty as a way to influence her shopping decision and a natural extension of our mission of making luxurious beauty accessible,” McCune said. Also new in the app store is Clairol’s MyShade, an app that not only allows women to see how a shade will look, but also offers consultation to personalize the choice. “We hope to turn the [hair color] category around by putting expert advice in

More interactive beauty apps, which allow the experimentation many millennial shoppers crave, are expected to roll out this year.

CONTINUED ON PAGE 8

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the palm of women’s hands,” said Heather Carruthers, VP of Clairol Global and U.S. marketing. “What we’ve done is take the daunting task of choosing hair color and make it simple. MyShade is designed to bring the expertise of our color experts to the customer in a few simple steps.” Carruthers said women tend to spend as much as 10 minutes in hair color aisles, twice the time they devote to other hair care products, but only 50% of those women actually make a purchase. “We are trying to get more women to color their hair by removing the biggest fears — getting it wrong or ruining their natural color. It’s empowering.” MyShade has a broad menu of options, including the choice to click and see a new trend, such as the merger of Red and Bronze for a color called Ronze. Users can share their images of the fresh hair hues on social media channels. “The Clairol app offers the ability to virtually tryon a hair color, which is of extreme importance to consumers, since hair coloration is usually a big commitment,” said Parham Aarabi, CEO of ModiFace, the company behind many of the new apps. “The MyShade app brings two interesting features to the market, including an [artificial intelligence]-based hair adviser that guides a user as to what shade is best for them, and a universal shade-scanning technology built into the adviser that helps them try on any permanent home hair color,” Aarabi said. The scanner works with any hair color box, even from competitors, and suggests a shade from the Clairol range.

Apps give consumers the option to try before they buy, nixing the hassle and time committment of having to apply a product and then wash it off, or of having to purchase the product first. a personalized solution. The app features ModiFace’s patented hair coloration and shadematching technology to accurately depict hair color. It starts from the hair color in the photo for a realistic result. There’s also the opportunity to call or e-mail an expert from MyShade. Retailers said they expect to see more apps roll out this year, especially since millennials like to experiment. Apps allow that without actual applications and washing off the looks each time. The apps also offer the capability to take selfies to share with friends for feedback.

“ “ Carruthers said the app reduces the risk of getting it wrong through a series of questions, such as, “what is your gray level?” to prescribe

We hope to turn the [hair color] category around by putting expert advise in the palms of women’s hands. What we’ve done is take the daunting task of choosing hair color and make it simple. Heather Carruthers, VP of Clairol Global and U.S. marketing

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E.l.f. Cosmetics recently joined the YouCam app. The app, which currently has more than 300 million downloads, hosts 50 e.l.f. SKUs and a range of curated, “shoppable” looks, enabling users to try — and share — before they buy.

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BEAUTY | TRENDS

Taking a hint from Canadian drug stores High-end brands, exemplary service among keys to success Consumer Suzanne Lee grew up in upstate New York, but moved to Ontario many years ago. Recently, upon visiting her hometown, she stopped at a local drug store for her favorite skin care product. She was surprised to find it wasn’t sold there. “Funny, I never noticed until now how much better our drug stores are in Canada for beauty,” Lee acknowledged. “I was told my brand was a department store line in the United States.” Her observations are spot-on. The United States and Canada may share borders, but the two countries have few similarities when it comes to cosmetics and fragrances. Mass market cosmetics retailers have long envied the access Canadian retailers have to beauty brands that won’t distribute to American counterparts. More European-inspired than Americaninfluenced, Canada’s leading drug stores sell such brands as Clinique, Clarins, Lise Watier, Biotherm and Lancôme — names U.S. merchants only dream of stocking. Service is superb — more Sephora than selfselection. And the stores pump out the sales and profits to boot. Estimates are that Canadian beauty departments produce sometimes twice the sales per sq. ft. of American mass beauty doors. Average beauty departments in U.S. stores typically generate less than 6% of total store sales, where Canadian units can hit almost 10% of overall cash register rings. There are myriad reasons why Canadian stores get what U.S. stores can’t. Dating back 30 years, Canadian shoppers didn’t have as much access to department stores that were privy to premium brands. Often the population was so spread out it was prohibitive to pop into a department store to restock the makeup bag. Consequently, those lines went where shop-

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“ “

Shoppers Drug Mart’s BeautyBOUTIQUE, which launched in 2003, utilizes a store-within-a-store approach to separate its high-end beauty offerings from its mass beauty brands, offering lines that, in the United States, are usually limited to department stores.

In Canada, there is an associate who greets you immediately. You will never find a consultant cleaning shelves. There is a difference in the approach of the cosmetics service in stores. Loic Steinbach, VP of Vitry USA

pers were — often in drug stores. One Shoppers Drug Mart beauty advisor explained it this way: “The high-end lines are a huge success here because they reach all corners of the population — not just cities.” But the attractiveness stemmed from more than just getting to customers, but also from the fact that the environment in drug stores was better suited

for the lines that often require hands-on service to demonstrate the value of spending more. Over the years, other premium options have flourished in Canada, most notably Sephora, which has more than 30 units spread through eight provinces. Ulta Beauty hasn’t crossed the border yet, but could challenge the Canadian mass

CONTINUED ON PAGE 12

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beauty universe if it did since the company also fuses mass and class. For now, consumers appear quite happy to shop at their local drug store. The discount format hasn’t flourished as fast in Canada. In fact, Target retrenched when it found challenges getting enough foot traffic to support its stores. Keeping Canada’s pharmacies abreast of trends thanks to constant visits from beauty companies is a major boost to the stores. Representatives from various lines make the rounds to stores. “They help train, offer demonstrations and help with displays,” said the Shoppers Drug Mart beauty expert. In the United States, buyers confirmed visits to stores are limited if at all. Loic Steinbach, VP of Vitry USA, said Canadian retailers benefit from the high levels of service. “In Canada, there is an associate who greets you immediately. You will never find a consultant cleaning shelves. There is a difference in the approach of the cosmetics service in the stores.” During busy hours, many retailers even staff the beauty area with several consultants, he said.

Jean Coutu, which operates more than 415 stores in three provinces, offers such beauty brands as Caudalie, Biotherm and Jouviance. The chain’s in-store beauty services include skin analysis, makeup touch-ups and a makeup trial program.

Other business-building tools employed in Canada include financial incentives for beauty advisors, as well as plentiful demonstrations. Steinbach also said Canadian merchants turn their valuable front- and center-of-store real estate over to beauty. When it is located at the door, rather than on another floor or off to the side, customers must pass through beauty to get to the pharmacy counter — a good ploy since beauty often is an impulse purchase. One obstacle in the United States to getting the best beauty staff is the lack of commissions with mass merchants lacking the funds to attract toplevel people. However, as witnessed by the numbers, finding money in the budget could pay off. To be sure, such U.S. drug chains as Walgreens and CVS are working feverishly to burnish service in America. CVS is removing housekeeping duties so beauty consultants can work one-

Uniprix, which operates 380 stores in three store formats, prides itself on its beauty expertise, offering not just products but also a trend watch and skin care tips on its website. on-one with customers. Its consultants also will be equipped with such tools as iPads. Walgreens also is adding a new level of supertrained consultants to further enrich its customer interaction levels. The hope is that, over time, the

For an in-depth look at some Canadian chains, as well as more on beauty trends, visit: DrugStoreNews.com/digitaleditions.

12 / January 2017



United States will continue to attract new brands while enticing shoppers who have migrated to such specialty stores as Sephora back to chains. Rite Aid and Target, as well, have upped the ante in service within beauty. Still, U.S. retailers often head north for ideas and concepts to import into their departments. “There are a lot of things happening in Canada that could be done in the United States,” Steinbach said. DRUGSTORENEWS.COM

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BEAUTY | TRENDS

Northern Exposure

DSN examines how top Canadian retailers do beauty 1. Shopper Drug Mart: North York, Ontario Shoppers Drug Mart, which operates more than 1,200 Shoppers Drug Mart and Pharmaprix stores, has a multi-prong attack on the beauty business. Its traditional stores have ample beauty assortments merging both class and mass. That’s important to company president Mike Motz, who has said his customers crossshop, buying an item or two from the upscale area and others from traditional mass market lines. The exposure to premium also helps trade shoppers up. It doesn’t hurt to have beauty be the first area shoppers see, he added, because women are the primary customers. The company has a burgeoning loyalty program called Optimum, which it mines for beauty data and personalized interaction with shoppers. Just recently, Shoppers Drug Mart overhauled its L’Oréal Active Cosmetics department with a fresh approach to the derm skin care lines, which include Vichy and LaRoche-Posay. The derm concept used at Shoppers Drug Mart has been emulated in the states at CVS and Walgreens. U.S. beauty executives have reported checking the new department out for inspiration. Shoppers Drug Mart also offers the Joe Fresh Beauty line consisting of more than 150 new cosmetics products, all under $18. Another proprietary line is Quo, which launched in 1999. Quo offers everything from color cosmetics for the face, lips and eyes to a line of implements and professional application tools. It, too, inspired American merchants to try their hand at proprietary beauty over the past 15 years. In 2003, Shoppers Drug Mart introduced the first beautyBOUTIQUE, a store-within-a-store approach to elevate the beauty presence. That concept helped Duane Reade introduce Look Boutique under the direction of Joe Magnacca, who had served as EVP at Shoppers Drug Mart. BeautyBOUTIQUE features a separate high-end area from mass, stocked with lines limited to de-

14 / January 2017



Shoppers Drug Mart, which operates more than 1,200 SDM and Pharmaprix stores, offers both “class and mass” products, capitalizing on consumers who cross-shop from the moment they step into stores and find themselves in the middle of the chain’s beautyBOUTIQUE. partment stores in America, such as Clinique, Estee Lauder, Benefit and Urban Decay. There now are 384 stores with BeautyBOUTIQUES. Three years ago, Shoppers Drug Mart raised the bar in beauty with its Enhanced beautyBOUTIQUE concept created to help the chain keep up with budding competition from Saks, Nordstrom and the growth of Sephora. The amped up beautyBOUTIQUE features such cosmetic brands as Chanel and Yves Saint Laurent, as well as upgraded fixtures, digital signage, more testing areas and a fragrance sampling station. Footage devoted to beauty more than doubled since the original boutique. There also are several luxury freestanding des-

tinations called Murale. The stores sell some of the most coveted brands, such as Bobbi Brown, Foreo and Chanel No 5. Murale is known not only for its extensive brands, but also its stateof-the-art derm skin care center, private rooms for services, a brow bar and teeth whitening. As part of its omnichannel approach, Shoppers Drug Mart launched an e-commerce website under the beautyBOUTIQUE nameplate. The digitization version of its prestige-focused instore beautyBOUTIQUES, carries more than 100 brands, including YSL, Shiseido, Benefit, Estée Lauder and Lancôme. Its broad category offerings include makeup, skin care, fragrance, nails, hair, bath and body, men’s grooming and gift sets. DRUGSTORENEWS.COM

BEAUTY | TRENDS 2. Jean Coutu: Varennes, Quebec When it comes to Quebec, Jean Coutu dominates with more than 50% of the pharmacy business. The stores are sparkling and accentuate such beauty brands as Caudalie, Biotherm and Jouviance. In-store beauty services include skin analysis, makeup touch-ups and a makeup trial program. Jean Coutu operates more than 415 stores in three provinces, which pump out average sales per store of almost $12 million in Canadian dollars in about 8,500 sq. ft. Beauty is the first department a customer sees, and the company makes ample use of floor space to present seasonal specials. Its website features beauty tips from influencer Marie-Christine Proulx. The company has beefed up its private labels to differentiate it from competitors. 3. Rexall: Mississauga, Ontario Rexall has a huge opportunity to strengthen its beauty business, especially under the new ownership of McKesson. Steps have been taken in the past year to add a new beauty decor package to the 475-plus chain, with the addition of new and emerging brands under an umbrella name of Inspired Beauty. Some of the lines stocked include Marcelle, Kit, Annabelle and Be Better. Elevated beauty could help raise the average store sales of about $5.4 million in Canadian dollars, especially since the large 12,000–sq.-ft. units have space to expand. 4. London Drug: Richmond, British Columbia London Drug is known for its vast 30,000-sq.-ft. stores, which sell everything from electronics to eyeliner. London offers a beauty blog, and its own YouTube tutorials often hosted by its own beauty consultants. While London’s mix often is compared with U.S. stores, the chain has lines not offered in U.S. mass units on a wide distribution, including Cargo and Bliss. 5. Brunet: Montreal, Quebec Brunet stores are franchised pharmacies operated by Metro, a grocery company. Over the years, the company has introduced larger formats, clearing the way for more beauty in Brunet Plus formats. Natural products star in Brunet’s mix. Brunet leverages the link between beauty and health, and heavily promotes its dermo cosmetics in stores and online.

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4 6 6. Uniprix: St. Leonard, Quebec The 380-store Uniprix chain operates three different types of stores — the full-size Uniprix with a large beauty area called Beaute plus dermo-cosmetics centers; the Uniprix Sante, which are medium-sized stores with smaller beauty footprints; and Unprix Clinique, which are small clinical-style stores with mostly pharmaceuticals. The company prides itself on its expertise in beauty, and its website is full of information, such as the lipstick trends for 2017 and skin care tips for the perfect shave.

2 5 3 DRUGSTORENEWS.COM

BEAUTY | NAIL CARE

Up and coming

Beauty formats — new and old — to continue expansion in 2017 Rather than watch the nail category continue to evaporate, retailers and brands are bonding together with innovative launches and impactful in-store presentations. For the 52-week period ended Oct. 30, nail color sales were down 11.4% across multi-outlets, according to IRI. That’s prompting action. CVS, for example, has a traffic-stopping new nail bar department in many of its stores, highlighted with Essie’s Gel Couture gel nail system and nail care tools. “It is an in-store destination with all the tools and trends for an at-home spa nail care experience,” said Alex Perez-Tenessa, VP beauty and personal care for CVS. Several chains report strong movement out of the gates with Sally Hansen’s new Color Therapy, a collection created to offer on-trend colors and nail care benefits at the same time. One of the “hero” ingredients is argan oil, which has become sought after by consumers in many products across categories. “Sally Hansen has long stood for both color and care, and the Color Therapy line represents both of these,” said Shannon Curtin, SVP North America for Coty’s consumer beauty division. Some chains are looking for more salon-style treatment options, such as the HealthyWiser Nail Care Tool Kit, which offers all the products needed to achieve a professional mani or pedi at home — safely. The product includes an electronic nail-filing device to avoid bruising from the usual filing. Rite Aid, Walmart and Walgreens are among the chains pushing more deeply into nail care. Vitry is bringing high-quality repair products to drug stores with its Nail Care Repair, which one buyer said is gaining traction as people seek to strengthen nails after using gels. Buyers also hope innovation in artificial nails will continue to build that business. According to IRI, artificial nails sales soared 10% in the 52-week period ended Oct. 30. That was one of only two positive growth segments within nail; the other was implements. “Women are more open-minded and looking for something better than traditional nail polish and gels,” said Annette DeVitaGoldstein, SVP of global marketing at Kiss. Kiss is using more in-store education and consumer demonstrations to help women feel at ease with applications.

16 / January 2017



Essie gel couture collection This collection gives the look of gel nails without needing lamps or curing. Offers a choice of 42 colors and a proprietary top coat. Suggested retail price: $11.50 per bottle.

Sally Hansen Color Therapy The first U.S. nail polish that blends saturated color and argan oil in 38 new shades is intended to condition weak, dry nails. Suggested retail price of $8.99.

SinfulColors Core Collection SinfulColors kicked off the new year by adding to its Core Collection with 10 new shades, including The Full Monte, Bitten and Bluz Cruz, each carrying a $1.99 suggested retail price.

Vitry Nail Repair Care Developed to cure damaged, cracked or brittle nails, it is already the company’s bestselling product. Also introduced was Nail Repair Sensitive, its first organic product.

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BEAUTY | TRENDS

The big brands get bigger Experts expect acquisition push to continue in 2017 Eye-opening acquisitions got executives buzzing in 2016. While many were in the prestige sector, such as L’Oréal’s $1.2 billion buy of IT Cosmetics and Estee Lauder’s $1.4 billion purchase of Too Faced, the mass sector saw its healthy share of deals, too. Consider Unilever’s $1 billion buy of Dollar Shave Club, Johnson & Johnson’s purchase of OGX or Alliance Consumer Growth investment in Pacifica. And of course, the mammoth finalization of Coty’s assumption of 41 brands from Procter & Gamble, as well as Revlon’s purchase of Elizabeth Arden. Experts expect more of the same in 2017. With consumers pressing retailers for the new and latest, buyers are adding niche brands. One chain source said almost all of his growth last year was from new brands. That’s putting established brands in a vice. Should they innovate or just buy niche brands? In many cases, the decision is to buy the edgy brands and then pump more money into them to build them. In stores, this move is reflected by edits to many iconic brands in favor of more space for such up-and-comers as e.l.f. and Milani.

In its ads, Dollar Shave Club — which Unilever bought for $1 billion in 2016 — derides the industry’s reliance on new and outrageous tech at the consumer’s expense. DSC offers consumers a one-month trial of any razor for $1, including a reusable handle and full cassette of razor cartridges. After the trial month, consumers continue to receive cartridges for as little as $3 per month. To watch the ad, visit YouTube.com/watch?v=ZUG9qYTJMsI.

Kérastase revolutionizes hair care with new smart brush Kérastase in partnership with Withings announced the Kérastase Hair Coach Powered by Withings — the world’s first-ever smart hairbrush. Developed in collaboration with L’Oréal’s Research and Innovation Technology Incubator, the brush features Withings’ advanced sensors and seamless product design along with L’Oréal’s patent-pending signal analysis algorithms to score the quality of hair and monitor the effects of different hair care routines. An accompanying app provides insights and customized product recommendations to help people better care for their hair. The brush, which debuted in January at CES 2017 and earned the International CES Innovation Award, is expected to reach retail in mid-2017, at a retail price of about $200.

Kerastase Hair Coach

18 / Month 2017



DRUGSTORENEWS.COM

BEAUTY | TRENDS

Mass looks to Korean-inspired skin care products to wake up category Mass merchants are about to wake up the sleepy skin care category. They are unleashing a slew of Korean-inspired options to keep up with specialty stores, upping their game in acne and touting those ingredients getting a big buzz on social media. After years of radiant growth, the skin care business needs the boost. According to IRI, sales for the 52-week period ended Oct. 30, across multioutlets experienced an almost 1% gain. Moisturizers and cleansers were the only two categories showing growth. Declines in such profitable sectors as acne, facial care and body anti-aging stung retailers who had come to count on these categories for big dollars over the years. Cleanser sales are buoyant, buyers said, because women are buying more cosmetics. With the move to artificial lashes, bold lips, contouring and dramatic eyebrows, women need better removal systems. That’s ignited sales of such products as Bior��� é�� , Cetafil ������������ and Simple �������������� cleansers. Bior������������������������������������� é������������������������������������ showed a 50% increase in sales volume for the 52-week period ended Oct. 30. Hand in hand with more cleansing comes the need to moisturize. Years in the making, Neutrogena’s Hydro Boost hit the market at just the right time. According to one discount source, the launch helped Neutrogena knock off Olay as the best-selling facial care brand. IRI showed Hyro Boost sales soared 75% for the period ended Oct. 30. Emboldened with the growth of products inspired by specialty trends, drug chains vowed to get more aggressive in skin care by reacting faster to what’s on the shelves at Sephora or online at K-beauty sites. CVS is a perfect case in point. In the past few months, the chain has added many skin care innovations including Skin Fix, a growing natural and clinically tested brand, Ahava mud masks from the Dead Sea Minerals, Nip+Fab, a Kylie

19 / January 2017



Jenner pick and a private label mask to help CVS get in on the mask craze, according to Alex Perez-Tenessa, VP of merchandising in beauty and personal care at CVS. Under its own Beauty 360 logo, CVS now has sheet and cream masks. “Product innovation is coming faster to the mass market now,” Perez-Tenessa said. Walgreens also is on top of the mask movement with a 3-ft. display of exclusive masks retailing for $9.99 under the [email protected] by Masque Bar. L’Oréal also filled white space in the mass market for masks with its Pure Clay Mask Collection. This entry helped offset declines in the anti-aging portion where L’Oréal has been a huge producer. Yes To has been singled out as helping mass merchants get their fair share of masks. Mask sales globally, according to Euromonitor, have exploded from sales of $3.5 billion in 2010 to $5 billion last year. They are up 28% in the U.S. mass market with limited launches to date, suggesting there is much more opportunity. Drug stores also are fighting the competition with speeding entries to market with the ingredients consumers hear about through social media, including argan oil, caffeine, charcoal and hyaluronic acid. Perhaps the category with the most potential, however, is acne. For the past few years, there have been few innovations in treatment of acne. That’s changing in the next few months with the debut of Galderma’s Differin Gel, with the first new active ingredient to treat acne without a prescription approved by the FDA in the past 30 years, and Neutrogena’s Light Therapy Acne Mask. If ever there was a product made for the Instagram generation, it is the Light Therapy Mask. Users can’t help but share their photos as they don the mask, which is held on with glass-style frames. It didn’t hurt that singer/

According to buyers, facial cleanser sales are buoyed by the uptick in cosmetic sales.

actress Olivia Holt was key in demonstrating it on social media. The $39.99 mask gives mass marketers a foothold in the light therapy category, which before had been cost-prohibitive. The mask has positive results in trials. While retailers hope for skin care to return to robust growth, they noted a positive trend in bath, where dollars through cash registers are up almost 10%. What’s fueling that is an emphasis on the synergy between health-and-wellness and beauty. The briskest-growing brands include Dr. Teals and Village Naturals. And coming on strong thanks to new distribution, up more than 600%, is Me! Bath. This line features bath bombs inspired by ice cream —- proving there’s still room for fun in the bath. Target, Walgreens and CVS are among the chains offering Me! DRUGSTORENEWS.COM