“Because the profit margins are higher on cosmeceuticals, companies have more money to
spend on marketing,” added Mr. van Beeck. “Businesses must continually convince buyers of the
product’s benefits and break through competitive clutter to increase their sales.”
By 2011, IBISWorld predicts the industry will rise beyond $4 billion, and will continue to grow
at near double-digit rates for quite some time. Growth will continue to revolve around the perceived health advantages of cosmeceuticals in addition to the traditional cosmetic benefits.
“Manufacturers and retailers will continue to fuel demand for cosmeceuticals by developing
and marketing a steady stream of new products,” said van Beeck. “New products in the pipeline
present solid opportunities to bolster bottom lines and build customer loyalty, re-inventing the
mature cosmetics industry.”
More info: www.ibisworld.com
; Results are in on the Luxury Institute’s “Best of the Best” survey of luxury brands in skin care and makeup.
Based on the U.S. 2010 Luxury Brand Status Index (LBSI) survey—which identifies the top
brands that deliver true luxury based solely on the unbiased ratings of wealthy American consumers—the institute asks high net-worth consumers to rate luxury brands by category across
four equally weighted components: consistently superior quality, uniqueness and exclusivity,
making the customer feel special across the entire experience and being consumed by people who
are admired and respected.
The “best of the best” in the premium skin care category (LBSI score out of 10) were La
Mer ( 7. 58), La Prairie ( 7. 25) and Perricone MD ( 7. 23). In the premium makeup category, La
Prairie ranked first with 7. 69, followed by La Mer ( 7. 59) and
Dolce & Gabbana ( 7. 47).
“In today’s new luxury landscape, wealthy consumers will
pay skin care and makeup brand premiums only for what they
define as genuine luxury,” said Milton Pedraza, chief executive of the Luxury Institute. “Skin care and makeup brands
must be able to deliver the highest quality products in order
to reassure consumers that they’re purchasing value for the
associated price. In the current economy, buyers are unforgiving of luxury brands that are not living up to the standard of
their brand name.”
The proprietary LBSI survey is a national sample of 652
wealthy American female consumers with an average weighted household income of $403,000 and an average household
net worth of $2.2 million was surveyed online. The survey data
have been weighted with respect to gender, age and income to
match the Federal Reserve’s latest Survey of Consumer Finances.
More info: www.LuxuryInstitute.com
La Prairie skin care ranks high with luxury consumers.
LE MER AND
FLU FEARS SPIKE
SOAPS AT OFFICE
; Like most of 2009, back-to-school sales
followed a downward trend, but
according to the NPD Group, hand sanitizers and soaps proved to be must-have items at office supply stores.
While sales of school and office supplies at the office super stores declined
3% during the seven-week back-to-school period (July 26–Sept. 12), flu
fears (and student supply lists) helped
propel sales of hand sanitizer and
hand soaps in that retail sector.
Although the volumes are small, sales
of hand sanitizer rose 2916% and hand
soap sales spiked 513% in office supply
stores, according to NPD.
More info: www.npdgroup.com ;
Spiral notebook, check. Hand sanitizer, check.
During back-to-school shopping, sales of hand
sanitizers and soaps soared at office supply stores.