Nearly all women wear some makeup, with married women 25-34 with children the most likely to paint their faces, according to Mintel. Eye makeup is the largest segment, accounting for 41% of the $2.5 billion color cosmetics market. Three in four women (75%) regularly wear lipstick or lip gloss, with older women preferring lipstick while younger women favor gloss.
The oft-repeated “lipstick index” that finds women still purchase small priced luxuries such as cosmetics, even during a recession has proven true during this economic downturn, according to many beauty brands. “Women are still buying, but they are taking less of a chance and sticking with what they know works,” says cosmetic company Smashbox’s Lori Taylor. Some 75% of cosmetics purchases come from products under L’Oreal, Procter & Gamble, and Revlon brands.
Makeup is an industry that tends to track numerous smaller trends, while larger habits and behaviors remain set in stone. In other words, women may shift to a lighter lipstick color, but the number of lipstick wearers remains constant.
Savvy Shoppers
As a result of the recession, women are undeniably savvier about their purchases and they are seeking more value in what they buy. In turn, cosmetic companies are providing more multi-use or faceted products, such as cosmetic sets that include a variety of products such as mascara, blush, and foundation, says cosmetic brand Korres’ Annia Spahr.
More than half of cosmetic purchases are made at drug stores and an additional third come from Walmart. Those who buy cosmetics at retail have come to expect that all stores — mass, drug, or department — accept returns, says Taylor, adding that it’s a notable shift since flexible return policies were previously a key selling only point at higher-end chains such as Sephora and Nordstrom. “It’s definitely trickled down, but it’s a good thing since it gets women back in the store,” says Taylor.
The Internet is fast becoming a key resource for women cosmetic shoppers, especially since 47% prefer to be left alone when shopping for cosmetics, according to Mintel. Among online shoppers, one in 10 women has purchased cosmetics from an online retailer, with 8% using a department chain/mass merchant website, 8% from Wal-Mart.com, 8% from Target.com, and 5% from a drug store’s site.
Color Trends
Although beauty brands aren’t collectively parroting buzz words such as “retinols” or “serum,” as they have in previous years, the majority feel the top concern for today’s woman is perfect skin tone. “Even skin tone is the top desire sought by women of all ages,” says cosmetic brand Cover FX’s Wanda Longo. “They equate uniform skin with youthfulness and everyone wants to diminish fine lines and wrinkles.” In fact, three in four women skincare users (75%) “use skincare products to look the best they can for their age,” according to NPD Group, with 53% citing anti-aging benefits as “very” or “extremely” important.
Companies are also addressing ailments that contribute to aging skin. Dermalogica is introducing its “UltraCalming” collection to help women with sensitive skin acquire a flawless complexion. Cover FX’s line includes products addressing acne, redness, and under eye circles.
Mineral makeup continues to be a growth driver, with numerous brands, including Cover FX, Smashbox and L’Oreal, introducing new product offerings containing the substance. Taylor says Smashbox’s “Halo Powder” mineral line is now its number two seller after launching only two years ago. The company is expanding the Halo line to include bronzer and yellow color correction mineral powder this fall.
Cool colors are expected to be popular this fall, says many manufacturers. Many companies are introducing “peacock” shades, such as teal, navy, and gold, in lipsticks, eye shadows, and eye liner.
Aging Down
Some 95% of girls aged 15-17 and 88% of girls aged 12-14 wear makeup. Tweens tend to wear brands such as Wet n’ Wild and Mary Kay, whereas teens gravitate towards Maybelline, Revlon, and Neutrogena. Beauty brands attribute the increase in young consumers buying their products to the Internet. “They are really savvy, they do their own research and know exactly what brands and products they need,” says Korres’ Spahr.
While the majority of brands aren’t age specific, Dermalogica has created its own separate brand, Clean Start, to specifically target tweens and teens. “It’s under the same umbrella but it addresses their unique concerns like oily skin and breakouts,” says the company’s Nathalie Banker. Dermalogica reaches out via social media, the My Beauty mobile bus tour, and via eco-friendly efforts. Consumers, for instance, receive a reusable water bottle with a $35 purchase. The teen line’s intent is to teach teens how to treat their skin, but will hopefully get them to gravitate to other Dermalogica products — such as anti-aging — when the time comes. [Beauty/Consumer Spending]
Contacts and Connections: Cover FX, Wanda Longo, International Communications Director, 1681 Flint Rd., Toronto, ON Canada M3J 2W8, 416-665-7444, x211; wlongo@coverfx.com; www.coverfx.com.
Dermalogica, Nathalie Banker, 1535 Beachey Pl., Carson, CA 90746; 310-900-0836; nbanker@dermalogica.com; www.dermalogica.com.
Korres, Annia Spahr, Marketing Coordinator, 584 Broadway, #1008, New York, NY 10012; 212-226-544; annia@korres.com; www.korres.com.
Mintel, Kay Fay, Senior Beauty and Personal Care Analyst, 351 W. Hubbard St., Chicago, IL 60610; 312-932-0400; kfay@mintel.com; www.mintel.com.
Smashbox, Lori Taylor, Pro Artistry Relations, 8538 Warner Dr., Culver City, CA 90232; 310-558-1490, x474; lori@smashbox.com; www.smashbox.com.
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