Full of Potential

As the saying goes, “Beauty is in the eye of the beholder.” However, this reality does not stop Americans from using products to be more beautiful according to society’s standards.

In fact, 94 percent of all U.S. households buy beauty products, spending an average of $98 per year, states Nielsen, New York. Last year alone, the beauty industry saw sales totaling $33.3 billion. And while total sales are mostly flat compared to a year ago, there is a bright spot: Beauty sales are increasing in value channels such as grocery, dollar and club stores. And this means there could be potential for stronger sales of store brand beauty products.

“When we look at private label sales, growth is coming from beauty care and personal care items,” states James Russo, senior vice president, global consumer insights, Nielsen. “It’s the next wave of growth for store brands.”

But to attract consumers to private label beauty products within these channels, retailers will need to focus on the trends that are driving growth. Right now, products that offer multitasking properties, are made with “green” chemistry and appeal to men seem to be trending the most.

Offer multiple benefits

One of the first questions retailers should ask themselves when developing a personal care item is: “Does it multitask?”

“The customer wants it all, and now she is able to get it all,” says Renee Barch-Niles, president of Dublin, Ohio-based Emilia Personal Care Inc. “The one-trick pony is a thing of the past, and multifunctionality is simply becoming ubiquitous.”

By offering multiple benefits, a beauty care item caters to the customer’s desire for convenience, she adds. Take, for example, multipurpose beauty oils — they’re safe not only for use on the face, but also for use on hair and skin. Plus, beauty oils are now sold as “beauty boosters.” The consumer can add a few drops of oil to her favorite shampoo or face cream as a way of boosting the overall benefits of her favorite products.

Another example of multipurpose beauty products are beauty balm (BB) creams. BB creams are tinted creams that are lighter than foundation and heavier than tinted moisturizers. More than just colored creams, BB creams offer a plethora of added skincare benefits such as sun protection and dark spot correction, as well as anti-acne and anti-aging ingredients, depending on the brand, Barch-Niles says.

When it comes to packaging of multipurpose cosmetics and personal items, April Vignone, president of product and packaging development for Verla International Ltd., New Windsor, N.Y., cautions retailers to accurately describe the benefits the product provides.

“Today’s consumer is smart and savvy,” she says. “If the active ingredients are at a clinical level, talk about it, as this is of major importance. However, if your active ingredients are just in at the minimum percent, the customer will recognize this quickly when they read the ingredient list. So, don’t [exaggerate], or you might lose brand loyalty.”

Go green

“Better-for-you” cosmetics and personal care items are also trending as consumers demand products that are both safe and sustainable.

To this end, beauty product companies are employing green chemistry by offering product formulations free from such “toxic synthetic ingredients” as parabens, phthalates, triclosan, mineral oils, formaldehyde releasers, petrochemicals and more, Barch-Niles states.

Consumers today are intelligent and concerned about what they’re putting on their face every day, she adds. They are willing to read beauty product labels and research many of their purchases in advance. They’re much more selective than they used to be about where to spend their money.

Since national brands do not typically offer beauty care items that employ green chemistry, retailers could take advantage of this consumer need with store brand products, Vignone states.

Of course, if a retailer is going to offer green personal care items, the packaging of those items must also be green. Retailers could consider offering not just recyclable packaging, but also packaging that can be reused or refilled, Barch-Niles says.

“If [your customer] keeps your bottle with your brand mark in her bathroom, it reminds her of your store each and every day,” she adds.

Don’t forget men

Personal care items that cater to men are another area where retailers could see significant growth.

During the 12-month period ending June 2014, male shoppers increased their spending on beauty products by 10 percent, Nielsen says.

“Men of all ages are seeking to look better, feel better, have greater sexual appeal, stronger chances for new career advancements and even to be more individualized so as to stand out from the crowd,” Barch-Niles says.

And it seems that men are mostly interested in buying products that address skincare, hair care and shaving needs, as 80 percent of sales to men come from those three areas, Russo says.

When it comes to shaving, global market researcher Mintel states in its September 2014 “Category Insight: Shaving and Depilatories” report that a growing number of men are shaving to remove non-facial body hair. It adds that more than a quarter of U.S. men who use shaving products are removing hair from their chest, armpits and back. This figure rises to 40 percent of men aged 18 to 24.

In fact, Gillette launched its first men’s razor designed just for shaving the body in February 2014 as a response to the growing number of men who remove their body hair, Mintel adds.

While many men might be shaving their body, they’re also growing out their facial hair. Men’s facial hair care, therefore, could be an important untapped market for retailers to consider on the store brand side.

Men of all ages are sporting beards that vary from a lumberjack style to a tightly “manscaped” style, Barch-Niles says. Regardless of which look a man is going for, his beard requires a lot of grooming time and grooming products, from oils to conditioners and waxes. Therefore, retailers could offer store brand products to accommodate such needs.

Do offer multipurpose personal care items.

Don’t exaggerate product benefits.

Do consider “greening” up your cosmetics aisle.

Don’t neglect male shoppers when developing personal care products.