Beauty, More than Skin Deep -
and We've Got Your Coupons!

Today, the beauty industry includes much more than cosmetics and skin care. Now everything from hair styling and hair removal, nail and tanning salons, massage parlors, shower and shaving products, perfumes, colognes, exfoliating soaps, volumizing shampoos and anti-wrinkle creams are part of the beautiful niche.

While the industry has been largely focused on women, men are becoming an increasingly important segment of the market. Currently, men are being targeted for body sprays, specialty hair products, lotions and, believe it or not, nail care. In addition, salons, the traditional refuge for women, now offer services for men including cuts, shaves, facials, massages and, yes, manicures.

Consumers are quite brand loyal to their beautifying products. The majority of consumers say that personal recommendations from friends and family are more important to their decision to try something new than “celebrity marketing”. Often times, marketing campaigns in this industry require free samples and discounts to effectively draw consumers to try a new-to-them product.

Here are some of the more fascinating facts and figures for this niche.

Product segmentation looks like this:

  • hair care, 22%
  • color cosmetics, 18%
  • skin care, 15%
  • bath and shower, 13%
  • fragrances, 9%
  • men’s grooming, 7%
  • oral hygiene, 7%
  • sun care, nail care and baby care, 5%
  • deodorants, 4%

Total revenue in the cosmetics industry was $113.3 billion in 2009. The leading manufacturers in this niche and their sales volumes are:

  • Procter and Gamble at $26.3B
  • L’Oreal at $25.8B
  • Unilever at $16B
  • Avon at $7.6B
  • Estee Lauder at $7.3B
  • Johnson and Johnson at $5.6B

The purchaser demographics are as follows: 50% of purchases were made by those in the 35-54 year range; 20% by 55-64 year range; 15% by 25-34 year range; 10% by those over 65 and 5% by 15-24 year range.

As in any industry, there are trends developing. Here are the latest in this niche:

  1. anti-aging skin care (driven by the Baby Boomers)
  2. a shift towards natural cosmetics
  3. an increasing awareness of ingredients
  4. an increasing demand for higher value (per dollar) products

The top exporting countries in this niche are: France, $14.1B; Germany, $7.7B; US, $6.8B; UK, $4.4B and Italy, $3.3B.

The top beauty products importing countries are : US, $5.5B; Germany, $4.5B; UK, $4.3B; Canada, $2.9B and France, $2.7B

The emerging new markets for beauty products are: Russia, Japan and Iran.

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