Findings from our Cosmetics & Toiletries USA report reveal that department stores, along with specialty stores, experienced exceptional growth in 2013, while direct sales outlets or channel squeaked by with an estimated growth of 1%. Our biennial Beauty Retailing USA (coming in 2015) report digs deeper into the retail landscape, explaining what growth patterns really mean within the channels of distribution.
This report will explain that there is more in channel growth than meets the eye, with many different elements to each channel. For example, if we break up the direct sales channel into its various components, we would see that the person-to-person selling portion experienced dramatic declines due to Avon’s poor performance, while the smaller e-commerce, home shopping, and infomercial channels recorded healthy gains. E-commerce remains the fastest growing segment of the beauty retailing industry, with retailers and marketers continuing to compete with their own transaction websites for a growing share of beauty dollars. The opportunity to purchase online via smartphones assures continuous growth and development of this channel.
In addition to the e-commerce channel, the fact that retailers continue to expand and diversify distribution options and are present in practically all retail channels in order to capture consumers’ shopping preferences is equally notable. Brands that were once strictly infomercial, such as Guthy-Renker’s Wen hair care and Meaningful Beauty, are now both found in beauty specialty stores, such as Sephora and Ulta, respectively.
An improved economy resulted in strong growth in the department store and specialty store channels. Part of this growth is due to consumers investing in products under the anti-aging umbrella, such as more high-tech and innovative facial treatments commonly found in higher-end retailers. The growing use of multiple treatment products such as serums in addition to moisturizers and anti-aging agents, lead to incremental sales, which helped propel growth, especially in the facial treatments area. With the use of so many multiple products, beauty regimens demands the use of a trained beauty advisor, which resulted in department stores and specialty stores growing at a faster percentage than the industry average.
To succeed in the roller coaster ride that has become the new norm in the beauty sector, Kline announces the launch of the 11th edition of Beauty Retailing USA: Channel Analysis and Opportunities, a comprehensive analysis of the complex environment for retailing cosmetics and toiletries in the United States. With detailed channel and retailer profiles, this insightful study will provide a clear view of the challenging and ever-changing retail landscape specific to beauty and personal care products. Beauty Retailing USA: Channel Analysis and Opportunities, along with Cosmetics & Toiletries USA, are the perfect marriage that can help you to succeed in this dynamic and complex market.