Dermagen launches high-end skin care line
anti-aging skin care line called Môntage Paris. The company says it
is going into direct competition with leading French skin care
products currently being marketed by companies such as Chanel and
Lancome.
The range, which will eventually be expanded to include up to 25 different products, is described as high potency and according to the company 'will compare favorably with products that are already on the market and it could considerably add to the company's bottom line'.
The company intends to handle all manufacturing aspects of the product line, as well as the marketing strategy. Its sales strategy has to date been largely confined to the internet, and in line with this it says it has reserved the domain montageparis.com. It added that initially the product would be promoted to retailers and wholesalers via the internet and trade shows.
Dermagen is part of the Amexdrug group, an Oregon-based pharmaceutical wholesaler and distributor. Having acquired it in October last year, Amexdrug has made it an operating subsidiary. As well as cosmetics production capabilities, Dermagen also includes a personal care packaging business that serves the North American market.
The beauty business has developed over 500 formulations, and actively markets around 170 products. These products are manufactured at a facility is capable of producing approximately 12,000 units per eight-hour shift.
Operating at only one shift per day, the company says this manufacturing capacity could produce gross sales of up to $3 million annually, but if operated at full capacity, it could be stretched to $9 million in annual sales.
The decision to launch and market the new line falls in line with the continued growth of high-end skin care and anti-aging products for older women. Industry experts point to the growing number of early baby boomers now entering the seniors category and pushing up the stakes significantly.
This is because this group now has more spending power than ever before and is also increasingly fixated on preserving youthful looks. Euromonitor International estimated that the total market for skincare products is valued at $38.3 billion globally, a figure that is second only to the hair care sector.
However, breaking this down for products specific to the anti-ageing market, the figures are even more dramatic. For products that target specific age-related conditions, the global market was estimated to nudging the $10 billion in 2004, indicating double digit growth rates.
