Are we set for a 'microsegmentation' backlash?

In recent years one of the key developments in western European and North American markets has been extensive and continued segmentation of categories or microsegmentation. But the latest market research suggests that consumers might have had enough of all that now.

In a presentation given at the recent Beyond Beauty show, held in Paris Sep 11 - 13, James McCoy, from market research provider Mintel, predicted that all the signs are pointing to a backlash, as consumers become both confused and cynical over hair care and skin care product claims.

McCoy says that the end result will probably be a far more polarized beauty industry, with some manufacturers continuing to offer increasingly niche-focused products and others offering more simpler, more encompassing products - what McCoy terms 'the-one-product-does-all approach'.

The segmentation of the market has led to products aimed at specific age groups, gender-specific, as well as products for every skin and hair type and color. This has weighed down store shelves with all types of products making all sorts of unique selling points.

Part of this has been fed by the need to strengthen specific brands. One example of this is Unilever's Dove brand, which just a few years ago was simply a soap bar. Now there is a myriad of different hair and skin care products all available under this brand, with new products added on an almost monthly basis.

"This increased segmentation has resulted in products becoming part of standard skincare regimes, ultimately stimulating demand for products that people never knew they needed," said McCoy, senior Cosmetic Research consultant, Mintel.

"But while some consumers will continue to look for ever more specialised products, Mintel believes that others, who have become confused by the beauty products available, could start to demand areturn to a more basic approach to skincare," he adds.

With the the one-product-does-all concept allowing many companies to increase the marketing potential of their brands, it is undoubted that microsegmentation will continue to be a useful tool for the industry, but for those that wanting to make life simpler, many manufacturers might find themselves re-introducing products at a grass roots level.

"This is a trend that we have already started to see in the food market in response to consumer confusion about product claims and healthy eating trends. And there is nothing to suggest that this can't happen in the beauty market as well," McCoy said.