Manufacturers and retailers must collaborate to re-engage prestige consumers
In an exclusive interview, Grant told CosmeticsDesign.com USA that the biggest challenge facing the prestige beauty industry is the decline in the number of users.
“Each year we have seen a decline in the number of women aged 16-24 who tell us that they are using beauty products,” she said, adding that the decline is most pronounced among 18-24 year olds, with the fragrance sector experiencing the longest running decline.
Need for manufacturer and retailer collaboration
According to Grant, encouraging usage of prestige beauty products amongst consumers is a ‘multifaceted’ issue.
“The re-engagement of consumers begins with education, re-messaging and reconnecting,” she said. “It requires understanding of how to reach consumers before they enter the store, while they are shopping and after they leave the store” she added.
In the prestige market, Grant notes, the price/value equation is also critical as consumers are increasingly discriminating in their choices and careful in their spending as a result of tough economic conditions.
According to the market research company, sales in US prestige beauty market dropped six percent in 2009 to $8.19bn (€6.06bn). However, Grant predicted that recovery will be seen across all categories in 2010.
“We anticipate that skincare will be the fastest category to recover and post positive gains (mid - single digits), make-up will follow but with somewhat softer increases (lower single digits), and, after years of successive declines, fragrance will stabilize (flat to low single digit performance),” she said.
Anti-aging skincare marketed online could spell big bucks
According to Grant, anti-ageing products is the sub-category that spells the biggest opportunity in terms of sales; something which can be further exploited via the use of digital marketing
“Anti-aging products and the consumer demographic most engaged in this category (35-54) are the most lucrative market,” she said.
“Consumers are increasingly looking to a variety of sources for information on skin care products and increasingly relying on the endorsement/advice of friends and family,” she said, highlighting the potential of the internet and social media in marketing these products.
