Marketers to Shift Promotional Strategies for Beauty Products

One long-​held notion has been that  a recession ends when women begin spending again on cosmetics and toiletries. Based on rising sales of these products in the past year, the recession may well be behind us. But marketers in some categories are faring better than others and this situation may result in promotional shifts.

According to the Cosmetics & Toiletries USA 2010 study released by Kline & Company, sales of cosmetics and toiletries rose 2.4% in 2010. Manufacturers recorded revenue of $36.5 billion. Along with the spending increase, consumers showed preferences for specific types of goods.

For example, skin care products account for about 25% of revenues. And growth in this category stems from several developments.  Manufacturers are introducing products that help consumers give themselves high-​tech facials. Product improvements in  nail polish are also spurring growth. New application methods have allowed consumers to make their nails look salon-​perfect.  Carrie Mellage, a director at Kline Consumer Products Practice says “Advancements in skin care have included bioelectric technology to help stimulate the natural renewal process of the skin and DNA enhancement formulas found in power-​serum products."


Specialty operators in the beauty segment are showing strong gains. And professional outlets such as salons and physician offices are also reporting growth though at lower levels. Sales gains in this sector may continue to pressure sales at beauty service businesses as consumers show interest doing their own beauty care. Consumers will generate additional sales in skin care kits and multi-​functional products this year. These products are seen as offering more cost effective. As a result, marketers will likely promote sales and discounts and emphasize the value of new products in the beauty channel.

[Source: A Focus on Added Value. Kline & Company. 3 May 2011. Web. 11 May 2011] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.