Beautiful Skin, at What Price?
by Mary Gustafson
November 7, 2008
Consumers are looking to pinch pennies, but want to look (and smell) good doing it.
Anyone who’s a little nearsighted knows what a
risky proposition it is to get showered and ready in the morning before donning
your vision-correcting accoutrement of choice.
If you’ve ever reached blindly for what you think is foaming shaving gel
only to find that you grabbed a can of aerosol deodorant, then you’ve
experienced the kind of confusion consumers face shopping in a drugstore.
Consumers in search of their go-to national brand body wash are
likely to find a very similar — yet cleverly packaged and distinctive — store
brand version. Both bottles are likely to sport luxurious claims
about moisturizing ingredients, and both are likely to feature upscale-looking
packaging. If it weren’t for the distinction in price, some consumers might not
notice the difference. And that’s exactly what some retailers are banking on
when it comes to private label bath and body products. Now that the
quality of store brand products meets or exceeds that of national brands,
consumers have fewer qualms about switching over, and industry watchers are
seeing this happen in droves. They say this trend suggests that the bath and
body category — especially in private label — is transforming, thanks to a
multitude of consumer and marketing trends, as well as other economic factors.
Bathing Beauties
Tim Dowd, a senior analyst at Rockville,
Md.-based Packaged Facts, says the cosmeceutical trend reigns supreme in the
bath and body market. Dowd defines cosmeceutical products as those that treat
or prevent conditions such as age-related wrinkles and dry or sensitive skin.
Other examples are products that fight free radicals, usually through
antioxidant ingredients. But this trend isn’t new — bath and body products
long have been marketed as weapons against aging, Dowd admits. It’s just that
consumers are becoming savvier about which ingredients and additives are
associated with those benefits. “Right now, many of our customers are
revising their formulations to be paraben-free, removing SLS (sodium lauryl and
laureth sulfate) and propylene glycol, too,” Christine Lee, product development
manager at Irving, Texas-based Chemolee Lab Corp., says. “There is a lot of
pressure from the ‘natural and health’ trends, and more educated consumers are
going in this direction. I think more and more, brands will shift this way and
follow this natural trend in their formulas and the marketing of their
products.” Lee suggests the reason for the volume of anti-aging products
is that more baby boomers are reaching the age of 50 — an age that tends to
intensify existing vanity. And just as retailers and manufacturers
need to pay attention to the age of their consumers, they also need to take
note of their ethnic and cultural backgrounds. “True multifaceted
skin care for different demographics continues to play a huge part in the
health and beauty market,” Kelly McIntosh, vice president of sales and
marketing at Ontario-based Body Care Innovations, says. “The biggest trend is
true multicult-uralism — there is an Asian and Indian influence in fragrances
such as Cherry Blossom and Saffron and Jasmine. Fragrance is also being
attached to vibrant colors in products and in packaging.” Most
important, bath and body products must have value-added benefits. Audrey Reed,
account manager at ProCore Laboratories, says new products in this category
must be able to multitask — cleansing properly isn’t enough for many consumers.
“Products need to deliver the promise of cleansing well, or
moisturizing all day, or exfoliating well,” Reed says. “Products must
work. They need to do double-duty — such as moisturize and provide
anti-aging benefits, or cleanse well and gently exfoliate to reveal
younger-looking skin, or be a great aftershave and give a healthy dose of
antioxidants.” To that end, organic or all-natural products are the
ultimate multitaskers. If a product is marketed as having organic and natural
ingredients, it also can be perceived as more beautifying or luxurious. “Along
with wanting eco-friendly packaging and products, consumers are looking for
natural and organic everything,” Reed says. “Organic used to mean more
expensive; now that more offerings are available and price differences between
non-organic and organic are being minimized, more consumers are associating
natural with cost-effective, too. Natural no longer means higher priced.”
Hitting the Bottle
Without a doubt, if retailers want to “clean up”
in the bath and body category, their first consideration (after the quality of
the product itself) should be packaging, and in most cases that requires a
bottle of some sort. Because consumers are looking for more product
for their money, some suppliers say they are hearing more requests for larger
bottles. “I would say that dainty packaging, or smaller packages, are
out,” Reed says. “Bigger bottles or jars or tubes are in, so long as the value
is there to back it up.” Reed adds that she’s seeing requests for
sizes ranging from 12 ounces to 24 ounces for lotions and body washes, compared
to 8 ounces to 16 ounces, which used to be the standard. Even hand washes
and lotions are increasing in packaging size, she says. But bigger
packaging doesn’t mean private label body care items have to look like
value-tier products. “I think a lot of the trick in
merchandising private label right now lies again in sophisticated packaging,”
Dowd says. He adds that private label products have been moving toward
the kinds of elegant and sophisticated packaging employed by national brands
such as Neutrogena, which uses a quasi-medical blue-and-white color scheme for
a more clinical feel. CVS has started to do this with its Skin
Effects by Dr. Jeffrey Dover line, Dowd says. The upscale look of the Skin Effects
packaging and the doctor endorsement make it difficult for consumers to
determine that the line is a CVS exclusive.
Laura Craig, corporate general manager and esthetician for
Essential Labs, Clackamas, Ore., says retailers must be keenly aware of what
their target demographic looks for when it comes to packaging.
“Retailing in one of the fastest-growing and competitive markets is
hard, so please make sure you know your demo-graphics when you create your
line’s look and feel,” Craig advises. “Just because you might love the color
purple, doesn’t mean you should package everything in purple. Just because you
love the smell of rose, doesn’t mean you should scent everything rose. Purple
and rose can remind people of their grandma, and thusly, if your demographic is
younger, you won’t sell too well.” Developing more attractive
packaging isn’t limited to changing the color palette. Some consumers are
attracted to a product because of its sustainability attributes and how well
its packaging conveys that environmental message. Private label can take
advantage of this trend, too. “I think a great example of this is the
evolution of green products and organic products in health and beauty,”
McIntosh says. “We were the first to have an organic bar soap made of vegetable
base. Currently there is no such [national] brand in the
market-place. Body Care Innovations also ensured corn-based wraps and
corn-based colors in the pack-aging, with recycled cartons to really effect a
sustainable product.”
Beauty on a Budget
Suppliers and retailers have
varying ideas about who the typical private label consumer is in the bath and
body category, but they do agree on one thing: Everyone is looking for higher
quality at lower prices. “There is no typical private label consumer
today, though there is evidence to show that higher income brackets are turning
to private label, and that better-than-brands are becoming more and more
important,” McIntosh says. ProCore’s Reed says consumers also are looking
for safer products under national and private label brands. “The
typical private label customer in bath and body care is one who is very
concerned about where health is going, moving towards a more holistic
approach,” she says. And while consumers right now are very
price-conscious, Dowd says evidence exists to support what he calls the
“Lipstick Indicator.” He says industry observers noticed that when the economy
took at hit after 9/11, consumers were more likely to spend more money on small
indulgences such as pricey lipstick. “Even in hard economic times,
even in a mass merchandiser that caters to lower-priced goods, Americans are
just determined to spend more for a luxury HBC,” Dowd says. PLB
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