Skin care & the mass market

Chain Drug Review, Sept 10, 1990

In 1989, with sales of $571 million, the facial product segment was slightly behind hand and body lotions ($578 million). However, it was expanding at a faster clip. So, sometime in 1990 facial products passed hand and body lotions as the category's leading segment.

And growth in facial products has accelerated this year. Sales of moisturizers, for example, expanded at a rate of almost 20% during the first half of 1990.

This month Procter & Gamble Co. is taking steps to ensure that the formidable lead its Oil of Olay line has in the facial products segment remains intact. It is launching the Oil of Olay Cleansing Collection, a five-product line of cleansers, cold creams and toners. Oil of Olay accounts for about 28% of unit sales of moisturizers and is a powerhouse in other product lines as well.

Almay Inc.'s Stress line is carving a niche for itself in the facial products category. The line is formulated to help skin recover from day-to-day damage and to prevent further harmful environmental impact. Stress cream and eye gel were the first products in the line, which was launched in 1988, and such product extensions as Stress tonic and lip protector brought the line to six items. The Stress products, like all Almay items, are clinically and dermatologist tested, hypoallergenic, 100% fragrance-free and non-comedogenic.

Needless to say, other manufacturers have their own plans to increase their presence in facial products. Revlon Inc. intends to launch its New Age Naturals line before the end of this year. As the name implies, the eight-item face cream and lotion line will be positioned as "natural," and it will contain such botanical ingredients, as lavender.

"L'Oreal's success with Plenitude in this segment shows how much room for growth still exists," says Salomon Bros. vice president Diana Temple.

SUN CARE PRODUCTS ARE IN TRANSITION

Like the overall skin care category, the sun care segment is a business in transition. As the emphasis among consumers has shifted from acquiring the darkest possible tans to ensuring the greatest possible protection from the sun's rays, sunscreens are eclipsing suntan products.

Suntan products, those with sun protection factors of 4 or lower, accounted for $212 million in mass market sales last year, versus $175 million for sunscreens (with SPFs higher than 4). But while suntan products were growing at a 6% annual clip at the beginning of this year, sunscreens were rising by 33%.

The best-selling suntan products lines last year were Coppertone Corp.'s Coppertone, Richardson-Vicks Inc.'s Bain de Soleil, Caribe, Tanning Research Labs Inc.'s Hawaiian Tropic and Coppertone's Tropical Blend, in that order. The top five sunscreens were Bristol-Myers' PreSun, Johnson & Johnson's Sundown, Herbert Laboratories' Eclipse, Shade by Schering-Plough Corp. and Bain de Soleil, respectively.

Drug chains are the dominant mass market retailers in both product classifications, but much more so in sunscreens. Chain drug stores account for 32% of all suntan product sales, discount stores for 23%, supermarkets for 17%, food/drug combination stores for 15% and independent drug stores for 13%. In sunscreens drug chains capture 44% of the market, independent drug stores 15%, discounters and combos 14% each and supermarkets 13%.