Shades of autumn: fall's color cosmetics offer an array of hues

Household & Personal Products Industry, August, 2007 by LaToyah Burke

A YEAR AGO, niche brands were emerging, today they're all the rage in the color cosmetics market. Brands that address makeup needs in addition to skin care, anti-aging and more are gaining ground in the beauty segment. "This fall our focus is all about health couture--products that not only look great in their packaging and fall in line with trends, but are delivering great benefits to the skin," said Alexis Mezzina DiResta, vice president, Tarte Cosmetics.

Sales of mass color cosmetics rose 6.27% to $1 billion in 2006, according to Information Resources Inc, Chicago, IL. The greatest gainer in the facial category, eye color, was up 5.2% from 2005.

Major fashion houses, like Chanel and Dior, have always had their hand in the beauty industry, but NPD group analysts say more designers are entering the cosmetics arena with artist and alternative brands. "These three types of niche or specialty brands now make up about 39% of the dollars in the prestige beauty industry," said Karen Grant, senior beauty industry analyst for The NPD Group. "They're keeping the younger audience attracted and involved in the playfulness and fun of the makeup category."

Women remain persistent when it comes to their beauty purchases. According to NPD, makeup is the top prestige beauty category in the U.S with a 37% share and $3.1 billion in sales.

What to Buy for Fall 2007

"Last year's rock and roll chic look is transformed this season into ultra-natural, yet polished sophistication. Eyes are always a great focal point, especially given that the rest of the face is neutral for the season," according to Joey Chancis, founder and chief executive officer, Joey New York.

Consumers are shopping for their cosmetics online more than ever. Internet shopping accounts for 4% of all sales or about $1.7 billion in the more than $42 billion dollar beauty industry. That makes it the fastest growing channel for shopping according to a new report from consumer and retail information provider the NPD Group.

In its recent report, "Emerging Channels: Beauty Care Products Over the Internet," one in ten women told NPD they shop for beauty products such as makeup, skin care and fragrances on the web. "Consumers have become more wired and so they are more likely to research, choose and replenish beauty brands online, they are spending their money on brands they know and trust, said Ms. Grant.

Moreover, 74% of those women say it saves time and about 70% say it's easier and/or quicker to shop online than in a store, according to the report. Surprisingly, Baby Boomers are just as likely to shop on the internet for beauty products as their younger counterparts. Women ages 45-64 make up a large segment of the Internet shopper base.

Solid Foundation

According to Mintel, L'Oreal holds 36% of the mass market with approximately $894 million in sales. Revlon is No. 2 at $543 million and Procter & Gamble rounds out the top three with $476 million in makeup sales. The three companies accounted for 77% of mass market sales in 2006.

Revlon surpassed P&G last year by maintaining share of its Revlon and Almay brands. Keeping things fresh, Almay launched Smart Shade blush and Smart Shade bronzer to complement skin tone, utilizing shade sensing smart beads that adjust to consumers skin tone. The liquid cream formula produces sheer, natural color results. The blush is available in pink, berry and natural shades while the bronzer is only available in sunkissed.

Banking on the minerals trend, Almay recently introduced pure blends mineral makeup. It provides coverage that makes skin look radiant and feel natural. Talc-free minerals help nurture skin and blend seamlessly to camouflage flaws and imperfections, according to the company.

According to Risi-Leanne Baranja, editor-in-chief, Palacinka.com--an online resource of beauty product reviews for women of color--"For foundations, we will continue to see more and more formulations which result in sheer/medium coverage, skin evening effects and have added vitamins, botanicals, and even acne fighting ingredients."

Representing almost half of total makeup dollars, the facial makeup segment gained 3% due primarily to new product launches.

Moisture is on the mind of many women. One of these new product launches, Clinique's Supermoisture Makeup is a completely modern, super hydrating creme-gel foundation. Scheduled to hit shelves in October, Supermoisture Makeup provides intense hydration and imparts a radiant, healthy glow.

"Moisture and comfort are top of mind for women with dry skin, especially when it comes to foundation," explained Janet Pardo, senior vice president, global product development, Clinique.

Supermoisture Makeup features Clinique's exclusive polymer-based complex which time-releases moisturizers and conditioners where they are needed most. The unique film-forming polymer blend, in combination with special pigments, allows the product to set for all-day wear and color.

"With 17 shades from which to choose, women of every skin tone will find the perfect match," according to Ms. Pardo. It is packaged in a clear tube for easy shade recognition.