Conditioning, glamorizing nails

MMR, May 13, 2002

NEW YORK -- Consumer interest in nail treatments that deliver increased protection and polishes that emphasize lustrous colors promises renewed excitement and growth in the segment.

While overall sales of nail polishes and treatments slipped 0.6% for the 52 weeks ended March 24, 2002, according to Information Resources Inc., technologically advanced treatments that provide such benefits as superior protection, fast-drying applications and metallic shades for nails experienced robust growth.

Dollar sales of Del Laboratories Inc.'s nine-SKU Sally Hansen Chrome Nail Makeup, which contains microfine sterling silver and specially treated particles to provide a mirrorlike finish, registered quadruple-digit growth, while sales of L'Oreal's Shock Proof Extreme Wear nail color, which uses L'Oreal's film-plastique technology to create a flexible yet hard nail, rose 930.7%.

Consumer demand for quick-drying polishes and treatments, meanwhile, helped Super Top Speed from Revlon Inc. post a 1,096% advance in revenues.

(The figures reflect sales from drug stores, supermarkets and discount outlets, excluding Wal-Mart Stores Inc.)

In recent months Del has sought to enhance its heritage of marketing products that focus on consumer needs by developing products that combine increased nail protection and maintenance of healthy-looking nails. The company's new Sally Hansen Maximum Growth Cuticle & Nail Moisture Treatment Pen features a complex of vitamins, pro-vitamin [B.sub.5], aloe and fluoride to hydrate, nourish and seal in moisture. Sally Hansen's Age Correct Growth Treatment Anti-Aging nail treatment, meanwhile, contains vitamins, hydrolyzed protein, rose oil and soy extract to help women maintain the healthy appearance of mature nails.

With women trending toward a shimmery palette, a number of suppliers besides Del are focusing on metallic-oriented hues to generate excitement. Revlon's new ColorChrome nail enamel has six chrome-based shades as well as a high-tech mirror finish so that nails flash in the light.

Another category leader, Maybelline/Garnier, is emphasizing a shiny, glossy appearance with its recently launched Wet Shine Nail Color line. The collection has a formula of acrylic, film formers, resins and a plasticizer in mauve, pink, gold and 18 other shades that are designed to help nails achieve a long-lasting, superglossy look.

Several vendors have sought to capitalize on the appeal of fruit- and natural-color shades among women during the spring and summer. Procter & Gamble Co. is offering such hues as deep blue sea and papaya in the NailSlicks nail enamels that comprise part of the company's Cover Girl Color Amazed spring cosmetics collection. L'Oreal, for its part, features peach, melon, apricot and several other nail shades under its Apricot Kisses spring cosmetics line.

                                  DOLLAR SALES       UNIT VOLUME

Nail                               $319.9 mil.        114 mil.
Polish                              (-0.6%) *         (-2.7%) *

                                 Percent Change    Percent Change
                                       vs.               vs.
                                 Prior 12 Months   Prior 12 Months

For 52 Weeks                      Supermarkets      Supermarkets
Ending 3/24/02                        -4.1%             -7.8%
                                   Drug Stores       Drug Stores
                                       0.5%             -1.8%

Top Brands                           Dollar             Unit
                                      Sales            Volume

 1. Maybelline Express Finish      $26.0 mil.          8.2 mil.
 2. Sally Hansen Hard As Nails       21.7 mil         10.0 mil.
 3. Sally Hansen                    20.2 mil.          4.6 mil.
 4. Revlon                          18.6 mil.          4.4 mil.
 5. L'Oreal Jet Set                 17.1 mil.          4.2 mil.
 6. Cover Girl Nail Slicks          13.3 mil.          5.4 mil.
 7. Wet `n' Wild                    11.3 mil.         12.0 mil.
 8. Sally Hansen Teflon Tuff        10.6 mil.          3.5 mil.
 9. Sally Hansen Chrome Nail        10.4 mil.          2.6 mil.
10. Revlon Super Top Speed           9.9 mil.          2.3 mil.

* Total of supermarkets, drug stores and discount stores
excluding Wal-Mart Stores Inc.

Sources: Information Resources Inc.