Mass invades high-end skin care market

DSN Retailing Today, March 28, 2005 by Antoinette Alexander

Both men and women--especially those from the baby-boomer generation--are on the prowl for the ultimate fountain of youth in a bottle that will smooth wrinkles, diminish age spots and rejuvenate skin's elasticity. A market that was once reserved for professional spas, salons, dermatologists or plastic surgeons is now taking the mass market by storm thanks to a blitz of competitive mainstream products that promise to be just as effective as professional ones, with a price tag much more appealing to the average consumer.

U.S. retail sales of cosmeceuticals--skin care, makeup and hair care products--exceeded $12.4 billion in combined mass and prestige channels in 2004, up 5.4% compared with 2003, stated Packaged Facts, a division of MarketResearch.com, in its recent report titled "Market Trends: The U.S. Cosmeceuticals and Anti-Aging Products Market."

Of that $12.4 billion, supermarkets, chain drug stores and mass merchandisers accounted for 61% of 2004 retail dollar sales, more than half of which (51.7%) derived from skin care products.

By 2010, the anti-age market is expected to hit nearly $16.5 billion at retail in both mass and prestige channels.

"The mainstream marketers have entered this market space to capitalize on the anti-aging/makeover craze," stated Carrie Bonner of consulting and market research firm Kline & Co. "With their deep pockets, they can afford to spend on advertising that positions their products as alternatives to dermatological procedures, but also to the higher-priced clinical brands."

Demand for anti-age products in the mass market--which was sparked, in part, by the successful 2000 launch of Olay Total Effects Moisturizing Vitamin Complex and further fueled by today's rash of reality makeover shows--has opened lucrative doors for many manufacturers in that category. However, that means that manufacturers must continually develop new, innovative products if they are to avoid aging themselves.

Seeing a tremendous opportunity in the high-growth men's market, L'Oreal Paris earlier this month confirmed murmurs of a men's line when it officially announced the launch of its new Men's Expert skin care collection.

"Men are really ready to embrace a whole new approach to men's skin care," said Carol Hamilton, president and gm of L'Oreal Paris.

At retail, L'Oreal is looking to position the eight-SKU line in the men's grooming section where it will go head-to-head with such rivals as Nivea for Men and Neutrogena Men. Rob Robillard, senior vp of marketing for L'Oreal Paris, said consumers are likely to soon see a planogram overhaul in the men's department.

The eight-SKU line, which is expected to hit shelves next month, features specific skin solutions for guys of any age at any stage of life.

The collection includes a Power Buff Anti-Roughness Exfoliator, Power Clean Anti-Dullness Face Wash and Comfort Max Anti-Irritation Shave Balm with SPF 15. With teens and younger men in mind, L'Oreal also has designed Oil Controller Anti-Oiliness Moisturizer; for those aged 25 and older there's the Circle Eraser Anti-Dark Circle Eye Moisturizer; for the 30-somethings there's Hydra-Power Invigorating Moisturizer; for those in their 40s there's the Stop Lines Anti-Lines Moisturizer with SPF 15; and for the 50-somethings there's Vita Lift Anti-Wrinkle & Firming Moisturizer with Pro-Retinol.

Meanwhile, skin care product manufacturer E.T. Browne Drug Co., perhaps best known for its leading Palmer's Cocoa Butter Formula, is expanding into the anti-age market with its new Palmer's Skin Success Anti-Aging collection.

Targeting the four primary areas of concern--skin redness, crow's feet, sagging skin and age spots--the company has developed Palmer's Skin Success Skin Stress Cream for itchy, inflamed skin; Palmer's Skin Success Crow's Feet Serum to smooth away crow's feet with Myoxinol; Palmer's Skin Success Face Lift Serum to tighten sagging skin; and Palmer's Skin Success Age Spot Serum. Consumers who want to sample the products can buy the Palmer's Skin Success Anti-Aging Kit, which contains trial sizes of all four products.

The products are currently shipping and are already on Wal-Mart shelves in more than 1,000 doors. The suggested retail price is $13.99 each. To support the launch, the company will roll out around May 1 a $4.7 million print and TV ad campaign.

Other E.T. Browne Drug Co. products in the pipeline include formulas for cellulite, spider veins, adult acne and an age-fighting moisturizer with SPF.

Freeman Beauty Labs, which recently extended its Botopical line to include Instant Micro-Dermabrasion, is currently shipping a new three-SKU anti-age eye care line called Total Eye Rescue to battle puffiness, dark circles and fine lines around the eyes. The suggested retail price is $13.99 each.

"The mainstream brands have created a niche of products that at least imply similar results to cosmetic procedures without the high cost or inconvenience," noted Bonner. "They have the budget to advertise and develop their product lines, and the true professional-brand skin care markets should be very concerned."