Cosmetics face colorful '99

Discount Store News, Jan 4, 1999

As P & G launches its new collection of Oil of 01ay cosmetics and Johnson & Johnson rolls out its Neutrogena line later this quarter, category managers are anticipating another strong year for color cosmetics, particularly in the face makeup category. And the launch platform this year should be a crowded one--Revlon, L'Oreal, Almay and Maybelline are all preparing lines of "advanced technology" product.

Oil of Olay and Neutrogena are making the most noise simply because they are the first two major new mass market color collections to debut in years, and both companies will be aggressively spending to support their launches. Category managers are expecting these debuts to have the strongest initial impact on the face makeup segment of cosmetics because both brands have a strong heritage in skin care. But the managers are also excited by the sheer volume of launches pending in the face segment in 1999.

Thanks in part to recently introduced new collections from the three top mass market premium-priced brand manufactures, Revlon, L'Oreal and Almay, the category appears to be attracting women into drug and mass merchandise stores--especially those who used to buy face makeups in department and specialty stores.

According to Chicago-based Information Resources Inc., a market research company that tracks retail sales in drug, food and mass merchandise stores, three outlet dollar sales for face makeups were up 12% to $908 million while unit sales were up 1.3% for the 52 weeks ended Oct. 25, 1998.

According to IRI, the strongest gains were coming not only from the brands that have been product innovators in the past few years, but also from a relative newcomer to the category that is rapidly gaining expanded distribution.

That's the Jane face makeups from Estee Lauder's Sassaby Cosmetics division, which is now the 10th-ranked face makeup brand in three outlet dollar sales, up 36% vs. the same period a year ago.

Among the brands in the top five of category sales, Almay, the fifth-ranked brand in dollar volume at 7.7%, grew the most in dollar sales. The company's dollar sales increased 18.7% for the 52 weeks, and units were up 8.1%.

According to cosmetic category managers, it is a combination of superior advanced technology products and aggressive advertising that has been driving sales for brands like Almay, Revlon, L'Oreal and Maybelline.

This past August, Almay launched Amazing Lasting Sheer Oil-Free Makeup, a new collection of waterproof, natural, no-fuss color in 10 long-wearing shades. Almay calls it a "bare but there" makeup in describing the sheer look delivered by the matte formula that works to hide imperfections. The formula, which has a sun protection factor of 12, also contains vitamins A and E.

Every buyer interviewed by DSN said Almay's face makeup products were selling phenomenally well.

This spring, Almay will introduce Foundation Skin Stays Clean, an innovative creation that could bring new users into the foundation category. The product is a very lightweight formulation that leaves a natural smooth finish on the skin. In 10 shades, it will have a suggested retail of $10.95.

Maybelline, now the third-highest dollar volume brand in the face makeup category, had the second-strongest growth for the 52 weeks ended Oct. 25.

Maybelline's three outlet dollar sales were up 18% for the period, while unit volume grew 11.7%.

Last year, Maybelline introduced Great Wear Budge-Proof Makeup, a collection of lightweight transfer-resistant liquid foundations, with a companion line of Great Wear Budge-Proof Concealers, also transfer-resistant.

In March 1998, Maybelline introduced True Illusion, a collection of liquid, lightweight makeups that deliver a "seamless union" between foundation and skin. With this launch, Maybelline, like its sister brand L'Oreal, now has five different makeup formulations, fortifying its position as a serious player in the face segment of the color cosmetics category.

Last September, Maybelline extended its True illusion line with True Illusion Liquid-to-Powder, three kinds of coverage in a one-step compact. The suggested retail of $7.75 moves Maybelline into the premium-priced segment of face makeups, opening up growth opportunities in the value-priced segment for emerging brands like Jane.

P&G's Cover Girl, which dominates the mass market face makeup category with a 334% dollar share, 12 share points ahead of second-place Revlon, was up 11.2% in dollars for the 52 weeks, but the brand took a hit in unit volume, down 2.4%.

P&G has not introduced new products at the same rate as its competition, but it has invested heavily in advertising support for its brand, while its strong logistical programs have given Cover Girl an extremely high in-stock service rate.

This spring, Cover Girl will introduce a novelty collection of body paints that can be worn on the face as well as other parts of the body-a three-sku line called Cover Girl Pure Magic Body Art, a cream-to-powder body paint.

This year, Revlon is expected to make a run at narrowing the gap between its face makeup brand and Cover Girl Early this spring the company will launch two new face makeups. Age Defying Makeup and Concealer Compact and ColorStay Compact Age. Defying is a "one-of-a-kind" product that offers a makeup and a concealer.