Ethnic marketing efforts in cosmetics focus on broadening shade ranges

Drug Store News, Jan 17, 2005 by Antoinette Alexander

Reflecting the country's ever-changing demographic landscape, society's image of beauty is no longer reserved for the all-American blond-haired, blue-eyed bombshell. Exotic, ethnic women like Jennifer Lopez and Beyonce Knowles have caught America's eye, as well as the eye of cosmetics manufacturers, as many ethnic women show no fear of experimenting with color.

"There are shifts in populations. You see more Hispanics and African-Americans," said Dawn Alexander, Revlon director of product development.

Research suggests that supermarkets, chain drug stores and mass merchants continue to lag behind department and specialty stores when it comes to the purchase of general-market beauty products by ethnic consumers. Ethnic shoppers spent $904.4 million on cosmetics at supermarkets, chain drug stores and mass merchants in 2003, down about 1.3 percent from 2002, according to Packaged Facts' 2004 U.S. Market for Ethnic Cosmetics, Hair Care and Beauty Products report.

To reverse that trend, Roslyn Chapman, president of sales and marketing consulting firm Chapman Edge, suggested that ethnic-specific manufacturers develop more upscale-looking products for greater purse appeal and continue to improve quality. Meanwhile, retailers need to educate store associates to be able to help shoppers find the right shades. In addition, retailers must promote those expanded shades, whether it be through color swatches or testers.

Echoing that sentiment is Karen Chambers, director of marketing for ethnic beauty company Posner. "The more the [drug chains] can have informed sales people who can help, the more inviting that channel of distribution becomes," Chambers said.

She also warned retailers against using a cookie-cutter approach. "If you have a store in Hispanic or African-American neighborhoods, the variety of products has to reflect the consumer base. Other wise, it creates a sense of discomfort," Chambers said. She also noted that the placement of specialized product near the front of the store is key, as the ethnic shopper doesn't want to feel segregated.

Posner traditionally catered to African-American women, but has expanded to a more universal color range--olive to ebony--to reach women of various ethnic backgrounds.

For mass merchants and manufacturers who can reach these consumers effectively, the potential is tremendous. According to the U.S. Census Bureau, the three principal ethnic sectors--African-American, Hispanic and Asian--are expected to grow 13.5 percent to more than 95.6 million by 2010. In 2020, those sectors could number 115.2 million.

Many cosmetics manufacturers, including Revlon, Procter & Gamble and L'Oreal Paris, are bolstering the bottom line by targeting ethnic women through expanded ranges of shades and marketing.

P&G's CoverGirl has had a long-standing relationship with African-American and Latina women that began in the early 1990s with models Barbara Palacios and Lana Ogilvie, according to Monica Collins, a spokeswoman for P&G cosmetics. Today, five of CoverGirl's seven spokesmodels are Latinas or African-American.

P&G is focusing on pigment, not race--a move some industry observers have hailed as a step in the right direction--with its CoverGirl TruBlend foundation, which promises to match 97 percent of skin tones. The foundation hit shelves about a year ago and, according to Information Resources Inc., generated $9.6 million in sales at drug for the 52 weeks ended Nov. 28.

L'Oreal Paris has introduced True Match, a foundation available in 24 shades that promises to match any skin tone precisely. According to IRI, True Match pulled in $13.8 million at drug for the 52 weeks ended Nov. 28