Upscale skin care not only for boomers

Drug Store News, May 19, 2003

Women across all demographics want more radiant, younger-looking skin. And when armed with a little product benefit information, they are often willing to pay extra for creams and lotions that promise to do more than just moisturize. Products touting anti-age and firming benefits fueled much of the growth in 2002. Collectively these special-purpose products experienced double-digit sales growth of 15 percent in the drug channel for the year-ended Dec. 29, far outpacing total category growth of 5 percent.

What's more, baby boomers aren't the only ones willing to shell out additional dollars for skin care products that promise to stave off the signs of aging. Women in their late 20s and 30s, taking a proactive approach to long-term skin health, are gravitating increasingly to-ward products with advanced anti-age ingredients. Marketing efforts by leaders such as Neutrogena and Olay Total Effects have educated women that, given all the advancements in skin care technology, they can find quality products rivaling department-store quality in their drug stores.

Brooks Pharmacy with its Derma Skincare Centers and CVS with Healthy Skincare Centers have worked to bring a hands-on, department store feel to their stores with full-service skin care boutiques that bring European brands Avene and Vichy to U.S. retail for the first time.

Expert's say with more advancements in skin care heading down the pike, there is still plenty of untapped sales potential in skin care. Without question, skin care remains the most promising opportunity for both manufacturers and retailers alike.

TOP 10 BRANDS IN DRUG

Brand/segment                       $       %
                                 sales *  change

Vaseline Intensive Care - hand &   $26.4    -8.4%
 body lotion
Niveo - hand & body lotion         24.0    18.3
Ponds - facial cleansers           22.8    -3.9
Olay Total Effects - age/fade      21.9    31.9
Olay - facial moisturizers         19.4     0.3
Sally Hansen - Depilatories        18.8     0.2
Lubridern - hand & body lotion     18.3     5.0
Eucerin - hand & body lotion       17.1    -4.1
Roc Actif Pur - age/fade           16.2     2.8
Cetophil - facial cleansers        15.8    13.7

Source: Information Resources Inc. 52 weeks ending Dec. 29

* All sales in millions

TOP 10 GAINERS IN DRUG

Brand/segment                          $       %        $
                                    sales *  change  change *

L'Oreal Plentitude Visible Results   $7.6       NA     $7.6
 - age/fade
Olay Total Effects - age/fade        21.8     31.9%     5.3
Almay Kinetin - age/fade              9.9    101.1      5.0
Oxy - ocne treatments                 5.0       NA      5.0
Neutrogena Visibly Firm              10.3     80.1      4.5
  - age/fade
Neutrogena Healthy Defense -          3.9       NA      3.9
 facial moisturizers
L'Oreal Pure Zone - acne              3.9       NA      3.9
 treatments
Nivea - hand and body lotion         23.0     18.3      3.7
Cetophil - hand and body lotion      15.3     18.4      2.8
Johnson & Johnson Clean & Clear -    11.7     31.6      2.8
 facial cleanser

Source: Information Resources Inc. for the 52 weeks ended Dec. 29

* Sales in millions

SKIN CARE SCORECARD

                                 Total F/D/M *             Drug stores

Category/                      $        % chg.        $        % chg.
segment                     sales **  vs. yr. ago  sales **  vs. yr. ago

Hand and body lotion         $802.9       4.1%      $365.6       8.8%
Facial cleansers              537.3       0.9        237.8       2.4
Skin fade/age/bleach cream    358.3      15.4        215.3      15.1
Acne treatments               256.0      10.8        112.9      17.4
Facial moisturizers           259.2      -2.0        135.6      -0.8
Depilatories                  140.3       0.0         95.7      -8.8

                                Drug chains only

Category/                      $        % chg.
segment                     sales **  vs. yr. ago

Hand and body lotion         $293.6       9.8%
Facial cleansers              203.1       2.9
Skin fade/age/bleach cream    187.1      16.7
Acne treatments                97.0      18.8
Facial moisturizers           114.0       0.0
Depilatories                   83.7      -9.1

Source: Information Resources Inc. for 52 weeks ended Dec. 29

* Total F/D/M excludes Wal-Mart

** Sales in millions