A healthy dose of innovation boosting skin care segment

Drug Store News, Oct 9, 1995

The skin care category, already crowded and difficult to manage, is about to get even more challenging. While last year it seemed that a new alpha hydroxy acid-based product was announced every other week, this fall the new hot button is vitamin-based, intensive products for both the face and body.

"It's an extremely difficult category to manage, and I'm not sure we have a handle on it," conceded one skin care buyer, a sentiment no doubt felt by many buyers at chains.

Buyers already have too many skin care products to fit on their shelves. But the new round of intensive treatment products deliver more benefits, and in many cases manufacturers are communicating those benefits through multi-million dollar advertising and marketing campaigns. Buyers will have some difficult choices to make.

The battle for shelf space

Understanding the differences between products and squeezing in the "right" new ones is definitely today's challenge. The battle for shelf space has become so fierce that buyers have to come up with new criteria for evaluating products.

"A product has to be extremely innovative or come from one of the name brand manufacturers for me to consider it," said another buyer. "There are a lot of fly-by-night operators who claim that they will market to dermatologists and that will produce sales results but I have yet to see that happen."

Those buyers that are analyzing POS data, quickly culling out what isn't selling, and beefing up and heavily promoting a core set of brands that are doing well, seem to be having an easier time managing the category.

Drug stores have watched mass merchandisers eat their lunch in skin care for a long time. While mass merchandisers saw double-digit sales gains in both the facial moisturizer and hand and body categories through July, drug store sales grew less than 2 percent in these segments, according to Information Resources.

The latest round of products provides a great opportunity for skin care buyers to regain some share by being creative with shelf talkers, displays, special prices and advertising.

If more chains better support their strongest brands with more facings, circular advertising, endcap promotions and exclusive, in-store values, they may be able to gain back some share from mass merchandisers, said manufacturers. "Drug stores need a better focus on the major players in the category," said David Cohen, category director of Ponds for Chesebrough-Pond's. "They are trying to provide consumers with a wide variety but also need to fully support the leading brands."

Fall introductions

This fall there are plenty of new launches to use as traffic builders in the store.

L'Oreal is waging a massive assault on the aging process with Plentitude's Revitalift, which launches this month. "We're taking new technology and bringing it to the mass market," said Debra Woloshin, director of marketing for L'Oreal's skin care group. "Women are better educated and want more than just a moisturizer. Revitalift contains Pro-elastyl, which provides elasticity and resiliency and Pro-Retinol (a vitamin A derivative), Pro Vitamin B5 and soy protein to soothe lines and wrinkles.

To gain acceptance to the product, the company is offering more than 10 million samples trial sizes and special displays. A television and print campaign is also planned for the fourth quarter.

Next month Chesebrough-Pond's releases Prevent and Correct, two moisturizers in one package, which are designed to be used during the day and in the evening. It is designed both to protect against UV damage and free radicals and to correct the signs of aging by improving firmness and glow and reducing the appearance of fine lines and wrinkles.

"This is the first time that women can both prevent and correct the signs of aging with one product," said Cohen.

Both Prevent, to be used during the day, and Correct, to be used at night, are formulated with vitamins E and A, and alpha hydroxy acids (AHAs). Prevent also contains an SPF 8.

A number of other skin care companies are looking to vitamins and other new ingredients to create better skin care results. Research shows that taking vitamins alone may not reach the problem areas of the skin, so several manufacturers are whipping up multi-vitamin creams and lotions for the face and body.

In November, Neutrogena launches Healthy Skin Lotion, a multi-vitamin facial treatment with AHAs. The blend of vitamins are designed to fight skin damage and strengthen the skin's defenses. AHAs exfoliate the skin.

Cabot Laboratories and Beiersdorf have been using vitamin E in their moisturizers for some time, and the two companies have new lines out that are formulated with vitamins and other unique ingredients. Beiersdorf just launched Nivea Shine Control Mattifying Fluid for women with oily, normal-to-oily and combination skin. The company estimates that 50 percent of women fit into one of these categories. The product includes vitamin E to protect against premature aging and a unique oil-blotting system that absorbs and eliminates excess oil and stops oil breakthrough and shine.