Upscale, advanced formulas reap super sales for skin care

Drug Store News, April 5, 1993

Moisturizers aren't merely moisturizing anymore. Added benefits offered in new lines, products carrying an advanced formulation cachet and niche items are making skin care products more attractive to consumers.

Fueled by an aging baby boomer population, skin care products that employ advance formulations, therapeutic products and niche items that fill consumers' individual skin care needs will continue to be the stars of the skin care segment. The area, according to one manufacturer's estimate, is growing 10 percent annually.

Overall at drug chains in 1992, face cream sales leaped ahead 8 percent and hand and body preps grew 4.7 percent.

Manufacturers are introducing items that mimic department store products and are capitalizing on the lessons learned in department stores: that consumers are interested in higher performance products that utilize the latest technology to provide new solutions for skin care. In short: Science sells in skin care.

More and more high-tech upscale products are being offered through drug stores. Manufacturers have taken hold of that theme in their consumer advertising. For example, Jergens' ads are tagged with the slogan " Jergens - Science You Can Touch." Ponds' new ads for its five-SKU moisturizer line will also focus on the high-tech theme.

Neoreric Cosmetics Inc.'s two-SKU Alpha Hydrox line, cited by retailers as a surprise winner in the category, continues to appeal to consumers despite a higher retail ticket of $7.99 to $9.99.

"The products are not as irritating as Retin A and I think they are appealing to the same customer," said Pharmhouse buyer Jerry Biarsky. "The company is planning to introduce a full line of products, which I expect will do very well."

Advanced formulations sell

Manufacturers are beginning to use alpha hydroxy acid (AHA), which has become a hot button in skin care, in some skin care formulations. Alpha Hydrox is one line utilizing the technology. Revlon plans an introduction of a line called Results, which will use a patented molecular complex formula similar to AHAs.

Pond's new five-SKU line of facial skin care products includes Dramatic Results Capsules, which contains lipids and AHAs to instantly smooth away fine dry lines. The company plans to put $30 million in advertising behind the line.

Capsule products containing lipids, once available only to department stores, will be introduced by a number of other manufacturers.

Michelle Jones, buyer at Perry Drug Stores, said she'll wait to see how Pond's capsules move before stocking similar products from other manufacturers, but she's hopeful that upscale products will sell well.

"I think customers are looking to drug stores for advanced skin care products to a greater degree," she said.

"Customers are making comparisons between what they have bought in department stores and what's available at mass," said Dan Lafferty, buyer at Kmart. "The new lines are bringing in new users. Ads for Almay's Prescribed Care line will compare that line to Clinique. "

Therapeutic lines fill niche

Lines that carry a professional cachet, such as Prescribed Care, which offers consumers skin care benefits such as minimizing wrinkles and exfoliating dead skin in addition to moisturizing, are in demand by consumers looking for maximum skin care benefits to offset sun damage - particularly in the summer months.

Beiersdorf's Inc.'s Eucerin line is another specialized, therapeutic line that buyers say reaches a niche market. Eucerin is a leading brand recommended by physicians and pharmacists and is the top brand of moisturizing lotion used in hospitals.

"Eucerin appeals to an older customer with dry skin or [to those] who have severe dry skin conditions," said Lafferty. Kmart's private label therapeutic line also has strong sales, according to Lafferty.

Beiersdorf has also introduced a sensitive skin formulation and restaged its Nivea Visage line, and retailers say it's expected to perform well.

"I have Visage in test now," said Lafferty. "[Beiersdorf's] products are good and they are spending more on their ads, As they spend, customer will buy."

Perry's Jones has also brought in the Visage line.

Manufacturers are also adding SPFs to their new introductions to give consumers the added value of sun protection all year around.

SPF important to consumers

"More and more products include an SPF," said Jones. "Plenitude, Neutrogena and Pond's products all contain SPFs. Virtually all lines have at least one SPF product."

While most lines are putting a ceiling on SPFs at 15, Neutrogena is introducing a new SPF 17 moisturizer product in a chemical-free formulation.

Patsy Ward, buyer at Standard Drug Co., said she devotes a 4-foot section to Neutrogena and has added the line's astringent, cleanser and skin toner. "Some of the products retail for as high as $10.99, but people are buying the products."

Said Pharmhouse's Biarsky: "It's really a department store line for drug stores."

Neutrogena has also added a line of anti-acne products to its family. Anti-acne products have had retail dollar growth of 6 percent in 1992, according to New York-based research firm Packaged Facts.