09.22.11
Sales of cosmetics and toiletries through alternate channels have exploded, growing by nearly $1 billion since 2005, according to the Beauty Retailing USA 2010 report by Kline & Company. More double-digit growth is expected as consumers are increasingly drawn to the convenience of at-home shopping to meet their beauty needs.
Posting a 25.4% growth from 2005 to 2010, e-commerce sales are leading the way, followed by home shopping networks like QVC and HSN posting a CAGR of nearly 20%. Infomercials for brands like Hydroxatone, ProActive and Sheer Cover have seen sales grow over 17%, noted the research firm.
“Consumers are spending more time at home, either by virtue of unemployment, telecommuting or merely a desire to save money by not going out so much,” said Karen Doskow, consumer products industry manager at Kline. “Instead of running out to the store to buy their beauty products, they’re watching home shopping channels and infomercials to get the latest on new products.”
Doskow also notes that the bricks-and-mortar front is still faring well. “Beauty has become the new revenue sweetheart in the traditionally slow-growing drug store channel as pharmacies reinvigorate their beauty offerings to lure customers with a more upscale, specialty-store look.” For example, Walgreens’ acquisition of Duane Reed and its high-end Look boutiques is expected to promote growth for both the chain and the channel. CVS, Rite Aid, and others have begun offering improved customer loyalty programs and expanding shelf space for their beauty merchandise.”
The report offers in-depth look at the cosmetics and toiletries retail environment and covers 27 product categories across six purchase channels and 20 sub-channels. For more information contact: Vera.Sandarova@Klinegroup.com
Posting a 25.4% growth from 2005 to 2010, e-commerce sales are leading the way, followed by home shopping networks like QVC and HSN posting a CAGR of nearly 20%. Infomercials for brands like Hydroxatone, ProActive and Sheer Cover have seen sales grow over 17%, noted the research firm.
“Consumers are spending more time at home, either by virtue of unemployment, telecommuting or merely a desire to save money by not going out so much,” said Karen Doskow, consumer products industry manager at Kline. “Instead of running out to the store to buy their beauty products, they’re watching home shopping channels and infomercials to get the latest on new products.”
Doskow also notes that the bricks-and-mortar front is still faring well. “Beauty has become the new revenue sweetheart in the traditionally slow-growing drug store channel as pharmacies reinvigorate their beauty offerings to lure customers with a more upscale, specialty-store look.” For example, Walgreens’ acquisition of Duane Reed and its high-end Look boutiques is expected to promote growth for both the chain and the channel. CVS, Rite Aid, and others have begun offering improved customer loyalty programs and expanding shelf space for their beauty merchandise.”
The report offers in-depth look at the cosmetics and toiletries retail environment and covers 27 product categories across six purchase channels and 20 sub-channels. For more information contact: Vera.Sandarova@Klinegroup.com