05.30.06
Courting the Male Consumer
Make room ladies. The men's beauty market is expanding and becoming more sophisticated.
By Stephan Kanlian
Men account for 5-6 percent of Bliss Spa’s clientele. |
Another promising sign is the changing attitude towards beauty products of the younger male consumer. “It is interesting to see the buying habits of younger men. They are not afraid of having a stack of products for multiple issues, while older guys want one product, and multi tasking products,” says Damiana Zullo, director of product development for Bliss. “It is a huge opportunity for Bliss, we’re just starting focus groups among men. My gut instinct is that men are becoming a bit more sophisticated.”
Bliss Spas even have a few treatments catering to men on its spa treatment menu, such as “homme improvement” (triple oxygen facial, ingrown hair mask, fruit acid wash, calming oxygen and milk mask) which runs $150 for an 85 minute treatment. Zullo reports that currently 5-6 percent of Bliss Spa customers are men.
Among the factors contributing to growth in the men’s sector:
1. Media Interest in Men: “Men’s magazines have more pieces on men’s grooming on a regular basis,” points out Anna Wang of Kline & Company. One recent article in GQ about the benefit of facials included a Q&A about men’s grooming with a younger man. The magazine’s advice was: “facials are good for you, but we don’t talk about it.”
2. More Brands to Choose From: “New players in the men’s market are sending a signal in two ways: men are ready for more sophistication, and there is more competition,” says Deirdre Riou, a marketing executive for Clinique Skin Supplies for Men (SSFM). Kline’s Wang agrees, pointing out: “the activity in terms of new brands (such as L’Oreal’s Men’s Expert and Shiseido Men’s) is from major players who spend on advertising, which helps build the entire category.”
3. Education: “Education is still the key issue to build the men’s sector,” says NPD’s Karen Grant. “The message is that grooming is no longer optional, it is critical. The younger generation is already much more attuned to this.”
Skin Care
Men’s grooming/ skin care is a small component of overall skincare (less than 5 percent), but growing rapidly since 2003. According to NPD, men’s prestige skincare has grown in double digits for the past three years: 10 percent in 2003, 13 percent in 2004, and 14 percent in 2005. The category also showed strong organic growth posting a 9.5 percent increase in units. While almost all categories experienced growth, substantial volume came from the cleanser (+17.7 percent), exfoliator (+10.2 percent), moisturizer (+19.5 percent) and shave (+15.7 percent) segments.
Sharps Barber and Shop is a new player in the men’s sector. |
“Men’s skin care treatments are the fastest growing category we track, though the total market is still under $1 million at retail,” says Anna Wang. In Europe the men’s skin care market is more established (it is the leading region globally with about half total worldwide sales). North America is the third largest, after Europe and Asia, but the fastest growing region. The largest men’s skin care brands in the U.S. are Nivea and Clinique, with Neutrogena third. In terms of product offerings, many companies are moving beyond basic skin care and shaving to products segmented by skin type, such as sensitive skin, anti-acne and anti aging.
The prestige skin care treatment category is seeing lots of new, niche brands. Many are positioned to younger users, who have grown up with more of an acceptance to grooming. Overall, it is becoming less taboo for men to care about how they look.
Fragrance
“After four years of decline, the overall men’s fragrance sector grew 1.2 percent in 2005,” says Kline’s Wang, “perhaps due to a few very strong launches and overall increased interest among men in fashion, styling and appearance.” Notable 2005 launches included Armani Code, Ralph Lauren Black and Kenneth Cole Signature.
Euromonitor reports that sales of premium men’s fragrances grew by 5 percent in 2005 following a 1 percent increase in 2004, with sales growth in 2005 driven by an influx of new products heavily supported by advertising. Older brands held share or declined slightly, while newer offerings tended to gain share, reflecting the short life cycles of brands in men’s premium fragrances. American men are showing greater interest in men’s fragrances that are more elegant, such as Giorgio Armani’s Acqua di Gio for Men.
Euromonitor points out further that the increased availability of premium men’s fragrance brands in mass retail outlets has led to declining sales of mass fragrances in the same channels. Mass men’s fragrances saw sales drop 1 percent in current value terms in 2005. When consumers in mass retailers such as Wal-Mart and Walgreens were given the choice between premium men’s fragrances and mass men’s fragrances, many chose to purchase the premium fragrance for reasons of prestige and price.
Another interesting trend in the men’s fragrance sector at mass is what many refer to as the “Axe effect,” so called because of the phenomenal success of Unilever’s Axe deodorant spray, which has become a $100 million brand in just three years. Both Axe and Gillette’s Tag have helped propel this category forward and are aimed specifically at young men, which could be significant as an entry point to the fragrance category.
It is also important to understand that success in men’s premium fragrances still has much to do with the female gender. Women still remain key purchasers of men’s fragrances. This is reflected in the strategy of extending female brand equities, familiar to female users and purchasers, to men’s premium fragrances, such as Eternity for Men, Obsession for Men, Pleasures for Men and Romance for Men. Likewise, it is with the women in their lives in mind, that men make fragrance purchasing decisions for themselves. “Across every age group, the number one reason a man will buy a fragrance is appealing to women,” confirms NPD’s Grant.
Hair Care
Males account for 30 percent of Kiehl’s customer base. |
One of the most successful new players in the men’s sector, Sharps, has made a point of including hair care in their initial offering to men. The line, sold in about 250 locations, includes hair care and hair styling products, with a 2 in 1 conditioning shampoo, a moisturizing shampoo and conditioner, a modern pomade and a pliable hair paste. “Sharps has always been about head to toe, so we felt we had to address hair and body care, as well,” says Susan Lee, director of product and package development for the brand. “We just launched mission control bald head balm, SPF 15, as many men in the market today are bald and proud, and it not only protects with SPF, but has an ingredient to fade age spots.”
Packaging
“Packaging and imagery is a big factor for men — if it doesn’t look masculine they’re not going to pick it up. If it is easy in functionality, easy to travel with, easy delivery, they’ll pick it up,” asserts Bliss’ Zullo. Packaging, including function, color, simple product names and easy to read instructions, are critical to the success of men’s products.
“Men’s packaging is much more updated and slick, with simple wording,” points out Grant, “it needs to stand out in a self service environment, which is very different from women’s. It has to be all on the bottle.”
The Sharps line started in development by using a photo image to represent each category (body is a geisha, hair is an astronaut) and male consumers responded. Clarins and Aramis Lab Series are also examples of men’s brands that have used a lot of iconography, as well as simple product names (e.g. face wash, rather than extremely gentle foaming facial cleanser).
For Kiehl’s, a line known for its utility packaging, the presentation for men is not significantly different, other than a difference in color. However, the company took its bestselling men’s product (White Eagle Shave Cream) and adapted the stunt plane on the packaging which became iconic for their men’s line. In addition, this SKU comes in a tube. “Tubes are very important, as they are portable, easy for travel, and men have limited space in their shaving bag. Its about simple functionality for men,” says Kendal Ascher, director of marketing for the brand.
Growth Opportunity
Most experts agree that the long term opportunity in the men’s market is in mass. “There is not enough marketing being done for men, and very little advertising” asserts Grant. “Mass market brands may see a bigger return more quickly, because they will have the funding to have more presence in the channels where men are, and to advertise nationally.” Grant is among those who believe that the target needs to be the male consumer, and the market has to shift away from selling men’s products to the women in their lives. “If it appeals to a man, it will appeal to the woman in his life,” points out Grant.
Clinique Skin Supplies for Men was re-launched in 2005. |
The evolution will be led by prestige brands in the men’s sector, and product extension will then trickle down to the more accessible mass market channels, where the bulk of male consumers are comfortable shopping for personal care products. Tracking the trends is much easier therefore in the prestige sector. At Kiehl’s, for example, it was all about the basics in the beginning, which helped Kiehl’s cultivate a 30 percent customer base among men, mostly based on shave cream. “Now we have to get them to buy one more item,” says Ascher, who is seeing an anti-aging trend and an eye product trend, but cautions that it has to evolve organically with the male consumer. “It has to be pulsed correctly, so that when that customer visits the store every other month to pick up his shave cream, there can’t be an overwhelming array of new product,” he explains.
Even at Bliss, the product development team sees a growth in men’s spa treatments. “We have a lot of spas planned for rollout and could see men in Dallas, for example, becoming more comfortable with spa,” points out Zullo.
Who will Capture this Consumer?
Similar to the rest of the beauty sector, the department store arena offers many challenges for men’s products. “We understand men are less likely to go to the department store to buy products, so we are paying attention to free standing, self service, and open service type of environments, such as Sephora and online, or creating a corner where they can be more comfortable shopping at the Clinique counter,” says Riou.
In the specialty store arena, there is a more sophisticated male consumer, but equal care must be taken to make them comfortable. “In every store we carve out a special area for men to shop, and we’ve edited the mix,” says Ascher. “We have adventure photos and the Harley motorcycle (a Kiehl’s icon), and we keep it very masculine and very simple.” Men don’t typically want help when they buy personal care products, but they want to feel they have made an educated choice.
The most exciting activity, especially in terms of overall volume, will certainly be in the mass channels, and therefore the new brand developed by Sharps for Target stores is an interesting trial balloon for this market. Called Sharps Barber Brigade, it is available in the 1400-plus Target doors in the U.S., to which the brand is currently exclusive.
The most interesting difference is the addition of body products, primarily to speak to the female consumer buying men’s products, as women are the primary customers at Target. “In order to get to the men, you have to get to the women first, so we did three body washes and three body scrubs in three flavors,” says Lee. Brigade is merchandised in Target’s new bath and body collection area, which includes other men’s brands, bath and body, and private label. “We are looking at how Sharps can be more accessible to male consumers within the Target environment, perhaps through positioning with other men’s products for shave. We were not a mass company, so we are learning as we are going,” says Lee.
In terms of future product offerings for men, Lee believes it is possible to take an old concept and put a new spin on it: body powders, for example. “Men love problem solving products – they don’t need a lot of fluff, they just want to solve the problem and get on with it, which will make them very loyal customers.”
In terms of brand development, there may still be a category killer in the making, who has not appeared on the scene as yet. “There are more units moving and mass will likely be the big winner for men’s,” points out Grant, “perhaps a large player will come through with a brand that captures the market.” Polo Ralph Lauren could be that big player – they have dabbled in the category before in men’s fragrance ancillaries (shave lotions, balms) and with the Polo Sport extension. They could position themselves demographically as well, like they have done in fragrance with Polo Blue. “Polo has huge awareness, and aspiration, and the iconic nature of the brand means it doesn’t seem to matter to consumers where they buy it,” says Grant.
Other designer brands like Armani (with its strong men’s fragrance franchise), Kenneth Cole and Calvin Klein (the acquisition by Coty may bring them the expertise to enter men’s grooming) have continued to do well in men’s fragrance, and there could be opportunities with these brands for men’s grooming. Nautica is also a potential player at the prestige level. In terms of retail brands, Grant believes Abercrombie and Fitch could have an opportunity, simply because of its image and its foot traffic.
“No one has really figured out men’s yet — no one has the formula just right,” says Grant. “A few pieces double exposed at the women’s counter is fine, but men want to be spoken to directly. When you give them that kind of respect — you will see the result.”