Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources and methodology
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Overview
- Challenges in 2007 to growth products/positioning
- Eye makeup overtakes face makeup segment for largest share of sales
- Not all eye makeup products grow, while facial makeup grows on pseudo-sun rather than anti-aging
- Retail impetus remains behind discount department stores/supercenters and general merchandise stores
- Diversion of prestige brands and branded boutiques create challenges within retail
- Two of the big three FDM suppliers see sales and share decline
- L’Oréal rules the growing eye makeup segment through FDMx
- Solutions-based and natural positioning have substantial share in facial makeup
- L’Oréal’s Maybelline shines in lips, while Revlon, Max Factor, and Bonne Bell fall
- M.A.C. pushes the envelope in fashion, while Tarte innovates
- Ads/promotion remain dependent on beautiful people
- Number of women important to market as are Baby Boomers
- Black and Hispanic women
- Economics no longer favor growth as food and fuel zap budgets
Insights and Opportunities
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- Green and yellow concealers slower than should be
- Customizable colors
- Products innovate packaging into fashion
- Kits for lower-priced mineral makeup
Fast Forward Trends
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- Self esteem and I-sculpting
- What’s it all about?
- Tryvertising: sampling leaves the counters
Market Size and Forecast
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- Key points
- Mineral makeup helped generate interest
- Economy begins to wear on spending habits
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- Figure 1: Total U.S. FDMx sales and forecast of color cosmetics at current prices, 2002-12
- Figure 2: Total U.S. FDMx sales and forecast of color cosmetics at inflation adjusted prices, 2002-12
- Wal-Mart sales
Competitive Context
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- Economy begins to drag sales lower
- Mineral makeup craze created excitement, but now lower-priced competitors in FDM
- Natural versus glamour, still no middle-ground
- Anti-aging competing with skincare products?
Segment Performance
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- Key points
- Eye makeup overtakes face makeup
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- Figure 3: FDMx sales and forecast of color cosmetics at current prices, by segment, 2002-12
- Figure 4: FDMx sales of color cosmetics, by segment, 2005 and 2007
Segment Performance – Eye Makeup
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- Key points
- Eyes remain the center of attention
- Mascara and liner drive segment growth
- Segment sales
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- Figure 5: FDMx sales and forecast of eye makeup, 2002-12
- Figure 6: FDMx sales and forecast of eye makeup, at inflation adjusted prices, 2002-12
Segment Performance – Facial Makeup
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- Key points
- Blushers and bronzers begin to replace sun tans
- Foundation and powder sales alternate growth and decline year to year
- Anti-aging facial makeup not performing as expected
- Segment sales
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- Figure 7: FDMx sales and forecast of facial makeup, 2002-12
- Figure 8: FDMx sales and forecast of facial makeup, at inflation adjusted prices, 2002-12
Segment Performance – Lip Makeup
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- Key points
- Long term downward sales trend
- Segment sales
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- Figure 9: FDMx sales and forecast of lip makeup, 2002-12
- Figure 10: FDMx sales and forecast of lip makeup, at inflation adjusted prices, 2002-12
Retail Channels
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- Retail distribution in a wider context
- Traditional channels lose share as masstige grows
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- Figure 11: Distribution of cosmetics/make up, face creams, perfumes/colognes, etc., by retail channel, 2005 and 2007
- FDMx distribution
- FDMx sales, distribution overview
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- Figure 12: U.S. FDMx sales of color cosmetics, by retail channel, 2005 and 2007
- FDMx sales segment distribution by channel
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- Figure 13: U.S. FDMx sales of color cosmetics, segment by retail channel, 2005 and 2007
- Channel trends
- Department stores
- Key points
- Strong growth for prestige cosmetics
- Competition from brands as new retail opens
- Consolidation within department stores
- Supercenters, discount department stores, and warehouse clubs
- Key points
- High-end Bare Escentuals being sold through Target and Costco
- Masstige brands eat away at department store sales
- Multi-price points garner phenomenal growth
- Pharmacies and drug stores
- Key points
- Competition from supercenters/discount department stores
- Exclusive lines
- Drug store sales
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- Figure 14: U.S. sales of color cosmetics at drug stores, 2002-07
- Cosmetics, beauty supply, and perfume stores
- Key point
- Store counts continue to grow for Ulta and Sephora
- Sales may have peaked
- Beauty brand stores and sites
- General merchandise stores
- Key point
- Sales strengthen as some consumers trade down
- Retail Channels – Food stores
- Key point
- Surprising sales surge
- Organics and naturals may be a fit in food stores
- Food store sales
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- Figure 15: U.S. FDMx sales of color cosmetics at food and other* stores, 2002-07
- Other retailers
- Key points
- Although online sales are growing, there are inherent challenges
- Home shopping channels add brands, infomercials
Market Drivers
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- Demographics and usage
- Baby Boomers
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- Figure 16: Female population by age, 2003-13
- Black and Hispanic women
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- Figure 17: Women by race and Hispanic origin, 2008
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- Figure 18: Women’s makeup usage, by type, by race/ethnicity, January 2007-November 2007
- Economics
- Household income
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- Figure 19: Median household income, 1996-2006
- Rising food and energy prices leave less disposable income in 2007-08
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- Figure 20: Changes in food price indexes, 2004 through 2008
Leading Companies
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- Key points
- Two of the big three see sales and share declines
- Private label remains negligible
- Coty Inc. buying and selling
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- Figure 21: Leading manufacturers of color cosmetics in the U.S. by FDMx sales, 2005 and 2007
Selected Brand Analysis – Eye Makeup
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- Key points
- L’Oréal nears 50% market share in eye makeup
- P&G gains in spite of Max Factor
- Newcomer Rimmel shows strong growth
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- Figure 22: Leading manufacturer and brand FDMx sales of eye makeup in the U.S., 2005 and 2007
Selected Brand Analysis – Face Makeup
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- Key points
- Solutions-based and natural positioning
- L’Oréal USA sees uneven results
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- Figure 23: Leading manufacturer and brand FDMx sales of Face makeup in the U.S., 2005 and 2007
Selected Brand Analysis – Lip Makeup
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- Key points
- L’Oréal’s Maybelline shines in lips
- Procter & Gamble, Revlon, and Bonne Bell decline significantly
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- Figure 24: Leading manufacturer and brand FDMx sales of lip makeup in the U.S., 2005 and 2007
Brand Qualities
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- M.A.C. pushes the envelope
- Tarte uses cutting-edge ingredients and technology
- Bare Escentuals sets the industry standards for mineral makeup
Innovation and Innovators
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- Key points
- Celebrity and spokesmodel endorsements
- Applications and technology
- Single-use applications
- New textures and transforming products
- Clever and innovative packaging
- “Long lasting” claims
- Long lashes and lash bars
- Lip focus
- Lip scrubs
- Pouty lips – plumpers remain
- Lip-smacking flavors
- Custom color
- Color matching foundation
- Mineral makeup continues
- Green and natural
- Natural and organic ingredients
- Eco-friendly products
- Men – an emerging market
Advertising and Promotion
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- Overview
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- Figure 25: Media expenditures for color cosmetic brands from Brandweek’s Superbrands report, October 2007
- Introduction to common advertising themes
- Product focused, technology driven
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- Figure 26: Revlon 3d Extreme Mascara, 2008
- Figure 27: Maybelline Volume XL Seduction Lip Plumper, 2008
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- Figure 28: Almay Truly Lasting Color Range, 2008
- All about color
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- Figure 29: L’Oréal HIP Makeup Range, 2007
- Figure 30: Almay Intense i-Color Playup Eye Makeup, 2007
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- Figure 31: Merle Norman Makeup Range, 2007
- Mineral makeup craze
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- Figure 32: Jane Cosmetics Be Pure Mineral Makeup, 2008
- Figure 33: Maybelline Mineral Power Powder Foundation, 2008
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- Figure 34: Merle Norman Luxiva Purely Mineral Makeup, 2008
- Ethnic target
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- Figure 35: Cover Girl Natural Hue Foundation, 2007
Usage
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- Usage by type of product and by age of respondent
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- Figure 36: Women’s makeup usage, by type, by age, January 2007-November 2007
- Usage by product type and household income
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- Figure 37: Women’s makeup usage, by type, by household income, January 2007 – November 2007
Frequency of Use
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- Figure 38: Relative frequency of makeup usage, by household income, April 2008
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- Figure 39: Relative frequency of makeup usage, by age, April 2008
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Brand usage
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- Popularity of brands
- Lipstick and lip gloss
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- Figure 40: Brands of lipstick and lip gloss used, by age, January 2007-November 2007
- Facial makeup
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- Figure 41: Brands of foundation and blusher used, January 2007 – November 2007
- Eye makeup
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- Figure 42: Brands of eye liner, eye shadow, and mascara used, by age, January 2007-November 2007
Attitudes and Motivations
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- Desired attributes in makeup
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- Figure 43: Attitudes toward makeup, by age, April 2008
- Importance of selected value-added qualities of makeup
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- Figure 44: Importance of selected value-added characteristics of makeup, by household income, April 2008
- Preferred retail outlet for makeup purchases
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- Figure 45: Where makeup is purchased, by age, April 2008
- Influences to attract new product trial
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- Figure 46: Influences to try new products, by age, April 2008
- Cosmetic industry changes
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- Figure 47: Desired changes respondents would like from the industry, by age, April 2008
- Attitudes toward makeup and makeup usage
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- Figure 48: Attitudes toward makeup and makeup usage, summary of agree, by age, April 2008
Teens
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- Usage
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- Figure 49: Teen makeup usage, by age and type, January 2007-November 2007
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- Figure 50: Teen makeup usage, by type, by race/ethnicity, January 2007-November 2007
- Desired attributes in makeup
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- Figure 51: Attitudes toward makeup, teen girls by age group, April 2008
- Importance of selected value-added traits in cosmetics
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- Figure 52: Importance of selected value-added traits in cosmetics, April 2008
- Preferred retail outlet for makeup purchase
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- Figure 53: Place of purchase for makeup, teen girls, by age group, April 2008
- Attitudes toward makeup and makeup usage
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- Figure 54: Attitudes toward makeup and makeup usage, teen girls, by age groups, April 2008
Race/Ethnicity
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- Usage by race/ethnicity
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- Figure 55: Women’s makeup usage, by type, by race/ethnicity, January 2007-November 2007
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- Figure 56: Formats of foundation, blusher, lipstick/lip gloss, and eye makeup used, January 2007-November 2007
- Attitudes and opinions
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- Figure 57: Attitudes toward makeup, by race/ethnicity, April 2008
- Preferred retail channel for makeup purchase
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- Figure 58: Where makeup is purchased, by race/ethnicity, April 2008
- Influences to attract new product trial
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- Figure 59: Influences to try new products, by race/ethnicity, April 2008
Cluster Analysis
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- Overview
- Demanding Makeup Mavens
- Pigment matchmakers
- Disengaged Cosmetic Carefrees
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- Figure 60: Makeup wearer clusters, April 2008
- Cluster results
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- Figure 61: Attitudes toward makeup by clusters, April 2008
- Figure 62: Importance of selected value-added characteristics of makeup by clusters, April 2008
- Figure 63: Where makeup is purchased by clusters, April 2008
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- Figure 64: Influences for trying new products by makeup clusters, April 2008
- Figure 65: Desired changes respondents would like from the industry by clusters, April 2008
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- Figure 66: Attitudes toward makeup and makeup usage by clusters, April 2008
- Figure 67: Relative frequency of makeup usage by clusters, April 2008
- Cluster profiles
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- Figure 68: Makeup wearer clusters by age group, April 2008
- Figure 69: Makeup wearer clusters by income group, April 2008
- Figure 70: Makeup wearer clusters by race, April 2008
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- Figure 71: Makeup wearer clusters by Hispanic origin, April 2008
- Methodology
Custom Consumer Groups
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- Key points
- Age and race determine preferences
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- Figure 72: Women’s usage of makeup, by type, by race/ethnicity and income group, January 2007-November 2007
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- Figure 73: Women’s usage of makeup, by type, by marital status and presence of children in the household, January 2007-November 2007
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- Figure 74: Usage of makeup, by race/ethnicity and age group, April 2008
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- Figure 75: Preferred place of purchase for makeup, by race/ethnicity and age, April 2008
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- Figure 76: Desired changes respondents would like from the industry, by marital status and presence of children, April 2008
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- Figure 77: Attitudes toward makeup and makeup usage, by marital status and presence of children, April 2008
IRI/Builders Panel Data
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- Consumer insights – color cosmetics
- Category overview
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- Figure 78: Household sales of selected cosmetic categories, by household penetration, for y/e 12/30/07
- Eye cosmetics
- Mascara brand leaders
- Eye shadow brand leaders
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- Figure 79: Household sales of mascara and eye shadow, by household penetration, for y/e 12/30/07
- Lip cosmetics
- Lipstick brand leaders
- Lip gloss brand leaders
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- Figure 80: Household sales of lipstick and lip gloss, by household penetration, for y/e 12/30/07
Appendix: Other Useful Consumer Tables
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- Frequency of use of makeup
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- Figure 81: Relative frequency of makeup usage, by region of residence, April 2008
- Desired attributes in makeup
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- Figure 82: Attitudes toward makeup, by household income, April 2008
- Preferred place of purchase
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- Figure 83: Where makeup is purchased, by household income, April 2008
- Cosmetic industry changes
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- Figure 84: Desired changes respondents would like from the industry, by household income, April 2008
- Teens
- Influences for trying new products
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- Figure 85: Influences for trying new products, April 2008
- Changes desired from cosmetics industry
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- Figure 86: Changes desired by cosmetics industry, teen girls, April 2008
Appendix: Trade Associations
Appendix: IRI/Builders Panel Data Definitions
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