Skin care aids US prestige beauty recovery
The market research company presented both US and global end-of-year results for skin care, make up and fragrance at its annual ‘Hot off the Press’ event in New York this week.
According to NPD, the US prestige beauty industry showed its increase versus last year, after two consecutive years of decline.
"If there were any doubts of the continued appeal of prestige beauty products and the tenacity of the beauty industry after the declines of 2009, then 2010 provided a loud, clear, and most encouraging answer," said Karen Grant, vice president and senior global industry analyst, The NPD Group.
Skin care leads the way
Prestige skin care experienced the biggest dollar growth, followed by prestige make up and prestige fragrance, as 2010 saw all the US prestige beauty categories post dollar growth as opposed to 2009, where all the categories, including the total prestige industry declined.
"Prestige Beauty saw the quick recovery of skincare, which by June, had surpassed pre-recession levels. This was followed by the gradual upturn in makeup, and finally, a late year rally in fragrance. Prestige beauty is well positioned for a positive year in 2011," Grant continued.
In comparison with Europe, only the UK posted a higher dollar growth this year posting an eight percent increase, according to NPD figures.
France posted a three percent increase, followed by Italy with two percent. Spain was the only country to see a decline with a minus three percent change in dollar sales.
Emerging China market
The emerging market in China posted a strong 26 percent increase, and is a market that is projected to continue driving forward.
According to another market research company, RNCOS, China provides one of the fastest growing and still untapped cosmetics and toiletries market in the world.
The market provides opportunities to both homegrown and international players. However, international companies like P&G and L’Oreal are currently leading.
Although the Chinese cosmetics market has become highly competitive, RNCOS suggests there is still a plenty of room for new entrants provided they adopt appropriate market entry strategies, find right manufacturing or distribution partners, use effective marketing strategies, and make suitable products for various customer groups at reasonable price points.
