Beauty Round Up – Industry Moves

The beauty industry is doing well. In fact, according to the Professional Beauty Association, the beauty retail industry is expected to reach $59 billion in 2012. It was $43 billion in 2006, which was the last full year before the recession hit. This phenomenon is referred to as the lipstick effect – when people can no longer spend on large items, they may indulge in small enjoyable purchases such as makeup, perfumes, and hair dyes. Creams, makeup, and fragrances alone jumped 4% to $8.4 billion last year.

Sears, Roebuck and Co. has announced that they will sell cosmetic brands normally found at drugstores in 100 of its stores and on its web site. This new cosmetics department will include brands such as L’Oreal, Maybelline, Revlon, CoverGirl, Sally Hansen, Essie and Nocole by OPI. Beauty advisors will be available in the departments to help customers. Although mall department stores do not typically sell drugstore cosmetics brands, Sears points out that this will complement their approach of selling affordable and well-known brands.

L’Oreal is making strong moves in India – 70% of their major launches this year will be locally designed and developed. New products include a new fairness cream called Garnier Light Ultra, a locally developed kohl eyeliner, and an assortment of skincare products targeted at men. Although Procter & Gable and Unilever have been established in India longer, L’Oreal has an annual growth rate of 30%. Being successful in the Indian market is part of L’Oreal’s overall strategy to monopolize on the opportunities of international emerging markets.

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