The Sleeping Giant
By: Imogen Matthews
Posted: February 21, 2012, from the January 2012 issue of GCI Magazine.
Men’s toiletries is one of the fastest-growing categories in beauty and personal care, trebling in value between 1997 and 2011, according to Euromonitor International (Editor’s note: Read “A New Pampering Culture Fuels Opportunity in Men’s Grooming”). Despite impressive growth, the category still lags behind the women’s beauty market and will probably never catch up.
Also according to Euromonitor, however, sales are set to rise due to changing male attitudes about grooming and a shift in key emerging regions away from manual work toward white collar jobs.
The recent recession has also benefited sales of men’s products. A common tactic for brand owners has been to diversify product ranges into categories that offer better opportunities. Men’s toiletries has been tipped by the multinationals as being relatively resilient to trading down during the recession and having strong future growth potential. Unilever, for example, expanded its female Dove toiletries brand into men’s grooming in 2010—introducing Dove Men + Care in the U.S., Italy and the U.K. Meanwhile, P&G launched Gillette Fusion ProSeries men’s skin care, targeting the growing demographic of young, image-conscious men.
Not All Regions Equal
Sales of men’s brands are highest in the U.S., which registered a 17% share of the global market in 2011, but growth has slowed as the recession took its toll. By contrast, strong sales in France, Germany and the U.K. are expected to add an additional $800 million by 2014—as European men move beyond basic products, such as razors and blades, to more sophisticated grooming regimens incorporating skin care and post-shave products.
Penetration of men’s toiletries is far lower in emerging regions—per capita spend is less than $7 per year in most parts of the Middle East and Africa, Latin America and Asia. However, the developing markets are helping to drive global growth. Some regions—such as Latin America, the Middle East and Africa—are posting double-digit increases. Brazil is a market many companies have their eyes on, although it must be said that sales of men’s skin care and bath and shower are both negligible, as there is a strong machismo culture. Brazilian men still tend to opt for traditional male products, but rapidly rising incomes should help men’s grooming brands to gain a foothold in the country.
Despite the reported growth in men in spas, some spas still do not see this as a viable market - Why?
A repost of reported growth in this market segment.
NPD Study Shows Potential for Men’s Skin Care Growth
Posted: February 17, 2012
According to a new study from The NPD Group, Inc. titled Men’s Grooming Consumer Report, more than nine in 10 men (ages 18+) are using some sort of grooming product today, which can include facial and body skin care, shaving, hair care and fragrance. However, only one-quarter of men are currently using facial skin care products such as facial cleansers and moisturizers, lip and eye products, and anti-aging treatments.
The men’s facial skin care market has grown 11% in dollar sales in 2011, compared to 2010, according to The NPD Group.
When looking at those men using facial skin care, over one-third (37%) reported using facial cleansers (excluding bar soap) and facial lotions/moisturizers. Three in ten (30%) were cited using lip products, and over one-fourth (26%) are using acne treatment products.
Even within facial skin care, men purchase the more commonly used products that target basic cleaning and moisturizing, while those that offer more specialized benefits such as treating acne and preventing or diminishing the signs of aging, are less likely used by men.
“There is a huge opportunity with men for facial skin care. The challenge is getting them involved and engaged,” said Karen Grant, vice president and senior global industry analyst, The NPD Group. “Seventy-five percent of men ages 18 and up are not currently using facial skin care products. There is a feeling that facial skin care products are not needed unless you have a specific skin problem such as acne. For men to use a product, he first must be aware that there is an underlying need that requires addressing.
Once men know they have a need to fill, their problem-solution orientation will fuel their desire to find products to alleviate their grooming challenges. They also have to unlearn the idea that the body skin care product they use such as bar soap and body lotion works just as well for facial skin. And, while men of all ages present an opportunity, need-based opportunities seem to be most pronounced with black and Hispanic men, as well as younger men ages 18 to 34. To create life-long users, marketers will not only need to build awareness of the benefits that products offer, but also show that these products can be seamlessly incorporated into his grooming routine,” Grant concluded.
Merchandising should tell a story. The same concept is used in spa retail as in creating the spa experience. A sensory driven retail experience drives the most sales. Appeal to as many senses as possible. Create a mood by using bath brushes, sponges, dry plants/herbs, stones, branches, dry grasses, framed words such as relax, drift, succumb, etc. Use before and after photos. Make the area educational and have snipets from recent research on an ingredient, a botantical, any lastest news to support your product lines. Put our sample products, testers, allow clients to smell, touch, taste, see and hear about what you have. Allow the clients to experience the products and create a reason for them to linger. Have seating, scent the air, have lots of testers, create a sample bar, allow the client to take a small portion of a product home to trial. Use visuals and point of sale information. Set up your area to sell itself when no staff is around. Don’t tell about the products, but the benefits and what the client gets from the purchase. Organize the products and information into needs or benefits the client might be looking for. Make it easy for the client to purchase take home products or “not to be without” products. Have a money back guarantee. Do more than just display line upon line of product with no selling information. Maximize the opportunity to sell and your clients to experience what your spa experts recommend. Tell them why they need the product and what it can do for them.
Some great new stats to share, we are seeing the same. Let us know how you are doing in the new year.
Salon & Spa Industry Rebounds in Fourth Quarter 2011
Posted: February 7, 2012
Driven by stronger sales and traffic levels and a more optimistic outlook for sales growth and the economy, the Professional Beauty Association’s (PBA) three main tracking indices for the salon/spa industry, which include the Salon & Spa Performance Index (SSPI), Current Situation Index and Expectations Index, rose in the fourth quarter of 2011. Following three straight quarters of decline and having hit their lowest levels in two years in the third quarter of 2011, the positive results for fourth quarter 2011 are a welcome relief to the professional salon and spa industry.
The SSPI, which is the main index of the three, is a quarterly composite index that tracks the health and outlook of the U.S. salon/spa industry. The SSPI rose 1% from the third quarter of 2011 to stand at 102.9 in the fourth quarter. A base level measurement of 100 is used, with values above considered positive.
“The salon and spa industry remains resilient. As with the broader economy, it is encouraging to see positive growth and expansion as indicated by the Salon & Spa Performance Index,” said Steve Sleeper, executive director of the PBA.
The SSPI is based on responses to PBA’s “Salon & Spa Industry Tracking Survey,” which is fielded quarterly among salon/spa owners nationwide on a variety of indicators. It is constructed so that the health of the salon/spa industry is measured in relation to a steady-state level of 100. Index values above 100 indicate that key industry indicators are in a period of expansion, while index values below 100 represent a period of contraction. The Index consists of two components—the Current Situation Index and the Expectations Index.
The Current Situation Index, which measures current trends in five industry indicators (service sales, retail sales, customer traffic, employees/hours, and capital expenditures), rose 1.3% to a level of 101.6. Four out of five indicators were positive in the fourth quarter. Most notably, 59% of salon/spa owners reported an increase in same-store service sales between the fourth quarters of 2010 and 2011, up from 50% who reported higher service sales in the third quarter. Fifty-four percent of salon/spa owners also reported higher retail sales. Employee hours were only slightly down and were the one negative in the report.
The Expectations Index, which measures salon/spa owners’ six-month outlook on five industry indicators (service sales, retail sales, employees and hours, capital expenditures, and business conditions), increased 0.7% to a level of 104.2. Overall, salon/spa owners are more optimistic about industry growth in the months ahead. Service sales, the core of most salon and spa businesses, was the most encouraging with 67% of salon/spa owners expecting to have higher service sales in the coming six months. Sixty-one percent of salon/spa owners also expect higher retails sales as compared to 7% that expect a decline.
Despite the stronger outlook for sales and the economy, fewer salon/spa owners said they plan to expand staffing levels in the months ahead. Forty-three percent of salon/spa owners said they plan to have higher staffing level in six months. In comparison, only 6% of salon/spa owners expect to reduce staffing levels in six months, matching the proportion who responded similarly last quarter.
The full SSPI report and the “Salon & Spa Tracking Survey” can be found at www.probeauty.org/research.