Overview of the Situation of the #Beauty #Industry, #growth # esteelauder

Category: Fashion / Beauty

Industry: Cosmetics / Make-Up

Location: USA

Related to: Economics / Business / Market / Growth

Reviewer: Kevin HAYOUN – Parsons School of Strategic Management

Company: Estee Lauder

Website: http://www.esteelauder.com/

American women’s appetite for high-end beauty and fragrance products is still growing strong. That growth of some $1 billion brings total spending to $17 billion and marks the third year of consecutive growth.

Makeup made up the bulk of percentage of growth, with color cosmetics sales climbing 12% (and representing 82% of all growth.) But sales of skincare products, once a key growth area, gained just 2%, while luxury fragrances managed only a 1% gain.

Following this trend, it seems like women are most interested in “what’s new”, with product launches gaining 24% over prior-year gains. And sales made from new products in both skincare and fragrance fell.

For example, products that did show spark in skincare are those that make people’s faces ready for more makeup, such as masks (up 24%), lip treatments (up 20%), and facial exfoliators (up 5%.) And in fragrances, she notes that in keeping with an evolving sense of experiential beauty and wellness, the biggest gains came from non-traditional areas, such as scent diffusers (up 19%) and candles (up 16%.)

Separately, Estée Lauder just announced it’s expanding a crowd favorite, reintroducing its Victoria Beckham line later this spring.

Source of the cited numbers: mediapost.com, Marketing Daily