NPD/SymphonyIRI Beauty Cross Channel Monitor Reports a Total View of U.S. Beauty Market: Total Beauty Sales Trends Similar in Prestige and Mass But with Different Drivers
The NPD Group, Inc. and SymphonyIRI Group, announced the first quarter 2011 (January through March) results of their partnered product, the Beauty Cross Channel Monitor.
Port Washington, NY (PRWEB) June 10, 2011
Leading market research providers The NPD Group, Inc. and SymphonyIRI Group, announced the first quarter 2011 (January through March) results of their partnered product, the Beauty Cross Channel Monitor. The Beauty Cross Channel Monitor is the U.S. beauty industry’s first and only point-of-sale tracking product that looks at sales performance in department stores (prestige) and the food, drug, and mass market, excluding Walmart (FDMx).
Total U.S. beauty sales in the prestige and food/drug/mass channels are trending similarly in first quarter 2011, up 5 percent and 4 percent, respectively. Makeup sales, while also trending similarly, tell a slightly different story with the food/drug/mass channel faring better than prestige due in part to the double-digit sales in the $127 million nail segment.
“Despite the current economic situation, the beauty industry continues to trend upward showing growth for the fourth consecutive quarter in both the food/drug/mass and prestige channels,” said Diane Nicholson, president, Beauty, The NPD Group. “After a positive, yet cautious 2010, it’s encouraging to see consumers continue to embrace newness and innovation in the beauty space.”
According to NPD’s Economy Tracker, 35 percent of consumers planned to maintain or increase their spending in cosmetics and fragrances for first quarter 2011, up two percentage points from last year. This is despite the fact that consumers are also dedicating a larger percentage of their wallets to gas and groceries, as prices of these categories rise.
Prestige* vs. Food/Drug/Mass**
Dollar Percent Change (Jan ““ March ’11)
Category Prestige Food/Drug/Mass
Total Beauty +5% +4%
Total Makeup +5% +6%
Total Skincare +6% +3%
Total Fragrance +6% Flat
Sources: *The NPD Group / Total U.S. BeautyTrends® Prestige Retail Tracking Service
**SymphonyIRI Group / Total U.S. FDM excluding Walmart
In fragrance, the prestige market (roughly five times larger than the food/drug/mass market) grew by 6 percent during the first quarter of 2011 versus flat sales in the food/drug/mass channel. The increase in prestige fragrance is due to the positive performance in top existing juice* brands, as well as strong sales from 2010 fragrance introductions.
Conversely in skincare, the food/drug/mass channel is triple the size of the prestige channel, yet prestige is trending better, up six percent versus three percent in food/drug/mass. The face, suncare, and gift set segments were key drivers in the growth of prestige skincare.
“Now more than ever, as the beauty consumer evolves and channel shifting continues, the Beauty Cross Channel Monitor is a valuable resource for understanding beauty trends across the prestige and mass markets,” said Victoria Gustafson, vice president, Beauty Vertical, SymphonyIRI Group. “Capitalizing on the dynamics between these channels is a critical component to maximizing brand strategies.”
*Liquid or solid, single item products such as perfumes, EDP, EDT, PDT, EDC, cologne and after shave products.
About The NPD Group, Inc.
The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,800 manufacturers, retailers, and service companies rely on NPD to help them drive critical business decisions at the global, national, and local market levels. NPD helps our clients to identify new business opportunities and guide product development, marketing, sales, merchandising, and other functions. Information is available for the following industry sectors: automotive, beauty, commercial technology, consumer technology, entertainment, fashion, food and beverage, foodservice, home, office supplies, software, sports, toys, and wireless. For more information, contact us, visit http://www.npd.com/, or follow us Twitter at https://twitter.com/npdgroup.
About SymphonyIRI Group, Inc.
SymphonyIRI Group, formerly named Information Resources, Inc. (“IRI”), is the global leader in innovative solutions and services for driving revenue and profit growth in CPG, retail and healthcare companies. SymphonyIRI offers two families of solutions: Core IRI solutions for market measurement and Symphony Advantage solutions for enabling new growth opportunities in marketing, sales, shopper marketing and category management. SymphonyIRI solutions uniquely combine content, analytics and technology to deliver maximum impact. SymphonyIRI helps companies create, plan and execute forward-looking, shopper-centric strategies across every level of the organization. For more information, visit: http://www.SymphonyIRI.com.
For more information:
The NPD Group, Inc.
SymphonyIRI Group, Inc.
For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2011/6/prweb8562100.htm