Private Label Heats Up At Mass Again
Mass market retailers have had an on and off again relationship with private label products in the beauty arena. But with Americans trading down in price, private labels have been growing and garnering attention in the beauty category. Nielsen Co. reports that unit sales of private labels are up 8 percent since 2007.
Beauty has been a problematic sell for house brands. While consumers might not mind a paper towel with a drugstore chain name, they don’t want an eye cream screaming that name. So, most chains have devised exclusive labels. Over the years, CVS Pharmacy, Walgreens, Duane Reade and others have launched private collections. Some have been successful; others have been phased out for a variety of reasons. Duane Reade’s Apt.5, for example, was a gorgeous line, but some consumers felt the price was too high to justify buying a name they didn’t know. The best example of an exclusive hitting gold is, of course, Target with Sonia Kashuk cosmetics. The jury is still out on its other proprietary beauty lines.
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But, with fewer chains in existence today, many experts think these more powerful merchants will lure better and better house brands and that the timing could be right.
Recently, Kroger introduced a private label beauty care brand called Mirra that is geared toward “family-focused women seeking effortless beauty.” The line is naturally positioned and includes hair care as well as skin care. For hair, there are Mirra Daily shampoos and conditioners available in three formulations: smoothing, volumizing and color treated. Mirra products contain sunflower extract, soy protein, amino acids and chicory root, along with other ingredients, to counteract the harsh effects of hard water and restore a healthy pH balance to hair. Styling products provide moisture, shine and hold. Mirra Renew skin care products feature exfoliating cleanser and assorted creams to hydrate, reduce appearance of wrinkles, accelerate skin renewal, firm and lift with ingredients such as aloe, green tea, pro-vitamin A and apricot seeds. In body care, Mirra Renew offers bamboo & honey, lemongrass & ginger, black tea & cracked pepper and Japanese Yuzu fragrances in foaming bath, body wash, body lotion and body mist products.
Kroger is a major supermarket chain with lots of muscle behind it to build the brand. It could be a good laboratory to judge future house brands. Kroger’s willingness to make such a big commitment could signal others will follow. On a smaller scale, Duane Reade decided to offer an exclusive nail color line to complement OPI in its stores that is said to be blowing out the door.
With retailers looking to pump out maximum profits, exclusives are looking like a promising option once again. The cautionary tale is to not price the house brand out of the market and to provide some type of support behind the logo so that consumers develop a comfort level for the name.
People, Place and Things
A few words with David Woolf of American International, a leading source of false eyelashes.
WWDBeautyNews: Why are false lashes so hot? What can retailers do to maximize on this trend?
Woolf: We are the fashion cosmetic of today. Retailers of cosmetics need to realize that lashes are a cosmetics [product] and that this is a category that has shown double-digit growth year after year. The fact of the matter is that the least productive retail lash sets are those with the fewest [items]. Eyelash volume increases exponentially with the breadth of styles.
WWDBeautyNews: Are there trends favoring false lashes?
Woolf: Look at Latisse and the other products like it. Look at the variety of mascaras. All are trying to make lashes more prominent. The eyes have it today and the best looks are achieved with lashes. They are quick and easy to apply. A woman can have her look or a variety of looks. Best of all, when cared for they can be used multiple times.
What’s In Store:
Rimmel Shows Commitment: Coty Inc.’s is building the Rimmel cosmetics brand with a trio of new ambassadors, namely Zooey Deschanel, Solange Knowles and Alejandra Ramos Munoz. They join Kate Moss, Georgia May Jagger and Coco Rochas as what Coty calls “aspirational” ambassadors of Rimmel London.
Hall And Oates: Attendees at the National Association of Chain Drug Stores’ Annual Meeting will get to rock out to the familiar tunes of Hall and Oates at the closing dinner. The meeting kicks off April 23 at the Breakers.