NEW YORK — Markwins International hopes sales are in the bag.
Fifteen years ago, the cosmetics bag industry was approaching $200 million in sales and was a must-have at every chain. Retailers created huge departments for names such as Caboodles, Sassaby and imported brands.
Then sales softened and space shrunk. Today, according to Information Resources Inc., sales of cosmetics bags totaled only $34.6 million in drug, food and mass stores (excluding Wal-Mart) for the 52-week period ended July 15. That’s down 0.2 percent from the same period the year before. For the similar period in 2005, sales were down an astounding 30 percent.
Now, as retailers search for new ideas in the cosmetics department — especially since new cosmetics lines are underperforming — they are once again looking at the bag category.
The timing couldn’t be better for Markwins, which purchased Soho Cosmetics in February 2005, which gave Markwins bags and a cosmetics line. The cosmetics line has been shed and efforts have been put into adding fashion to the bags. The new styles were unveiled at the National Association of Chain Drug Stores’ Marketplace meeting in June. “The category has been stale and we wanted to brand the category because there hasn’t been a strong brand associated with it,” said Shawn Haynes, senior vice president, marketing and global brand development.
Acquiring a cosmetics bag company was a natural progression for Markwins, which manufactures many beauty kits housed in reusable cases.
“Soho is a perfect fit in our brand portfolio since it completes the package we offer to our retail partners,” said Haynes. “In the value segment, we offer the Color Workshop as our seasonal cosmetic collection and Wet ‘n’ Wild as our basic stock cosmetics brand. In prestige, the Color Institute is our seasonal cosmetics collection brand and Calvin Klein is our basic stock offering. Soho positions itself perfectly in midtier, cross-channel distribution.”
Several retailers, such as Sears Holdings, with its Kmart stores, are looking to become partners with Markwins to rebuild the business. Barbara Poling, vice president and general merchandise manager for Kmart, applauded the new designs and said her company would be implementing a program.
Related Articles
Markwins tapped designer Lindsay Randolph to infuse the collection with European inspiration and luxury goods styling. Natural accents such as linen, straw, bamboo and rope are mixed with bright colors in collections created for all age ranges. There is even a Soho men’s collection of kits.
Prices are reasonable; few bags are more than $20. Haynes recommended retailers put together a department with 50 percent fashion merchandise and 50 percent basics. The bag collections will change on a seasonal basis. Markwins is also making use of its Wet ‘n’ Wild logo with Podulars, a collection of all-black bags that fit into one another for maximum storage.
Markwins isn’t the only company beefing up its presence in the cosmetics bag category. Other key vendors include A.J. Siris, Caboodles and Paris Presents.
Markwins has also been busy integrating the Wet ‘n’ Wild businesses it acquired four years ago. The entire Wet ‘n’ Wild collection has been repackaged, a skin care line called Fresh Face was launched and Black Radiance has been updated. Next on the firm’s plate is a relaunch of Tropez as a Latino-specific brand to serve what the company sees as a void in the value-priced market for Hispanic women.
The company’s North American president, Jim Koeppl, recently stepped aside to spend more time in his family’s business, but is continuing to consult with Markwins.