Mass marketers couldn’t attract Baby Boomers with Vital Radiance. And, lines such as Caboodles didn’t build the teen business that drug, food and mass retailers craved. Now chain retailers are looking at the so-called Y Generation as the next hope to boosting sales.
There’s no strict definition of the ages for Generation Y, but the broadest includes Americans born from 1977 to 2002. Most demographers estimate the group totals more than 82 million people.
It isn’t just mass merchants hoping to cater to the tastes of these young women; Generation Y is the target of new retail formats and edgy electronics. But in mass beauty, shoppers falling within the 16- to 29-year-old age group are seen as the ticket to building sales volume. What’s interesting about them is that they like cheap or chic — they may visit Saks Fifth Avenue in the morning and Forever 21 at night.
Some of these shoppers frequented mass stores in their youth only to veer to other channels. Others have never found fashion-forward merchandise at drug or discount stores before. Enter an array of new products that marketers and retailers hope will finally convince these women that budget can be beautiful.
For more than 10 years, new mass market brands touted themselves as the “MAC of the mass.” However, it is only recently that major players entered the mix such as L’Oréal’s HIP line and the new Max Factor.
Last week, Coty Beauty started talking about its own new line from Rimmel created to fill a hole in the market of women in their late teens and 20s. “This is designed for 16- to 29-year-olds who are not finding what they want in mass,” explained Rick Goldberg, vice president of cosmetics for Coty Beauty.
Called Rimmel Underground, the line will be launched into planograms in 2007 and is expected to net some space once reserved for Vital Radiance. “The mistress gets the older wife’s space,” joked one buyer.
To hammer home the trendy London image, print and in-store marketing will be supplemented with online efforts that reflect the way Gen Y researches items.
As L’Oréal’s HIP finds its audience, retailers are starting to notice a growing following of Gen Y shoppers who appear to be getting the intense colors. Retailers also mentioned Almay, Pantina and Physicians Formulas as lines with a positioning resonating with Gen Y consumers. Physicians Formula, buyers said, has been boosted by its TV advertising with an actress in that age range.
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Celebrity endorsements might not be the avenue for Gen Y. A few months ago a brand that had established a strong following with young women — and teen girls — announced it would cease production by yearend. Fusion Brands did not renew the contract for the entire Jessica Simpson collections, which included Dessert Beauty, Dessert Treats and the Sweet Kisses collection sold originally in Wal-Mart. Inventories are being cleaned out of stores and already the line is noted as out of stock at Walgreens.com and discontinued on eBay. Walgreens ran ads recently with all Jessica Simpson’s products priced at $5. Also, according to sources, Wal-Mart was pleased with the results of its Sweet Kisses and it wasn’t the chain’s choice to discontinue the line.
“We felt that it had run its course,” said Jerry Seidl, vice president of sales for Fusion Brands. Instead, the company is focusing on its prestige lines such as Lip Fusion and Clean the fragrance as well as Scentology, which will launch as an exclusive next spring in Target. Scentology is a totally new concept with fragrances created to inspire moods or curtail cravings.
Retailers said that although they are on the prowl for lines for Gen Y, they won’t turn over huge areas of their stores to these shoppers. They learned that lesson with teen departments as well as efforts to make space for lines for mature shoppers.