NEW YORK — The so-called general market for beauty care is dwindling, according to mass market buyers.
Just as chain retailers are getting a firm handle on the ethnic mix of each store, consumers are throwing a wrench into micromarketing by buying items they like rather than those targeted to them.
Companies marketing to specific ethnic shoppers in mass stores are discovering an interesting phenomenon — the products are having tremendous crossover appeal.
Two examples include Activate Beauty, a line of hair care products created and promoted by Latina women, and Milani, a cosmetics line intended for women with diverse shades of skin. Another case in point is HIP from L’Oréal, which sources said was initially intended to reach women of color, but had such high appeal in testing that it was launched as a general market line.
Activate Beauty was founded in 2004 when a group of Latinas couldn’t find hydrating hair products available at affordable prices in mass market doors. One of the founders is Roselyn Sanchez from the TV hit “Without a Trace.”
“I wanted to be part of something that I really believe in,” said Sanchez in a statement. “Due to my work, my hair is always exposed to dryers, curling irons and chemical products. Activate has helped me to keep it healthy and looking its best. I feel that if Activate works for me, it can work for anyone who has dry and overworked hair.”
Their quest for hydrating capabilities led to the launch of Activate, which was picked up by chains including Rite Aid and Walgreens. Activate Beauty includes shampoo, conditioner, hair repair, soft curls formula, straightening cream and a sealant serum. Prices range from $6.99 to $8.99.
The line is enriched with an exclusive Hydro-Infused Complex and a moisturizing blend of natural ingredients from the sea and earth. The formulas have crossover appeal, said company president and chief executive officer, Jacqueline Dascal Chariff. “What we found is that all women are using the products because they see the value of this salon-type line at mass,” she said. The soothing teal color and interesting bottle shape also helps the line stand out on the shelf in the shampoo aisle — traditionally one of the most crowded and confusing in the mass market. According to Chariff, the bottles appeal to all consumers, not just Latina shoppers.
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The beauty of the line is that it serves Latin American women’s needs and attracts some new users to hair care who have been buying at salons. Of course, Activate stays true to its roots first and foremost as a brand to solve Latin women’s special needs. In April and May, celebrity hairstylist Paul Anthony will be on tour at select Wal-Mart stores in Miami, El Paso, Phoenix and San Antonio to help consumers achieve styles like those of founder Sanchez. Anthony and his team will offer consumers consultations and touch-ups at each Wal-Mart location. Activate has a full array of support programs including in-store styling and tours to chains.
Hair care customers are also fickle, jumping from one brand to another. Salon-style brands are leading growth. Sales of shampoos, according to Information Resources Inc., rose 6.8 percent for the 52-week period ended Jan. 28, 2007 to $1.347 billion.
Activate’s appeal to all women who need hydration has now earned it footage in Ulta, Target and Wal-Mart. Although some chains only merchandise the line in stores with a high Hispanic population, more and more are adding it to the full store roster, said Chariff.
A similar trend was observed when Milani was introduced four years ago, and the brand continues to add users and shelf footage. Originally positioned for women of color, Milani’s palette soon became noticed by women just looking for something different. Now, Milani is expanding and nabbing footage made available as chains discontinue carrying Vital Radiance, according to Milani’s Robert Wallner.
Retailers are also seeing the reverse crossover trend happening with ingredients ranging from shea butters, which were once favored primarily by African-American women, to green tea, which is a secret of Asian beauties. Shea butters originally appealed primary to African-American women who found the ingredients good for flaky skin. Now shea butters have crossed over to mainstream. Green tea is appearing in beauty formulas such as CCA’s nail care line.
For retailers, the challenge now is to determine how to merchandise the blurred categories. Many still want to beef up the selection in stores with a high concentration of ethnic consumers. Others, however, are using these smaller brands as a way to provide shoppers more choices. Many chains are open to taking on brands with more ethnic heritage. “These niche brands are giving us a point of difference between competitors,” concluded one buyer.