NEW YORK — This spring, competition along the cosmetics wall is razor sharp, but Coty Beauty is betting that Rimmel London is edgy enough to cut through the crowd.
Since expanding beyond Wal-Mart, where it made its U.S. debut in 2000, Rimmel has set up shop in 13,000 doors. The U.K.-born beauty brand added Kmart to its distribution network this spring, and Rimmel is involved in a two-store test at Sears, where it has outfitted the main floor with a two-sided display unit.
“There’s been a tremendous amount of [competitive] activity in the midst of this rollout, but Rimmel continues to gain new accounts,” noted John Galantic, president of Coty Beauty U.S.
Despite an aggressive push by beauty’s biggest players, including L’Oréal and Revlon, to snatch display space and market share, Rimmel has managed to secure space within many retailers’ permanent displays, such as Walgreens, Target and Longs Drugs.
After scrutinizing its planograms to accommodate new launches, Walgreens decided that Rimmel made the productivity cut and the brand remains a staple in most stores, according to Kathy Steirly, divisional vice president and general merchandise manager for beauty and fashion at Walgreens.
Industry sources estimate that, since 2001, Rimmel’s U.S. sales have quadrupled, growing from $25 million to $100 million in 2005. Rimmel — which in the U.K. also includes the Astor and Miss Sporty brands — is the second-largest cosmetics company in Europe, and its U.S. growth spurt makes it the fastest-growing brand in Coty Beauty’s brand portfolio.
“Rimmel continues to be our number-one priority,” said Galantic, adding that Rimmel powered 25 percent of the growth in the cosmetics category in 2005. Total cosmetics sales increased 1.7 percent to $2.9 billion, excluding Wal-Mart, for the 52-week period ended March 19, according to Information Resources Inc.
Its success ties into consumers’ fondness for niche brands across all channels, commented Galantic. “Today, it’s the smaller brands with a fashion-forward positioning and technology” that offer a winning formula for retailers, he said.
This spring, the company stepped up its technology with the introduction of Recover Illuminating Anti-Fatigue Foundation, a formula designed to leverage antiage technology to brighten young skin. In July, Rimmel will follow the foundation, identifiable by its pink cap, with a trio of technology-laden items, including Lycra Lash Extender Length & Curl Mascara, Rich Moisture Cream Lipstick and Eye Twist.
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The $6.69 Lycra mascara, which was inspired by the success of Rimmel’s Lycra Wear nail polish, is designed to “visibly lengthen and lift lashes up to 60 percent and give 14-hour curl.”
Rick Goldberg, vice president of cosmetics for Coty Beauty, said competitive products claim to lengthen lashes 30 to 60 percent and hold curl for eight hours.
This summer, Coty will support Lycra Lash Extender with print ads, featuring Moss and the tag line “Bend and stretch the lash limit.”
Rich Moisture Cream Lipstick relies on a Moisture-Lock Complex, designed to “provide a robe of clear emollient around the pigment” to give maximum color without drying lips, said Goldberg.
Rimmel will support Rich Moisture — available in 20 shades at $5.90 each — with print ads and TV spots that declare, “Soft lips in a hard world.” Galantic noted that Rimmel will increase its TV spending to support multiple products at one time.
With the lash and lips covered, Rimmel borrowed from department store technology for Eye Twist, a dual-ended long-wearing shadow and liner similar to Estée Lauder’s $23.50 Artist’s Mechanical Eye Pencil. Rimmel’s Eye Twist will be available in eight coordinating shades for $5.70 each.
Rimmel’s prices position the brand as value, and encourage consumers to experiment with new products and shades, noted Galantic.
Sarah Munson, general manager of Drugstore.com, said Rimmel helps the online retailer respond to the consumer trend of “high-low shopping.” “We also think it’s important to offer a variety of products at different price points,” she said, adding that Drugstore.com “continues to have success with the brand online.”
Rimmel executives would not comment on sales, but industry sources expect the three items to fuel growth in the brand’s sales volume by 10 to 15 percent over the next year.
Readying for more growth, Rimmel rolled out a new display wall this spring that heralds its U.K. heritage with photographs of London’s quintessential red phone booths, offset by black display cards. Photos of Moss also are prominently featured in the display.
“We are very pleased we stuck with Kate,” said Galantic, referring to the briefly lived flap surrounding Moss’ alleged drug use. “Some companies dropped her and then had to come scurrying back.”