Beauty Store Business

MAR 2017

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38 March 2017 | beautystorebusiness.com For the beauty industry, this means that Hispanic consumer beauty trends and buying influences should be an inte- gral part of any retailing strategy. After all, Hispanic consumers spent $27.7 bil- lion on beauty products in 2014, accord- ing to Liz Sanderson, vice president of strategy and insights for Univision Communications, which specializes in the Hispanic market. Sanderson adds that a 34-percent growth in this spend is expected over the next five years, versus 17 percent for non-Hispanics. Hispanic-American consumers are a diverse group, representing numerous Spanish-speaking countries, ranging from Puerto Rico and Cuba to Guatemala, Mex- ico, Argentina and more. As a result, one of the first things a beauty retailer must do to serve this burgeoning group is to offer beauty products that appeal to the culture of the distinct countries of origin and ancestry of its particular Hispanic beauty customers. Eddie Jhin, president of Jinny Beauty Supply, recommends that retailers offer the "best mix possible" to support the diver- sity within the Hispanic population. "It is necessary [that you] identify the Hispanic consumers that shop in [your store]," says Jhin. "Hispanics differ. They come from different countries, cultures and traditions. They are constantly looking for products— either those that come from their country of origin or products that are made here in the United States, but [that] are understandable for them, suit their needs, can be related to and/or have brand recognition." Monica Gil, senior vice president of mul- ticultural growth and strategy at Nielsen says, "Hispanics have a strong culture of beauty. Personal appearance is essential for Latinos, both women and men. In fact, seven of Hispanics' Top 10 non-edible categories come from cosmetics, health, beauty departments, fragrances, hair care and men's toiletries." She explains further, "For many consumers, beauty products are considered discretionary expenditures. While sales have declined overall across several categories in recent years, on the contrary, these same categories grew within Hispanic households (cosmetics, hair care, personal-care appliances and shaving needs)." Gil adds that "across total beauty care, Hispanics spend on average 34 per- cent more than the general population." That's a number that beauty retailers can't afford to ignore. Hispanic consumers may spend $46 versus $30 (non-Hispanics) on cosmetics, $44 versus $31 (non-Hispanics) on skin care and $47 versus $29 (non-Hispanics) on hair care each month, says Sanderson. She adds that Univision's research shows that Hispanics have more positive emo- tions attached to their buying experiences than non-Hispanics. "When asked about how they feel about shopping, Hispanics are more likely to say they feel confident, happy, excited and pampered—all positive emotions," explains Sanderson. "Whereas non-Hispanics report feeling frustration, boredom and confusion. This may be one of the reasons why Hispanics shop almost twice as much per month for beauty products compared to non-Hispanics (14 times per months compared to 8 for non- Hispanics)." She adds that Hispanic con- sumers often shop at a leisurely pace and with no specific product in mind. "In fact, 72 percent say they always walk the beauty aisle, even if they don't need anything." HIGH-DEMAND BEAUTY CATEGORIES Research shows that hair care, skin care and cosmetics are the top beauty cat- egories sought by Hispanic beauty shop- pers. However, nail care and fragrance purchases are also popular. Demand for organic and natural products, as well as men's grooming options, is also on the rise, giving retailers a variety of beauty catego- ries with which to appeal to and meet the needs of their expanding consumer base. Sanderson notes that within skin care, Univision has found that Hispanics use more specialized products, including face masks, body oils and scrubs, than their non-Hispanic counterparts. Furthermore, their contribution to total sales is par- ticularly high in the categories of false eyelashes, permanent hair coloring, hair styling, lip liner and lipstick. She adds that these categories are growing faster among Hispanics. "Eighty-four percent of Hispanic women say they use cosmetics to enhance their features, while non- Hispanics are more likely to use products that aim to cover flaws (39 percent)," explains Sanderson. Experts concur that Hispanic beauty consumers gravitate to more visible cosmetics, such as lipstick, mascara, eyeliner and eyeshadow— essentially, products that provide color. At the other end of the spectrum, His- panic beauty consumers show a strong preference for natural and organic prod- ucts. Gil notes that this trend is especially prevalent among millennials, regardless of ethnicity. However, Fabian Lliguin, hair- dresser and cofounder (with his wife Anna Ayers) of Rahua hair care and Amazon Beauty, which use Amazonian ingredi- ents, sees natural and organic products as trending specifically within Hispanic cul- ture. "One of the new things I'm seeing in [Hispanic] purchasing habits is that women are more interested in having natural prod- ucts and organic products; and they want them to be effective. They are [seeing] a relationship between organic and natural ingredients, and their heritage. Essentially, [natural and organic products remind them of] what their mothers and grandmothers used to do—such as using chamomile and quinoa [creatively]. They find natural and organic products familiar; but they want performers as well." A notable trend within Hispanic beauty consumption is the men's groom- ing category. As it turns out, Hispanic men "outspend their non-Hispanic counter- parts in many beauty categories," notes Gil. This makes men's grooming another category that retailers must be vigilant in as they seek to interest Hispanic beauty customers. In other beauty categories, Jhin has found that synthetic hair exten- sions are popular among Jinny Beauty Supply's Hispanic beauty customers. And "Across total beauty care, Hispanics spend on average 34 percent more than the general population." —Monica Gil, Nielsen HISPANIC-MARKET FAVORITES Selecting just the right brands may make all of the difference in whether your store partakes in the $1.7 trillion buying power that Hispanic consumers are expected to command by 2020. Below is a list of some of the most sough-after brands purchased by Hispanic beauty consumers, as observed by industry experts. BRANDS Augstin Reyes (baby line) Crece Pelo Cre C Dominican Magic Goicoechea Grisi Head & Shoulders Herbal Essences La Bella Maja Mirta de Perales Moco de Gorila Pantene Pro-V Classic Care Solutions Pond's Rahua Savilé Sedal Shea Moisture Silicon Mix Suave Naturals Tío Nacho XTREME Gel

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