Beauty Store Business

OCT 2018

Beauty Store Business provides solutions for better retailing! New products, industry news, savvy business moves and important trends affecting both brick-and-mortar and online retailers are included in each issue.

Issue link: https://beautystorebusiness.epubxp.com/i/1022426

Contents of this Issue

Navigation

Page 19 of 67

18 October 2018 | beautystorebusiness.com "This is a market segment that is too big to ignore from an expenditure standpoint. More than 50 percent of the population in the United States will be over the age of 50 this year," says Ruth Stanat, president of SIS International Research, a market research company specializing in beauty. "Seventy percent of disposable income in the United States is controlled by baby boomers who spend $3.2 trillion every year. Over the next 20 years, spending by people age 50 and above is expected to increase by 58 percent to $4.7 trillion." Stanat adds that baby boomers claim the biggest share in terms of total net worth dollars (34 percent); and to add to their buying power, they're expected to inherit $15 trillion over the next 20 years. In beauty retailing, AARP notes that baby boomers' share of spending on personal care products and services is 53 percent, which means they spend more in the category than millennials or Gen Xers combined. They also continue to be a driving force behind brick and mortars. Women's Marketing, which helps indie brands achieve high growth through marketing and media services aimed at female customer bases, found that brick-and-mortar stores are still the top shopping channel for boomers. And contrary to popular opinion, antiaging isn't the top product segment; older consumers are looking for products to hydrate their skin. THE CATEGORY IS BOOMING One of the biggest misconceptions mar- keters and people in general make about this demographic is that they're seeking to turn back time. Experts say this is far from the truth. Baby boomers aren't looking to achieve flawless skin any more than they're seeking the latest trends in color cosmetics. Mature consumers are looking for products that complement their health and appearance and effectively address their concerns. They do their research, they know what they need and they gravitate to brands with a helpful, knowledgeable staff. "Only 38 percent of boomer women are interested in antiaging claims; 60 percent look for products with moisturizing/ hydrating properties for dry skin; and 52 percent say they use beauty products to look good. I think this is understandable at this point in life," Stanat says. "They're not look- ing for antiaging. They really want products that directly address their skin and hair. They want to look good and feel good. [For them], beauty is integrated with health." As a result, skincare products are at the top of the baby boomer beauty list. And retailers must be aware of boomers' most common personal care concerns, such as dryness, to effectively address them. "Skin discoloration is the highest- priority beauty category for this group because of sun damage over the years. Hyperpigmentation and skin discoloration [come] first, followed by fine lines and puffiness. And that goes across ethnicities, because the damage someone does to their skin in their 20s comes through in their 50s," says Lake Louise, owner of Lotus Moon Skin Care, which uses natural ingredients and science to produce safe, nontoxic products. "So you want to address the skin condition, [such as] dryness." In recommending products for this age group, she says that it's less about age and more about skin condition. "There are people who prematurely age and have wrinkles at 30. [Boomer beauty consumers in particular] are looking for products that address concerns and that do not add to toxic overload," Louise says. The integration of health and beauty is one of the most important boomer beauty characteristics that retailers must attune to. Boomers are looking for products that support their health regimens; this includes naturally formulated, efficacious products. "This group loves natural, but they skew a little toward efficacy. They're sensitive to the environment and to ingredients. They've probably been burned more than anyone with ingredients that are bad for you. So, they are sensitive to the quality of the ingredients," says Marlea Clark, executive vice president of marketing and insights for Women's Marketing. The integration of health and beauty also means that retailers must be ready to have a conversation with their boomer beauty customers. Asking them what they're looking for and pointing them to the section isn't sufficient. Their shopping protocol includes having a real conversation about what they're looking for. So, retailers shouldn't be afraid to ask questions about their habits, regimens, lifestyle, diet, vitamins or even prescriptions that could counteract the effects of their beauty products. "Over the next 20 years, spending by people age 50 and above is expected to increase by 58 percent to $4.7 trillion." –Ruth Stanat, president, SIS International Research 74.9 million The number of boomers in the U.S. as of last year 11 hours How long the average baby boomer spends on Facebook each week $ 15 trillion The spending power that people ages 50 and up will have by the end of the decade 5-10 % The percentage of marketing geared towards baby boomers— even though they spend the most across all product categories 70 % Baby boomers control 70 percent of the disposable income in the U.S. 50 % The percentage of the U.S. population that boomers will make up by the end of this year *According to stats from AARP, Nielsen, Pew Research and DMN3 Ruth Stanat BOOMERS BY THE NUMBERS 82 % The percentage of boomers who belong to at least one social networking site Take a look at some of the surprising stats about this generation.

Articles in this issue

Links on this page

Archives of this issue

view archives of Beauty Store Business - OCT 2018