Beauty Store Business

JUL 2013

For beauty business news, beauty store owners turn to Beauty Store Business. Beauty business trends, beauty business profiles and more!

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are provided. Then, in enters the friendly, knowledgeable sales associate who talks the shopper through the short recommendation list to assist in further narrowing down the options. Two to three fragrances are then pulled to sample. If the customer is still not ready to commit, the sales associate will provide her with a small sample to take home, try out and buy online or in-store when she's ready. Technology certainly adds a new layer, but traditional methods won't go away. Since price is so important to beauty consumers, what about the use of coupons? Are there any new innovations? Women have an entrenched value mindset today. They're truly value-obsessed, and it's not just about the recession. They're always seeking ways to be a smart shopper, and there are new ways emerging to help them be even more educated. Granted, we see in our ongoing PULSE research that 7 in 10 still regularly use coupons; but 43% look online for discounts before even getting to the store. The return of coupons came in 2010 as part of shoppers' coping mechanism to deal with the recession. But even today, 4 in 10 shoppers report using more coupons and almost no one—9%—is using fewer. Younger women are most likely to have increased their coupon usage. It's not just about getting the information before they shop; it's now while they shop as well. Mobile has become the new shopping buddy. Women use mobile in all sorts of ways in the store—from getting coupons and product information to taking photos and making price comparisons right at the point-of-purchase. Today, 4 in 10 women use their smartphones in-store to shop. We compared that to our "From Buzz to Buy" study in 2011 and saw the number had actually declined 6 percentage points. We couldn't understand how that happened. Then we saw that 15% now use tablets/e-readers to shop, which explained the decline. It's pretty clear why Apple introduced the iPad mini. It comes as no surprise that retailers are jumping on the latest technology to take advantage of this new mobile consumer. They're now targeting shoppers 48 July 2013 | beautystorebusiness.com with coupons and deals through "geofencing" when they are simply near their stores or even a competitor's. A great example is Starbucks in London. When customers come within about a halfmile of a Starbucks, they receive a text message with a discount on Starbucks VIA coffee. Another great example is Ruth's Chris Steak House, which targets customers within 100 feet of competitive establishments during dinner hours with a special offer. It's targeting on steroids. Finally, what do you advise beauty brands and retailers do to boost their businesses in the next few years? What are the must-have factors? There are five things beauty retailers must do to get to the future. First, reinforce value in everything they do in every way they do it. That means valueadd, not price. Think of Sally Hansen's premium-priced Complete Salon Manicure. It's positioned as a way to save money, since women don't have to go to a salon. Be everywhere she is. The shopper doesn't think about channels. She can get her hair done at Duane Reade and buy dinner at Bed Bath & Beyond. She's in charge and values her time. Next, beauty brands and retailers need to fight against commoditization. They can't simply open one more of the same store and expect to grow anymore. Even iconic Starbucks has differentiated flagships that look totally different in each country. Fourth, remember to give her more reasons to buy—all day, every day. Quidsi.com didn't stop after it conquered the diaper category. It learned about its shoppers' lifestyles and created sister sites to meet her other needs—from Soap.com to BeautyBar.com and Wag.com. Finally, they need to build emotional engagement. Think about Zappos.com. It may seem like it's about buying shoes, but in the end, it's about delivering happiness—from free shipping and returns to talking to a customer-service person 365 days a year. That's what loyalty is all about. Remember that the future is already here—and there's no going back! ■ Regina Molaro is a freelance journalist based in New York City.

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