Beauty Store Business

AUG 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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"We have seen an increase in awareness in the last six months. For us, people who are looking for gluten-free products find us online. We currently carry brands in our store that label gluten-free." She says that she maintains a knowledgeable staff—something that impresses her customers—and makes sure that her staff is trained on all products they carry, and that they know which products and brands are gluten-free. More specifically, beauty and personalcare brands are responding to the increasing demand for gluten-free products by including gluten-free statements on their packaging and in their marketing materials, even securing gluten-free certification and seals. This too is fueling the demand. Derma e recently completed the Whole Foods gluten-free certification process even though it was already informing customers of its 100% gluten-free status through its brand messages. "Generally, it's retailers, rather than [some organization] that is asking for the gluten-free claim and substantiation," says Miles. "I have several other retailers who when we say we are 100% gluten-free they ask us to send in documentation showing that the products have been tested and that there is no gluten there. We have a glutenfree statement on each of our products and on our website. It isn't the most important thing in the world, but it is one of our Top 10. "However, in the last two to three years, it has become something that you want to put on your label," Miles continues. "It has become the kind of message that a skincare company wants to communicate, that [what it is offering is] indeed gluten-free products." Kloberdanz of the Gluten Intolerance Group, which has been around since the 1970s, says that companies reach out to GIG for its gluten-free certification seal, which has been available since the 1980s. The nonprofit organization currently has provided gluten-free certification to more than 500 personal-care products, providing them with a "Certified Gluten-Free" logo for their product packaging. The product range bearing the logo extends from body lotions and shampoos/conditioners to soaps, blush, concealer and so on. Through the certification process, brands undergo a plant inspection by a thirdparty auditor prior to a certification contract. Then they receive an audit from the organization by an in-plant auditor a minimum of once a year. "Once a company is certified, we randomly pull product from the store shelf for testing by our in-house team, or we send it to an independent lab for testing," says Kloberdanz. "We also randomly have companies send product to us for either in-house or independent lab testing." more, some brands simply have not yet invested the effort needed to align such marketing messages with their already compliant formulations. "Let me be very candid about the reality of gluten in skin care. It's not in a lot of skincare products. And that's why we didn't have it in our products for 30 years," explains Miles. "[As a manufacturer], you have to make an effort most of the time to put gluten in something. It's not in most of the ingredients we use. [Though] if someone is selling a wheat oil-based product, yeah, they've got a problem. "Here's the reality if you really look at ingredients lists: Let's take [Brand X]. I would venture to say it is 99% glutenfree already. [Has Brand X] looked at its products and scrutinized them for being gluten-free? No, because in [that brand's] world, it's not an important thing. But as the gluten message becomes a bigger message for mass—as you see more and more articles in Prevention magazine The truth is, you're probably already selling a lot of gluten-free products and simply don't know it. Though you may not find many certified gluten-free products lining your shelves; the truth is, you're probably already selling a whole lot of gluten-free products and simply don't know it. RETAILING SAVVY Certification of any kind, be it gluten-free or even organic, is a financial investment for any company. This fact can be especially burdensome for smaller brands. As Miles put it, if a third-party verification organization is "asking for $1,000 a SKU, that's not something that, realistically, a company our size could do." So, it's no doubt that some of the products you sell are perfectly safe for gluten-intolerant customers. But due to factors such as financial limitations and the increasing regulations on the use of terms like "gluten-free" and "organic"— including the verification that must back up the claim—many brands simply aren't in a position to clearly identify their products as "gluten-free." Further- 54 August 2013 | beautystorebusiness.com [for instance]—then [Brand X] is going to look at its ingredients and go, 'Oh yeah, we need to put this on the label somewhere— that this is a gluten-free product.'" The penetration of gluten-free options into the beauty and personal-care industry stemmed from the growing demand in the food industry. So how long do you believe it will be before the speed at which it is trending in the food industry catches up with the beauty and personalcare industry? According to Petersen, gluten-free has been one of the fastest-growing aspects of the food industry for about a decade. "It's been growing at about 20% a year," says Petersen. "It is the largestgrowing facet. So, the awareness is definitely on a huge rise. "I would say there are so many products that are naturally gluten-free that it would be fairly easy to embrace [the demand]. I would say in a typical store that 75% or more of the products should be fine," continues Petersen. "There is a clientele for the products," points out Stilts of Green Line Beauty. "Most stores have gluten-free products and are not aware. I would have one employee do some research and then have her update your staff. You will see how much your sales will increase if you have a staff that is aware. All stores that have cosmetics, skin care or personalcare products should have a section to accommodate gluten-free products." For some beauty retailers, however, dedicating an entire section of their store to gluten-free products isn't an imminent reality. Some may question the scale of demand for gluten-free products amongst their specific clientele. Yet, others may be curious, but only enough to "wet their feet." Each can test which works best. Behnke of Juice Beauty, which has a certified gluten-free makeup lab, doesn't agree that it is necessary for beauty retailers to separate gluten-free options from the rest. But she does suggest another simple and effective means of bringing attention to your gluten-free offerings—and, subsequently, determining the level of demand from your customers: "Signage!!" she asserts. Signage helps identify your glutenfree products to customers. Its impact will help you measure the demand among your customers. Furthermore, it helps customers identify your store as one that is savvy when it comes to what's trending and savvy concerning matters that are of importance to them—such as what ingredients are—and aren't—present in the beauty and personal-care products they are buying from you. "My advice to retailers for brands that are gluten-free is to call it out because it's becoming a significant marketing tool," explains Miles. "For beauty, I think gluten-free is an add-on; something to get attention to the aisle. If two years from now gluten-free becomes one of the shining stars of marketing, then, yes, you need to build a section. But for now, it's an asset." It's an asset that with a little research and action just may give your store the edge it needs over the competition. ■ Manyesha Batist is senior editor of Beauty Store Business.

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