Beauty Store Business

JUL 2018

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8 July 2018 | beautystorebusiness.com Industry News From top: Courtesy of Target, PeopleImages 2018 EASTERN BUYING CONFERENCE CELEBRATES 35 YEARS & PLANS FOR CHANGE The 35th annual Eastern Buying Conference (EBC), the beauty industry's exclusive show for beauty suppliers, distributors and professional beauty stores, took place April 14-15, 2018. Hosted by seven manufacturer rep groups, the conference was held at the Hilton Meadowlands in East Rutherford, New Jersey. It proved to be a solid show with nearly 100 exhibitors. Attendees enjoyed networking at the Saturday evening reception, followed by a lively Casino Night. However, while attendance was good, it was down overall compared to previous years. As a result, the EBC committee met following the show. And on May 8, an announcement was sent out from Eddie Berger, vice president of BTB Marketing and president of the EBC, stating, "A decision was made by the EBC committee that, going forward, we would merge the Eastern Buying Conference and Western Buying Conference shows." After 35 years, Berger said, "EBC has come to the end of the road, but our journey still continues." The EBC's origins can be traced back to when the Northeast manufacturing rep groups got together and started a show called the Northeast Beauty Rep Association (NEBRA). The first NEBRA show was held at the Loews Glenpointe Hotel in Teaneck, New Jersey. As more manufacturers entered the professional beauty industry and rep groups expanded, the show expanded, too – eventually taking over more and larger rooms at the Loews Glenpointe. Full-service distributors and a mix of beauty supply stores attended. And the tradition of the show's Saturday night event began, which allowed attendees and exhibitors to mingle together over cocktails, dinner and fun. Eventually, the name was changed to the Eastern Buying Conference. "While we are working on a new name for the organization, the show will continue to be held at Bally's in Las Vegas in January 2019. In addition, [show manager] Patty Paletto will, of course, stay on board to not only make the transition a smooth one but to ensure all future shows will be a success," added Berger in the announcement. Of course, as more news about the newly combined show emerges, Beauty Store Business will keep you informed. (In the meantime, enjoy seeing the many faces of EBC 2018 in our photo essay starting on p. 10!) PRESTIGE BEAUTY SALES UP 9 PERCENT According to market research from the NPD Group, sales of prestige beauty products grew 9 percent (to $4.2 billion) in the first quarter of 2018 mostly due to the 14 percent rise in skincare sales (to $1.5 billion). Within skin care, toners/clarifiers rose 19 percent, eye and lip treatments rose 14 percent, face moisturizers rose 11 percent and antiaging products rose 13 percent–compared to the 4 percent decline experienced during the same period last year. The suncare segment experienced even greater growth, with sunscreen and self-tanner sales up 47 and 38 percent, respectively. Speaking on the first quarter's performance, Larissa Jensen, executive director and beauty industry analyst for the NPD Group, said, "Consumer interest in wellness, ingredients and natural brands continues to fuel skin care and bring attention to the category, as well as excite consumers into brick-and-mortar stores. For the first time in more than three years, the channel is responsible for the majority of the gains in the category." Additionally, sales rose 7 percent (to $2 billion) in the U.S. prestige makeup market. Within makeup, lip gloss sales grew by 19 percent, while lip color declined 3 percent. In the face market segment, foundation (the biggest seller) sales grew 7 percent. Eye makeup experienced similar growth, with eyeshadow and mascara sales up 15 and 10 percent, respectively. Jensen commented, "Despite kicking off 2018 with the strongest launch volume in three years, makeup's growth is in line with last year, indicating existing products are not as strong as they were a year ago. Even so, the category has maintained a positive momentum that is encouraging in a market that has become increasingly fragmented as competition continues to grow outside of traditional channels." Fragrance sales grew 9 percent (to $706 million), and fragrance juices also rose by 9 percent compared to a flat performance in Q1 2017. Sales went up 68 percent in the home scents category, which was led by candles and diffusers. For more information, visit npd.com. ■ TARGET BEAUTY STUDIO LAUNCHES In mid-May, Target made another aggressive move to win over beauty consumers. Target is making its online beauty shopping easier by giving guests the opportunity to "try on" hundreds of cosmetics and chat via text with Beauty Concierge reps to field questions they may have. The retailer's new augmented reality beauty experience is called Target Beauty Studio, which is now available to use on target.com. Target partnered with Perfect Corp's YouCam Makeup to make the real-time facial mapping technology accessible online. Guests can virtually try on any makeup using their own digital device. The technology is also available in 10 Target retail stores via digital screens in the beauty department. There are plans to roll out more later this year. While Beauty Concierge representatives already assist guests in-store, they are now available online with the new text-to-get beauty advice service. Guests simply text "BeautyChat" to "Target" on their smartphone device to receive speedy responses from a Beauty Concierge representative. Additionally, very soon, Target plans to launch Beauty Chat on target.com. When browsing cosmetics or skincare pages, a chat icon will appear when the service is available and a Beauty Concierge rep will provide answers in real time.

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