Beauty Store Business

JUN 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.

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4 June 2018 | beautystorebusiness.com Industry News From top: Smith Collection/Gado/gettyimages.com, courtesy of Sanek SANEK EDGE STUDENT LOAN REPAYMENT PROGRAM SELECTS WINNER Sponsored by Sanek and Graham Beauty, the Sanek Edge Student Loan Repayment Program offers two $2,500 awards each year for beauty industry professionals who have been in the salon, beauty or barber industry for a minimum of six months—but who still have outstanding student loan debt. Designed to give recent graduates an "edge," winners of the awards also receive a selection of free Graham Beauty products each month for one year—an estimated $1,200 value. For the 2017 program, only one qualifying applicant, Virginia Mcrae, received the award. According to Dan Hnilicka, Graham Beauty's marketing manager and the program's founder, "This past year we only received one qualifying candidate, but the story is a wonderful one. I received a very heartwarming letter from her that really captures the exact reason I started this program." In Mcrae's letter, she writes, "I am a 35-year-old single mother of three boys, two of my own (13 years old and 6 years old) and my nephew (13 years old). I have always had a passion for doing hair, so I decided to attend Virginia College to pursue my career in becoming a licensed cosmetologist. Although there were some stumbling blocks along the way, I was still able to finish school and pass my state board; now I am a licensed cosmetologist." Mcrae continues, "… By awarding me this scholarship, you have lightened my financial burdens, which allows me to focus more on the most important aspect of my goals. Your generosity has inspired me to help others and give back to the community. I hope that one day I'll be able to help others achieve their goals just as you have helped me." The 2018 program will begin accepting applications in August. For more information on the Sanek Edge Student Loan Repayment Program, visit scholarsapply.org/sanekedge. k Edge y cts ue. di D H il i k G h TARGET INVESTS IN MULTICULTURAL BEAUTY BRANDS In a competitive move to capture a larger slice of the multiethnic market, Target added eight new brands–chosen because of their commitment to formulating makeup for women who have medium-to-dark skin tones. Launched on target.com on April 17 and in select stores on May 20, the new offerings total more than 150 SKUs, including over 60 shades of foundation. The multiethnic brands include: Coloured Raine, EveryHue Beauty, Haleys, Hue Noir, Makeup Geek, Reina Rebelde, The Lip Bar and Violet Voss. "We know our guests have a wide range of beauty needs and preferences, and we want to make sure Target has the best assortment for all hair types or skin tones," said Christina Hennington, senior vice president of Beauty and Essentials at Target. "These eight new cosmetic brands will further our range of shade options–from foundation to lip–and are available at incredible prices. We'll continue to listen to our guests to understand what beauty products they're looking for at Target, and look forward to seeing their response to these new cosmetic brands." Target is ensuring the success of the brands, which were mostly online prior to the partnership, by integrating them in marketing campaigns and press outreach. In stores, the multicultural offerings will be placed on the retailer's most prominent end aisles to ensure visibility. "We're elated to know that Target is continuously evolving the customer experience and meeting the shopping needs of an ever more diverse clientele by expanding their current cosmetics offerings to include inclusive indie brands like Coloured Raine," said Loraine R. Dowdy, Coloured Raine's CEO. "In Target, we have a partner that is passionate about joining our mission to elevate and honor what it means to be Latina with high-quality cosmetics that celebrate the unique cultural dualities of today's Latina," added Regina Merson, founder of Reina Rebelde. Unlike competing beauty retailers, Target does not offer in-store testers to help with shade matching, an almost necessary component to helping women of color ensure the correct selection. The retailer's beauty concierge service that was introduced last year in all of its stores should be helpful in assisting consumers find solutions and discover the new brands. Additionally, the company is considering the idea of event-based samples and trial opportunities as well as technology to help guests try on product and experiment. HAIRCARE MARKET TO REACH $211.1 BILLION BY 2025 A new report from Grand View Research predicts the global haircare market will reach USD $211.1 billion by 2025 at a 3.1 percent compound annual growth rate (CAGR). The main drivers of this growth include increasing demand for hair color products driven by the growing aging population. Additionally, as rural populations migrate to metropolitan areas in increasing numbers, more money is spent on personal care and beauty products. Personalization and technological innovation are two other key driving factors for the haircare market's growth. Professional products designed to solve haircare problems for consumers' specific culture, gender, region and hair type are in high demand. Services held the largest market share thanks to the growing popularity of hair extensions in countries like the U.K. and the U.S. Shampoo was the largest share of the product segment due to rising consumer awareness of the benefits of natural and organic shampoo. The study also found that, because of its superior haircare services and products and the presence of large multinational companies, the U.S. continues to dominate the global haircare market. Globally, hair color products are expected to experience the fastest growth between now and 2025, while India's haircare industry is projected to grow at the highest rate with a CAGR of 9.73 percent. The report also notes the rise in company mergers, acquisitions, collaborations and new product development to increase market share. For example, in September 2017, L'Oréal and Natura Cosmeticos SA signed an agreement for the sale of The Body Shop to Natura. To view the full report, visit grandviewresearch.com.

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