Beauty Retailing USA Channel Analysis and Opportunities Brochure

Consumer Products

In-Depth Report Series and Interactive Database Service

Report #Y416J | © 2013 Kline & Company, Inc.

www.KlineGroup.com

Beauty Retailing USA:Channel Analysis and Opportunities

A comprehensive analysis of the complex environment for retailing

cosmetics and toiletries in the United States. This study answers such

questions as:

� What are the leading sales channels for beauty products?

� How are retailers engaging consumers with promotions and social

media?

� What are the newest store formats offering to attract consumers?

� What effect do sample subscription services such as Birchbox and

New Beauty magazine’s Test Tube have on retail sales?

� Do Internet and TV shopping channels continue to skyrocket?

FEATURING: AN INTERACTIVE EASY-TO-USE DATABASE

10th Edition

Published June 2013Base Year: 2012


Report #Y416J | © 2013 Kline & Company, Inc.www.KlineGroup.com

Report Scope

Beauty Retailing USA: Channel Analysis and Opportunities provides subscribers with insights into retailing

challenges and opportunities.

The report focuses on the personal care market and sales shifts that have occurred from 2007 to 2012. The

category scope will closely mirrors Kline’s Cosmetics & Toiletries program, encompassing 26 product categories

across the following product classes: fragrances, hair care, makeup, oral care, skin care, and other toiletries.

This report analyzes both major and alternative purchase channels, providing an accurate, detailed examination of

the competitive landscape at the retail level.

Profiles are provided for 10 retailers representing a diverse cross section of venues where beauty products are sold.

Key Benefits

This comprehensive report enables subscribers to exploit business opportunities by illustrating the retailing

dynamics in one of the most important markets of the personal care industry—the United States. Specifically, this

report assists subscribers by:

� Identifying and explaining key purchase channels for cosmetics and toiletries in a clear and consistent fashion

� Quantifying industry sales by purchase channel, focusing on hard-to-track non-traditional channels

� Explaining the business practices and strategies of specific types of retailers, supported by profiles of key

cosmetics and toiletries retailers, as well as non-traditional yet opportunistic ones

� Delivering the information and insights required to capitalize on changes at retail

Subscribers receive one day of consultation time with members of the research team. This time can be used for

assistance with plans or to explore related industry information. This report is available through a Web-based

format for easy access plus an easy-to-use interactive database.



1. Introduction

2. Executive Summary

This chapter will provide a roll-up of total industry statistics, as well askey findings by purchase channel and insights into current trends affect-ing the market. Additional information to be included follows:

� Market developments� Sales and growth by purchase channel for 2007 and 2012� Retail margins� Channel snapshots� Outlook and assessment

3. Purchase Channel Profiles

A review of key purchase channels including sales tables showing theperformance for each of the 26 cosmetics and toiletries categories listedin Table 1. Each purchase channel profile listed in Table 2 will include thefollowing information:

� Channel developments� Analysis by store type/subclass� Number of doors/stores� Leading retailers� Role of cosmetics and toiletries in the channel� Manufacturers’ and retail sales by beauty product category for 2007

and 2012� Manufacturers’ and retail sales by product class for 2007 and 2012� Promotional and advertising activity� Private-label activity� Outlook to 2017 including retail and manufacturers’ sales

4. Retailer Profiles

Profiles of 10 retailers as listed in Table 3 will be provided with specificdiscussion pertaining to the cosmetics and toiletries business of thesecompanies. Each profile will include the following:

� Overview� Corporate sales� Recent developments� Number of doors/stores� Competitive focus and strengths� Cosmetics and toiletry sales for 2012� Cosmetics assortments and key brands� Role of private-label products� Marketing activities� Outlook to 2017

Report Contents

Table 1: Product Categories Covered in the Study

Fragrances

� Fragrances for men

� Fragrances for women

Hair Care Products

� Conditioners

� Ethnic hair care products

� Hair coloring products

� Hair styling products andsprays

� Shampoos

Makeup Products

� Eye makeup

� Face makeup

� Lipsticks and lip glosses

� Nail polishes

Oral Care Products

� Denture products

� Lip balms

� Mouthwashes

� Toothbrushes

� Toothpastes

� Tooth whitening products

Table 2: Purchase Channels

Department stores

� Lower-end

� Specialty

� Traditional

Direct sales

� Person-to-person

� Home shopping networks

� Infomercials

� Internet/e-commerce

� Catalogs and other directresponse

Drug outlets

� Chain drug stores

� Independent drug stores

Skin Care Products

� Baby care products

� Facial treatments

� Hand and body lotions

� Skin care products for men

� Sun care products

Other Toiletries

� Deodorants and antiper-spirants

� Depilatories, waxes, andbleaches

� Personal cleansing products

� Shaving products

Food outlets

� Convenience stores

� Supercenters

� Supermarkets

Mass merchandisers

� Big box retailers

� Dollar stores

� Warehouse clubs

Specialty stores

� Apparel (Gap, BananaRepublic, H&M)

� Beauty supply (SallyBeauty)

� Cosmetic specialty(Sephora, Ulta)

� Vertically-integrated (Bath& Body Works, Origins)

Table 3: Retailer Profiles

� Amazon.com

� Bed Bath & Beyond(includes Harmons)

� Dermstore.com

� Nordstrom

� QVC

� Ricky’s

� Sephora (includes Sephora.com)

� Target

� Ulta

� Walgreens (includes Duane Readeand Drugstore.com)


Database Contents

Subscribers have unlimited access to the report data and written contents through our new sophisticated, but easy-

to-use online database, with the following capabilities:

� Search capabilities by channel, channel subclass, and product category

� Flexible search options

� Subtotaling abilities

� Easy access and downloading of sales, market shares, growth rates, and forecasts




Methodology

Kline is unmatched in our ability to gather hard-to-get market and competitive intelligence with a high degree of

confidence. Kline's market analysis approach places the principal emphasis on primary research techniques to

ensure that the foundation of business intelligence and insight is accurate, current, and reliable.

During the course of field research, Kline's professional staff of industry experts will conduct in-depth discussions

and personal interviews with a wide range of knowledgeable industry participants and opinion leaders, including

professional skin care product manufacturers and marketers, distributors and suppliers, key retailers, public

relations executives, and other direct influencers on brand and supplier purchase decisions. This approach has

proven to be the most effective and reliable approach to obtaining accurate market data, capturing expert insights,

and identifying business opportunities.

Primary research represents the bulk of our research efforts; however, this analysis is supplemented by secondary

research drawn from suppliers' product literature and price lists; recent trade and technical publications, Internet

sources, store checks, and company financial reports.

Kline Credentials

Kline is a worldwide consulting and research firm dedicated to

providing the kind of insight and knowledge that helps companies

find a clear path to success. The firm has served the management

consulting and market research needs of organizations in the

chemicals, materials, energy, life sciences, and consumer products

industries for over 50 years.

Kline's research and consulting services extend across the entire

personal care industry value chain. Our solutions have helped

clients develop better ways to create and profit from new business

opportunities, respond to competitive and economic threats,

improve productivity, achieve sustainable growth, and optimize

performance. Kline provides clients with facts, forecasts, and

recommendations based solidly on the realities of the market.

Our market research reports and services are designed to provide subscribers with a deeper understanding of their

markets, an outlook for their business, and accurate information about their competitors. Our clients tell us they

often use Kline's market research to validate their own internal analysis, and many clients rely on Kline reports as

their most critical source of information.

For more information about this study or Kline's other services, e-mail us at [email protected], visit our website

at www.KlineGroup.com, or contact us at any of our regional offices listed below.

Recently published or in-progress research for the

Personal Care industry includes:

� Beauty Marketing

� Cosmetics & Toiletries

� Male Grooming

� Personal Care: Competitor Cost Structures

� Professional Skin Care

� Salon Hair Care

� Professional Nail Care

North America

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Japan

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China

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India

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Latin America

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Beauty Retailing USA Channel Analysis and Opportunities Brochure