Ethnic Hair, Beauty and Cosmetics Products in the U.S., 6th Edition

Published by: Packaged Facts

Published: Nov. 1, 2008 - 282 Pages

Table of Contents

Chapter 1: Executive Summary/The Overall Market

Highlights

Introduction

Definition of the Word “Ethnic”

Market Parameters

Three Ethnic HBC Categories: Haircare, Makeup, Skincare

Tremendous Overlap Between Ethnic-Specific and General HBC Markets

Terms Used: A Glossary

Carbon Footprint

Cosmeceutical

Direct

Ethnic

Fair Trade

Green

HBC

Market vs. Category versus Segment

Mass

“Natural” vs. “Organic”

Prestige and Pop Prestige

SKU

Specialty

Supermarket, Chain Drugstore, Mass Merchandiser

Methodology

Overall Market Size and Growth

Ethnic-Specific HBC Charging to $2.6 Billion in 2008

Haircare Category Lumbers to $1.4 Billion

Makeup Sales Nearly Doubling, to $920 Million

Skincare Glows, Too, at $203 Million

Table 1-1: U.S. Retail Dollar Sales of Ethnic-Specific HBC Products, by Category, 2004-2008e (in millions of dollars)

Ethnic Haircare Category Loses Share-Points, But Still Dominates

Ethnics’ Buys of General-Market HBC Reach $7.0 Billion in 2008

Table 1-2: U.S. Retail Dollar Purchases of General-Market HBC Products by Hispanics, African Americans, and Asians, 2004-2008 (in millions of dollars)

Grand Total of Ethnic Spend on HBC = $9.5 Billion in 2008

Context

Ethnic HBC Sales Turned Bullish (2004-2008) After Waking Up(2001-2006)

World Beauty $$/U.S. Beauty $$/U.S. Ethnic HBC $$

Perspectives on Potential Target Markets: Prestige, Natural Food/HBC, Men’s HBC, Skincare

Factors in Future Growth

For Ethnic HBC, a Tricky Overview

Ethnic Population Growing Fast

Hispanics

African Americans

Asians

Other Groups

Table 1-3: Projection of U.S. Population, by Race and Gender, 2008-2020 (In Thousands)

Ethnic Spending Power Continues to Rocket

A Cycle of Reciprocity: From Ethnic-Specific to General-Market HBC, and Back Again

The Big Blur: Made-Over Retail Channels and Their Ethnic HBC Roles

Update: Will the Key to Marketing to Diverse Hispanic (or Asian) Cultures Ever Be Found?

Ethnics More Green-Minded Than Whites -- But Marketers and Natural Food/HBC Channel Drop the Ball

A Stressed National Economy Is Positive -- For Now

Projected Overall Market Sales

Ethnic HBC Market to Pass $3.3 Billion Milestone in 2012

Ethnic-Specific Haircare to Hit $1.7 Billion in 2012

Ethnic-Positioned Makeup Jetting to $1.4 Billion by 2012

Ethnic-Specific Skincare to Be Valued at $257 Million in 2012

Table 1-4: Projected U.S. Retail Dollar Sales of Ethnic-Specific HBC Products, by Category, 2008-2012 (in millions of dollars)

Summary of the Report

Trends in Product Categories

Ethnic Haircare Trends

Ethnic Makeup Trends

Ethnic Skincare Trends

Ethnic Consumers Quantified by Type of Product

Ethnic Consumers of Haircare Products Quantified

Ethnic Consumers of Makeup Products Quantified

Ethnic Consumers of Skincare Products Quantified

BIGresearch Data on Ethnic Purchasing of Organic HBC

Table 1-5: Shares of Consumers Who Buy Organic Health and Beauty Care Products, by Race, Hispanic Origin, and by Age Over or Under 35, 2008 (as of May)

Chapter 2: Trends and Opportunities

Highlights

Trends and Opportunities

Ethnic-Specific Was Not Dead, Only Resting

…Yet a Broader, Multicultural Stance Is the Ideal

Target Hispanics, Asians as They Assimilate and Acculturate

Ethnics More Green-Conscious Than Whites?! Yes!

Ethnic Hair, Beauty, and Table of Contents

Potential for Ethnic HBC in China, U.K., R-O-W

Chapter 3: The Ethnic Haircare Category

Highlights

The Products

Haircare Category Parameters

Characteristics of Ethnic Hair

African-American Hair

Hispanic Hair

Asian Hair

Even Afros Require Use of a Range of Products

Eight Ethnic Haircare Segments

Gentleness vs. Efficacy: Progress Has Been Made

Ethnic Haircare Category Size and Growth

Haircare Category Lumbers to $1.4 Billion in 2008

Re Two Key Segments: Preparations Tower over Wigs

Table 3-1: U.S. Retail Dollar Sales of Ethnic-Specific Haircare Products, 2004-2008e (in millions of dollars)

Relaxers, Conditioners, Stylers Dominate Ethnic Haircare

Table 3-2: Share of U.S. Retail Dollar Sales of Ethnic-Specific Haircare Products, by Segment, 2003-2007 (in millions of dollars)

Outlet Share: “B&Bs” Said to Have 50% of Ethnic-Specific Haircare Sales

Ethnics’ General-Market Purchases Hit $3.3 Billion in 2008

Table 3-3: U.S. Retail Dollar Purchases of General-Market Haircare Products by Hispanics, African Americans, and Asians, 2004-2008 (in millions of dollars)

The Grand Total: Ethnics Spend $4.8 Billion on Haircare in 2008

Factors in Future Growth

Factors Echo Those in Overall Ethnic HBC Growth

Ethnic Haircare Can Benefit from Upscaling of America’s Tastes

Prestige, Natural/Organic Formulations Are Gentler -- If You Can Find Them

Upwardly Mobile or Not, African Americans Will Have the Same Hair Needs

Marketers Bank on Hispanic and Asian Assimilation

Projected Sales

Ethnic-Specific Haircare to Hit $1.7 Billion in 2012

Ethnic-Specific Hair Preps to Brush $1.5 Billion

Ethnic Wigs to Reach $242 Million

Table 3-4: Projected U.S. Retail Dollar Sales of Ethnic-Specific Haircare Products, 2008-2012 (in millions of dollars)

The Marketers

Hundreds of Ethnic-Specific Haircare Marketers, But Only 25 Notables

Most Ethnic Haircare Marketers Are Specialized in Some Way

Table of Ethnic Haircare Marketers and Brands

Table 3-5: Selected Ethnic Haircare Marketers and Their Brands, 2008

Brand Share

Special Note on Presentation of IRI Share Data

Three Marketers Lead Ethnic Subtotals in Five Haircare Segments

Table 3-6: Ethnic Brands' Share of All U.S. Mass-Retail* Dollar Sales of Haircare Products, for 12-Month Periods Ended July 13, 2007 and July 13, 2008

Ethnic Haircare Marketing and Product Trends

Natural, Natural, Natural -- and Green

Products for Women With Weaves a Mini-Trend

General-Market Products With African, Asian, Latin-American-

Sourced Ingredients

Table 3-7: Selected Introductions of Ethnic Haircare Products, by Marketer and Brand, 2007-2008

Consumer Advertising Positioning

The Purely Visual Ethnic Haircare Ad vs. the Advertorial…

Themes of Safety, Efficacy, and Convenience

Organic and Botanical Ingredients

Pride, Confidence, Etc.

Lots of Crossover Advertising

Ad Sources

Consumer Promotions

Some Couponing of Ethnic Haircare Products

Free Samples

A Promo Event Goes on Tour

A Styling Contest

Chapter 4: The Ethnic Makeup Category

Highlights

The Products

Scope of the Ethnic Makeup Category

Ethnic Skin Demands Makeup With Specific Chemistry

Hispanic Makeup Pumped by a Few Brands With Wall-Sets in Mass

Asian-Specific Makeup Still Rare, Except in Prestige

Ethnic Cosmetics Pioneers: Ms. Walden, Ms. Roberts, Mr. Johnson

Four Ethnic Cosmetics Segments: Face, Lip, Eye, Nail

Facial Makeup

Lipcolor

Eye Makeup

Nail Makeup

Ethnic Makeup Category Size and Growth

Makeup Sales Nearly Double, to $920 Million in 2008

Table 4-1: U.S. Retail Dollar Sales of Ethnic-Specific Makeup, 2004-2008e (in millions of dollars)

In Share of Sales by Segment, Eye Makeup Displaces Face Makeup

Table 4-2: Share of U.S. Retail Dollar Sales of Ethnic-Specific Makeup, by Product Segment, 2003-2007

Ethnic Purchasing of General-market Makeup Tops $1.3 Billion

Table 4-3: U.S. Retail Dollar Purchases of General-Market Makeup Products by Hispanics, African Americans, and Asians, 2004-2008 (in millions of dollars)

Ethnics’ Grand Total Spent on Any Makeup Approaches $2.3 Billion

Factors in Future Growth

Ethnic HBC Market’s Overall Trends Stir Makeup Category

A Little Interest from Major Marketers Goes a Long Away

Both Upscale and Value-Positionings Drive Ethnic Makeup Sales

Hispanic Women and Makeup Use -- Truth to the Stereotype?

Table 4-4: Indices of Makeup Purchase by U.S. White, African-American, Hispanic, and Asian Households, by Makeup Product Segment, 2007

When the U.S. Economy Tanks, We Buy Lipstick!

Projected Sales

Ethnic-Positioned Makeup Jetting to $1.4 Billion by 2012

Table 4-5: Projected U.S. Retail Dollar Sales of Ethnic-Specific Makeup, 2008-2012 (in millions of dollars)

The Marketers

Makeup Players Still the Smallest Ethnic-Specific Force

Again, Marketers Tend to Have Specialties

Table of Marketers and Brands

Table 4-6: Selected Ethnic Makeup Marketers and Their Brands, 2008

Brand Share

Special Note: How We Present IRI Data on Ethnic Makeup

Brands

Only Three Ethnic Marketers Rule 14 IRI Makeup Segments

Table 4-7: Ethnic Brands' Share of All U.S. Mass-Retail* Dollar Sales of Makeup Products, for 12-Month Periods Ended July 13, 2007 and July 13, 2008

Ethnic Makeup Marketing and Product Trends

Constant Line Revisions, Plus Temp/Promo/Seasonal Collections

Ethnic Makeup Increasingly Cosmeceutical

Ever More Use of Botanicals

Table 4-8: Selected Introductions of Ethnic Makeup Products, by Marketer and Brand, 2007-2008

Consumer Advertising Positioning

The Traditional Beauty-Shot Layout or…Lots of Words

The Glam Effect

Cosmeceutical Benefit

Crossing Over

Ad Examples Harvested from …

Consumer Promotions

Coupons

Taking It to the People

All of the Retail Price Fights AIDS

Chapter 5: The Ethnic Skincare Category

Highlights

The Products

Ethnic Skincare Category Defined

Two Distinct Segments: “Basic Skincare” & Shaving Products

African Americans’ Skincare Conditions/Concerns

Acne Keloidalis Nuchae

Ashiness

Keloid

Melanin Imbalances

Oiliness

Razor Bumps

Vitiligo

Hispanic Skincare Assortment Grows Ever So Slowly

Asians’ “Delicacy” of Skin

Skincare Products Regulated by FDA

Five Key Ingredients

Ethnic HBC Ingredients Also Used in General-market Versions

AHAs

Butters

Hydroquinone

Natural Oils

Other Botanicals

Five Controversial Ingredients

Health-Aware Ethnics Spot Allergens, Carcinogens, Irritants on Labels

Hydroquinone

Parabens

Phthalates

Propylene Glycol

Sodium Lauryl Sulfate (SLF)

Ethnic Skincare Category Size and Growth

Skincare Achieves a Glowing $203 Million in 2008

“Basic” Skincare Segment Rises to $156 Million

Shaving Products Jump to $47 Million

Table 5-1: U.S. Retail Dollar Sales of Ethnic-Specific Skincare Products, by Segment, 2004-2008e (in millions of dollars)

Ethnics Spend $2.3 Billion on Mainstream Skincare Products

Table 5-2: U.S. Retail Dollar Purchases of General-Market Skincare Products by Hispanics, African Americans, and Asians, 2004-2008(in millions of dollars)

The Grand Total: Ethnics Buy $2.5 Billion Worth of Skincare Products

Factors in Future Growth

Overall Ethnic HBC Factors Play Role in Skincare Category Growth

Ethnic Skincare Gets More Attention From Retailers, Benefits from “Big Blur”

“But General-Market Products Meet Ethnic Skincare Needs!”

Update: The Potential in Hispanic, Asian, Male & Youth Audiences

Hispanics and Asians Not Clamoring for Their Own Skincare Products…

Ethnic Males Kind of a Question Mark

Ethnic Youth Largely Excluded from Skincare Gameplans

Projected Sales

Ethnic-Specific Skincare to Be Valued at $257 Million in 2012

Basic Skincare Segment to Tickle $200 Million

Shaving Segment Seen in Smooth Glide to $59 Million

Table 5-3: Projected U.S. Retail Dollar Sales of Ethnic-Specific Skincare Products, by Segment, 2008-2012 (in millions of dollars)

The Marketers

Of Hundreds of Ethnic Skincare Firms, Very Few Stand Out in Mass

Mostly Specialists, Whether Large or Small, Public or Private

Table of Ethnic Skincare Marketers and Their Brands

Table 5-4: Selected Ethnic Skincare Marketers and Their Brands, 2008

Brand Share

Special Note: IRI Data on Ethnic Skincare Brands

Eight Ethnic Skincare Players Lead in Eight IRI Skincare Segments151

Table 5-5: Ethnic Brands' Share of All U.S. Mass-Retail* Dollar Sales of Skincare Products, for 12-Month Periods Ended July 13, 2007 and July 13, 2008

Ethnic Skincare Marketing and Product Trends

Here, Too, the Cutting Edge Is Natural, Organic, Exotic

Shea Butter Is the Star

Exotic Ethnic Ingredients Appearing in Lots of Mainstream Skincare Brands

Table 5-6: Selected Introductions of Ethnic Skincare Products, by Marketer and Brand, 2007-2008

Consumer Advertising Positioning

Beauty Shots of Lovely Dark Skin, With or Without Text

Advertorials

Clear, Even-Toned, Ash-Free Skin

Confidence and Romance

Ad Sources Include…

Consumer Promotions

Couponing of Ethnic Skincare Products

Sampling

Free or Discounted Merchandise

Meet a Pop Star

Chapter 6: The Competitive Situation

Highlights

The Competitive Situation

Pressures on Brands in Mass -- While Other Channels Blossom

Marketers Stay Ethnic-Specific, or Soften Positions

Several Notable Acquisitions

Eight Marketers Profiled

Competitive Profile: Alberto-Culver Co

Spin-off Whittles Net Sales Down to $1.5 Billion in Fiscal 2007

Good Progress in First Nine Months of FY2008

Alberto’s Ethnic Haircare Brand-Stable

Alberto Sticks to Value-Orientation

Value for Kids, Too

Soft & Beautiful Extended into Skincare Arena

Other Alberto Brands

Competitive Profile: Carol’s Daughter, Inc

Sales Estimated at Up to $30 Million

The Carol’s Daughter Explosion Had a Slow Buildup

Carol’s Daughter on HSN

Competitive Profile: GMP Capital Trust/ EdgeStone Capital

Partners, Inc./ Specialty Catalog Corp. (SCC)

GMP Revenues Speed Toward $500 Million in 2007

SCC Posts Sales of $61 Million

Especially Yours: Making Black Ladies Even More Beautiful

Other SCC Brands and Interests

Competitive Profile: L’Oréal SA

Sales of €17.1 Billion in 2007

First Half Bodes Tame Outlook for 2008

L’Oréal -- the World’s Largest Beauty Firm…

…And World’s Largest Ethnic Beauty Firm

L’Oréal’s Asian Connection

Distribution Fortified by Beauty Alliance, Maly’s West

Acquisitions

Competitive Profile: The Procter & Gamble Company

Net Sales Jump to $83.5 Billion in Fiscal 2008

P&G Owns Some of Planet’s Most Popular Brands

P&G’s Ethnic HBC Strategy: Plain Dealing for High Volume

P&G Hikes Prices

Three Marketers to Watch

A Diverse Trio

Ales Groupe

Global Goddess Beauty, Inc

Mirta de Perales, Inc

Chapter 7: Distribution and Retail

Highlights

Distribution

Traditional Four-Step, Plus DSD and Direct Sales Paths

P&G Makes Supply Chain Leaner and Meaner

At the Retail Level

“B&Bs” Account for Hefty Share of Ethnic HBC Retail Dollars

Margins, Assortments Still Improving, as Audience Is Recognized

Walgreen’s and the Dr. Jan Adams Debacle

Walgreen’s New The Face Shop Line from Korea

Retailer Focus: Sally Beauty Holdings, Inc.

A $2.5 Billion Company

Sally Beauty Both a Distribution and Retail Powerhouse

Retailer Focus: LVMH/Sephora

Revenues of €16.5 Billion in 2007

Outlook for 2008

Sephora Overview

The Ideal Mall Destination for a Rainbow Demographic

Sephora’s Venture With JCPenney

Chapter 8: The Consumer

Highlights

The U.S. Ethnic Population

Ethnic Sectors Growing Faster Than the Mainstream

Hispanics

African Americans

Asians

Other Groups

Table 8-1: Projection of U.S. Population, by Race and Gender, 2008-2020 (In Thousands)

About Simmons Data

What They Are…

…And How to Use Them

The Survey’s Overall Gauge

Marketing Regions Defined

Northeast

East Central

West Central

Southeast

Southwest

Pacific

Table 8-2: Projections of Numbers of U.S. Adults, by Demographic Factor, 2008 (In Thousands)

The Ethnic HBC Consumer: Haircare

Relaxer Use Continues Decline to 9.0 Million Ethnic Users

Table 8-3: U.S. Use of Hair Relaxers and Home Permanents, by Race or Ethnicity, 2006-2008 (Adults, In Thousands)

Use of Three Relaxer Brands Skews to Low-Income Lifestyle

Table 8-4: Demographic Characteristics Most Favoring Use of Hair Relaxers/Home Perms, by Brand, 2008 (Adults in Thousands, in Recent 12 Months)

Nearly 24.0 Million Ethnics Use Styling Products

Table 8-5: U.S. Use of Styling Products/Hairdressings, by Race or Ethnicity, 2006-2008 (Adults, In Thousands)

Ethnic Users of Hairspray Increase to 16.5 Million

Table 8-6: U.S. Use of Hairspray, by Race or Ethnicity, 2006-2008 (Adults, In Thousands)

Ethnic Shampooers at 53.8 Million

Table 8-7: U.S. Use of Shampoo, by Race or Ethnicity, 2006-2008 (Adults, In Thousands; Recent 7 Days)

Ethnic Conditioner User-Force Thins to 33.1 Million

Table 8-8: U.S. Use of Hair Conditioner, by Race or Ethnicity, 2006-2008 (Adults, In Thousands)

Dark & Lovely Conditioner Use Skews to the Less Affluent

Table 8-9: Demographic Characteristics Most Favoring Use of Hair Conditioner, by Brand, 2008 (Adults in Thousands, in Recent 12 Months)

More Hispanics Using Haircolor, As Everybody Else Uses Less

Table 8-10: U.S. Use of Haircolor, by Race or Ethnicity, 2006-2008 (Adults, In Thousands)

In Haircolor Use, Too, Dark & Lovely Favored by Low-Earners

Table 8-11: Demographic Characteristics Most Favoring Use of Haircolor, by Brand, 2008 (Adults in Thousands, in Recent 12 Months)

The Ethnic HBC Consumer: Makeup

Almost 25.4 Million Ethnics Use Lipstick/Lip Gloss

Table 8-12: U.S. Use of Lipstick and Lip Gloss, by Race or Ethnicity, 2003-2006 (Adults, In Thousands)

Lipstick/Lip Gloss Use: Fashion Fair Skews Older, M.A.C. Skews Richer

Table 8-13: Demographic Characteristics Most Favoring Use of Lipstick/Lip Gloss, by Brand, 2008 (Adults in Thousands, in Recent 12 Months)

Foundation Has 17.5 Million Ethnic Users

Table 8-14: U.S. Use of Foundation Makeup, by Race or Ethnicity, 2006-2008 (Adults, In Thousands)

Foundation Brands: Again, Fashion Fair for Older Women, M.A.C for the Well-Heeled

Table 8-15: Demographic Characteristics Most Favoring Use of Foundation Makeup, by Brand, 2008 (Adults in Thousands, in Recent 12 Months)

Almost 14.5 Million Ethnics Apply Blush

Table 8-16: U.S. Use of Blusher, by Race or Ethnicity, 2006-2008 (Adults, In Thousands)

Fashion Fair Blusher’s Spotty Profile of Use

Table 8-17: Demographic Characteristics Most Favoring Use of Blusher, by Brand, 2008 (Adults in Thousands, in Recent 12 Months)

Ethnic Eye Shadow/Eyeliner/Eyebrow Pencil User-Base 19.5 Million Strong

Table 8-18: U.S. Use of Eye Shadow/Eye Liner/Eyebrow Pencil, by Race or Ethnicity, 2006-2008 (Adults, In Thousands)

Ethnic Eye Shadow/Eyeliner/Eyebrow Pencil Brand Use: Fashion Fair vs. M.A.C

Table 8-19: Demographic Characteristics Most Favoring Purchase of Eye Shadow/Eye Liner/ Eyebrow Pencil, by Brand, 2008 (Adults in Thousands, in Recent 12 Months)

Nearly 17.7 Million Ethnics Use Mascara

Table 8-20: U.S. Use of Mascara, by Race or Ethnicity, 2006-2008 (Adults, In Thousands)

Ethnic Nail Polish Users Projected at 20.1 Million

Table 8-2: U.S. Use of Nail Polish, by Race or Ethnicity, 2006-2008 (Adults, In Thousands)

The Ethnic HBC Consumer: Skincare

Over 44.4 Million Ethnic Users of Moisturizers/Lotions

Table 8-22: U.S. Use of Moisturizers and Lotions, by Race or Ethnicity, 2006-2008 (Adults, In Thousands)

Ethnic Users of Baby Oil Set at 26.7 Million

Table 8-23: U.S. Use of Baby Oil or Lotion, by Race or Ethnicity, 2006-2008 (Adults, In Thousands)

About 26.4 Million Ethnics Are Facial Cleanser Users

Table 8-24: U.S. Use of Facial Cleansing Creams, Lotions, and Gels, by Race or Ethnicity, 2006-2008 (Adults, In Thousands)

Ethnic Body Wash Users Jump to 42.0 Million

Table 8-25: U.S. Use of Body Wash, by Race or Ethnicity, 2006-2008 (Adults, In Thousands)

Surprise! Ethnics Using Suncare Products Pegged at 13.2 Million

Table 8-26: U.S. Use of Suntan Lotion, Sunscreen, and Sunless Tanning Preparations, by Race or Ethnicity, 2006-2008 (Adults, In Thousands)

Ethnics Using Depilatories Climbs to 8.6 Million

Table 8-27: U.S. Use of Depilatories, by Race or Ethnicity, 2006-2008 (Adults, In Thousands)

Ethnic Shave Cream Users Number 26.4 Million

Table 8-28: U.S. Use of Shaving Cream and Gel, by Race or Ethnicity, 2006-2008 (Adults, In Thousands)

Aftershave/Cologne/Talc Has Ethnic User-Base of 23.2 Million

Table 8-29: U.S. Use/Purchase of Aftershave, Cologne, Talc, etc., by Race or Ethnicity, 2006-2008 (Adults, In Thousands)

Ethnic HBC Consumer Focus: Green-Consciousness

News Flash: Ethnics More Green-Minded Than Whites

BIGresearch Data on Ethnic Purchasing of Organic HBC

Table 8-30: Shares of Consumers Who Buy Organic Health and Beauty Care Products, by Race, Hispanic Origin, and by Age Over or Under 35, 2008

Consumer Focus: Where Blacks and Asians Shop for HBC

BIGresearch Data on Black and Asian Patronage of HBC Retailers

Table 8-31: Consumers' Most Preferred Retail Stores for HBC Shopping, by Race and Hispanic Origin, 2008

Appendix: Addresses of Selected Marketers

Abstract

1) The ethnic population in the United States continues to grow.
2) Ethnic-specific HBC is influenced by America's ongoing yen for things upscale. While products are still often value-oriented, the door is open to big potential for premium-to-prestige-tier versions selling through prestige, pop prestige, natural food/HBC stores and mass.
3) The U.S. retail scene is in flux. The traditional retail channels are transforming, affording ethnic HBC marketers the chance to greatly expand distribution.

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