Table 1:1: U.S. Retail Sales of Ethnic HBC Products, by Category, 1997-2006 (dollars): hair care; color cosmetics; skin care
Hair care Accounts for Three-Quarters of Sales
The Growing Ethnic Populations
Ethnic Spending Power
Figure 1-1: U.S. Retail Dollar Sales of Ethnic HBC Products, by Category, 1997-2006 (percent): hair care; color cosmetics; skin care
Majors Enter Market, Raise Stakes
Use of General-Market Products Is Widespread
Ethnic Hair Care Category
Scope of the Hair Care Category
Nine Ethnic Hair Care Product Segments
Ethnic Hair Care Struggles to $1.1 Billion
Relaxers/Home Perms Are Still the Largest Segment
Figure 1:2: Share of U.S. Retail Dollar Sales of Ethnic Hair Care Products, by Product Segment, 2001 (percent): 9 segments
Strong Positives and Negatives in Ethnic Hair Care Growth
Ethnic Hair Care Sales of $1.3 Billion in 2006
A Small Field of Significant Ethnic Hair Care Marketers
Consolidation Is a Trend
A Note on Ethnic Hair Care Share Data
L’Oréal Is the Leader in Hair Relaxers
L’Oréal Also Leads in Ethnic Hairstyling Products
L’Oréal, J. Strickland, and Wella Are Ethnic Hair Conditioner Kings
Figure 1-3: Major Marketer Shares of U.S. Retail Dollar Sales of
Hair Relaxer Kits, 2001 (percent): 6 marketers
Ethnic Hair Care Marketers Spend $18 Million to Advertise in 2000
African Americans Are the Most Likely Home Perm/Relaxer Users
Ethnic Color Cosmetics Category
Scope of the Color Cosmetics Category
Four Segments
Color Cosmetics Push to $327 Million
Category Was Stimulated by Competitive Trends, Ethnic Population Growth
Strong Progress to $454 Million Is Foreseen
Facial Makeup Is the Biggest Color Cosmetics Segment—by Far
Ethnic Color Cosmetics Marketers Present the Narrowest Field
Overview of Ethnic Color Cosmetics Competition
Comprehensive Ethnic Color Cosmetics Lines
Ethnic Color Cosmetics Shares
Other Leading Ethnic Color Cosmetics Marketers/Brands
Ethnic Color Cosmetics’ Media Buys at $5.5 Million in 2000
African Americans Are Not Big Face Makeup Users
Ethnic Skin Care Category
Scope of the Ethnic Skin Care Category
Two Skin Care Segments
Ethnic Skin Care Crawls to $110 Million
Ethnic Skin Care Should Struggle to $121 Million by 2006
Basic Skin Care Accounts for Three-Quarters of Sales
Among Hundreds, a Handful of Ethnic Skin Care Leaders
E.T. Browne Is in the Vanguard of Ethnic Hand Lotion Marketers
E.T. Browne Is the Leader in Ethnic Fade Creams
Other Ethnic Skin Care Shares
One Significant Advertiser of Ethnic Skin Care Products in 2000
Asians Are Staunchest Facial Cream Users
The Overall Market
Introduction
Use of the Word “Ethnic”
Some Overlap Between Ethnic and General HBC Markets
Three Categories Covered: Hair Care, Color Cosmetics, and Skin Care
Mass versus Prestige
Clarification of Terms
Historical Background
First Market Was African-American
Ethnic Market Created by Madame C.J. Walker
Black Is Beautiful
The 1970s Were a Seminal Decade for Ethnic HBC
Establishment of the AHBAI in 1981
The 1980s: A Turning Point for Black Skin Care
Products for Latinos and Asians Appear in Late 1990s
Overall Market Size and Composition
Sales Grow Slightly to $1.6 Billion in 2001
A Struggling Market Despite Some Positive Circumstances
Figure 2-1: U.S. Retail Dollar Sales of Ethnic HBC Products, 1997-2001 (dollars)
Hair Care in Slight Rally to $1.1 Billion
Color Cosmetics Post Strong Growth to $327 Million
Skin Care Stagnates Its Way to $110 Million
Table 2-1: U.S. Retail Dollar Sales of Ethnic HBC Products, by Category, 1997-2001 (dollars): hair care, color cosmetics, skin care, total
Hair Care Accounts for Three-Quarters of Sales
Figure 2:2: U.S. Retail Dollar Sales of Ethnic HBC Products, by Category, 1997-2001 (percent): hair care; color cosmetics; skin care
Factors in Future Growth
The Growing Ethnic Populations
Table 2:2: Projection of U.S. Population Segments of African-American or Asian Race or Hispanic Origin, 2001-2010 (number)
Ethnic Pride
Ethnic Spending Power
Majors Enter Market, Raise Stakes
Use of General-Market Products Is Widespread
The Commodity Nature of HBC
Projected Sales
Ethnic HBC to Climb to Nearly $1.9 Billion in 2006
Hair Care to Brush $1.3 Billion
Color Cosmetics to Push to $454 Million
Figure 2-3: Projected U.S. Retail Dollar Sales of Ethnic HBC Products, 2001-2006 (dollars)
Skin Care to Continue Slow Growth, Reaching $121 Million
Table 2-3: Projected U.S. Retail Dollar Sales of Ethnic HBC Products, by Category, 2001-2006 (dollars): hair care, color cosmetics, skin care
Ethnic Hair Care
The Products
Scope of Hair Care Category
African-American Hair
Hispanic and Asian Hair
Perms, Straightening Necessitate Use of a Range of Products
Hair Care Product Segments
Nine Ethnic Hair Care Product Segments
Harsh versus Gentle Formulations
Hair Care Category Size and Composition
Ethnic Hair Care Struggles to $1.1 Billion
A Braided Tale of Shifting Styles and Powerful Pluses
Figure 3:1: U.S. Retail Sales of Ethnic Hair Care Products, 1997:2001 (dollars)
Table 3-1: U.S. Retail Sales of Ethnic Hair Care Products, 1997-2001 (dollars)
Relaxers/Home Perms Are Still the Largest Segment
For Hispanics and “Other” Sectors, Men’s Styling Dominates
Figure 3:2: Share of U.S. Retail Dollar Sales of Ethnic Hair Care Products, by Product Segment, 2001 (percent): 9 segments
Table 3-2: Share of U.S. Retail Dollar Sales of Hair Care Products for Use by Hispanics and Other Ethnic Sectors, by Segment, 2001 (percent): 6 segments
Drugstores Are the Top Ethnic Hair Care Channel
Factors in Future Growth
Strong Positives and Negatives in Ethnic Hair Care Growth
Regimen Lines
Use of General-Market Hair Care Products
Natural Styles Will Continue in Vogue
Quest for Gentler, Yet Effective Hair Care Formulas
Experimentation with Hair Color
Projected Sales
Ethnic Hair Care Sales of $1.3 Billion in 2006
Table 3-3: Projected U.S. Retail Sales of Ethnic Hair Care Products, 2001-2006 (dollars)
Figure 3:3: Projected U.S. Retail Sales of Ethnic Hair Care Products, 2001-2006 (dollars)
The Marketers
A Small Field of Significant Ethnic Hair Care Marketers
Both Private and Public Companies
Ethnic Specialists, HBC Specialists, and Others
Consolidation a Trend
Table of Ethnic Hair Care Marketers
Table 3-4: Selected Ethnic Hair Care Marketers and Their Brands, 2002 (listing): 31 marketers, 56 brands
Marketer and Brand Shares
A Note on Ethnic Hair Care Share Data
L’Oréal Is the Leader in Hair Relaxers
Table 3:5: Major Marketer and Brand Shares of U.S. Retail Dollar Sales of Hair Relaxer Kits, 2000-2001 (percent): 10 marketers; 33 items
L’Oréal Also Leads in Ethnic Styling Products
L’Oréal, J. Strickland, Wella Are Ethnic Conditioner Kings
The Competitive Situation
Ethnic Hair Care Scene Is Pressured Competitively
An Ongoing Wave of Consolidation
Smaller Marketers Are Especially Pressured
L’Oréal Is the Biggest Force in Ethnic Hair Care
L’Oréal: Clout and Cachet
Alberto-Culver Reminds Retailers That Pro-Line Is a Major Force
Alberto-Culver: Stepping up Pro-Line’s R & D
P & G Buys Clairol
Revlon’s Ethnic Hair Care Stake Sold to Colomer
Marketing and Product Trends
Lots of New Ethnic Hair Care Products
Ethnic Hair Care Regimen Lines
Gentler Formulations
Table 3-6: Selected Introductions of Ethnic Hair Care Products, 1999:2002 (listing): 17 marketers; 33 brands
Consumer Advertising Expenditures
Ethnic Hair Care Marketers Spend $18 Million to Advertise in 2000
Six Million-Dollar Spenders
L’Oréal Budget Approaches $4.9 Million
Johnson Publishing Spends $4.2 Million
Alberto-Culver Spends $3.2 Million
J.M. Products Is Fourth-Ranked Spender, at $1.7 Million
Luster Spends $1.2 Million
Clairol’s Buys Are Just $1.1 Million
Other Ethnic Hair Care Advertisers
Consumer Advertising Positioning
Beautiful Hair
Not Just Beautiful Hair, but Healthy Hair
Product Attributes Only
Convenience
Romance and Adventure
Exciting Style or Color
Positioning to Men
Your Career
Ethnic Hair Care Advertising Samples
Consumer Promotions
Coupons and In-Store Discounts
An All-Expenses-Paid Wedding
At the Retail Level
Ethnic Hair Care Margins Vary Greatly
Table 3-7: U.S. Supermarket Retailers’ Average Gross Profit Margins on Hair Care, 1999 Products (percent): 8 products
Hair Care Gets Best Shelving of All Ethnic HBC
Retailers’ Assortments Not Consistent
The Consumer
Special Note: Simmons Market Research Bureau Data
African Americans Are Most Likely Home Perm/Relaxer Users
Table 3-8: U.S. Adult Use of Home Permanents/Relaxers, by Race or Ethnicity, 2001 (number and percent): White, Black, Asian, Hispanic origin
Half of Hispanics Are Styling Products Users
Table 3-9: U.S. Adult Use of Hairstyling Products (Gels, Creams, Lotions, Pomades, etc.), by Race or Ethnicity, 2001 (number and percent): White, Black, Asian, Hispanic origin
African Americans Exhibit Lower-than-Average Tendency to Use Shampoo
Table 3-10: U.S. Adult Use of Shampoo, by Race or Ethnicity, 2001 (number and percent): White, Black, Asian, Hispanic origin
Hispanics Show Strongest Skew toward Conditioner Use
Table 3-11: U.S. Adult Use of Conditioner/Creme Rinses, by Race or Ethnicity, 2001 (number and percent): White, Black, Asian, Hispanic origin
Whites Are Strongest Users of Hair Spray
Table 3-12: U.S. Adult Use of Hair Spray, by Race or Ethnicity, 2001 (number and percent): White, Black, Asian, Hispanic origin
Hispanics and Asians Are Likeliest to Use Hair Color
Table 3-13: U.S. Adult Use of Hair Color, by Race or Ethnicity, 2001 (number and percent): White, Black, Asian, Hispanic origin
Ethnic Hair Care Brand Use
Table 3-14: Adult Use of Ethnic Hair Care Products, by Brand and Item, 2001 (number): Dark & Lovely (4 items); TCB (3 items)
Consistent Factors in Use of Dark & Lovely
Table 3-15: Demographic Factors Favoring Adult Use of Dark & Lovely Hair Care Products, 2001 (listing): 4 products; 12 factors
Fewer Factors in TCB Use
Table 3-16: Demographic Factors Favoring Adult Use of TCB Hair Care Products, 2001 (listing): 4 products; 12 factors
Color Cosmetics
The Products
Scope of Color Cosmetics Category
Color Cosmetics Date Back to Ancient Egypt
Problematic for Ethnic Users: Titanium and Oil
Ms. Walden, Ms. Roberts, Johnson Publishing Are Color Cosmetics Pioneers
Hispanic Cosmetic Needs Were Historically Neglected
Asians Accommodated—a Little
Color Cosmetics Product Segments
Four Segments: Products for the Face, Lips, Eyes, and Nails
Facial Makeup
Lip Color
Eye Makeup
Nail Care
FDA Oversight of Product Safety
Category Size and Composition
Color Cosmetics Push to $327 Million
Table 4-1: U.S. Retail Sales of Color Cosmetics, 1997-2001 (dollars)
Category Was Stimulated by Competitive Trends, Ethnic Population Growth
Figure 4:1: U.S. Retail Sales of Color Cosmetics, 1997-2001 (dollars)
Facial Makeup Is the Biggest Color Cosmetics Segment—by Far
Figure 4:2: Share of U.S. Retail Dollar Sales of Color Cosmetics, by Segment, 1998-2001 (percent): facial makeup, lip color, eye makeup, nail care
Factors in Future Growth
Overall Market Influences Also Shape the Color Cosmetics Category
Involvement by Major Companies: Net Effect Is Positive
Lots of New Product Activity
Use of General-Market Color Cosmetics Is Encouraged by Marketers
Projected Sales of Color Cosmetics
Strong Progress to $454 Million Is Foreseen
Table 4-2: Projected U.S. Retail Dollar Sales of Color Cosmetics, 2001:2006 (dollars)
Figure 4:3: Projected U.S. Retail Dollar Sales of Color Cosmetics, 2001:2006 (dollars)
The Marketers
Ethnic Color Cosmetics Marketers Present the Narrowest Field
Company Types
Table of Marketers and Brands
Table 4-3: Selected Ethnic Color Cosmetics Marketers and Their Brands, 2002 (listing): 20 marketers; 24 brands
Marketer and Brand Rankings
Views of Ethnic Color Cosmetics Shares Differ
L’Oréal Rides High with Posner
Other Leading Ethnic Color Cosmetics Marketers/Brands
The Competitive Situation
Overview of Ethnic Color Cosmetics Competition
L’Oréal: Posner Made Over
BioCosmetics’ Retail-Driven Strategy for Expansion
Yue-Sai Is Coming to the United States—via Coty
Iman Tackles Prestige—without Color Me Beautiful
Marketing and Product Trends
Comprehensive Ethnic Color Cosmetics Lines
Seasonal/Promotional Lines
Shades for Hispanics, Asians, and Others
Table 4-4: Selected Introductions of Ethnic Color Cosmetics, 1999:2002 (listing): 13 marketers; 14 brands
Consumer Advertising Expenditures
Ethnic Color Cosmetics’ Media Buys at $5.5 Million in 2000
Johnson Budgets $4.8 Million
BioCosmetics Spends $339,000
Estée Lauder’s $257,000 Expenditure
L’Oréal’s Mere $152,000
Consumer Advertising Positioning
Simply Beautiful Faces
Selection
Sexiness
Convenience
Classy Packaging
Ethnic Color Cosmetics Ads Sampled
Consumer Promotions
Frequent Use of Seasonal/Promotional Lines
A Gala
Grassroots Charity Efforts
At the Retail Level
Nail Care Products Yield Highest Margins
Table 4-5: U.S. Supermarket Retailers’ Average Gross Profit Margins on Color Cosmetics, 1999 (percent): 4 product segments
Ethnic-Specific Presence Dwarfed by that of General-Market Lines
Shipper Displays Used Extensively
The Consumer
Special Note: Simmons Market Research Bureau Data
African Americans Show the Weakest Tendency to Use Foundation
Table 4-6: U.S. Adult Female Use of Foundation Makeup, by Race or Ethnicity, 2001 (number and percent): White, Black, Asian, Hispanic origin
Whites Are Most Faithful Blush Users
Table 4-7: U.S. Adult Female Use of Blush, by Race or Ethnicity, 2001 (number and percent): White, Black, Asian, Hispanic origin
Whites, Hispanics Are Biggest Mascara Users
Table 4-8: U.S. Adult Female Use of Mascara, by Race or Ethnicity, 2001 (number and percent): White, Black, Asian, Hispanic origin
Hispanics Are the Most Avid Users of Eye Shadow
Table 4-9: U.S. Adult Female Use of Eye Shadow, by Race or Ethnicity, 2001 (number and percent): White, Black, Asian, Hispanic origin
Hispanics Are Notable Eye Liner Users
Table 4-10: U.S. Adult Female Use of Eye Liner, by Race or Ethnicity, 2001 (number and percent): White, Black, Asian, Hispanic origin
Hispanics, Asians Are the Likeliest Eyebrow Pencil Users
Table 4-11: U.S. Adult Female Use of Eyebrow Pencil, by Race or Ethnicity, 2001 (number and percent): White, Black, Asian, Hispanic origin
Hispanics Love Lipstick
Table 4-12: U.S. Adult Female Use of Lipstick and Lip Gloss, by Race or Ethnicity, 2001 (number and percent): White, Black, Asian, Hispanic origin
Blacks Exhibit the Strongest Tendency to Use Nail Polish
Table 4-13: U.S. Adult Female Use of Nail Polish, by Race or Ethnicity, 2001 (number and percent): White, Black, Asian, Hispanic origin
Number of Fashion Fair Users
Few Consistent Factors in Fashion Fair Use
Table 4-14: Demographic Factors Favoring Adult Female Use of Fashion Fair Color Cosmetics Products, 2001 (listing): 4 Fashion Fair products; 11 demographic factors
Ethnic Skin Care
The Products
Scope of Ethnic Skin Care Category
Two Skin Care Segments
African Americans Have Special Skin Care Needs
Ashiness
Excess Oil
Keloid
Melanin Imbalance
Razor Bumps
Hispanic Skin Care Needs Rarely Addressed
“Delicacy” of Asian Skin
Ingredients Key to Ethnic Skin Care
AHAs
Cocoa Butter
Hydroquinone
Some Question of AHA Efficacy
Skin Care Products under FDA Jurisdiction
Category Size and Growth
Ethnic Skin Care Crawls to $110 Million
Few Products, Little Awareness
Basic Skin Care in a Struggle to $81 Million
Figure 5-1: U.S. Retail Sales of Ethnic Skin Care Products, by Segment, 1997-2001 (dollars): basic skin care, shaving products
Shaving Products Show Stronger Growth, to $29 Million
Table 5-1: U.S. Retail Sales of Ethnic Skin Care Products, by Segment, 1997-2001 (dollars): basic skin care, shaving products
Basic Skin Care Accounts for Three-Quarters of Sales
Table 5-2: Share of U.S. Retail Dollar Sales of Ethnic Skin Care Products, by Segment, 1997-2001 (percent): basic skin care, shaving products
Factors in Future Growth
How Overall Ethnic HBC Trends Affect Skin Care Prospects
A Dearth of Skin Care SKUs in Retailers’ Product Mixes
Nobody Knows from Ethnic Skin Care
But Regimen Lines Could Be a Plus
Projected Sales
Ethnic Skin Care Should Struggle to $121 Million by 2006
Basic Skin Care Should Reach $89 Million
Shaving Products to Be Worth $32 Million
Table 5-3: Projected U.S. Retail Dollar Sales of Ethnic Skin Care Products, by Segment, 1997-2001 (dollars): basic skin care, shaving products
Figure 5-2: Projected U.S. Retail Dollar Sales of Ethnic Skin Care Products, by Segment, 1997-2001 (dollars): basic skin care, shaving products
The Marketers
Among Hundreds, a Handful of Ethnic Skin Care Leaders
Companies Are Public and Private, but Mostly HBC Specialists
Table of Ethnic Skin Care Marketers and Their Brands
Table 5-4: Selected Ethnic Skin Care Marketers and Their Brands, 2002 (listing): 25 marketers; 30 brands
Marketer and Brand Shares
Note on Ethnic Skin Care Share Data
E.T. Browne Is in the Vanguard of Ethnic Hand Lotion Marketers
E.T. Browne Is the Leader in Ethnic Fade Creams
Other Ethnic Skin Care Shares
The Competitive Situation
Overview: Ethnic Skin Care Warriors Are Mostly Smaller Companies
L’Oréal’s Stance in Skin Care Is Limited
Ella’s Latin Emphasis
Failure of Belleza Latina
Marketing and Product Trends
Both Chemical and Gentler Formulations Are Popular
Prestige More Receptive to Ethnic Skin Care Debuts
More Shaving Products
Table 5-5: Selected Introductions of Ethnic Skin Care Products, 1999:2001 (listing): 15 marketers; 19 brands
Consumer Advertising Expenditures
One Significant Advertiser of Ethnic Skin Care Products in 2000
Consumer Advertising Positioning
Limited Range of Ethnic Skin Care Ad Themes
What it Does Is What it Is
Smooth, Clear Skin
Botanical Ingredients
Novel Product Application
At the Retail Level
In General Skin Care Market, Lip Care Margins Are Highest
Table 5-6: U.S. Supermarket Retailers’ Average Gross Profit Margins on Skin Care Products, 1999 (percent): lip protectors; face creams, lotions, astringents, hand and body lotions/creams; liquid face cleansers
Skin Care Assortment Is the Thinnest of All Ethnic HBC
The Consumer
Special Note: Simmons Market Research Bureau Data
Asians Are Staunchest Facial Cream Users
Table 5-7: U.S. Adult Female Use of Facial Cleansing Creams, Lotions, Etc., by Race or Ethnicity, 2001 (number and percent): White, Black, Asian, Hispanic origin
Appendix I: Examples of consumer advertising
and promotions
Appendix II: Addresses of selected marketers
(0 items)
