18 ANALYSIS
into the cosmetic business. There is what is called the lipstick effect, it is from a health care professional observation that states when a patient has turned the corner on an operation is when they ask for their lipstick. In other words, feeling more confident in things getting better. We are seeing many companies that were locked down, then at 25%, now 50+% continue to participate in more and more teams, zoom or other contact programs for interactions that move the development process forward. Since many companies were locked down, the return to the office is good news, but there remains a backlog or projects that have been on hold. More and more customers are working with outside consultants to move the process forward.
GINO MACALINO: In my opinion, the US cosmetics market has operated with notable agility in the beginning of Q1.
With the ease of COVID restrictions on travel, dining, school and the work force executing hybrid work arrangements- the use of cosmetics have slightly recovered from makeup products being left behind an individual’s purse or cosmetic bag. Major cosmetic players and brands have adapted the need to amplify endurance as a competitive benefit space as we still live in a face mask day to day environment. While having a lipstick transfer is not a deal breaker for most consumers, there is now a compounding realisation that this might be the next best thing they seek after. I believe the makeup sales decline will see some light at the end of the tunnel as we get more and more people vaccinated and the sense of freedom comes back to consumers. People will start going back to the malls and shop at some point and start seeing the makeup products in their favourite department stores. This will give makeup products their much- needed attention from shoppers will help the market turnaround of cosmetics.
PC: Colour cosmetics ranges have perhaps been hit hardest. Are we seeing a different NPD approach in this sector now as a result? TOL: This is true and has impacted lip products most severely. Since many of our customers still interface with us in a virtual format and cosmetics are still a basic staple of life, people are going into
PERSONAL CARE June 2021
the virtual world more frequently are turning their video cameras on in conferences, using personal care products. While sales are still down in many areas, mask friendly cosmetics have picked up. Barring any unforeseen problems, the basic need of the consumer to use cosmetic products will return to more traditional levels. GM: The NPD approach have always been driven to relevant consumer needs. As people wear face masks everyday – acne prone skin becomes increasing concern. The market addresses this with anti acne ingredients like Sal Acid and BPO in liquid foundations. With lipsticks transferring on masks, transfer-proof formulas are now trending in the market regardless of perceived comfort. More individuals spend more time on their electronic devices; hence, blue light claims are now being explored. I feel like the cosmetics market approach consumer behaviour and need with a lock and key approach. The makeup sector is so adaptable and I really admire all the scientists in our industry globally for all the creativity they bring during the pandemic. I think innovation is still very strong even during this unprecedented time.
PC: How have ingredient suppliers in the US reacted to such a fast-changing landscape? TOL: One challenge to ingredient suppliers remain anticipating production and shipping levels of our customers, which in turn are based on consumer demand. The level of on-hand inventory for ingredients has increased to provide a buffer to finished product inventory fluctuations, based upon
consumer need. This has resulted in increased inventory over the entire chain, and has created unavailability and spot shortages. Laboratories will hopefully
continue to go back to work and go back to full strength. After that, it will take time for companies to determine which R&D projects are really important and which can wait.
PC: The retail landscape in the US was already changing before Covid - have you witnessed an acceleration since? GM: Travel retail has had its exponential trajectory with the continued rise of air traffic with business and pleasure travellers prior to the pandemic. I don’t think that this will come back anytime soon until the global travel restrictions are back to where it was before. However, I believe digital sales will become a really important sales channel to watch out for. It is exciting to see how this sales delivery will impact each major cosmetic subcategory whether it is for skin care, fragrance or colour cosmetics. Major players in the beauty market are being very creative on their selling campaigns from trial samples, payment methods, and shipping options. In my view, this year’s learning while most countries reopen will be key to creating a robust selling strategy that can attract consumers and give companies sales growth opportunities.
PC: What cosmetic trends appear to be performing well currently in the US - wellness, CBD, clean beauty, etc? GM: I believe clean beauty and wellness have had an influential
exposure to consumers during the pandemic. People wore less makeup compared before COVID, and consumers saw themselves in the mirror more and realise that they need to take care of themselves even more. There is a lot of buzz on self-care beauty and I think that is something to watch out for!
PC: How do you anticipate the market developing in the next 12-18 months? TOL: Slowly and stepwise. Caution on changing anything that could alter either the direction, or new variants of COVID could slow the recovery. The number of people that have either been given vaccine or have recovered need to be increased. Hopefully we can obtain herd immunity. GM: I believe that the cosmetics market will see some recovery in the next 12-18 months as people gets vaccinated, feel more comfortable being outside and travel more freely. I believe we need to pay attention to the growing need for customisation in the future and the ingredients that promote “cleanliness” and not just clean. Having products that either relieve or deliver COVID pain points will be a hit in my opinion.
Conclusion The US represents the largest and most important single market in the global cosmetics industry and all eyes will be on its recovery period over the coming few months. With growing interest in concepts such as sustainability, ethical sourcing and personalisation, we expect to see these trends featuring heavily on shelves as new lines come onto the market.
PC
www.personalcaremagazine.com
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92
