MMR: Mass Market Retailers, January 11, 2021

SUPPLY SIDE Why Beauty Brands Must Prepare for a Decade of the Home By Laura Gurski The COVID 19 crisis has impacted almost every facet of our lives reshaping so much about the way we live work connect consume and even think Its clear that consumption is looking very different than it did just months ago In fact Accentures research shows that shifts in consumer behavior and consumption will be long term challenging beauty companies to tailor their products and services to connect with people who are mostly at or close to home This leaves us with an inescapable conclusion The crisis will define consumption for the next decade The 2020s will be the decade of the Laura Gurski home It has become the workplace the schoolroom the place to try new hobbies the place to socialize and a safe sanctuary Home as the hub The Accenture Consumer Insights team has been examining not just what consumers are doing today but what this implies for their long term habits and behaviors The scale of the shifts in preference we are now seeing are dramatic And as the crisis continues they have become more sharply defined Stay at home orders are introducing consumers to new activities and ways of socializing all amplified by digital tools and interactions Not only do they enjoy these experiences but they also plan to continue them over the long term Consider how beauty companies will need account for this reality It is a reversal of years of growth in out of home channels It is a dramatic change in the beauty occasions such as social gatherings holidays weddings convenience has a different meaning at home than on the go It means creating superior experiences for consumers not just ones they choose because they are unable or unwilling to leave their homes Just look at how beauty brand Kiehls for instance has taken its personalized consultations online via a healthy skin hub There will be no going back to the past Moving online As well as dramatically increasing their buying online consumers are switching to omnichannel services like digital chat and virtual consultations Successful beauty companies will be those that get creative experimenting with new ways of engaging online and marketing strategies that promote products and activities that will continue to appeal even after the pandemic passes Well before COVID 19 social media and communications platforms were an inextricable part of daily life With continued focus on limiting in person interaction we have seen high brands move quickly to create virtual experiences to connect with consumers We are already seeing evidence that this is a trend playing out in APAC A good example is Lin Qingxuan The Shanghai based skin cosmetics company was forced to close 40 of its stores during the crisis In order to generate sales and connect with homebound consumers the company redeployed over 100 of its beauty advisors from those stores to become online influencers They were able to use digital tools such as WeChat to engage people virtually and drive online sales As a result it achieved a major uplift in sales compared to the same period the year before Consumers are going pro With access to many professional services restricted and 38 of consumers still cautious about visiting public spaces we have seen a rise in do it yourself DIY hair and beauty care It calls for companies to create new experiences for the home And were already seeing this play out Just look at what nail care brand Butter London has done with its At home Treatment Kits The company was quick to tap into the surge in demand for treatments that are typically done in a salon such as gel manicures Butter London connected with consumers by using social media platforms to share educational content and how to guidance to help create the salon experience at home LOréal is going one step forward by taking the hair salon experience directly into the home with the launch of its Haircolor Concierge service The 24 7 platform connects homebound consumers with color professionals via text or video chat who can answer a full range of questions from shade selection and color application to guidance on how to find and test the right color using its virtual try on and diagnostics tools Tap into the power of community There are socially positive sides to this recentering around the home too And with more time to spare three in five consumers have been taking the opportunity to build their skills in areas like dying their hair Savvy companies can tap into this creative experimentation and these newfound passions to build deeper affinity with individuals For instance when Procter Gamble Co launched a new razor that delivered a hot towel shave experience it solicited feedback and garnered awareness among shaving enthusiasts through a crowdfunding campaign Gillette fans and other passionate groomers became investors and part of the product development It resulted in P G selling six times the expected number of razors in the first week of the campaign Look to the future In the space of a few months the landscape has changed remarkably and we will likely face continued changes and adaptations in the years to come There will be no return to business as usual In many ways this pandemic has created an opportunity for companies to attract and engage with consumers in innovative ways Just as people are seeking to change for the better in this new era so can businesses This is the time to focus on the possibilities the future holds Laura Gurski is the North America lead for consumer goods and services at Accenture Bath Fragrances Bubble Bath For 12 Weeks Ended 11 29 20 Top Brands 1 Dr Teals 286 mil 56 mil 2 Private Label 64 mil 23 mil 3 Dr Teals Relax Relief 42 mil 08 mil 4 Mr Bubble 36 mil 10 mil 5 Village Naturals Therpy 31 mil 11 mil 6 Dr Teals Rstre Rplnh 22 mil 04 mil 7 Crayola 18 mil 03 mil 8 Dove 17 mil 03 mil 9 Vicks Vapobath 11 mil 01 mil 10 Bodycology 11 mil 02 mil Total of supermarkets drug stores discount stores military commissaries and selected warehouse clubs and dollar stores Hand and Body Lotion For 12 Weeks Ended 11 29 20 Top Brands DOLLAR SALES 83 mil 94 Percent Change vs Prior 12 Months Supermarkets 148 Drug Stores 63 Dollar Sales DOLLAR SALES 4806 mil 05 Percent Change vs Prior 12 Months Supermarkets 07 Drug Stores 26 Dollar Sales UNIT VOLUME 198 mil 22 Percent Change vs Prior 12 Months Supermarkets 82 Drug Stores 72 Unit Volume Source IRI UNIT VOLUME 77 mil 69 Percent Change vs Prior 12 Months Supermarkets 79 Drug Stores 121 Unit Volume 1 CeraVe 410 mil 33 mil 2 Private Label 289 mil 69 mil 3 Gold Bond Ultimate 289 mil 52 mil 4 Cetaphil 229 mil 23 mil 5 Jergens 202 mil 37 mil 6 Jergens Ultra Healing 171 mil 41 mil 7 Nivea 161 mil 30 mil 8 Aveeno Active 138 mil 19 mil 9 Palmers Cocoa Butter 123 mil 25 mil 10 Vaseline Total Moisture 114 mil 20 mil Total of supermarkets drug stores discount stores military commissaries and selected warehouse clubs and dollar stores Source IRI TruSkin Partners Readying Brick and Mortar Launch DALLAS TruSkin Partners Inc proprietor of a popular facial serum that has amassed more than 30000 5 star reviews at Amazon com is set to introduce its Vitamin C Serum and other top selling skin care products into brick and mortar retail outlets in 2021 The brand is committed to marketing what it calls advanced premium skin care products now available exclusively through digital channels We are right on par with category trends says Mark Chester the companys chief operating officer We have dedicated ourselves to developing innovative blends that truly transform skin Featuring key antioxidants nutrients and botanical actives our richly concentrated formulas are designed to correct protect heal and restore skin for a healthy visibly enhanced complexion We achieve this with frontline formulations crafted with superior actives sourced from the earth as much as possible TruSkins powerful stable solutions are prepared in small batches to ensure peak freshness and potency at the time of purchase says Chester who notes that the entire TruSkin team personally test runs and approves each new product formulation prior to its commercial release 44 MMR January 11 2021