The concept of new is becoming old hat in the C&T industry. The prevailing message of this year’s Future Beauty & Body Visions Conference was that manufacturers must take time out to rethink their brand strategy and focus on what is essentially at the heart of their business: the customer.
Jeanne Chinard, founder and president of et y and, opened the two-day event by narrating a story entitled The girl who cried new. With up to 95% of new products failing to get off the ground, she asserted that advertising speak has become too predictable and is creating bogus expectations which are bound to disappoint.
By taking away the act of personal discovery and anticipation of a product, manufacturers reduce the customer’s ability to get excited about it. Chasing the next trend can be a slippery slope without having a solid foundation on which to market a product. Chinard stressed that trying to sell something new in an old way, by merely adding words such as innovative, new or introducing to the slogan, can lead to disaster. By looking at a brand objectively, having the confidence and patience to build the brand slowly over time and, most importantly, making sure the product is truly worth consumer attention, companies do not need to spend billions of dollars on advertising.
The modern world
Building on how to target customers effectively and pinpointing future trends, the beauty panel session focused on the growing influence of the internet and its potential to meet consumers more quickly.
Jenny Cossons, director of fashion and beauty at Condé Nast Interactive pointed out that online advertising now accounts for 25% of the company’s revenue and that more and more companies are using new media. Some brands are even launching fragrances online, allowing web users to apply for free samples and simulataneously building customer databases.
Kate Creasey, beauty editor of handbag.com, spoke on the changing face of the media industry and the effect that new media will have on future business strategy. She also explained that online market research is increasingly being used to target specific audiences and capture consumer attitudes with immediate results. With the ever-growing segmentation of categories within the industry, consumers can be targeted more specifically with customised mail alerts. Creasey warned, however, that older consumers, who are less used to surfing the net, may fall off the radar.
David James, director of Sassafras, called for a more focused perspective, saying that a brand should figure out its essence before getting carried away with advertising, promotions and packaging. Catering to the individual by speaking to customers in their own environments is no less important in today’s technical age. The internet, along with other forms of media, should be considered merely as a vehicle through which to communicate the brand’s true identity.
Man power
John Gallo, international director of product education and marketing at Anthony Logistics For Men, spoke on another emerging market – male grooming, and how to appeal to the modern man using a language he understands. According to Gallo, this category makes up 5% of the $406bn worldwide beauty market. Western Europe lags behind in terms of growth, going up just 4.3% compared to the impressive 9.8% rise reported from the Eastern European market.
Many factors are driving the upsurge in the male segment says Gallo, including the increase in the male population, the impact of single men on purchasing behaviour and the rise in male beauty icons such as David Beckham.
As taboos are broken, men are finding it much more acceptable to take an active interest in their appearance and are even going out to buy their own products as well as receiving them as gifts from mothers, girlfriends or daughters. It would, however, be wrong to target the male market in the same way as the female market with an information overload. It is essential to the success of the market that manufacturers understand the male mindset. Once his attention has been captured, a man is more likely than a woman to stay loyal to a brand for almost the rest of his life. Men do want to be pampered but on their own terms. This balance can be attained by creating a separate men’s space in retail outlets which is clear, simple and non-threatening, and by educating staff on how to sell specifically to men. Sampling and personal demonstrations are both ways in which men can experience a product and decide on their personal brand of choice.
Finally, the influence of women on men should not be underestimated. Will King, founder of King of Shaves, contradicted the idea of the rise of the metrosexual or übersexual by emphasising that such terms make men run. “There is massive potential within the male grooming market but we need to be careful. Men don’t want to have their sexuality questioned,” said King.
Beauty at your fingertips
John Nolan-Neylan, managing director of The Naturaceutical Company, pinpointed the growth potential of the cosmeceutical sector. Defining the term as a product that can have a physiological effect, he explained that sales of these products are predicted to grow between 8-12% in 2007, ahead of the expected 2-3% growth for the skin care market overall.
As a fast-moving category, segmentation is bound to follow, and Nolan predicts that products for specific age groups, skin types, different ethnic origins and genders will make their bow in the near future.
As a relatively new category, the cosmeceutical category is bound to suffer from rationalistion as the many me-too brands fail to make a sufficient impact on the market, said Nolan. Manufacturers must therefore play to the strengths of the sector in order to continue pushing forward. Companies must be careful to emphasise their products’ difference without over-egging claims of efficacy or pseudo-medical speak, which would fall foul of the ever-vigilant ASA.
Cosmeceuticals also require a specific marketing technique. Due to the nature of the products, sampling is generally not effective as the products require repeat application to live up to their promises. In-store promotion is also difficult for many cosmeceutical brands as small start-up brands find it difficult to bear the cost.
Choosing the right medium to promote cosmeceuticals is vital; some of the most effective include celebrity endorsement, coupons and advertorials. There are, however, challenges ahead for the sector. The threat of regulation may drive smaller companies out of the race and false claims of efficacy from a minority of opportunistic companies will only serve to undermine the sector as a whole.
Sanjay Bhandari, founder and ceo of Farmacia Chemists, encouraged the introduction of tighter legislation in the cosmetics industry, suggesting that consumers will eventually demand a means of cutting through the grey area of product claims. “You have got to be honest if you want respect from the customer. The idea of truth in packaging should exist.”
Stand up, stand out
According to Bhandari, the niche brand Farmacia Urban Healing is founded on core values of trust, quality, expertise, knowledge and scientific know how and this is key to its success. “If you want to be big, you’ve got to be brand. Brand guardians share a duty to respect their brands and keep in selective distribution channels. There is a temptation to want to be everywhere but the difficulty is keeping focused.”
Bhandari admitted that distributing a premium brand through mass channels is a necessary evil for many manufacturers, something which the likes of Burt’s Bees, Origins and Clinique have seemingly managed to pull off. In his view this has only been possible by sticking to strict guidelines, such as respecting retail prices and consequently saying no to discounting and over promotion, creating the correct brand environment and maintaining consistency.
Niches in the market can be short-lived, said Bhandari, as companies increasingly jump on the bandwagon producing almost identical products and making them available to a mass audience. For niche brands it is therefore better to allow the brand to mature slowly and then exit at a premium multiple.
Bhandari has high hopes for the future, with possible niches yet to be explored in skin ailments, breast enhancement, teeth whitening, detoxification and ageing. He concluded that it is both in the companies’ and the consumer’s interests that niche brands are created and take themselves seriously, so it is the product and not the brand flying off the shelf.
Be in my gang
Michelle Feeney, brand consultant and former vp of global communications at Mac Cosmetics, supported the idea that niche – or cult, as she put it – is the way forward. Using Mac’s global success and charitable campaign, the Mac Aids Fund, which has raised over $60m, as an example, she explained that the soul of a brand needs to be questioned internally. “It is important to create a community within a company. The more you can define yourself to your staff, for example, the less likely it is that you’ll trip up further down the line,” she explained.
By investing in 12 make-up artists to represent the brand, it was possible for the company to go out and spread the word to consumers who were ultimately looking for something to be a part of and belong to. “People want to join a brand, not buy a brand. You’ve got to be authentic,” he she said. “It’s about keeping what you have real.” In this respect, everything a company does has to fit its original remit. Mac, hoping to come across as edgy and different from the norm, welcomed the singers Mary J Blige and Lil’ Kim on board – artists with perhaps more controversial backgrounds than many – to be the representatives of its Aids fund. But brands must stay clear of compromising their values, Feeney warned. “You can’t be in the beauty world today if your products aren’t great. Mac is continually improving its products but they have become almost a bi-product to the cult. However, going from cult to compulsion is a dangerous rollercoaster.”
Back to basics
The second day looked deeper into the issue of retailing and customer interface. Siemon Scamell-Katz, founder of design marketing consultancy ID Magasin, emphasised the failure of the traditional marketing model. He claimed that, on average, a customer will read only seven words when shopping, meaning that much of the money spent on fixtures and fittings by manufacturers is a waste. So too, he claimed, is customer research. “Customers will tell you what you want to hear. Shopping is an irrational experience and trying to rationalise it doesn’t work. Design retailers make things look good but not practical. We haven’t understood practically what is the best way to shop.”
Jo-Anne Thomson, commercial manager of toiletries at Boots, thought otherwise and also countered the suggestion that premium brands lose value in mass retailers. However, brands should approach with caution, with both manufacturers and retailers are now on a price treadmill that they want to get off. “We need to deliver other reasons to buy beauty than price or promo. Premium brands have a similar pricing challenge with GWP. Brand owners in the mass market need to think about what they’re trying to offer the customers and get that right.”
Philip Moore, trading manager of Wm Morrisons, said that the entry of Wal-Mart onto the UK market has meant value is being driven out of the category in the battle to compete and the industry is therefore struggling to retreat from the raging price wars.
The employment of various marketing strategies does of course differ from company to company. Moore said that Morrisons is trying to create a browser-style experience, mimicking a department store, though admitted that this has not yet been achieved. One of Morrisons’ big frustrations, says Moore, is not being able to stock fragrances. Brand managers are often reluctant to pursue way-out marketing ideas.
In contrast, Jeff Wemyss, beauty director at AS Watson-Superdrug, claimed that risk is what Superdrug is all about; taking promotional activities into a wider arena by offering refresher zones backstage at festivals, for example. The company is looking to smaller players for ideas and inspiration, such as French pharmacies who have installed trained dermatologists on sight. Wemyss said that while this would not be possible in the UK, there is a lot to learn from such a consumer-focused approach.
Concentrating on brand design, Andy Knowles of independent consultancy Jones Knowles Ritchie, struck at the core of the matter. “As retailers and manufacturers, we think too much about our issues rather than the consumer’s needs. Shoppers want to choose quickly, happily and confidently – it’s what we all want.” He reiterated the message that if a company can gain consumer interest in a brand, the sky is the limit for reinvention, knowing it has a strong base to work from. Having worked with Molton Brown, he held up the company as a good example of a strong force to be reckoned with. By clearly defining what the brand is about, choosing distribution channels carefully and having the patience to build up its reputation, he said that it has been able to survive the crossover into John Lewis. “When you push, people move away. When you sit back and wait, people start to clamour for you. So much advertising is a lack of simple ideas. When brand names become ubiquitous, it’s impossible to stop the slide.” Knowles warned against commoditisation as it threatens credibility and also leaves a brand open to copycat products. “A strong brand is the only defence you have from incoming competition. It’s about creating an aura around the brand. Novelty is dangerous. Who wants to promote fashionability?”
Taking inspiration from brands that have maintained a strong foothold was a theme many industry veterans touched on. With the message that the future has inextricable links with the past, an interactive fragrance session led by David Pybus and Jo Norman, directors of consultancy Pandora, hoped to take us back into the fragrance world of ancient civilisations by showcasing nine different lost scents, including Blue Lotus, Rosa Maris, Aphros and Pyxis, rediscovered while working with Quest International. The audience was also encouraged to explore the idea of The Perfume Zodiac to see which fragrance matched their star sign.
Forward thinking
Marcos Angelini, global brand director Dove, Unilever, spoke on the Dove brand and how its self-esteem campaign gained momentum to build into a way to educate and inspire young girls to believe in a wider definition of beauty. Hinting that a lot of new developments were in the pipeline over the next five years, he discussed the issue of introducing a men’s line. “Why not? But why yes?” he asked. “There is a fine line to tread as we don’t want to compromise the brand or alienate our female customers.” He also indicated that the spa line would be the next big area for Dove to explore.
Nica Lewis and Marie Caudwell of Guinot suggested that the professional channel and men go hand in hand. “Professional skin care treatments are actually well positioned for men because the environment is unisex and therefore less intimidating. It is, however, a challenge to influence men to come to salons, as any mention of beauty is off-putting. Women can help to encourage their men to go in and try a treatment.”
The professional channel must address the need to change customer perception of luxury versus necessity, said Lewis, as well as enticing customers to walk through the door. The professional channel also shares a number of concerns with the traditional retail channel. There is a need in both arenas to educate the consumer and the salon and spa industry therefore invests a great deal on training and education for its staff. “Often spas can be a starting point. Maybe brand managers could look to this sector and take some advice from it, rather than always looking at the traditional retailers,” said Caudwell.
Professional salons have changed over the years with growing demand for machine-based treatments. This in turn has led to the popularity of take home treatments. Eastern inspired treatments are also in fashion. Up and coming trends include aesthetic medicine and medi-spas, anti-ageing body care, which is currently enjoying huge success in Italy, the concept of well-being and a growing concern for eco-awareness. The excess of consumer choice has also had an influence on the industry in that people are asking for treatments as gifts, in a bid to get rid of clutter and simplify their routines.
Kate Ancketill, md of GDR Creative Intelligence, echoed this sentiment, giving her predictions for the future of product packaging and retail space using her analysis of global design trends. Companies who address environmental concerns are set to reap the rewards from the growing eco-consumer movement and so natural and simple ideas are making a comeback. “There is plenty of mileage left in simplicity for packaging, while non-perfumed products will be big in the future. The idea of extremely natural products which are organic and family sourced is another interesting concept. If you’re not eco-friendly, you’re going to get left behind because you’re no longer in the competition.” At a retail level, demonstrating expertise and engaging with the customer can help to build trust and enhance consumer belief in a brand.
Cutting to the core
Summing up, chair Hilary Dart, formerly of Cosmetic Executive Women (UK), Calvin Klein Worldwide and Selfridges, called for greater communication within the industry so that it can find its way back into the consumer’s heart. She also pointed out that a healthy debate surrounding the future of the C&T industry can only be a good thing.
Indeed this could be the key to pushing innovation even further and avoiding complacency. “The consumer is king, voting with his or her feet. Sometimes it does us good to reconnect with the consumer at a grass roots level. It is clear that there is a hunger on the C&T market for brands and retailers to have a better relationship with each other and find a way to talk so that they are both able to stand the test of time.”
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Beauty Focus 2007: 26-27 February 2007, Congress Centre London