Hand and body lotions offer skin care defense – Statistical Data Included
No longer does one size–actually, one bottle–fit all in hand and body lotions. With American consumers more concerned about their skin, they are looking for products that address specific needs. That’s fueled growth of a range of skin care items, such as antibacterial entries, alpha-hydroxy acids for the body and other segmented skin care choices.
Total hand and body lotion sales rose 2.4 percent last year through food, drug and discount stores to $830.7 million. Drug store sales actually declined slightly–down 1 percent to $283.4 million. Discounters were the biggest winners, with a 6.3 percent jump to $321.6 million.
As many as 200 new skin care entries infiltrate the market yearly, leaving retailers with an annual challenge of finding ways to fit in all of the new SKUs. Another obstacle they must tackle is merchandising hand and body lotions in a cohesive, easy-to-shop method. A final challenge is merchandising the assortment shoppers want while avoiding product duplication.
Many drug chains continue to reformat their skin care departments. By now, most have moved health and beauty care closer to cosmetics to take advantage of the synergies between the two areas. Now, many are cross-merchandising skin care items in cosmetics and bath. One display area in Phar-Mor’s new prototype, for example, has space for skin care, such as Minnetonka’s Caboodles Bath and Body Shimmers, a teen oriented line. The thought, according to Scott Gorley, senior director of health and beauty aids for the chain, is to expose younger shoppers–who may not always visit the skin care department–to skin care products.
Other drug chains, such as Eckerd, also cross merchandise some skin care potions at the pharmacy.
The success of targeted hand and body lotions continues. Anti-bacterial has emerged as one of the new hottest subsegments. It is estimated that germ fighting has become a $1-billion business, with antibacterial hand and body products representing sales of $10 million to $20 million.
Keri, one of the pioneers, continues to see growth in antibacterial. A company spokesman said what is attractive about antibacterial is that most of the growth is incremental, rather than cannibalized from other skin care sectors.
Other antibacterial products include Chesebrough-Pond’s Vaseline Intensive Care Antibacterial lotion and St. Ives Collagen-Elastin Antibacterial Dry Skin Lotion. There’s also Purell Consumer Products’ Purell, a hand sanitizer.
Planned to bow this year is Dial Antibacterial Hand Sanitizer. Also, in January, market leader Jergens unleased its version–Antibacterial Lotion and Skin Smoothing. The brand will receive a big advertising push. Reckitt & Colman has Lysol Antibacterial Hand Gel, which is also rolling out nationwide.
Even drug store competitor Bath & Body Works has antibacterial hand gels. Retailers said antibacterial represents a good avenue for delivering incremental sales to hand and body lotions.
Therapeutic items are also ringing registers. Standbys, such as Eucerin, Soft Sense and Cetaphil, continue to thrive via physician recommendations.
Beiersdorf Inc. is focusing on line expansions and a national public awareness campaign on pediatric atopic dermatitis to support Eucerin. During the past two years, the company has had a program to link Eucerin to the needs of people with diabetes.
Galderma Laboratories’ Cetaphil continues to get recommendations from dermatologists. However, the company launched its first consumer advertising campaign in the 30-year-old brand’s history last year.
Cetaphil is getting new competition from Spectropharm Dermatology. “What we have is a better alternative to Cetaphil,” Terry Griffin, market manager, said of the company’s SpectroDerm soapless cleaner. “Consumers are more aware of skin and they want to minimize the effects of aging. There have been product advancements over the years reflected in this product,” he added. SpectroDerm is currently being sold in retail chains, such as CVS and Walgreens.
Also garnering attention in therapeutic areas is IMX Pharmaceutical’s Exorex Eczema formula, now being sold in some accounts, such as Eckerd. According to IMX’s Gary Spielfogel, senior vice president of sales and marketing, the product consists of coal tar and fatty acids originally derived from bananas. However, it is nongreasy and won’t stain clothes.
Spielfogel said the brand is supported with a help line that educates consumers on this new delivery system to help with ezcema and psoriasis. There are 8 million people who suffer from psoriasis and 25 million who have eczema. The line is currently in CVS and Walgreen and is supplied by major wholesalers.
Another major trend in skin care has been the crossover from facial brands to body brands. Pond’s just launched its first body treatment line, a four-product assortment called Ultra Silk. The line consists of two moisturizers, Silk Glove Hand Cream and Ultra Silk Body Lotion. There are also two unique items-Peppermint Food Massage Lotion and Aromatherapy Capsules. The latter reflects a move to merge aromatherapy items into hand and body care. Mike Indursky, skin care director at Chesebrough-Pond’s, said aromatherapy and foot care were added because retail-tracking panels show these two areas are expanding rapidly.
Indursky said this line is at the other end of the spectrum from the therapy items. “Our research shows about 40 percent of consumers are looking for cosmetic benefits from their body products, such as younger looking skin.”
Another example of extension from face to body with a focus on helping skin look younger is Beiersdorf Inc.’s Basis. Originally a soap, Basis was extended two years ago into body and now includes items such as Better Body Lotion with alpha-hydroxy acids and vitamins. “Basis is a brand where consumers thought it was only natural to see an extension to soap,” commented a company spokeswoman.
Dep Corp., a company known for hair care, also has a skin care system getting attention at retail chains. Under a division called Salon Beaute, Dep launched le systeme last summer.
Striking advertisements in publications including People encourage customers not to pay department store prices on Clinique and to try le systeme. The product line is pitched as being very simple, but with department store quality, according to David Berglass, vice president of marketing.
Del Laboratories is also an example of a beauty care company now wanting its products to be used on faces and the entire body. Under the Naturistics logo, the company has a full array of body lotions and encourages retailers to merchandise all Naturistics items in one home, according to Bill McMenemy, executive vice president of marketing.
Fragrance and skin care are more closely linked than ever. Mark Kaplan, president of Sarah Michaels, said his new scented body oil is blowing out of stores. St. Ives is also getting a strong retail response to its new Swiss Formula Body Lotion Mists, said Jerry Hickey, senior marketing manager. He said this represents incremental sales because it is a new way to apply lotion.
While some skin care lines make the jump from face to body, there is also greater synergy between bath and skin care lines, according to Goty Group Worldwide president Jean Andre Rougeot. To that end, Rougeot said the company is extending its Calgon line, first known for bath, into an entire franchise. There are body mists, body gels and lotions under the Calgon banner. To ensure a large in-store presence, Rougeot said the company is creating a Calgon shop fixture.
There are nine scents, ranging from spiced tea to water lilies. In total, there are 58 SKUs, with prices ranging from $4.95 for the 8-ounce After Bath Body Lotion to $15.95 for a four-piece sampler that includes a reusable tote.
Although the company would not comment on sales projections, industry sources believe the Calgon franchise could reach retail sales in excess of $35 million to $40 million for the first year.
Rougeot said the fixture is paramount to making the department a destination in drug, discount and food stores. “This also gives the category a home that shows customers these products will be around for a long time. It is a major statement,” he said.
Barbara Phillips, vice president of marketing for Calgon, added that the fixture produces the feeling of a store-within-a-store that is critical to chain drug store survival against specialty stores, such as Victoria’s Secret. “Retailers are losing this business to specialty stores. We’re making use of the tremendous brand equity of Calgon for bath.”
While the lines between face and body care companies continue to blur, the lines between skin care areas also merge. Shaving preparations, for example, now have skin care properties. The emphasis on making skin ready for shaving while also keeping it soft has spurred sales of depilatories and a new mass market hair remover form called sugaring.
Kippy Spergel, director of sales and marketing for Alexandria, said the firm’s sugaring system is the top depilatory at several Canadian drug chains, where it has been sold for some time. The firm is now looking for extended distribution in the U.S. It received a boost from being featured on as-seen-on-TV spots.
Although hand and body lotion sales are on the rise, Vaseline has slashed its SKUs as a method to reduce weak products. By the middle of this year, Vaseline is said to be cutting its SKUs from about 50 to 20. Sensitive Skin, Hand and Nail and Smooth Legs & Feet will disappear–a trend that bucks the move to more body-segmented skin care. However, other efforts to stress core brands have been successful in categories including hair care and fragrances. “We just can’t have too much duplication with the premium on shelf space,” concluded Phar-Mor’s Gorley.
Vaseline leads sales
of hand and body lotions
Brand in millions % share
Vaseline Intensive Care $133.5 16.1%
Jergens 69.4 8.4
Lubriderm 58.9 7.1
Suave 51.2 6.2
Curel 43.8 5.3
Private label 41.7 5.0
Eucerin 37.6 4.5
St. Ives Swiss Formula 31.7 3.8
Ken 23.4 2.8
Neutrogena 17.6 2.1
Source: Information Resources Inc., Dec. 7, 1997
Mass merchants lead the race
for hand and body lotion sales
$ sales % change Unit sales % change
in millions from prior year in millions from prior year
Mass $321.6 6.3% 102.3 1.5
Drug 283.4 -1.0 74.3 -4.1
Food 226.8 1.5 69.0 -1.8
Source: Information Resources Inc., Dec. 7, 1997
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