WomenTrends® 2011

Sneak Preview

Alisa Marie Beyer

The Benchmarking Company
© 2011 All rights reserved. The Benchmarking Company.
Table of Contents
I. Introduction
II. Industry Facts & Figures
III. Micro Beauty Consumer Trends
a. Skin
b. Color
c. Hair
d. Fragrance

IV. Macro Beauty Consumer Trends

V. Macro Cultural Trends

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 Introduction
The beauty industry is not as pretty as it used to be; it’s prettier. Every year, hundreds, if not thousands of
new products hit the market, but no longer are these products only coming from the tried and true industry
leaders we all know and love – Chanel, Lancome, Estee Lauder and Clinique. These days, everyone is
throwing their hat into the beauty ring: celebrities, reality TV stars, musicians, fashion designers, makeup
artists, dermatologists, estheticians, clothing and shoe retailers, non-profits, and even tattoo artists! All want
to tap into the glamour and excitement of our industry, and all enter into the game thinking their idea/product/
brand is the unique game-changer consumers have been waiting for. However, when you consider that up to
95% of new product launches fail each year (Source: AccuPoll); 80% of new brands fail (Source: Ernst &
Young), and only about 15 – 20% of new brands and products are actually successful (Source: Procter &
Gamble), we can see that clearly, something has got to change. The beauty pie isn’t growing and we are
dangerously close to over-saturation – which is why knowing and understanding the trends that affect us all
in this chock-a-block sea of competition is absolutely critical.

These days, the beauty industry is embracing trends in technology, ingredients, retail channels and even
lifestyle choices that in the not so distant past, we might never have considered.

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But what is a trend?
A trend articulates values which are ascending in
society. They can be physical or psychological. A
state-of-mind or a product. Social or Personal. And
they bring about changes that are long-term and
lasting. (How long ago was it that you had a paper
map in your car? Not long). Often, trends are
confused with fads. A fad is a short-term cultural blip
that is fun, yet may not lead to any sort of deep,
lasting cultural change. (Trucker hats and Cabbage
Patch Dolls anyone?) I’m here today to talk about the
top micro and macro beauty and cultural trends that
are deeply affecting women’s lives, and that ultimately,
will help guide our industry through the inevitable
changes that are heading our way in the face of so
much competition and innovation.

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TBC Beauty Facts, Figures,
and Trends

January 2011
 Worldwide Cosmetic
Market
•  The global cosmetic and toiletries market
was roughly $350 billion in 2009.

•  The top 100 companies in the cosmetic

and personal care sectors generated
$141 billion in global sales in 2009.
•  That’s a 16.3% drop year-on-year.

•  Meanwhile, the smallest companies on

the top 100 list got larger.
•  For instance, in 2009 the 100th-ranked firm
rang up $112.5 million versus $109.8
million in the 2008 edition.

Lee, Virginia. “Opportunities in the US Beauty Industry.” Euromonitor International presentation at COSMOPROF. 7/18/10.)
6
Weil, Jennifer. “Beauty’s Top 100.” WWD.COM. 8.13.10. < http://www.wwd.com/beauty-industry-news/the-wwd-beauty-biz-top-100-3210830>
 Cosmetic Product Categories
Now that you know where all the money is spent, it’s helpful to know what people are
spending their money on. The cosmetic industry (aka beauty industry or personal care
industry) can be broken down into 5 categories with sales distributed as follows:

Hair Care: 20% Facial Skin Care: 27% Fragrance: 10%

Make-up: 20% Personal Care: 23%

Perry. “A Cosmetic Industry Overview for Cosmetic Chemists.” 01/05/2010. <http://chemistscorner.com/a-cosmetic-market-overview-for-cosmetic-chemists/>
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 Cosmetic Product Categories
Hair Care Shampoos make up the vast majority of this market since almost everyone uses
shampoo. Other significant market segments include conditioners, styling products,
hair color, and relaxers. Currently, the biggest players in this category are Procter &
Gamble (Pantene) and L’Oreal.

Skin Care The range of products that are offered for the skin care market are much more
diverse than the hair care market. Skin care includes skin moisturizers, cleansers,
facial products, anti-acne, and anti-aging products. The biggest companies in this
market include Procter & Gamble (Olay) and Unilever (Vaseline).

Make-up The color cosmetic market includes anything from lipstick to nail polish. Included are
things like blush, eyeshadow, foundation, etc. The array of products is vast and the
number of color variations are practically infinite. The market is highly segmented so
there isn’t really one dominant player. Maybelline and Clinique are just a couple of
significant brands.

Perry. “A Cosmetic Industry Overview for Cosmetic Chemists.” 01/05/2010. <http://chemistscorner.com/a-cosmetic-market-overview-for-cosmetic-chemists/>

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 Cosmetic Product Categories
Fine Fragrance This market segment has really taken a hit in the last few years but it still makes
up about 10% of the cosmetic industry. This is the highest profit segment of the
cosmetic industry but consumers are fickle. Only a few brands (like Chanel #5)
can last for a long time. Fine fragrances come and go like fashion and
companies have to continue to reformulate just to compete.
 

Personal Care The “personal care” category represents 23% of the cosmetic industry and is
made up of things like toothpaste, deodorants, sunscreens, depilatories, and
other personal care products not yet mentioned. The dominant companies are
many of the same already mentioned, P&G, L’Oreal, and Unilever.

Perry. “A Cosmetic Industry Overview for Cosmetic Chemists.” 01/05/2010. <http://chemistscorner.com/a-cosmetic-market-overview-for-cosmetic-chemists/>

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 A Look into Key Distribution
Segments
Drug Stores The US drugstores industry includes about 20,000 companies with combined
annual revenue of about $220 billion.
•  Major companies include Walgreens, CVS Caremark, and Rite Aid.
•  The industry is concentrated: the 50 largest companies generate about 70
percent of revenue.

Spa Services The spa services industry in the US includes about 18,000 facilities with
combined annual revenue of more than $13 billion.
•  Major spa services companies include destination spa chains Canyon Ranch
and Golden Door, massage clinic franchise Massage Envy, as well as day
space franchise Woodhouse Spa.
•  The industry is highly fragmented: most spa services companies operate a
single facility with less than $1 million in annual revenue.

“Cosmetic Industry Overview” Hoovers.com Accessed on 12/12/2010. <http://subscriber.hoovers.com/H/results/allCategories.html?documentsPerPage=4 >

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 A Look into Key Distribution
Segments
Department Stores The US department store industry includes about 3,500 stores with
combined annual revenue of $70 billion.
•  Major companies include Sears, JCPenney, Macy's (which owns
Bloomingdale's), and Dillard's.
•  The industry is highly concentrated: the top 50 companies have
nearly 100 percent of the market. 

Cosmetic Retail Market The cosmetic, beauty supply, and specialty store industry includes
about 13,000 stores with combined annual revenue of around $10
billion.
•  Major companies include Sally Beauty Supply, Ulta, Sephora, and
divisions of Limited Brands (Bath & Body Works) and L’Oreal (The
Body Shop International).
•  The industry is concentrated: the top 50 companies have almost 75
percent of industry revenue.

“Cosmetic Industry Overview” Hoovers.com Accessed on 12/12/2010. <http://subscriber.hoovers.com/H/results/allCategories.html?documentsPerPage=4 >

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 Key Players
Massive multinational corporations dominate the makeup industry, but in recent years
they have been creating or acquiring boutique brands in order to crack the market for
premium makeup.

Estée Lauder and rival L'Oréal have realized that, like the spirits industry, the key to
success lies in offering a suite of products targeted at a wide range of customers, but
with special emphasis on the growing luxury sector.

Mmoma, Ejiofor. "World's Best-Selling Makeup." Forbes.com. 2/9/06. <http://www.forbes.com/2006/02/08/best-selling-cosmetics_cx_me_0209feat_ls.html>

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 World’s Largest Manufacturers

Mmoma, Ejiofor. "World's Best-Selling Makeup." Forbes.com. 2/9/06. <http://www.forbes.com/2006/02/08/best-selling-cosmetics_cx_me_0209feat_ls.html>

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 World’s Largest Manufacturers

Firms are listed by their parent companies and ranked by beauty sales for the 2009 calendar year. For this list, "beauty" includes fragrance, makeup, skin
care, sun care, hair care and deodorant, plus cellulite and shaving products. It does not comprise bar soaps, razors, toothpastes, foods and diet foods,
medicines, vitamins or detergents. Beauty revenues only comprise sales of beauty products each firm manufactures and do not include business from
private label lines or products it might distribute for other firms.

Mmoma, Ejiofor. "World's Best-Selling Makeup." Forbes.com. 2/9/06. <http://www.forbes.com/2006/02/08/best-selling-cosmetics_cx_me_0209feat_ls.html>

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 New Beauty Category:
Men’s Grooming
Men’s Grooming is Fastest Growing Category
According to Euromonitor International, men’s grooming is set to be one of the fastest-
growing categories in beauty and personal care, predicted to add approximately $4
billion to its global value size ($27 billion) by 2014.
 
Why? Sales are set to rise thanks to changing attitudes among men globally about grooming and
a shift in key emerging regions away from manual work toward white-collar jobs.
 
Where? The U.S. commands the highest value sales, accounting for an 18% share of the global $27
billion men’s grooming in 2009, but it is showing signs of slowing growth as an after-effect
of the recession, and Western Europe remains the largest region for the male-specific
category because of strong sales in the French, German and U.K. markets. The region is
set to continue to see strong growth, adding more than $800 million to its size by 2014 as
men in the region move beyond basic products related to shaving to more sophisticated
grooming regimens that incorporate numerous skin care and post-shave products.

Lennard, Carrie. “Masculine Dynamism—Men’s Care Growing Fast”. 12/6/10. GCI Magazine. December Issue. < http://www.gcimagazine.com/marketstrends/consumers/men/
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111394189.html>
 Consistency is Key
Differing from other categories, beauty has
been the most consistent throughout the
economic downturn and recovery.

•  From holiday 2008 through early 2010, the beauty

category displayed search impression levels that
were flat to slightly decreased. In addition the
number of orders in the luxury beauty category
increased only slightly at nine percent and
conversion rates increased at a rate of 17%.

•  This consistency in the luxury beauty category

throughout the recession and upswing perhaps
indicates support for the widely known “lipstick
effect,” the theory that consumers are more
willing to purchase lower cost luxury goods even
when their funds are more limited.

“Beauty: Consistency is Key.” Range Online Media. 2010. 16

 Prestige Makeup Sales Shine
in U.S. Department Stores
Sales for prestige makeup in U.S. department stores on a positive trend.
August 2010 was the fourth consecutive month of positive dollar and unit sales.

  Dollar sales increased two percent to USD 2 billion, year-to-date through August 2010, compared to the
same time period in 2009.

  While two percent may not seem like a huge sales increase, it is noteworthy because this is the first time in
two years that the prestige makeup industry is showing a positive trend.

Face and Nails were standout segments, outperforming the total make-up category.

  Face, the largest segment with 49 percent dollar share of makeup, grew 3 percent in dollar volume, versus
last year. Concealer (+6%), Foundation (+3%), and Blush (+2%) helped lead the way.

  The Nail segment, the smallest makeup segment, with only one percent dollar share, grew a double-digit 31
percent year-to-date (Jan thru Aug.) 2010, compared to the same time last year.

Both the Lip and Eye segments showed positive growth as well.

  Lip and Eye segments grew two and one percent respectively. The sub-segments driving growth in the Lip
and Eye categories were Lip Color (+8%) and Eye Liner (+3%).

“Prestige Makeup Sales Shine in U.S. department stores: Face and Nail Categories are Biggest Standouts in Makeup”. 12/14/10. <http://www.cosmetic-business.com/en/
showartikel.php?art_id=2266>
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 2010 Winners & Losers
•  Only 31% of women say that their makeup buying
behavior hasn’t changed as a result of the economy.
Still, these changes have not effected all companies
equally.
•  Of the major publicly traded cosmetics companies,
only Estee Lauder Companies has been able to
rebound strongly since the downturn began in October
2007 (up 48 percent over the past three years).

•  Revlon, which was founded in 1932 during the Great

Depression, recently turned positive thanks to a 16
percent September rally.
•  Meanwhile, since the last recession officially began
Avon Products and Elizabeth Arden are still down 14
and 26 percent, respectively.

Cavallero, Matt. “Cosmetics Stocks Will Make Your Eyeliner Run”. 10/1/2010. < http://blogs.forbes.com/greatspeculations/2010/10/01/cosmetics-stocks-will-make-your-eyeliner-run/>
"The eyes have it! Eye makeup sales bolster color cosmetics growth, reports Mintel” 7/2010. <http://www.mintel.com/press-centre/press-releases/562/the-eyes-have-it-eye-makeup-
sales-bolster-color-cosmetics-growth-reports-mintel>. 18
 Succeeding in Beauty
Only a very small percentage of new beauty products and brand introduced into the market
each year are successful. The experts offer different explanations as to why:
 
•  According to Procter & Gamble CEO A.G Lafley, “In our industry, only about 15 to 20 percent of new brands and
products really succeed. Every year from 2000 through 2007—the last completed fiscal year virtually all of our
incremental growth has come from innovation. One of the things we try to understand is … what's the real pace of
innovation that's right for the consumer, right for the retailer and right for us.”

•  According to research agency AcuPoll, “As many as 95 percent of new products introduced each year fail.”

•  According to Ernst & Young,, “Upwards of 80 percent of new brands fail and the primary reason is a lack of
differentiation from competitors.”

•  According to Marketing Corporation of America, “LLine extensions have a failure rate of 49 percent, while 74 percent of
more innovative products fail. Reasons for new product failure include: A value proposition that is not sufficiently
compelling and/or awareness and trial is not generated by marketing.”

•  According to the Americian Association of Advertising Agencies, “In the highly-competitive consumer goods market,
the success of a new product is the hard-earned result of streamlining innovation processes and supporting them with
experienced, dedicated people and enabling technologies. About 75 percent of new products fail and that number
may be even higher in a recessionary environment.”

Cavallero, Matt. “Cosmetics Stocks Will Make Your Eyeliner Run”. 10/1/2010. < http://blogs.forbes.com/greatspeculations/2010/10/01/cosmetics-stocks-will-make-your-eyeliner-run/>
"The eyes have it! Eye makeup sales bolster color cosmetics growth, reports Mintel” 7/2010. <http://www.mintel.com/press-centre/press-releases/562/the-eyes-have-it-eye-makeup-
sales-bolster-color-cosmetics-growth-reports-mintel>. 19
Miles, Lynn. “New Products, Facts, and Stats.” 6/607. Research Matters #6757. <http://www.aaaa.org/news/bulletins/Documents/ResearchMtrs.pdf>
 Make-up Usage, Motivation,
& Purchase Behavior
Daily Makeup Usage
• Average woman spends 20 minutes a day applying makeup.
• 4 out of 5 women wear makeup.

• 76% use lip gloss and lipstick
  Moisturizing (54 percent) and SPF (51 percent)
are the most popular skin care benefits in
• 65% of respondents report using mascara makeup products. These were followed by “oil-
• 63% of women report wearing eye shadow free-won’t clog pores” (32 percent); “reduces
• 62% use eye liner wrinkles-fine lines” (30 percent) and items that
are natural or mineral-based (27 percent),
• 38% use brow pencils according to the report.
• 22% use lip pencil • Only one million women, based on census
• 7% use compact lip color projections, are wearing only one makeup
• 86% of makeup users have used makeup product a day.
that features skin care benefits in the past
year.

“The eyes have it! Eye makeup sales bolster color cosmetics growth, reports Mintel” 7/2010. <http://www.mintel.com/press-centre/press-releases/562/the-eyes-have-it-eye-makeup-
sales-bolster-color-cosmetics-growth-reports-mintel>.
"How much will you spend on makeup in your lifetime?”. 3/12/10. <http://www.bellasugar.com.au/How-Much-Women-Spend-Makeup-Life-7708228>.
Evans, Michael. “NPD Report Shows Decline in Makeup Usage”. 8.18.10. http://www.wwd.com/beauty-industry-news/npd-report-shows-decline-in-makeup-usage-3223228.
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 Make-up Usage, Motivation,
& Purchase Behavior
Emotional Connection/Motivations
•  Nearly half of U.S. women surveyed believe wearing makeup gives them an advantage
at work and makes them feel more in control
•  82% of women surveyed believe wearing makeup makes them feel more self-confident
•  86% of women believe that wearing makeup improves their self-image
 
Shopping Habits
•  Average woman spends $15,000 on makeup in her lifetime.
•  From the ages of 16 to 65, a woman shops for cosmetics about five times a year.
•  Each time she’ll spend roughly $43, equaling about $216 a year.
•  That’s about $2,750 on eye shadow, $1,780 on lipstick and $3,770 on mascara in total
•  The average U.S. consumer spent $616 on personal care in 2008

“L'Oréal Survey Reveals Beauty Habits in the Face of Recession”. 8/31/09. GCI Magazine. < L'Oréal Survey Reveals Beauty Habits in the Face of Recession>
"How much will you spend on makeup in your lifetime?”. 3/12/10. <http://www.bellasugar.com.au/How-Much-Women-Spend-Makeup-Life-7708228>.
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 Micro Beauty Consumer Trends
Now that you know the intimate details of the beauty industry in general, let’s look at 20
of the hottest micro beauty trends for 2011. Micro beauty trends are quick, often
seasonal trends that spring from the runways and fashion houses, top makeup artists,
industry leaders, regular women on the street, and these micro-trends help guide
consumers as they make their day to day beauty and fashion decisions.

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 Skin
Minimal, Fresh, Age-Reversing, Proven, Clinical

1.  Minimal ingredients, that are easily understandable and as

natural as possible, are leading the way this season. Gone
are the days of ingredient labels that are so long, they take
two sides of the box to list.
2.  Our beauty-inspirations are coming full circle, with models,
actors and celebrities starting to embrace how they really
look – wrinkles and all. Rather than overly-smooth and
unnaturally young-looking, the skincare ‘look’ that is taking
over this season is that of healthy, realistic and attainable.
3.  Anti-aging ingredients will move from just fighting (and
preventing) wrinkles on the outside, but to growing
youthful skin cells on the inside. Can we change our DNA?
4.  Preservatives are not the enemy, and smarter, safer, skin-
friendlier preservatives are going to be an important part of
the industry’s growth.
5.  The allure of the tan will continue to fade. Tanning beds –
even UV free tanning-beds – are no longer desirable. The
deep, dark, tropic tan has lost its appeal with most
consumers.

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 Color
Bold, Bright, Juicy, Beautiful, Glowing, Healthy

1.  Bright, bold makeup is the key to fresh spring makeup:

neon yellow, mandarian orange, lollipop purple and
grass green.
2.  Lipstick in saturated shades of tangerine, watermelon
and deep berry is back, ranging anywhere from matte
to ultra-shiny.
3.  Cheeks are colorful, contoured and classic – with
shades ranging from icy pink to golden peach.
4.  Foundation is lighter-than-light, not apparent on the
skin, and leaves the complexion looking infused with
vitality.
5.  Temporary tattoos have arrived, and they may be here
to stay. Available in beautiful, believable designs and
colors, non-committal tattoos are the darling of the
cosmetics world, and springing up everywhere from
magazine ads, to runways to beauty aisles. Look for
sophisticated versions that can double as jewelry or
even makeup.

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 Hair
Sunny, Smooth, Shiny, Long & Inviting,
Exotic Ingredients
1.  Bright, sunny and inviting blonde shades took
center stage on runways from coast to coast.
2.  Long, wavy, hippie-inspired tresses that are either
stick-straight or imbued with soft body are a breath
of spring energy.
3.  Side-parts are hot. Hair is swept low over the
forehead, and pinned on one side with large,
gorgeous barrettes and pins.
4.  Perm performance! The age of the perm is back,
only – it’s not the perm of your youth. Today’s perms
leave behind soft curls, soft body and even better?
Soft hair.
5.  Exotic singe-note ingredients to keep hair soft and
silky this year are: bamboo, wild ginger, and French
plum.

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 Fragrance
Classic, Breath-taking, Fresh, Personalized, Vintage

1.  What’s old is new again. Stand-by classics such as Eternity,

Angel, and Oscar de la Renta are enjoying a resurgence in
popularity, proving why these classics lasted long enough to
make a come-back.

2.  Already gorgeous, perfume bottles will become the true

calling card of every scent. Featuring gorgeous designs,
colors, materials and packaging, the bottle is the silent note of
every fragrance, and will be even more beautiful in 2011.

3.  Fragrance personalization will be in-demand. Already hugely

popular in the Middle East, the small luxury of having a
personally-blended formula created just for you will be wildly
popular.

4.  Fragrances for people who don’t want to smell like they are
wearing perfume will continue to hold market share.

5.  The popularity of fragrances in recent years has been on the

decline. Due to the economy, the fact that younger women
don’t wear as much scent and so many fragrances have
glutted the market — will it come back?
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Macro Beauty Consumer Trends

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 TREND #1

Beauty’s new face

Ethnic beauty brands are growing in
importance.
As the world population continues to evolve and expand,
the norms for beauty marketing, product development and
brand growth will have to change in order to keep up with
the new demographic landscape. ‘Ethnic beauty’, once
considered only a small subset of the overall beauty
market, is, according to GCI Magazine, expected to have
combined spending of $4.2 trillion by 2013. It’s a smart
beauty brand that takes note of this very powerful trend
and takes into account the potential of this new beauty
consumer when brainstorming and planning new product
launches. Ethnic consumers describe a large variety of
women: Indian, African American, Hispanic, Asian, and
the specific product needs for each of these groups are
unique. Brands not only see this need, they are
anticipating and reacting to it by launching products that
speak to the cultural and traditional backgrounds and
habits of these groups. Everything from skincare to
makeup to hair care to body care, ethnic beauty products
are emerging as a viable and important category in the
overall beauty market.
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 TREND #2

Best-tige
Luxury beauty brands are redefining themselves.

Like the jewels of the beauty industry, super-prestige beauty

products, which contain the rarest-of-rare ingredients, promise
the most exceptional results ever imagined, and are only
available at the most exclusive retailers, are growing boldly.
From the early adapters such as La Mer and Cle de Peu, to
Giorgio Armani Beauty, Kanebo Sensai, and Bulgari, it’s clear
that the bar of what constitutes luxury color and skincare is
being raised. These brands are more than prestige – they are
glittering luxuries that tantalize many, yet are in actuality only
options for a small minority of consumers. But this doesn’t stop
these brands from continuing to evolve. These types of hyper-
expensive products are gaining in popularity and we think this
trend is only going to continue to inflate as luxury brands seek
out ways to keep a hold on not only their loyal consumers, but
on potential new consumers, as well.

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 TREND #3

Subdivisions
Masstige color brands are closing the great divide.

The line between prestige and masstige color

products will continue to blur as mass beauty brands
innovate ever-more impressive products and lines to
keep up with demand. Sure, there will always be a
difference between prestige and mass offerings, but
for many women – these differences will seem
negligible, or even non-existent. In place of watered-
down versions of their more expensive cousins,
massitige color cosmetics now feature the same
cutting-edge technologies, pure pigments and long-
lasting wearability that consumers demand.

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 TREND #4

It’s in to start within

Beauty-from-within will continue to evolve

Although the beauty from within trend isn’t new, it is one

that will continue to hold bandwidth with consumers in
2011. As brands diversify their offerings, and create
even better, more tasty product options, more and more
of us are aware of and importantly – understanding how
these types of beauty products work, and we like them.
When faced with taking a handful of pills vs. eating a
tasty ‘beauty bar’ or drinking a refreshing ‘beauty
beverage’ many women prefer the ingestible. The
perfect partner to the latest slew of skincare that
promises to ‘turn on’ the genes that control youth,
beauty-from-within appeals to us all with promises of
increased radiance, fewer lines and wrinkles, and
overall improved health.

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 TREND #5

Entitlement
Youth-on-demand. (aka – looking
young is my right.)

Let’s face it. Entitlement is powerful. It’s led us to aspire

to cars, jobs, homes and lifestyles with a single-
mindedness second to none. Now, the idea of entitlement
has turned to youth, or more specifically, looking
younger. Where it used to be enough to encourage
women to wear sunscreen and try to delay the
appearance of wrinkles, today – immediately firmer,
smoother, radiant, and more youthful skin is no longer
something we should have to work for – it’s considered
our right. From baby boomers all the way down to
wrinkle-free twenty-somethings, we all feel entitled to look
younger, better, prettier, faster. And, to have as few flaws
as possible. It’s not enough for beauty products to just
promise results, they must promise results that can be
seen and felt within minutes if not instantaneously. Which
is a good thing because minutes are all most women
have, and all that they can spend, in their quest to find
that which will make them look younger.
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 TREND #6

Mirror, my mirror
We are seeing our reflections in a whole new light

No longer will we look in the mirror simply to see our

reflection. Now – we are going to be able to look in the mirror
and have it reflect back an entirely different kind of image.
Say hello to the ‘virtual mirror’. Sounding like something right
out of a sci-fi movie, makeup companies and retailers are
rolling out virtual mirrors which allow consumers to test-out
different looks, styles, colors and trends, and then share the
results instantly with friends on Facebook and other social
media outlets. Rather than a static image, our reflections will
now be pliable, changeable images – allowing us to preview
our options and test-out looks instantly.

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 TREND #7

Once upon a time…

Consumers are hungry for the story behind their
favorite products, and want brands to share

With the often overwhelming choice of beauty products

available, consumers are seeking out other kinds of
connections to their brands, most notably – the story
behind the products or company. Did the hero ingredient
come from an exotic local? Was the formula founded by a
prize-winning scientist or a mom, who mixed up the
miracle cream in her kitchen? Was the name inspired by a
memory, a vacation or a person? Yearning to feel that she
has a personal, intimate connection to her beauty
products, consumers delight in product stories and will be
clamoring for more. They want to feel invited into the heart
of the brand, and to relate to the products as people, and
not just consumers.

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 TREND #8

Nailed
The trendiest accessory on every woman’s
hand isn’t her jewelry – it’s her nail polish.

Nail polish has come full-circle. From muted colors and

formulas that lasted only a few days, to shade ranges that rival
nature and technology that can keep polish chip-free and
bonded to your nail for over 3 weeks, it’s clear that women are
more in love with nail polish than ever. And companies far
afield of the beauty industry are getting involved. Dell
computer offers computers in OPI nail polish shades, Volvo is
offering three nail polishes to match their new S60, and OPI –
famous for divine color collections inspired by movies and TV,
most recently added athletes to their list. Serena Williams has
just created two new shades for the brand, inspired by the
Australian Open Tennis Match. Nail polish is luxurious, fun,
beautiful and a quick indulgence. It used to be that when the
economy took a dip, women wouldn’t leave the house without
lipstick but these days, well-coiffed fingers are the trend to
beat.

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Cultural Macro Trends

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 TREND #1

Outsourcers-R-Us
It takes a lot of help to live our lives, and we
aren’t about to trade-down

The economy may still be recovering, our 401k’s may have lost
some of their cushioning, our budgeting on food and
entertainment may have become more mainstream than not,
but one place where we aren’t going to budget? Our
outsourcing. These days, most of us have ‘people’. Someone to
clean our houses, mow and maintain our lawns, do our taxes,
watch our kids, fix our cars, grow our wealth, put us through
our gym paces, and even keep us sane, and we view them all
as necessary, normal and needed extensions of our daily lives.
And while some may view this type of help as extraneous, for
the majority – it’s rapidly becoming a way of life, and we won’t
compromise on affording it, regardless of our financial
circumstances. We may be broke as a joke, but Merry Maids
will be at our house four times a month keeping our lives (and
us!) in order.

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 TREND #2

Me-moments.
She’s got an exit strategy, and she doesn’t
feel badly about it.

It used to be that Calgon was how women got away from it all,
but as I think we can all agree, that ship has sailed. Today, it’s
about me-moments – carving out ‘me-time’ that is more
meaningful than just a bubble bath (not that those aren’t
meaningful in their own way). Instead, women want moments to
themselves that are impactful and give us back a sense of
peace, of purpose and of passion. What would have been
unheard of in the past is now a trend for the present – exit-
strategizing: women re-claiming time for themselves at the
expense of friends, family and even responsibility. Separate
vacations, book clubs or women’s groups, weekend days that
are dedicated ‘mommy-free zones’ are just a few of the ways
that women are mindfully (and thoughtfully) severing
themselves from their ever-growing list of responsibilities –
even if only for 5 minutes – and reclaiming a sense of self and
of ‘me’.

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 TREND #3

Home Base
Even in the big city, we are becoming
local-yokels.

Just as the food world has embraced locavore eating,

more and more of us are starting to embrace locavore
living. All local resources, all of the time has become a
key driver for not only how we eat, but our lifestyle
choices, as well – and it’s here to stay. We are
committed to shopping, buying and supporting our local
and regional shops, sellers, producers, growers and
retailers in ever-increasing numbers – even in the midst
of huge cities with vast purchasing opportunities at our
fingertips. The allure of buying local is more than just
quaint; as we clean-up from the economic turmoil of the
past few years, the need to focus on local resources has
become a critical component in helping to rebuild not
only our local retail infrastructures, but our local
communities, as well.

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 TREND #4

Self-renovation Fascination
Every minute of every day, we aren’t just
someone new, we are someone better.

Renovation is big. And in 2011, we will be renovating

more than ever before. But not in the sense of houses
or homes, instead; we are in virtual frenzy of
renovating ourselves. Every minute of the day, we
choose the ‘better me’ we want to be, and we are on
the improvement train 24/7, 365. Self-help books,
DVD’s, workout programs, vitamins and nutritional
supplements, beauty creams/serums/and procedures,
carbon credits, green lifestyle choices…all of this and
more is at our beck and call to help us constantly
improve ourselves and our lives. The ability to micro-
edit and literally fine-tune our lives and ourselves for
the better has only just begun to hit its stride. Look for
even more ingenious ways to improve life on a daily, if
not a moment to moment basis, in the very near
future.

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 TREND #5

Rolling Holy
The rise of the new religion and
how it’s going to save us all

In the midst of rising scandals and religious turmoil, it would

seem that a general turning away from religion would be
ascending, yet – in 2011, the trend will be the opposite. Only, it
won’t be religion as we are all necessarily accustomed. We want
faith, we want to feel part of a religious community…but what we
don’t want are the trappings of traditional beliefs: guilt, penance,
purgatory. As the lines between faith and philosophy become
ever more blurry, a new kind of religion has emerged that takes
the best of both, and melds them into a phenomenon that gives
us the aspiration we crave, without the guilt that we don’t.
Today’s religious leaders – many of whom aren’t necessarily
preachers or priests – such as Joel Osteen, Dr. Wayne Dyer, and
Louise Hay, helm massive congregations, write best-selling
books and inspire millions of us to live faith-full lives where
personal responsibility, forgiveness, generosity, gratitude, and
love are the fulcrum of our beliefs, not guilt or dogmatic
parameters. Far from being a fad, this new evolution of religion
is a here-to-stay trend that has not only made people feel better
about religion overall, it has inspired and spurred thousands of
us to re-think the way we approach every facet of our daily lives.
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 TREND #6

Mass mingling, 2011 style.

Staying connected is no longer just a daily
thing, it’s a moment-to-moment thing.

Humans are social creatures, and the exploding role of social

media outlets as a method of entertainment, information
gathering and staying connected only proves that when it comes
to our personal lives, these days – everyone is invited in.
According to GCI Magazine, Americans spend more time on
social media networks than anywhere else online – 906 million
hours per month. No longer is it enough to be idly involved in
your friends or family member’s lives. Today, we want to be
connected 24/7 – and we are spending more and more time
online (be that on a computer, or our Smartphone or iPad) to
ensure that our status is always up-to-the-moment and current.
Where the TV once sucked away a good portion of our free time,
today – this free time is spent obsessively tweeting our thoughts,
commenting on our brother’s wedding photos on Facebook,
posting our location on FourSquare and sharing our weekend
exploits on YouTube. It used to be that we all yearned for our 15
minutes of fame, but now, with ever more sophisticated social
media options, we are always the star. And our 15 minutes of
fame is nowhere close to being over.

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 TREND #7

Choice Ladders
We still want what we want, only now – we
are valuing these choices differently.

As recovery from the economic changes of 2009 continues, our spending

patterns have shifted. We may not be rushing off to purchase expensive
homes or cars, but for many of us, our wallets are open. And, we are
enjoying our favorite items – both prestige and mass – that we stopped
buying in an effort to save a few pennies. However, while the doom-and-
gloom predictions of total money shut-downs or no-spending have been
proven wrong, how we spend is no longer cut & dry. As consumers, most
of us have altered our purchase patterns, right down to the how, what,
when and why we buy what we do into a sophisticated ‘choice ladder’.
Because we want to start using our favorite prestige eye cream again, we
continue to buy generic paper towels, hand cream and coffee creamer,
and in fact – we no longer really see the need for certain consumer goods
to be premium at all. In fact, our choice ladders are fluid, and they adapt
monthly, if not weekly, to accommodate our rising comfort with spending
once more. We want what we want, and we are willing to ladder these
choices so we can continue to get them.

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 TREND #8

Extremes-no-more
Why the extremes are no longer our friend.

In a world where reality stars get paid $25,000 to walk into a party, athletes behave as unsportsmanlike as possible,
and political-correctness has reached new levels of absurdity, there is a refreshing turn back to status-quo, middle-
ground, good-old-fashioned un-excitement. The excesses of the past few years, coupled with the economic
downturn has made extreme behaviors, extreme diets, extreme houses, extreme salaries…extreme anything just
seems like too much, and culturally – it’s no longer appealing. And rather than being viewed as a dull or boring, this
migration back to the more stable middle-ground is instead inspiring us to set parameters, take responsibility and
ultimately again start achieving goals that in an environment of extremes, we could never achieve.

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 TREND #9

The mob mentality

Feel-good ‘mob’ events are the answer to
the isolation of our digital world.
We may all love our digital hook-ups, but as we continue to
adjust to the changes in the economy and the environment,
people are yearning for ways to feel connected to real human
beings, and not just status updates. Enter the flash mob.
Enjoying particular popularity in 2010, flash mobs popped up
everywhere from supermarkets to parking lots to malls, and
brought with them the opportunity to connect to a group of real
people for no other reason than to do something fun like sing or
dance. From impromptu performances of Michael Jackson’s
Thriller to singing Christmas carols, these flash mobs engaged
and enchanted us all year by hurting no one, not harming the
environment, and ultimately — sharing something bigger than
the mob with the world. Although TV, cellphones and computers
have made it very easy for us all to stay home and still enjoy
human interaction, as we delve deeper into the many layers of
social media and online communications, we are all yearning for
time away from our computers. Away from our gadgets and
gizmos, and flash mobs will continue to fill the bill.
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 TREND #10

Constant Connection
Technology has advanced every aspect of our lives to a
critical state of constant connection.

At the beginning of the movie “Jerry Maguire”, Tom Cruise’s character, Jerry Maguire,
famously promises his client that he, “…will not rest until I have you holding a Coke,
wearing your own shoe, playing a Sega game *featuring you*, while singing your own
song in a new commercial, *starring you*, broadcast during the Superbowl, in a game
that you are winning…”. And while the potential for this kind of situation was radical in
1996, the truth is that in 2011 – all of us are this connected, and more. On any given
day, there are 90 million tweets tweeted, 35 hours of video uploaded per minute, 1.6
million blog posts posted, and an average of 130 friends demanding our attention. We
are wired and plugged in 24/7, and anything (and everything) we could ever possibly
want is almost instantly available to us. Want to watch a DVD, check the weather, catch
up on the game, call your mom, send an email and tag some photos of yourself in
Facebook all while sitting on your couch? No problem. With today’s technology, you can
do all of this simultaneously in about 5 minutes flat, and the demand for this kind of
constant connection is only going to grow. Young children and teenagers have grown
up with this as their ‘norm’, and even retirees are jumping on-board, realizing that being
able to sync multiple areas of your life concurrently is addicting. But as with everything,
what goes up – must come down. Our technology addiction may be on the rise, but
what will cause us to start tapping out? Will we simply become too connected?

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 TREND #11

The rich are back

Affluent consumers are shopping; can the
rest of us be far behind?

When the economy took a turn in late 2008, most all of us took
a look at our spending habits and adjusted accordingly,
including the affluent shopper. She spent more time
comparing her options, more time online researching her
purchases, and like all of us – spent less of her dollars on
favorite items. Today, she’s reverting back to her former
purchasing habits: comparing less, and buying more. In
particular, more of her favorite brands. Throughout the last two
years, even though affluent shoppers purchased less, they
remained loyally committed to their favorite brands. And now
that many of us are beginning to shop again, this affluent
consumer is leading the way, and flocking back to her favorite
high-end, designer products with her wallet open. And
although a retail comeback may take a bit longer to kick-in for
non-affluent shoppers, we believe all segments will again
return to their loyal brands and start spending.

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