Ethnic Cosmetics/Skincare April 2007

Lynn Dornblaser -- Mintel GNPD Domenica Lewis Mintel GNPD Cosmetics Research

2007 Mintel Group. All rights reserved.

Mintels trend tracking tools

GNPD: tracking new products around the world GNPD Cosmetic Research: tracking prestige brands exclusively Product retrieval: bringing products to your door Mintel Reports: understanding the why behind the trends Mintel Custom Solutions: combining it all for a tailored result

2007 Mintel Group. All rights reserved.

Todays presentation
Some notes on the ethnic consumer Observations on segmentation and market growth in personal care Mass brands and their approach to targeting ethnic consumers News from prestige brands Some thoughts for the future

2007 Mintel Group. All rights reserved.

Some notes on ethnic consumers

Most of the activity in ethnic cosmetics and skincare is in the USestimated value of ethnic skincare, haircare, and cosmetic market in US is $2 billion More than 25% of US female population is Black or Hispanic (total 40 million) Growth of ethnic population outpaces that of white Americans Black women least likely to use both makeup and skincareonly 61% of young black women wear makeup, compared to 84% of all women aged 18-64 Hispanic women are the most likely to use makeup (about 86% of all age groups)

2007 Mintel Group. All rights reserved.

Segmentation trend in general

Personal care market is forecast to rise in the next few years fueled by men, ethnic groups, and baby boomers Personal care products are increasingly segmented to specific needs Segmentation in personal care includes: Products for specific hair types (e.g. straight, curly) Products for specific hair colors (e.g. blonde, brunette) Products for men or women Products for various ages Whitening/brightening illustrate how a segment can be transformed when moving from one region to another Products for ethnic consumers have been on the market for quite some time, but have not become as developed as these other types of segmentation Mainstream products for ethnic consumers appear in many markets

2007 Mintel Group. All rights reserved.

Products for specific hair types

Procter & Gambles Pantene Pro V Perfect Curls Curl Defining Mousse; LOrals Studio Line Tightly Wound Curl Boosting Cur Spray Gel; AlbertoCulvers TRESemm Thermal Creations Straightening Gel; Procter & Gambles Pantene Pro V Smooth & Sleek 2 in 1 Shampoo & Conditioner

2007 Mintel Group. All rights reserved.

Products for specific hair colors

Unilevers Sunsilk Blonde Bombshell Shampoo; Unilevers Sunsilk Beyond Brunette Colored Hair Shampoo; Procter & Gambles Pantene Pro-V Red Expressions Colour Intensive Treatment

2007 Mintel Group. All rights reserved.

Products segmented by gender

Procter & Gambles Wellaflex for Mens Mild & Pure Styling Gel; Procter & Gambles Wellaflex Farbbrillanz line; Schwartzkopf & Henkels gt2b Tipsy Rot 2 Tip Silkener; Schwartzkopf & Henkels gt2b Magnetik Texturizing Pomade (with pheromones)
2007 Mintel Group. All rights reserved.

Products segmented by agefor men

Lancmes Mens line, including Hydrix Moisturizing Balm (for men 25-30), Age Fight (for men 30-40), and Rnergy 3D (for men over 40)

2007 Mintel Group. All rights reserved.

Products segmented by agefor women

Unilevers Dove Pro-Age Body Cream Oil, for women over 50; LOrals Dermo-Expertise Age Re-Perfect Pro-Calcium Restorative Night Cream; for women approaching the age of 60; LOral Dermo-Expertise Revitalift Anti-Wrinkle & Firming Intensive Action, for women 40 and older

2007 Mintel Group. All rights reserved.

Whitening extends beyond Asia

Cliniques Derma White Powder Makeup, for Asian consumers

2007 Mintel Group. All rights reserved.

Whitening becomes brightening to Western markets

Shiseidos White Lucency Perfect Radiance Refining Softener, part of a broad line designed to help brighten skin and reduce the appearance of spots and freckles; Kanebo Cosmetics Sensai Cellular Performance Brightening Make-Up Base

2007 Mintel Group. All rights reserved.

Haircare products for ethnic consumers

Colomer USAs African Pride Hi Lites Highlighting Kit; Softsheen-Carsons Dark & Lovely Color Flash Mousse

2007 Mintel Group. All rights reserved.

Mainstream color cosmetics

Iman Cosmetics Luminous Foundation, developed by the supermodel Iman; Walgreens Dr. Jan Adams Women of Color Skincare line, private label line; Markwins Black Radiance Cooling Shimmer Stick

2007 Mintel Group. All rights reserved.

Mainstream ethnic skincare

Johnson & Johnsons AMBI Complexion Cleansing Bar

2007 Mintel Group. All rights reserved.

Segmented mainstream lines

Procter & Gambles CoverGirl Queen Collection Lip Color, LOrals True Match line, in a wide range of shades (24 shades of pressed powder), designed for all skin tones; Procter & Gambles Pantene Pro-V shampoo, in a variety for Relaxed & Natural, for Women of Color

2007 Mintel Group. All rights reserved.

Issues
Existing products are not expressly marketed or sold to meet the particular needs of women of colour. Many women with deeper skin tones have to choose from products that were clearly made with fair skin tones in mind. Physical needs of women of colour Textures - mattifying to control shine Lip and eye colours - brighter palette, more pigment Darker shades of foundation Colour names - coffee, chocolate, etc.

2007 Mintel Group. All rights reserved.

black Up
1st Parisian "Make Up Artist" brand created for all women: black, European, Indian, Latin, mixed race and Asian Created by Fabrice MAHABO black'Up is aware of the differences and different needs of every complexion and continues to break new ground with its products, creating its own trends. The result? An impressive make-up collection bursting with colour... lightweight, creamy and long-hold textures offering unrivalled comfort; and sales outlets where you can find personalised advice and customised makeup sessions in a very "design" setting

2007 Mintel Group. All rights reserved.

black Up

2007 Mintel Group. All rights reserved.

Flori Roberts
The first Black Cosmetics to be sold in upscale department stores, Flori Roberts brings you the finest formulations in black skin care and AfricanAmerican skin care, unsurpassed for melanin rich skin. designed for skin of colour

2007 Mintel Group. All rights reserved.

Nacara
Nacara is a Canadian company founded in 1999 to meet the specific needs of consumers of African, North African, Iberian, Caucasian and mixed-race heritage Nine product categories Non-oily products, formulated with a beeswax base are especially blended with gold and yellow, essential elements to obtain a radiant, and natural look

2007 Mintel Group. All rights reserved.

Nacara

2007 Mintel Group. All rights reserved.

Fashion Fair Cosmetics

Fashion Fair Cosmetics was started with an idea and 20 bottles from a chemist, John H. Johnson [1918 - 2005], founder of EBONY and JET magazines; he created the largest Black-owned cosmetics company in the world Husband and wife team created mail-order package called the Capsule Collection in 1969 based on formulas created by models on the EBONY fashion shows and shoots World leader in the field of cosmetics for all women of colour. The products are sold in fine stores across the United States as well as in Canada, Africa, the Caribbean, England, France and other countries around the world. The company is led by Johnson's daughter, Linda Johnson Rice, president and CEO of Johnson Publishing Company.

2007 Mintel Group. All rights reserved.

Fashion Fair Cosmetics

2007 Mintel Group. All rights reserved.

Sleek
Sleek International Ltd was founded in 1989 by Dennis Tharratt and Brendan McParland, as part of an initiative to fill a gap in the colour cosmetic market. The brand Sleek was established in order to meet the cosmetic needs of women of colour in Europe who at the time had great difficulty in finding affordably priced cosmetic products that matched their varying skin shades and tones. The Sleek brand has become a leading source of supply to the ethnic cosmetic market in Europe and across the African continent. Company has offices in London, Paris, Accra and Johannesburg. Sleek is dedicated to providing women of colour with a range of colour cosmetic products that are sure to match/complement their complexions, in desirable packaging and at an affordable price.

2007 Mintel Group. All rights reserved.

Sleek

2007 Mintel Group. All rights reserved.

Maria B
Original launch was geared to Latina women, now repackaged and relaunched to Sex and the City generation

2007 Mintel Group. All rights reserved.

Conclusions and the future

Most growth has been in the US market. . . . It is coming to Europe Multi-cultural and multi-racial influences will shape the market, with more lines specifically targeted to consumers of mixed race Trends in the market are driven by both mass and prestige brands: Mass market multinationals are increasingly extending their reach into new regions, and will globalize brands that they acquire Prestige brands will continue to offer cutting-edge solutions

2007 Mintel Group. All rights reserved.

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