THE INFLUENCE FACTORS

by Cynthia R. Cohen

This article discusses the factors that drive consumers to purchase beauty products.  Looking at today’s consumer behavior and into my “Strategy Diva” crystal ball of the future, I will highlite the five most significant factors that all segments of the beauty industry should consider as you plan new products, marketing programs and your company growth strategies.

 #1. Demographic Divide

They are not called the boomers just because they were born during a baby boom.  Everywhere they go with their dollars they create a BOOM in sales.  This boomer generation of consumers is 28% of the population and is demanding, vocal, sensitive about aging and will live well into their 70’s and 80’s.  And the twenty somethings aren’t interested!

Generations Y and X are 34% of today’s population. They don’t spend as much as the Boomers  because they are not in their high income years but they are worth a lot to the beauty industry as these are the “it” people, the arbiters of style, what’s in and what’s on the way down.

The biological imperatives create the major division of interests between these two groups.  Aging is tough but it certainly provides a lot of opportunities for new products and services that boomer women crave.  On the other hand, the younger females as Sex and the City women, are focused on themselves and making their lives better, sexier, more fun and entertaining through the products they buy.

Today we’ve got generational skirmishes and  tomorrow we’ll have all out war between the generations as each generational group  wants to be the lead dog in the overall pack of consumers.

Because the Boomers are still putting on their reading glasses while the younger set has read through half the magazine, the style, wording, layout and tone of advertising needs to be customized to the target customers’ generational age.  Service and store environment will also follow in addressing the individual needs of the generations.  Same products will be slightly altered and packaged differently to address the solutions that each wants.

Like sisters, these generations love each other and borrow each other’s hot products, but there’s a base line jealousy here so treat each as first daughter with lots of customized attention.     

#2. Body Enhancements

Why do it, because we can! There have been no many advancements in products and procedures that consumers view their body as just the base model, just like a car. So why not get it customized just the way you want it, both interior and exterior. 

The cost of a lot of procedures have dropped and there’s more DIY (did it yourself) products from tooth whiteners to chemical peels.    The approach is now turn yourself from a duck to a swan, this isn’t extreme makeover, it’s your birthright.

Television and magazines have showed the how.  The why for the Boomers is because they don’t want to age.  The younger consumer sees the riches of a better _______(insert one; job, spouse, career, lifestyle) as the why.

Let’s not assume this is all women, the supposed vainer sex.  Growth in products and services for men in this area is in double digit percentage increases in all categories.  

Here is what to expect in the future.  There will be exponential growth in cosmeceutical and OTC (over the counter) products.  Brand share will be harder to defend causing more product development and shorter product life cycles.  Micro product niches will proliferate for special size, use and application alternatives 

#3. Information Acquisition

“Just the facts” is their mantra.  By the way, good celebrity dishing is considered fact.  Women like to be informed about products; the contents, usage, benefits, fashion identity as well as, which celebrity buys them.  Each year the percentage of online information searches before product purchase goes up. 

Technology advances allow for easy access to data from home/office computer, cell phone or in-store device.  But it is not all about technology, the magazine product writeups are key.  The thirst for information will only grow as women have become knowledge junkies about everything in their lives.  The media is responding to this trend with more niche segmentation, which drives more interest, which drives more demand, and on and on … 

Look for more convergence of media and retail to drive product sales through information dissemination.  Consumers want individualized solution, “what will work for me” answers.  Easy to use diagnostic tools for product selection will proliferate in print, on the web and in stores.

There is an increased burden on selling staff as consumer expectation of their knowledge increases.  So unlock the caverns of information and share, share, share with your selling staff, customers and business partners.

 #4. Demand Creators

There is a lot of boredom in consumer land and celebrity fascination (maybe vicarious living) is a way of dealing  with the everyday mundane.  The plethora of cable and media choices helps us keep up with all the intimate details. Who is wearing it, using it, bought it or thinking about it is the buzz.  So many products, so little time.  Looking for products used by our fav celebrities is another way of editing the selection.  They are paid to look young, beautiful, kooky, sexy, edgy,…pick your celebrity style and she/he will pick your products. 

There is also a growing mistrust of advertising that the younger generation has promulgated.  Product and brand decisions are most frequently based on referrals.  Advertising is institutional brand building and product awareness, but information and referrals are the traffic drivers.   

Welcome to the new world of product wranglers and stylists.  “get it in Lucky, make sure she wears it on the red carpet, reshoot the scene so the label shows” are the things your marketing people will shout out now to generate that buzz.  Come on television producers, we need a replacement show Sex and the City brand building. 

Solution selling still works well and will be exploited as new problems are identified to consumers so solution products can be marketed and sold.  Keep those marketing dollars in the new product budgets, you will need them for better collaterial, packaging and container design.  Form and substance have almost equal importance as the counters are clogged with more product offerings so you need every advantage to stand out.

Home accessories for bed and bath now include the lotion and potion bottles.  Their style and image is another reason the consumer buys them.

 #5. Buy it My Way

Consumers do not see patience as a virtue.  They want it now…or in the next day’s mail.  They are multi-channeling to the max.  Women finally have prevailed over the predominantly male geeks and online shopping sites are easier, more practical and give them the features they want versus the gee whiz technology.  Remember, many will blame your site for being slow, rather than her 56k phone line. 

Here is what she wants, total accessibility.  Buy it when she sees it…in a magazine, on a television show, from an email offer, from a text message on her cell phone.  By the way, this is not advocating more spam, she will give you permission to have a relationship with her.  Her terms for the permission, be relevant!  “Tell me about the things I care about and reward me for buying from you through any channel.” Move more inventory and shelving into the stores, she wants to order online and pickup at the store.