Hispanics Can Drive Retail Beauty Market
Recent numbers in Progressive Grocer indicated that while 94% of U.S. households purchase beauty products, and the industry totaled $33.5 billion in sales in 2014, beauty products are not flying off store shelves like in the past.
Just as in other retail industries, online shopping is affecting the way beauty products are purchased. Instead of adding their favorite beauty items to the cart at the local grocery store, consumers are searching for better deals online, many of which include free shipping. Since the recession, consumers are re-evaluating discretionary expenditures, and the beauty industry is not exempt.
That is why retailers should place increased emphasis on Hispanic consumers to reignite the beauty category. From 2013 to 2014, non-Hispanics posted a decrease in cosmetic sales of 1.2 percent, while Hispanics displayed a 7.4 percent increase in sales.
Monica Gil, general manager and SVP, multicultural growth and strategy, Nielsen, told Progressive Grocer, "Beauty Care sales trends demonstrate powerful evidence of how Hispanic consumers act as the accelerators in growing categories while also serve as the brakes for declining ones. Marketers and retailers benefit from understanding the differences in Hispanic category consumption because it will help them identify where they spend substantially more than the rest of the population.”
So why are Hispanics purchasing more beauty products than other demographic groups? The experts at Progressive Grocer listed several reasons, but we picked two for the purpose of this blog:
1. Latino men purchase almost as many grooming products as Latino women. Additionally, from 2013 to 2014, Latino men had a 15.5 percent spike in fragrance purchases.2. While only accounting for 17% of the total U.S. population, Hispanics are responsible for 16.2% of all baby beauty purchases. That includes items such as powders and lotions in addition to baby cologne, which is seldom used by non-Hispanics.
It is clear that retailers be marketing their beauty products more towards Hispanics. We will see which retailers are following the numbers.
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