US consumers switch to TV and online to buy cosmetics
Alternate channels post 21% growth
Sales of C&T products through alternate channels in the US have grown by a staggering 21% according to the latest report by consulting and research firm Kline & Company. The Beauty Retailing USA 2010 report indicates that American consumers are increasingly turning to at-home shopping to purchase beauty products. Internet shopping has seen a 25.4% growth from 2005 to 2010, followed by home shopping TV networks like QVC, that in the same period posted an increase by 20%. According to the research, 'informercials' and multimedia celebrity endorsement like those promoted by direct response TV company Guthy-Renker LLC also saw a good sales increase – reportedly up by 17%. "Consumers are spending more time at home, either by virtue of unemployment, telecommuting, or merely a desire to save money by not going out so much," observes Karen Doskow, consumer products industry manager at Kline. "Instead of running out to the store to buy their beauty products, they're watching home shopping channels and infomercials to get the latest on new products. They're scouring through websites to get information on high end facial treatment products with unique benefits." Brand marketeers are exploring new tactics to build online buzz including online deals on websites like Groupon and LivingSocial. As a consequence, explains Doskow, the traditionally slow growing market of pharmacies is working hard on its beauty offering to lure customers with a more upscale and tempting look. Furthermore, Kline's study also reveals that single-channel marketing is becoming less and less viable as brands increasingly look at creating ubiquitous purchase options for their customers. "We expect a great deal of cross-channel promotion that will drive solid growth over the next five years," says Doskow. "The Internet and mobile technologies are empowering consumers to be even more aggressive in their product and price comparisons and driving marketeers to deliver value-based products to meet these demands."