Skin Market

Women’s perceptions of aging are changing. Today, they want to feel as good as they look.

That’s the conclusion of “Age redefined: a frank perspective on marketing to women as they age,” a new study from Winston-Salem, MA based Frank About Women.

“The results of this study defy conventional wisdom about older women,” said Siobhan Olson, a director with Frank About Women. “While looking young and healthy is still important, (women) also care more about how they feel as they age.”

Featured Age Defining Product

A majority of women in the study—55%— said “aging well” means looking great, but not necessarily younger: only 12% of respondents defined “aging well” as looking younger, Frank About Women executives said. And 25% of women in the survey said “old age” never begins.

In addition, WSL Strategic Retail’s The Pulse survey reported that people are spending less all-over time on frills. For example, 34% of female respondents said they spend less time on their makeup now than they did five years ago due to a much more hectic lifestyle, WSL executives reported.

Does all this spell disaster for the skin care industry? Certainly not. While the concept of “vanity” is taking a backseat, “health” has taken its place, and though a healthy glow really does begin on the inside, it never hurts to have a little outside help. Marketers are ready with the latest products that enhance rather than overwhelm, and fit the lifestyle of today’s busy woman.

The Skinny on Skin Care
According to industry experts, now is a good time for skin care to get a face lift. Sales of facial moisturizers were flat at $256 million in supermarkets, drug stores and mass merchandisers (excluding Wal-Mart) for the 52 weeks ending Jan. 25, according to Information Resources Inc. (IRI), Chicago. And the hand and body lotion category declined 2.57% to $779 million for the period, IRI executives said.

Skin care marketers are going a layer deeper by developing consumer-friendly products that mimic the effects of more drastic methods, such as dermabrasion, botox and some forms of plastic surgery. As skin products edge closer to dermatology, the Food and Drug Administration (FDA) is turning a more critical eye on the skin care market. The category has a guardian angel, however: the Cosmetic, Toiletry and Fragrance Association (CTFA), which strives to keep options open for cosmetic formulators.

Last month, CTFA reported that it is preparing a legal memorandum in response to a Federal Register notice requesting data on six categories of ingredients considered eligible for OTC review but not yet assessed. CTFA said it views the notice as a possible attempt to move responsibility for these products to the drug center as a new category called wrinkle removers. Cosmetic industry experts argue that AHAs, BHAs and aloe products simply reduce the appearance of wrinkles.

“What they’re looking at (is) that the mere presence of these ingredients would make the products drugs, and that’s like throwing down the gauntlet to this industry, because we would certainly fight the FDA at every turn,” maintained CTFA president Ed Kavanaugh. “Historically, you’re either a cosmetic or a drug based on the intended use and the claims you make for that product.”

While CTFA works to straighten out wrinkles in marketing claims, formulators are busy developing products that deliver what consumers want. This requires a complex balancing act between pleasing the consumer and avoiding the FDA’s ire. With all this activity, should be an interesting and revealing year for skin care, according to industry experts contacted by Happi.

At What Price Beauty?
“Which of us is older? Can you tell by our hands?” asked the 1970s television commercial. Today, however, consumers are more likely to reveal their age due to their spending habits, marketers insist.

The Baby-Boomer and mature categories generally have the greatest need for intensive skin care products, and these consumers have more cash to spend than other age groups.

Anti-aging products are more popular than ever as women—and men—shun cosmetic surgery in favor of gentler methods. Topical products also tend to be less expensive than a visit to the dermatologist’s office, though not always, industry executives said.

Procter & Gamble, Cincinnati, OH, has a firm foothold in the skin care industry with brands that are touted as both effective and cost-conscious. Olay and Olay Complete held top spots last year, at $45.7 million and $35.1 million in sales respectively, according to IRI. This year, however, P&G unveiled a surprise: SK-II (“Secret Key”), acquired by the company in 1991 and a hit in Asia, was launched in exclusive U.S. locations this March, for $50 -$250 an item.

The line, developed around a $130, 5-oz. jar of facial cream, is aimed at the Baby Boomer demographic. It rolled out in 11 Saks Fifth Avenue stores across the U.S. in March.

SK-II has been available in Japan for 25 years. Part of its mystique is built around an exotic backstory: a “secret ingredient” was discovered by a Japanese monk who noticed that sake (rice wine) brewers had especially soft hands, according to company executives. The liquid from the sake fermentation process was then turned into a cream, called pitera.

Executives at P&G in Japan said SK-II is more expensive because pitera comes from a slow natural process that “combines the power of nature with the advances of science” and cannot be easily mass-produced.

In addition to the launch of SK-II, P&G is revving up its tried-and-true (and more economically accessible) Olay brand with Olay Moisturinse In Shower body lotion, in normal to dry and extra dry versions. According to a P&G spokesperson, Moisturinse tackles a common problem: while many people have dry skin, some find a daily all-over body application of lotion to be burdensome. Moisturinse arrives on mass retail shelves in June. It retails for $4.99 for an 8.4-oz. container or $6.99 for a 15.2-oz. container.