Skin care companies across the globe are getting ready for the holidays. Despite slow economic growth and a weak employment market, holiday sales are expected to increase 4.1 percent according to the National Retail Federation. This exceeds the 3.5 percent average for the past decade and is the most optimistic forecast issued by the Federation since the recession. These projections are good news for the skin care industry, which began suffering in late 2008.
At the manufacturing level, personal care products represent approximately $200 billion in global sales. Skin care retailers are part of a nearly $300 billion global market and are used to 4.5 percent annual growth. Even specialty skin care is a multibillion-dollar industry. These entry points offer various opportunities for entrepreneurs and the holiday season is an excellent time.
Many consumers are looking for mass-market brands that offer the same results as luxury lines. Peptides and other anti aging technologies are now widely available for mass purchase. Skin care companies have already begun advertising the amazing benefits of these ingredients. They hope to acquire additional market share during this holiday season, ending 2012 on a positive note.
Black Friday marks the beginning of the holiday shopping season. Smart skin care retailers are already advertising Black Friday deals in an attempt to build anticipation. During past recessions, the skin care sector has been more resilient than other personal care categories. This trend is expected to continue and skin care manufacturers and retailers are looking for an added boost this holiday shopping season.
Experts believe that the U.S. skin care market will fully recover by the end of this year. In both the mass brand and luxury markets, innovative technologies and ingredients are the keys to success. Mass marketers should focus on maintaining brand loyalty while luxury marketers must try to entice customers away from mass brands that became popular during the recession. The holiday season will represent an interesting dance between these segments. Manufacturers and retailers of natural products are icing on the industry cake because they have been growing since the recession began.
When discussing holiday expectations for the skin care industry, the online sector should not be overlooked. This year, online U.S. retail sales are expected to increase 12 percent. Skin care retailers will compete for their share of this growth this season. When holiday shopping concludes, it will be interesting to see how the skin care market performed.