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Joining the Innovation Game: The Changed Nature of Private Label
By: Sara Mason
Posted: May 4, 2011, from the May 2011 issue of GCI Magazine.
page 5 of 6Her philosophy is that if all ideas come from beauty, everyone will have the same ideas. “I want to fight getting stuck in a rut as much as I can,” she said.
One such example is a project Young is conducting for a large beauty company. She is evaluating texture trends in North America, Europe and Asia. Her search includes global food trends, textures in prepared foods, street foods and candy. How does it differ from country to country? Are textures changing; if so, why? And how can it benefit the product story?
As consumers become more sophisticated and the globe shrinks, it’s important to find emotional connections that consumers will respond to, what is part of the consumer experience on a daily basis. “I look for parallels, not fits,” said Young. “It sounds like a bit of a stretch, but it makes sense when you are talking about global consumer drivers. It works because there is emotion, passion in both beauty and food.” And that is where new ideas come from: innovation.
Future of the Industry
While consumers may be responding positively to private label’s potential, the market still remains marginal compared to branded beauty products. According to preliminary estimates from Euromonitor International, the global beauty and personal care private label market actually slowed in 2010, growing 5.7% to reach $9.15 billion.
Growth in 2009 was 8.4% ($8.66 billion). Furthermore, the global private label market represented just 2.5% of the overall beauty market in 2010.