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Kline Tracks the Growth of Beauty in Alternate Retail Channels

Posted: July 2, 2014

In a post from Kline Blogs, “Zooming in on Beauty’s Alternate Channels,” the market researcher is taking a look at where beauty is retail is gaining outside of the main channels—and what this might mean for beauty retailing in the future.

The post shares, “A short decade ago, mass outlets and department stores were practically the only places U.S. consumers shopped at for beauty products. The Internet was in its infancy and touted by many in the cosmetics and fragrance industry as being ‘negligible’ or ‘insignificant’ since the play and scent factors were missing. Specialty stores emerged as a channel to be taken seriously, but to this day, these outlets continue to mystify industry players while their market share steadily rises. Television shopping has also since established itself as a credible outlet, thanks to the seemingly overnight success of infomercial brand Proactiv. Today, these newer, alternate channels have become even more important, while fresh retail concepts like mobile shopping have emerged.”

Kline identified the top five fastest-growing beauty channels in the U.S. between 2007 and 2012 in its Beauty Retailing USA 2012 Database, ranking the channels. according to their compound annual growth rate (CAGR). The Internet was at No. 1, with a CAGR increase of 26%; home shopping networks came in at No. 2, increasing CAGR 18%; apparel specialty stores were No. 3, as they grew their CAGR 18%; dollar stores clocked in at No. 4, with a CAGR increase of 15%; and infomercials were No. 5, marking a CAGR increase of 11%.