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Kline released its preliminary, top-line performance estimates of the beauty industry in 2011.
The overall beauty market in 2011 should demonstrate growth slightly higher than 2010; most likely sales will be up 3.1–3.6%, as opposed to last year’s 2.4%.
Beauty brands in the mass trade class are estimated to be increasing 2–3% for the year of 2011, continuing along the same track as during the recession. Procter & Gamble, the largest company in the mass personal care space, reported sales growth YTD in 2011 as 4.6% higher year on year, but as its fiscal year ended June 2011, the company stated that the increase was in spite of little growth in developed markets. Beauty grew 3% in the fiscal year ending June 30, 2011, and grooming grew 5%.
After spotty sales in the past five years, prestige beauty brands are clearly triumphant in 2011. Early estimates indicate that the whole year 2011, including the upcoming holiday season, may see growth of 7–8% over 2010 levels.
September proved to be a very promising month for luxury retailers. Unlike during the recession, consumers, Kline reports, have returned to shopping with a vengeance in upscale department stores. For example, high-end retailers Saks and Nordstrom reported September same-store sales that were well ahead of estimates. Nordstrom reported a 10.7% rise when 5.2% was expected, and Saks posted a 9.3% rise when 6.5% was projected. Cosmetics was cited by Saks as one of its strongest-performing categories.