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Kline Releases Report on State of Beauty Market in 2011

Posted: November 15, 2011

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Direct sales brands are seeing a 2011 slightly improved from 2010. Kline estimates that the direct trade class as a whole in the U.S. will show modest growth of 2–3% in 2011, over prior year sales.

Looking at one example, globally, Avon is not having a very good year so far. Financial results from the first half of 2011 show that company wide, constant-dollar growth is 2% in the second quarter of 2011. However, the U.S. picture is less rosy for Avon. Second-quarter 2011 revenue in North America was 7% lower year over year. Active representatives declined by 8%, and units sold declined 16% compared with a year ago. Other direct sales brands are doing better.


Specialty brands, for several years a driving force in the market, suffered a bit in the recession, and some brands haven’t bounced back much since. Specialty brands are estimated to grow between about 4–5% in 2011. Note that the specialty trade class includes vertically integrated store brands such as L’Occitane, and excludes multibrand specialty stores like Sephora (each brand sold in Sephora is accounted for in its predominant trade class).

Some specialty brands are doing poorly in 2011, while one shining exception is Bath & Body Works, which reported that same-store sales increased 8% for year-to-date 2011, as of September. Gains of 12% in the month of September in same-store sales are partly attributed to high selling antibacterial products.


Professional brands are expected to grow about 1–2% in 2011. Professional skin care brands should hold their own from 2010, while salon hair care brands are expected to pull down the average somewhat.