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Kline Releases Report on State of Beauty Market in 2011
Posted: November 15, 2011
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Obagi, among the leaders in professional skin care, reported sales growth of 1.5% in the first half of 2011, as compared to the first half of 2010. As mentioned above, other professional skin care brands are expected to be performing slightly better than that, while salon hair care brands are more in the low positive growth range.
Looking at skin care, the largest product class in the whole beauty market, the prestige brands are also performing well here. The skin care market as a whole is estimated to increase between 3–4% in 2011. Nail polishes are continuing to soar in the makeup product class, with continued high double-digit increases. Fragrances may grow an unusually high 4–5% for the year. The holiday season remains a big unknown and will have a large impact on the overall market performance, particularly for giftable categories like fragrances.
Consumer confidence, as tracked by Conference Board, showed a steep decline in August this year, with further deterioration in October. The index for October was at 39.8 (1985=100), down from 46.4 in September. Withering consumer confidence points to a second half of 2011 faring somewhat less well than the first half.