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Private Label Takes on Skin Care

By: Jeff Falk
Posted: January 10, 2006, from the January 2006 issue of GCI Magazine.

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“The Baby Boomers are aging and want an alternative to surgery, and men are taking better care of their skin and becoming more aware of the benefits of skin care,” says Singer in summation of two key demographic groups.

“Lifestyles and economics drive the trends,” says Mordeson. “Women do not have the time or money to spend on a weekend getaway at a spa. It’s much more convenient to purchase higher-end products to take home and achieve the same results at a fraction of the cost of a spa visit.”

Cumberland Swan has seen strong growth in nontraditional skin care subsegments, specifically in acne and facial care items, while traditional hand and body lotions have remained relatively flat. “Cosmeceutical items in acne/facial care as well as antiaging products are providing the most growth currently,” says Breitlander. “Therapeutic items that address specific needs continue to be important in the private label mix.”

RC International has been able to move away from basic private label offerings over the past few years to focus on upscale salon and spa products. “We take what’s hot in professional beauty today to the retailers now,” says Mordeson. “With skin care specifically, at-home microdermabrasion and the salon-type facial peel saw several national brand launches in 2005. Now retailers want private label systems available too.”

By investing in the ability to offer sophisticated products, Cumberland Swan sees numerous and continued growth opportunities, and now is fielding name brand inquiries to help launch new products and technology. McKenna also cites the advances in raw materials, spurring, in turn, the creation of new technologies in order to utilize these materials.