Buyers discuss, suggest stock for ethnic cosmetics - Ethnic Merchandising

Buyers discuss, suggest stock for ethnic cosmetics

Now that Shades of You has proven to be so successful, buyers have to decide how many more ethnic cosmetic lines they should add to their mix.

They are also trying to determine: * Of all the new lines coming out right now, which ones should they bring in and which should they leave out? * Where do they find space for whatever they do bring in? * Which stores should get which lines? * And should they pull through their own warehouse or use a distributor?

Competition heats up

Right after Maybelline created a sensation by launching Shades of You, Pavion introduced Black Radiance, Artmatic put Tropez into national distribution, Worlds of Curls broadened distribution of Simply Satin, and Posner - the strongest of the original ethnic cosmetic lines - created a slew of aggressive marketing programs to protect and strengthen their market share.

Now Almay is shipping its shaded collection, specifically formulated for women with darker skin, whether they're Asian, Mediterranean, Hispanic or black. Some sources say that Cover Girl is looking at an ethnic cosmetic line for next year or the year after, and that Revlon is thinking of reviving its Polished Amber ethnic line from the '70s.

One buyer says she doesn't know of any cosmetic vendor who isn't talking about ethnic cosmetics.

Revco's Judy Wiencze Wray says she can easily understand all this interest in the ethnic consumer. "Every indication is that the ethnic population is going to continue to expand, and as they grow, the usage rate will grow."

But the question remains: how many ethnic lines does the average drug store need, and which lines are right for which stores?

One buyer with limited space says that both Posner and Shades of You are selling very well in her stores, but she's afraid that if she takes in another line, particularly one with a lower-price point, it might cannibalize sales of higher-end brands.

"There probably is a need for a lower-price point," this source says, "but I don't want people to trade down. We're in the process now of talking these things through."

"Right now we've seen them all," says another buyer grouping with the same problem, "but we can't handle them all."

Cherry picking tactics

This buyer thinks she will probably solve the dilemma by cherry picking the various vendors and picking lines "that fit the demographics of individual stores."

She says this would let her put lower-priced lines into stores in economically soft neighborhoods while the higher-priced lines go to stores in higher-income neighborhoods.

On the other hand, one buyer who's had the budget line, Tropez, in her ethnic stores since last January, is reporting that the line is turning so fast, it has become number one in sales volume, unit volume and gross margin productivity. This chain is now expanding distribution of Tropez to 50 more stores in higher population ethnic markets.

At K&B, Donna McManus says she's hoping to "rearrange the department so we can fit in more ethnic cosmetic lines and give them more visible space. We need to better utilize our space in this category."

At press time, McManus was still trying to decide which lines to add. She currently has three lines, Posner, Zuri and Shades of You.

"We want to offer selection in high ethnic stores," she says, "but not all stores need all the lines." She says that at K&B, they need to review how to classify ethnic stores to arrive at a better idea of which mix fits which neighborhoods.

She also found the Almay evolution into Darker Complexion shades an operational challenge. "If you put the Almay Darker Complexions in and they're not close to ethnic cosmetics, it could be tough because the customer might not know to look there."

Planogramming solution

One possible solution, McManus says, would be to planogram so that section flows right from hypoallergenic cosmetics into ethnic.

K&B already has a strong selling value line in Zuri, so she knows her customers respond to "good values." She says that after Christmas she will be reviewing other lines positioned for price/value like Pavion's Black Radiance and Artmatic's Tropez as well as the moderately priced Worlds of Curls Simply Satin.

At Pay Less, Shari Ralston was going to test Almay's Darker Complexion shades in 15 stores this fall, and might test Black Radiance in a different set of stores. Simply Satin was already in four Pay Less stores at press time, but while Ralston says it was selling, she hadn't made a decision on expansion.

A buyer for a chain with stores in many culturally mixed urban locations says she has a problem developing a planogram for Almay that will satisfy both black and white customers. She feels that in many of her stores, she has a mix of customers.

Her solution: In ethnic neighborhoods with primarily black consumers, just put in the darker complexion shades, but in mixed neighborhood stores, keep the current assortment of lighter shades, but also expand into the darker shades of Almay.

Unfilled niche

Ralston, who wishes someone like Almay would also launch a skin treatment line positioned for black women, says she thinks the biggest unfilled niche in the ethnic cosmetics market might be for more upscale lines that cater to black women.

Citing the success that Fashion Fair has had in department stores, Ralston says she thinks black women are willing "to pay the price if they can get quality product. Fashion Fair has such a large user base, it's something to look at," she says. "It would give us a chance to capture some of the department store business, especially now when department stores are dwindling."

Nancy Stone at A. L. Price believes that "black women will pay more for ethnic cosmetics."

She says she also is wrestling with the question of which lines to take and in which stores. "My problem is space," she says. "Right now, I have Posner and Shades of You, and I'm trying to decide if I need another line, and if I do, which line it should be.

Stone also worries about possibly trading down customers with lower priced lines. "Yes, there are women who do buy because of price, but there are ethnic customers who will pay a lot more for cosmetics.

At press time, she had seen Almay's Darker Tones, but hadn't decided on a location, except that it will go in line.

The darker tone shades, in her opinion, aren't for all A.L. Price stores. She feels she'll probably put them in certain stores with high concentrations of ethnic shoppers.

Shades of You is only in six of Price's 14 stores, and Stone also believes that her best strategy is to merchandise the line primarily in ethnic neighborhoods only.

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