The U.S. Market for Ethnic HBC: Hair Care, Skin Care, Color Cosmetics
May 1, 2002
262 Pages - Pub ID: LA717624
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  1. Executive Summary
    Scope and Methodology
    • Scope of Report
    • Methodology

    The Overall Market
    • Sales of $1.6 Billion in 2001
    • Sales of $1.9 Billion in 2006
    • Table 1:1: U.S. Retail Sales of Ethnic HBC Products, by Category, 1997-2006 (dollars): hair care; color cosmetics; skin care
    • Hair care Accounts for Three-Quarters of Sales
    • The Growing Ethnic Populations
    • Ethnic Spending Power
    • Figure 1-1: U.S. Retail Dollar Sales of Ethnic HBC Products, by Category, 1997-2006 (percent): hair care; color cosmetics; skin care
    • Majors Enter Market, Raise Stakes
    • Use of General-Market Products Is Widespread

    Ethnic Hair Care Category
    • Scope of the Hair Care Category
    • Nine Ethnic Hair Care Product Segments
    • Ethnic Hair Care Struggles to $1.1 Billion
    • Relaxers/Home Perms Are Still the Largest Segment
    • Figure 1:2: Share of U.S. Retail Dollar Sales of Ethnic Hair Care Products, by Product Segment, 2001 (percent): 9 segments
    • Strong Positives and Negatives in Ethnic Hair Care Growth
    • Ethnic Hair Care Sales of $1.3 Billion in 2006
    • A Small Field of Significant Ethnic Hair Care Marketers
    • Consolidation Is a Trend
    • A Note on Ethnic Hair Care Share Data
    • L’Oréal Is the Leader in Hair Relaxers
    • L’Oréal Also Leads in Ethnic Hairstyling Products
    • L’Oréal, J. Strickland, and Wella Are Ethnic Hair Conditioner Kings
    • Figure 1-3: Major Marketer Shares of U.S. Retail Dollar Sales of
    • Hair Relaxer Kits, 2001 (percent): 6 marketers
    • Ethnic Hair Care Marketers Spend $18 Million to Advertise in 2000
    • African Americans Are the Most Likely Home Perm/Relaxer Users

    Ethnic Color Cosmetics Category
    • Scope of the Color Cosmetics Category
    • Four Segments
    • Color Cosmetics Push to $327 Million
    • Category Was Stimulated by Competitive Trends, Ethnic Population Growth
    • Strong Progress to $454 Million Is Foreseen
    • Facial Makeup Is the Biggest Color Cosmetics Segment—by Far
    • Ethnic Color Cosmetics Marketers Present the Narrowest Field
    • Overview of Ethnic Color Cosmetics Competition
    • Comprehensive Ethnic Color Cosmetics Lines
    • Ethnic Color Cosmetics Shares
    • Other Leading Ethnic Color Cosmetics Marketers/Brands
    • Ethnic Color Cosmetics’ Media Buys at $5.5 Million in 2000
    • African Americans Are Not Big Face Makeup Users

    Ethnic Skin Care Category
    • Scope of the Ethnic Skin Care Category
    • Two Skin Care Segments
    • Ethnic Skin Care Crawls to $110 Million
    • Ethnic Skin Care Should Struggle to $121 Million by 2006
    • Basic Skin Care Accounts for Three-Quarters of Sales
    • Among Hundreds, a Handful of Ethnic Skin Care Leaders
    • E.T. Browne Is in the Vanguard of Ethnic Hand Lotion Marketers
    • E.T. Browne Is the Leader in Ethnic Fade Creams
    • Other Ethnic Skin Care Shares
    • One Significant Advertiser of Ethnic Skin Care Products in 2000
    • Asians Are Staunchest Facial Cream Users
  2. The Overall Market
    Introduction
    • Use of the Word “Ethnic”
    • Some Overlap Between Ethnic and General HBC Markets
    • Three Categories Covered: Hair Care, Color Cosmetics, and Skin Care
    • Mass versus Prestige
    • Clarification of Terms

    Historical Background
    • First Market Was African-American
    • Ethnic Market Created by Madame C.J. Walker
    • Black Is Beautiful
    • The 1970s Were a Seminal Decade for Ethnic HBC
    • Establishment of the AHBAI in 1981
    • The 1980s: A Turning Point for Black Skin Care
    • Products for Latinos and Asians Appear in Late 1990s

    Overall Market Size and Composition
    • Sales Grow Slightly to $1.6 Billion in 2001
    • A Struggling Market Despite Some Positive Circumstances
    • Figure 2-1: U.S. Retail Dollar Sales of Ethnic HBC Products, 1997-2001 (dollars)
    • Hair Care in Slight Rally to $1.1 Billion
    • Color Cosmetics Post Strong Growth to $327 Million
    • Skin Care Stagnates Its Way to $110 Million
    • Table 2-1: U.S. Retail Dollar Sales of Ethnic HBC Products, by Category, 1997-2001 (dollars): hair care, color cosmetics, skin care, total
    • Hair Care Accounts for Three-Quarters of Sales
    • Figure 2:2: U.S. Retail Dollar Sales of Ethnic HBC Products, by Category, 1997-2001 (percent): hair care; color cosmetics; skin care

    Factors in Future Growth
    • The Growing Ethnic Populations
    • Table 2:2: Projection of U.S. Population Segments of African-American or Asian Race or Hispanic Origin, 2001-2010 (number)
    • Ethnic Pride
    • Ethnic Spending Power
    • Majors Enter Market, Raise Stakes
    • Use of General-Market Products Is Widespread
    • The Commodity Nature of HBC

    Projected Sales
    • Ethnic HBC to Climb to Nearly $1.9 Billion in 2006
    • Hair Care to Brush $1.3 Billion
    • Color Cosmetics to Push to $454 Million
    • Figure 2-3: Projected U.S. Retail Dollar Sales of Ethnic HBC Products, 2001-2006 (dollars)
    • Skin Care to Continue Slow Growth, Reaching $121 Million
    • Table 2-3: Projected U.S. Retail Dollar Sales of Ethnic HBC Products, by Category, 2001-2006 (dollars): hair care, color cosmetics, skin care
  3. Ethnic Hair Care
    The Products
    • Scope of Hair Care Category
    • African-American Hair
    • Hispanic and Asian Hair
    • Perms, Straightening Necessitate Use of a Range of Products

    Hair Care Product Segments
    • Nine Ethnic Hair Care Product Segments
    • Harsh versus Gentle Formulations

    Hair Care Category Size and Composition
    • Ethnic Hair Care Struggles to $1.1 Billion
    • A Braided Tale of Shifting Styles and Powerful Pluses
    • Figure 3:1: U.S. Retail Sales of Ethnic Hair Care Products, 1997:2001 (dollars)
    • Table 3-1: U.S. Retail Sales of Ethnic Hair Care Products, 1997-2001 (dollars)
    • Relaxers/Home Perms Are Still the Largest Segment
    • For Hispanics and “Other” Sectors, Men’s Styling Dominates
    • Figure 3:2: Share of U.S. Retail Dollar Sales of Ethnic Hair Care Products, by Product Segment, 2001 (percent): 9 segments
    • Table 3-2: Share of U.S. Retail Dollar Sales of Hair Care Products for Use by Hispanics and Other Ethnic Sectors, by Segment, 2001 (percent): 6 segments
    • Drugstores Are the Top Ethnic Hair Care Channel

    Factors in Future Growth
    • Strong Positives and Negatives in Ethnic Hair Care Growth
    • Regimen Lines
    • Use of General-Market Hair Care Products
    • Natural Styles Will Continue in Vogue
    • Quest for Gentler, Yet Effective Hair Care Formulas
    • Experimentation with Hair Color

    Projected Sales
    • Ethnic Hair Care Sales of $1.3 Billion in 2006
    • Table 3-3: Projected U.S. Retail Sales of Ethnic Hair Care Products, 2001-2006 (dollars)
    • Figure 3:3: Projected U.S. Retail Sales of Ethnic Hair Care Products, 2001-2006 (dollars)

    The Marketers
    • A Small Field of Significant Ethnic Hair Care Marketers
    • Both Private and Public Companies
    • Ethnic Specialists, HBC Specialists, and Others
    • Consolidation a Trend
    • Table of Ethnic Hair Care Marketers
    • Table 3-4: Selected Ethnic Hair Care Marketers and Their Brands, 2002 (listing): 31 marketers, 56 brands

    Marketer and Brand Shares
    • A Note on Ethnic Hair Care Share Data
    • L’Oréal Is the Leader in Hair Relaxers
    • Table 3:5: Major Marketer and Brand Shares of U.S. Retail Dollar Sales of Hair Relaxer Kits, 2000-2001 (percent): 10 marketers; 33 items
    • L’Oréal Also Leads in Ethnic Styling Products
    • L’Oréal, J. Strickland, Wella Are Ethnic Conditioner Kings

    The Competitive Situation
    • Ethnic Hair Care Scene Is Pressured Competitively
    • An Ongoing Wave of Consolidation
    • Smaller Marketers Are Especially Pressured
    • L’Oréal Is the Biggest Force in Ethnic Hair Care
    • L’Oréal: Clout and Cachet
    • Alberto-Culver Reminds Retailers That Pro-Line Is a Major Force
    • Alberto-Culver: Stepping up Pro-Line’s R & D
    • P & G Buys Clairol
    • Revlon’s Ethnic Hair Care Stake Sold to Colomer

    Marketing and Product Trends
    • Lots of New Ethnic Hair Care Products
    • Ethnic Hair Care Regimen Lines
    • Gentler Formulations
    • Table 3-6: Selected Introductions of Ethnic Hair Care Products, 1999:2002 (listing): 17 marketers; 33 brands

    Consumer Advertising Expenditures
    • Ethnic Hair Care Marketers Spend $18 Million to Advertise in 2000
    • Six Million-Dollar Spenders
    • L’Oréal Budget Approaches $4.9 Million
    • Johnson Publishing Spends $4.2 Million
    • Alberto-Culver Spends $3.2 Million
    • J.M. Products Is Fourth-Ranked Spender, at $1.7 Million
    • Luster Spends $1.2 Million
    • Clairol’s Buys Are Just $1.1 Million
    • Other Ethnic Hair Care Advertisers

    Consumer Advertising Positioning
    • Beautiful Hair
    • Not Just Beautiful Hair, but Healthy Hair
    • Product Attributes Only
    • Convenience
    • Romance and Adventure
    • Exciting Style or Color
    • Positioning to Men
    • Your Career
    • Ethnic Hair Care Advertising Samples

    Consumer Promotions
    • Coupons and In-Store Discounts
    • An All-Expenses-Paid Wedding

    At the Retail Level
    • Ethnic Hair Care Margins Vary Greatly
    • Table 3-7: U.S. Supermarket Retailers’ Average Gross Profit Margins on Hair Care, 1999 Products (percent): 8 products
    • Hair Care Gets Best Shelving of All Ethnic HBC
    • Retailers’ Assortments Not Consistent

    The Consumer
    • Special Note: Simmons Market Research Bureau Data
    • African Americans Are Most Likely Home Perm/Relaxer Users
    • Table 3-8: U.S. Adult Use of Home Permanents/Relaxers, by Race or Ethnicity, 2001 (number and percent): White, Black, Asian, Hispanic origin
    • Half of Hispanics Are Styling Products Users
    • Table 3-9: U.S. Adult Use of Hairstyling Products (Gels, Creams, Lotions, Pomades, etc.), by Race or Ethnicity, 2001 (number and percent): White, Black, Asian, Hispanic origin
    • African Americans Exhibit Lower-than-Average Tendency to Use Shampoo
    • Table 3-10: U.S. Adult Use of Shampoo, by Race or Ethnicity, 2001 (number and percent): White, Black, Asian, Hispanic origin
    • Hispanics Show Strongest Skew toward Conditioner Use
    • Table 3-11: U.S. Adult Use of Conditioner/Creme Rinses, by Race or Ethnicity, 2001 (number and percent): White, Black, Asian, Hispanic origin
    • Whites Are Strongest Users of Hair Spray
    • Table 3-12: U.S. Adult Use of Hair Spray, by Race or Ethnicity, 2001 (number and percent): White, Black, Asian, Hispanic origin
    • Hispanics and Asians Are Likeliest to Use Hair Color
    • Table 3-13: U.S. Adult Use of Hair Color, by Race or Ethnicity, 2001 (number and percent): White, Black, Asian, Hispanic origin
    • Ethnic Hair Care Brand Use
    • Table 3-14: Adult Use of Ethnic Hair Care Products, by Brand and Item, 2001 (number): Dark & Lovely (4 items); TCB (3 items)
    • Consistent Factors in Use of Dark & Lovely
    • Table 3-15: Demographic Factors Favoring Adult Use of Dark & Lovely Hair Care Products, 2001 (listing): 4 products; 12 factors
    • Fewer Factors in TCB Use
    • Table 3-16: Demographic Factors Favoring Adult Use of TCB Hair Care Products, 2001 (listing): 4 products; 12 factors
  4. Color Cosmetics
    The Products
    • Scope of Color Cosmetics Category
    • Color Cosmetics Date Back to Ancient Egypt
    • Problematic for Ethnic Users: Titanium and Oil
    • Ms. Walden, Ms. Roberts, Johnson Publishing Are Color Cosmetics Pioneers
    • Hispanic Cosmetic Needs Were Historically Neglected
    • Asians Accommodated—a Little

    Color Cosmetics Product Segments
    • Four Segments: Products for the Face, Lips, Eyes, and Nails
    • Facial Makeup
    • Lip Color
    • Eye Makeup
    • Nail Care
    • FDA Oversight of Product Safety

    Category Size and Composition
    • Color Cosmetics Push to $327 Million
    • Table 4-1: U.S. Retail Sales of Color Cosmetics, 1997-2001 (dollars)
    • Category Was Stimulated by Competitive Trends, Ethnic Population Growth
    • Figure 4:1: U.S. Retail Sales of Color Cosmetics, 1997-2001 (dollars)
    • Facial Makeup Is the Biggest Color Cosmetics Segment—by Far
    • Figure 4:2: Share of U.S. Retail Dollar Sales of Color Cosmetics, by Segment, 1998-2001 (percent): facial makeup, lip color, eye makeup, nail care

    Factors in Future Growth
    • Overall Market Influences Also Shape the Color Cosmetics Category
    • Involvement by Major Companies: Net Effect Is Positive
    • Lots of New Product Activity
    • Use of General-Market Color Cosmetics Is Encouraged by Marketers

    Projected Sales of Color Cosmetics
    • Strong Progress to $454 Million Is Foreseen
    • Table 4-2: Projected U.S. Retail Dollar Sales of Color Cosmetics, 2001:2006 (dollars)
    • Figure 4:3: Projected U.S. Retail Dollar Sales of Color Cosmetics, 2001:2006 (dollars)

    The Marketers
    • Ethnic Color Cosmetics Marketers Present the Narrowest Field
    • Company Types
    • Table of Marketers and Brands
    • Table 4-3: Selected Ethnic Color Cosmetics Marketers and Their Brands, 2002 (listing): 20 marketers; 24 brands

    Marketer and Brand Rankings
    • Views of Ethnic Color Cosmetics Shares Differ
    • L’Oréal Rides High with Posner
    • Other Leading Ethnic Color Cosmetics Marketers/Brands

    The Competitive Situation
    • Overview of Ethnic Color Cosmetics Competition
    • L’Oréal: Posner Made Over
    • BioCosmetics’ Retail-Driven Strategy for Expansion
    • Yue-Sai Is Coming to the United States—via Coty
    • Iman Tackles Prestige—without Color Me Beautiful

    Marketing and Product Trends
    • Comprehensive Ethnic Color Cosmetics Lines
    • Seasonal/Promotional Lines
    • Shades for Hispanics, Asians, and Others
    • Table 4-4: Selected Introductions of Ethnic Color Cosmetics, 1999:2002 (listing): 13 marketers; 14 brands

    Consumer Advertising Expenditures
    • Ethnic Color Cosmetics’ Media Buys at $5.5 Million in 2000
    • Johnson Budgets $4.8 Million
    • BioCosmetics Spends $339,000
    • Estée Lauder’s $257,000 Expenditure
    • L’Oréal’s Mere $152,000

    Consumer Advertising Positioning
    • Simply Beautiful Faces
    • Selection
    • Sexiness
    • Convenience
    • Classy Packaging
    • Ethnic Color Cosmetics Ads Sampled

    Consumer Promotions
    • Frequent Use of Seasonal/Promotional Lines
    • A Gala
    • Grassroots Charity Efforts

    At the Retail Level
    • Nail Care Products Yield Highest Margins
    • Table 4-5: U.S. Supermarket Retailers’ Average Gross Profit Margins on Color Cosmetics, 1999 (percent): 4 product segments
    • Ethnic-Specific Presence Dwarfed by that of General-Market Lines
    • Shipper Displays Used Extensively

    The Consumer
    • Special Note: Simmons Market Research Bureau Data
    • African Americans Show the Weakest Tendency to Use Foundation
    • Table 4-6: U.S. Adult Female Use of Foundation Makeup, by Race or Ethnicity, 2001 (number and percent): White, Black, Asian, Hispanic origin
    • Whites Are Most Faithful Blush Users
    • Table 4-7: U.S. Adult Female Use of Blush, by Race or Ethnicity, 2001 (number and percent): White, Black, Asian, Hispanic origin
    • Whites, Hispanics Are Biggest Mascara Users
    • Table 4-8: U.S. Adult Female Use of Mascara, by Race or Ethnicity, 2001 (number and percent): White, Black, Asian, Hispanic origin
    • Hispanics Are the Most Avid Users of Eye Shadow
    • Table 4-9: U.S. Adult Female Use of Eye Shadow, by Race or Ethnicity, 2001 (number and percent): White, Black, Asian, Hispanic origin
    • Hispanics Are Notable Eye Liner Users
    • Table 4-10: U.S. Adult Female Use of Eye Liner, by Race or Ethnicity, 2001 (number and percent): White, Black, Asian, Hispanic origin
    • Hispanics, Asians Are the Likeliest Eyebrow Pencil Users
    • Table 4-11: U.S. Adult Female Use of Eyebrow Pencil, by Race or Ethnicity, 2001 (number and percent): White, Black, Asian, Hispanic origin
    • Hispanics Love Lipstick
    • Table 4-12: U.S. Adult Female Use of Lipstick and Lip Gloss, by Race or Ethnicity, 2001 (number and percent): White, Black, Asian, Hispanic origin
    • Blacks Exhibit the Strongest Tendency to Use Nail Polish
    • Table 4-13: U.S. Adult Female Use of Nail Polish, by Race or Ethnicity, 2001 (number and percent): White, Black, Asian, Hispanic origin
    • Number of Fashion Fair Users
    • Few Consistent Factors in Fashion Fair Use
    • Table 4-14: Demographic Factors Favoring Adult Female Use of Fashion Fair Color Cosmetics Products, 2001 (listing): 4 Fashion Fair products; 11 demographic factors
  5. Ethnic Skin Care
    The Products
    • Scope of Ethnic Skin Care Category
    • Two Skin Care Segments
    • African Americans Have Special Skin Care Needs
    • Ashiness
    • Excess Oil
    • Keloid
    • Melanin Imbalance
    • Razor Bumps
    • Hispanic Skin Care Needs Rarely Addressed
    • “Delicacy” of Asian Skin
    • Ingredients Key to Ethnic Skin Care
    • AHAs
    • Cocoa Butter
    • Hydroquinone
    • Some Question of AHA Efficacy
    • Skin Care Products under FDA Jurisdiction

    Category Size and Growth
    • Ethnic Skin Care Crawls to $110 Million
    • Few Products, Little Awareness
    • Basic Skin Care in a Struggle to $81 Million
    • Figure 5-1: U.S. Retail Sales of Ethnic Skin Care Products, by Segment, 1997-2001 (dollars): basic skin care, shaving products
    • Shaving Products Show Stronger Growth, to $29 Million
    • Table 5-1: U.S. Retail Sales of Ethnic Skin Care Products, by Segment, 1997-2001 (dollars): basic skin care, shaving products
    • Basic Skin Care Accounts for Three-Quarters of Sales
    • Table 5-2: Share of U.S. Retail Dollar Sales of Ethnic Skin Care Products, by Segment, 1997-2001 (percent): basic skin care, shaving products

    Factors in Future Growth
    • How Overall Ethnic HBC Trends Affect Skin Care Prospects
    • A Dearth of Skin Care SKUs in Retailers’ Product Mixes
    • Nobody Knows from Ethnic Skin Care
    • But Regimen Lines Could Be a Plus

    Projected Sales
    • Ethnic Skin Care Should Struggle to $121 Million by 2006
    • Basic Skin Care Should Reach $89 Million
    • Shaving Products to Be Worth $32 Million
    • Table 5-3: Projected U.S. Retail Dollar Sales of Ethnic Skin Care Products, by Segment, 1997-2001 (dollars): basic skin care, shaving products
    • Figure 5-2: Projected U.S. Retail Dollar Sales of Ethnic Skin Care Products, by Segment, 1997-2001 (dollars): basic skin care, shaving products

    The Marketers
    • Among Hundreds, a Handful of Ethnic Skin Care Leaders
    • Companies Are Public and Private, but Mostly HBC Specialists
    • Table of Ethnic Skin Care Marketers and Their Brands
    • Table 5-4: Selected Ethnic Skin Care Marketers and Their Brands, 2002 (listing): 25 marketers; 30 brands

    Marketer and Brand Shares
    • Note on Ethnic Skin Care Share Data
    • E.T. Browne Is in the Vanguard of Ethnic Hand Lotion Marketers
    • E.T. Browne Is the Leader in Ethnic Fade Creams
    • Other Ethnic Skin Care Shares

    The Competitive Situation
    • Overview: Ethnic Skin Care Warriors Are Mostly Smaller Companies
    • L’Oréal’s Stance in Skin Care Is Limited
    • Ella’s Latin Emphasis
    • Failure of Belleza Latina

    Marketing and Product Trends
    • Both Chemical and Gentler Formulations Are Popular
    • Prestige More Receptive to Ethnic Skin Care Debuts
    • More Shaving Products
    • Table 5-5: Selected Introductions of Ethnic Skin Care Products, 1999:2001 (listing): 15 marketers; 19 brands

    Consumer Advertising Expenditures
    • One Significant Advertiser of Ethnic Skin Care Products in 2000

    Consumer Advertising Positioning
    • Limited Range of Ethnic Skin Care Ad Themes
    • What it Does Is What it Is
    • Smooth, Clear Skin
    • Botanical Ingredients
    • Novel Product Application

    At the Retail Level
    • In General Skin Care Market, Lip Care Margins Are Highest
    • Table 5-6: U.S. Supermarket Retailers’ Average Gross Profit Margins on Skin Care Products, 1999 (percent): lip protectors; face creams, lotions, astringents, hand and body lotions/creams; liquid face cleansers
    • Skin Care Assortment Is the Thinnest of All Ethnic HBC

    The Consumer
    • Special Note: Simmons Market Research Bureau Data
    • Asians Are Staunchest Facial Cream Users
    • Table 5-7: U.S. Adult Female Use of Facial Cleansing Creams, Lotions, Etc., by Race or Ethnicity, 2001 (number and percent): White, Black, Asian, Hispanic origin

    Appendix I: Examples of consumer advertising and promotions
    Appendix II: Addresses of selected marketers
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