• What We Mean by “Ethnic”
• A Great Overlap Between Ethnic-Specific and General HBC Markets
• Three Ethnic HBC Categories: Haircare, Makeup, Skincare
• Mass, Prestige, Pop Prestige All Covered Here
• Other Terms Clarified
• Methodology

• Ethnic-Specific HBC Climbing Toward $1.9 Billion in 2006
• Ethnic-Specific Makeup, Skincare Resurge in 2001-2006
• ...While Ethnic-Specific Haircare Just Holds Its Own
• Ethnic-Specific Haircare Category Slogging on to $1.1 Billion
• Ethnic-Specific Makeup in Double-Digit Charge to $621 Million
• Ethnic-Specific Skincare in Bullish Arc to $154 Million
• Table 2-1 U.S. Retail Dollar Sales of Ethnic-Specific HBC Products, by Category, 2001-2006(In Millions)
• Ethnic Consumers’ Purchases of General-Market HBC Top $6.5 Billion
• Table 2-2 U.S. Retail Dollar Purchases of General-Market HBC Products by Hispanics, African Americans, and Asians, 2002-2006(In Millions)
• Grand Total Ethnic Spend = $8.4 Billion in 2006

• Marketers’ and Retailers’ Strategies Restore Ethnic HBC’s “Snap”
• General-Market HBC Becomes More of an Influence Than a Threat
• Ethnic Population Growing Fast...
• Hispanics
• African Americans
• Asians
• Table 2-3 Projection of U.S. African-American, Asian, and Hispanic Populations, by Gender, 2006-2020(In Thousands)
• Botanicals and Naturals to Keep Driving Sales
• Ethnic Spending Power Rocketing
• Urban Style Rules
• Will Keys to Selling to Diverse Hispanic, Asian Cultures
• Ever Be Found?

• Expect $2.5 Billion at Retail as of 2012
• Haircare to Brush $1.3 Billion
• Makeup to Break $1 Billion
• Skincare Foreseen Leaping to $238 Million
• Table 2-4 Projected U.S. Retail Dollar Sales of Ethnic-Specific HBC Products, by Category, 2006-2012(In Millions)

• Advertisers of Ethnic-Specific HBC Spent $63 Million in 2005
• Much Expenditure Hidden in Support for General-Use Brands

Chapter 3 The Ethnic Haircare Category

• KEY POINTS
• The Products
  • Haircare Category Definition
  • Characteristics of African-American Hair
  • ...And of Hispanic and Asian Hair
  • Even Afros Require Use of a Range of Products
  • Seven Ethnic Haircare Segments
  • Product Gentleness the Holy Grail of Ethnic Haircare
  
  
• Ethnic Haircare Category Size and Growth
  • Ethnic-Specific Haircare Struggles to $1.1 Billion in 2006
  • In 2001-2006, Ethnic-Specific Haircare Just Holds On
  • Table 3-1 U.S. Retail Dollar Sales of Ethnic-Specific Haircare Products, 2001-2006 (In Millions)
  • Relaxers Still Dominate, But Conditioners, Stylers Gain
  • Table 3-2 Share of U.S. Retail Dollar Sales of Ethnic-Specific Haircare Products, by Segment, 2003-2005 (In Millions)
  • Ethnics’ Purchases of General-Market Haircare Products Brush $3.2 Billion
  • Table 3-3 U.S. Retail Dollar Purchases of General-Market Haircare Products by Hispanics, African Americans, and Asians, 2002-2006 (In Millions)
  
  
• Factors in Category Growth
  • Even As Ethnic-Specific and General-Market Haircare Blur,
  • There’s Hope
  • Power of Prestige, Natural Channels Lies in Gentler Haircare Formulas
  • More Hairstyles, Colors Acceptable in Daily Life - Opening Door to Fads
  • Big Change: Few Standouts Seen Among Hispanic, Asian
  • Haircare Brands
  • Ethnic Men and Kids Offer Potential
  • Ethnic Men
  • Ethnic Kids
  • Table 3-4 Projected U.S. Population of Children, by Race, Hispanic Origin, and Teen/Tween (8-18) Age Bracket, 2006-2010 (In Thousands)
  
  
• Projected Ethnic Haircare Sales
  • Ethnic-Specific Haircare to Nudge $1.3 Billion in 2012
  • Table 3-5 Projected U.S. Retail Dollar Sales of Ethnic-Specific Haircare Products, 2006-2012 (In Millions)
  
  
• The Marketers
  • Among Hundreds of Ethnic-Specific Haircare Marketers, Few Notables
  • Planes of Marketer Specialization
  • Retailers Becoming Real Marketers…
  • Table of Ethnic Haircare Marketers and Brands
  • Table 3-6 Selected Ethnic Haircare Marketers and Their Brands, 2006
  
  
• Marketer and Brand Share
  • Special Note on IRI Haircare Sales Data
  • In Relaxers, Majors Are Dogged by Lesser Marketers Table 3-7 Share of U.S. Retail Dollar Sales of Hair Relaxers/Straighteners, 2002-2006*
  • P&G/Pantene Leads Ethnic-Specific Shampoo Segment
  • Newhall, L’Oréal Command Ethnic-Specific Stylers
  • Key Brands/Freeze It Lead Ethnic-Specific Hairsprays/spritzes
  • P&G the Strongest Marketer of Ethnic-Specific Conditioner
  • In Ethnic-Specific Haircolor, L’Oréal Is Queen
  
  
• Marketing and Product Trends
  • Gentle/Botanical/Natural Haircare
  • Hispano-Specific Haircare
  • A Budding Trend: Ethnic-Specific Extensions of Established Brands
  • Table 3-8 Selected New Introductions of Ethnic Haircare Products, by Marketer and Brand 2004-2006
  
  
• Consumer Advertising Expenditures
  • Ethnic-Specific Haircare Advertisers Spend $34 Million in 2005
  • Seven Million-Dollar Spenders
  • P&G Makes Buys Worth $15 Million
  • L’Oréal Spends $9 Million
  • Hair Health
  • Maintenance Between Full-Scale Perming/Relaxing Occasions
  • The High-Fashion Format
  • Vanity Overrides Ethnic Pride
  • Don’t Relax - Texturize!
  • Especially for Latinas
  • Convenience
  • Humor
  • Keeping or Re-Growing Hair
  • General-Market Pitches to Ethnics
  • Sources for Ad Examples
  
  
• Consumer Promotions
  • A Model Search
  • L’Oréal and the Film Industry
  • A Designer Shoe Sweepstakes
  • Participate in Survey, Get Free Samples by Mail

Chapter 4 The Ethnic Makeup Category

• The Products
  • Scope of the Ethnic Makeup Category
  • Ethnic Makeup Products Require Different Chemistry - Literally
  • Ethnic Cosmetics Pioneers: Ms. Walden, Ms. Roberts, Mr. Johnson
  • Hispanic Makeup Brand Activity Is Stirring
  • Asian-Specific Makeup Is Still Rare
  • Four Ethnic Cosmetics Segments: Face, Lip, Eye, Nail
  • Facial Makeup
  • Lip Color
  • Eye Makeup
  • Nailcare
  • FDA Regulation of Makeup Products
  • A Call for Industry Self-Regulation
  
  
• Ethnic Makeup Category Size and Growth
  • Ethnic-Specific Makeup Very Bullish at $621 Million in 2006
  • Marketers Saw the Gaps at Retail, and Attacked Them
  • Table 4-1 U.S. Retail Dollar Sales of Ethnic-Specific Makeup, 2001-2006 (In Millions)
  • Sales of Ethnic-Specific Makeup by Type Are Smoothing Out…
  • Table 4-2 Share of U.S. Retail Dollar Sales of Ethnic-Specific Makeup, by Product Segment 2002-2006
  • Ethnics’ Buys of General-Market Makeup Break $1.2 billion in 2006
  • Table 4-3 U.S. Retail Dollar Purchases of General-Market Makeup Products by Hispanics, African Americans, and Asians, 2002-2006 (In Millions)
  
  
• Factors in Category Growth
  • Surprise! The Majors Stress Ethnic-Specific Makeup, Too…
  • Cosmeceuticals Drive Ethnic Purchases of General-Market Makeup
  • Ethnic Kids Making Up Earlier
  • Pardon the Stereotype: Hispanics Really Do Use More Makeup
  
  
• Projected Ethnic Makeup Sales
  • Ethnic-Specific Makeup to Break $1 Billion in 2012
  • Table 4-4 Projected U.S. Retail Dollar Sales of Ethnic-Specific Makeup, 2006-2012 (In Millions)
  
  
• The Marketers
  • Makeup Players the Smallest Ethnic-Specific Force
  • Again, Degrees of Specialty…
  • Table of Marketers and Brands
  • Table 4-5 Selected Ethnic Makeup Marketers and Their Brands, 2006
  
  
• Marketer and Brand Share
  • Special Note on Ethnic-Specific Makeup Share Data
  • Jordana Cosmetics/The New Milani Group Leads Three Segments, Is Strong in the Fourth
  • Ethnic-Specific Face Makeup Ruled by Milani, Markwins
  • Jordana/Milani Dominates Lipcolor
  • Jordana/Milani Far Ahead in Ethnic-Specific Eye Makeup - Until 2006…
  • In Nail Polish - Yes, It’s Jordana/Milani by a Mile!
  
  
• Marketing and Product Trends
  • Extensive Intros, As in Mainstream Makeup Biz
  • Makeup for Latinas
  • One Intro Could Presage a Trend...
  • Table 4-6 Selected New Introductions of Ethnic Makeup, by Marketer and Brand, 2004-2006
  
  
• Consumer Advertising Expenditures
  • Advertisers of Ethnic-Specific Makeup Spend $10 Million in 2005
  • Three Other Significant Spenders
  • A Queen Shares Her Makeup With You
  • Cover Up Skin Flaws
  • Value and the Old Hard Sell
  • Lots of Soft-Positioning of Gen-Mart Brands
  • Our Sources for Ads
  
  
• Consumer Promotions
  • The Queen Herself Tours
  • Online Chats With Beauty Experts

Chapter 5 The Ethnic Skincare Category

• The Products
  • Ethnic Skincare: Category Definition
  • Two Segments: Basic Skincare, Shaving Products
  • African Americans’ Special Skincare Problems
    • Ashiness
    • Keloid
    • Melanin Imbalances
    • Oiliness
    • Razor Bumps
    
    
  • Vitiligo
  • Hispanic Skincare Assortment Still Small, But Expanding
  • Asians’ “Delicacy” of Skin
  • Five Key Ingredients
    • AHAs
    • Butters
    • Hydroquinone
    • Natural Oils
    • Other Botanicals
    
    
  • Skincare Products Regulated by FDA
  • Ethnic Skincare Category Size and Growth
    • Ethnic-Specific Skincare in Strong Run to $154 Million in 2006
    • A Small Category Expands…
    • Basic Skincare in Accelerated Climb to $117 Million
    • Shaving Products Segment Also Strong, Pushes to $37 Million
    • Table 5-1 U.S. Retail Dollar Sales of Ethnic-Specific Skincare Products, by Segment 2001-2006 (In Millions)
    • Ethnics Purchase $2.1 Billion Worth of General-Market
    • Skincare Products
    • Table 5-2 U.S. Retail Dollar Purchases of General-Market Skincare Products by Hispanics, African Americans, and Asians, 2002-2006 (In Millions)
    
    
  • Factors in Category Growth
    • Okay, We’ve Tried Prestige Skincare...
    • Major HBC Marketers/Mass Retailers Give Ethnic-Specific Skincare Its Due
    • Yet General-Market Products Still Rule
    • The Potential in Hispanic, Male, Youth Audiences
    • Hispanics
    • Men
    • Kids
    
    
  • Projected Ethnic Skincare Sales
    • Ethnic-Specific Skincare Leaping to $238 Million by 2012
    • Basic Skincare Segment to Reach $186 Million
    • Shaving Products Segment to Push to $52 Million
    • Table 5-3 Projected U.S. Retail Dollar Sales of Ethnic-Specific Skincare Products, 2006-2012 (In Millions)
    
    
  • The Marketers
    • Still a Handful of Ethnic-Specific Skincare Leaders
    • Mostly Specialists, Whether Large or Small, Public or Private
    • Table of Ethnic Skincare Marketers and Their Brands
    • Table 5-4 Selected Ethnic Skincare Marketers and Their Brands, 2006
    
    
  • Marketer and Brand Share
    • Special Note on Ethnic-Specific Skincare Share Data
    • In IRI’s Skincare Segment, E.T. Browne Edges Out L’Oréal
    • In Ethnic-Specific Shaving Lotion, M & M Is Sole Contender
    • ...And No Significant Ethnic-Specific Shaving Cream Brands
    
    
  • Marketing and Product Trends
    • Positioning on African-Sourced Ingredients
    • Doctor-Endorsed Afro-American Skincare Brands
    • Extensions of Mainstream HBC Brands
    • Table 5-5 Selected New Introductions of Ethnic Skincare Products, by Marketer and Brand, 2004-2006
    
    
  • Consumer Advertising Expenditures
    • Ethnic-Specific Skincare Advertisers Spend Over $18 Million in 2005
    • Four Notable Advertisers All Spend $1 Million-Plus
    
    
  • Consumer Advertising Positioning
    • Fade, Even Out, Conceal…
    • Skincare for the Elegant Hispanic Woman
    • Plenty of Gen-Mart Advertisers Appealing to Ethnics
    • Our Sources for Ads

Chapter 6 The Competitive Situation

• Competitive Profile: Alberto-Culver Company
  • Net Sales of $3.5 Billion After 13 Years of Growth
  • Poised to Push Ethnic-Specific Workhorse Brands With New Verve
  • The Sally Beauty Spin-Off
  • Other Alberto Famous Brands
  
  
• Competitive Profile: E.T. Browne Drug Co., Inc.
  • Sales Estimated at $45 Million-$55 Million
  • A Brand Mix Keyed to Moisturizers and Haircare Products
  • Hitting Both the Ethnic-Specific and Crossover Jackpots
  
  
• Competitive Profile: Jordana Cosmetics Corp./The New Milani Group, Inc.
  • Milani Sales Estimated at $40 Million-$50 Million
  • Surprise! Milani’s the Makeup Leader in Mass
  • Milani Poised for Bigger Splash
  
  
• Competitive Profile: L’Oréal Group
  • Sales Exceed €14.5 Billion in 2005
  • A Good Performance in 2006
  • L’Oréal Brand Roster Covers Channels from Mass to Prestige
  • “International Brands for All the Beauties of the World”
  • What the Future May Hold for L’Oréal’s U.S. Ethnic HBC Biz
  • L’Oréal Acquires The Body Shop
  
  
• Competitive Profile: Markwins International Corporation
  • Sales Estimated at $200 Million
  • Markwins the Value-Positioned Aggressor
  • Repositioning Tropez as an Hispanic Brand
  
  
• Competitive Profile: The Procter & Gamble Company
  • Net Sales of $68 Billion in Fiscal 2006
  • Table 6-1 The Procter & Gamble Company's Net Sales, by Business Segment, Fiscal 2006 (Ended June 30th) (Millions)
  • P&G Diversifies HBC Stance Across Full Range of Price-Tiers
  • Extending Major Gen-Mart Brands With Ethnic-Specific Collections
  • Partnership With Impala/Iman Cosmetics
  • Other P&G Famous Brands
  
  
• Five Marketers to Watch
  • Alaffia
  • Azania Cosmetics
  • BioPharmetics, Inc.
  • Johnson & Johnson
  • NYX Los Angeles, Inc.

Chapter 7 Distribution and Retail

• Distribution and Retail
  • The Ethnic HBC Product Path
  • Margins and Assortments Are Improving
  • Mass Retailers Must Wake Up to Ethnic HBC Potential
  
  
• Retailer Focus: Walgreen Co.
  • Net Sales Jump to $42 Billion in Fiscal 2005
  • Expansion: You Can Reach Out and Touch a Walgreen - Really!
  • Fighting to Make Marketers Recognize Ethnic Consumers
  • Walgreen Introduces Cutting-Edge Ethnic-Specific Label

Chapter 8 The Consumer

• KEY POINTS
• The U.S. Ethnic Population
  • Three Largest Minorities Are 88 Million Strong in 2006
  • Hispanics Number 39 Million
  • African-American Sector Is Almost 36 Million
  • Asian Americans Approach 13 Million Mark
  • Ethnic Men Hold Up Less Than Half the Sky
  • Table 8-1 Projection of U.S. African-American, Asian, and Hispanic Populations, by Gender, 2006-2020 (In Thousands)
  • Ethnic Teens/Tweens Number 17 Million
  • Table 8-2 Projected U.S. Population of Children, by Race, Hispanic Origin, and Teen/Tween (8-18) Age Bracket, 2006-2010(In Thousands)
  
  
• About Simmons Data
  • What They Are…
  • …And How to Use Them
  • The Survey’s Overall Adult Gauge
  • Marketing Regions Defined
  • Northeast
  • East Central
  • West Central
  • Southeast
  • Southwest
  • Pacific
  • Table 8-3 Projections of Numbers of U.S. Adults, by Demographic Factor, 2006(In Thousands)
  
  
• The Ethnic Consumer of Haircare Products
  • Blacks Account for Over Half of All Relaxer/Home Perm Users
  • Table 8-4 U.S. Use of Hair Relaxers and Home Permanents, by Race or Ethnicity, 2003-2006 (Adults, In Thousands)
  • Relaxer Brand Use Pivots on Age, Marital Status, Presence of Kids
  • Table 8-5 Demographic Characteristics Most Favoring Purchase of Hair Relaxers/Home Perms, by Brand, 2006 (Adults in Thousands, in Recent 12 Months)
  • Hispanics Show Striking Tendency to Use Stylers
  • Table 8-6 U.S. Use of Hairstyling Creams, Gels, and Lotions, by Race or Ethnicity, 2003-2006 (Adults, In Thousands)
  • In Hairspray Use, No Strong Ethnic Skews
  • Table 8-7 U.S. Use of Hairspray, by Race or Ethnicity, 2003-2006 (Adults, In Thousands)
  • For Shampoo, Hispanics Are Dominant Users
  • Table 8-8 U.S. Use of Shampoo, by Race or Ethnicity, 2003-2006 (Adults, In Thousands; Recent 7 Days)
  • Conditioner Use Skews to All Three Minorities
  • Table 8-9 U.S. Use of Hair Conditioner, by Race or Ethnicity, 2003-2006 (Adults, In Thousands)
  • Use of Dark & Lovely Conditioner Marked by the Middle-Aged, Presence of Some Kids
  • Table 8-10 Demographic Characteristics Most Favoring Purchase of Hair Conditioner, by Brand, 2006 (Adults in Thousands, in Recent 12 Months)
  • Hispanics Have Largest Haircolor User-Base
  • Table 8-11 U.S. Use of Haircolor, by Race or Ethnicity, 2003-2006 (Adults, In Thousands)
  
  
• The Ethnic Consumer of Makeup
  • Hispanics, Blacks Lead Minority Lipcolor Users
  • Table 8-12 U.S. Use of Lipstick and Lip Gloss, by Race or Ethnicity, 2003-2006 (Adults, In Thousands)
  • Middle-Aged, Single, Low Income Stand Out in Fashion Fair
  • Lipcolor Use
  • Table 8-13 Demographic Characteristics Most Favoring Purchase of Lipstick/Lip Gloss, by Brand, 2006 (Adults in Thousands, in Recent 12 Months)
  • Hispanics Top Minority Users of Foundation
  • Table 8-14 U.S. Use of Foundation Makeup, by Race or Ethnicity, 2003-2006 (Adults, In Thousands)
  • Fashion Fair Foundation: Middle-Aged, Seniors, Retirees Star
  • Table 8-15 Demographic Characteristics Most Favoring Purchase of Foundation Makeup, by Brand, 2006 (Adults in Thousands, in Recent 12 Months)
  • All Three Minorities Demonstrate Resistance to Use of Blusher
  • Table 8-16 U.S. Use of Blusher, by Race or Ethnicity, 2003-2006 (Adults, In Thousands)
  • No Surprise - Fashion Fair Blusher Favored by Middle-Aged, Singles, Small Households
  • Table 8-17 Demographic Characteristics Most Favoring Purchase of Blusher, by Brand, 2006 (Adults in Thousands, in Recent 12 Months)
  • Hispanic Eye Shadow User-Base Growing
  • Table 8-18 U.S. Use of Eye Shadow/Eye Liner/Eyebrow Pencil, by Race or Ethnicity, 2003-2006 (Adults, In Thousands)
  • Fashion Fair Eye Shadow Use Favored by Middle-Aged, Non-Marrieds
  • Table 8-19 Demographic Characteristics Most Favoring Purchase of Eye Shadow/Eye Liner/ Eyebrow Pencil, by Brand, 2006 (Adults in Thousands, in Recent 12 Months)
  • Hispanic User-Base for Mascara Booms
  • Table 8-20 U.S. Use of Mascara, by Race or Ethnicity, 2003-2006 (Adults, In Thousands)
  • Blacks the Most Avid Nail Polishers
  • Table 8-21 U.S. Use of Nail Polish, by Race or Ethnicity, 2003-2006 (Adults, In Thousands)
  
  
• The Ethnic Consumer of Skincare Products
  • Hispanics, Blacks Most Numerous Ethnics Using Moisturizer
  • Table 8-22 U.S. Use of Moisturizers and Lotions, by Race or Ethnicity, 2003-2006 (Adults, In Thousands)
  • Baby Oil Use Dominated by Blacks - For Now
  • Table 8-23 U.S. Use of Baby Oil or Lotion, by Race or Ethnicity, 2003-2006 (Adults, In Thousands)
  • Hispanics, Blacks Lead Declining Facial Cleanser Products Use
  • Table 8-24 U.S. Use of Facial Cleansing Creams, Lotions, and Gels,*** by Race or Ethnicity, 2003-2006 (Adults, In Thousands)
  • Blacks Are Most Numerous and Most Eager Body Wash Users
  • Table 8-25 U.S. Use of Body Wash, by Race or Ethnicity, 2003-2006 (Adults, In Thousands)
  • Folks of Color Resist Suncare Products Use
  • Table 8-26 U.S. Use of Suntan Lotion, Sunscreen, and Sunless Tanning Preparations, by Race or Ethnicity, 2003-2006 (Adults, In Thousands)
  • One in Five Depilatory Users Is Hispanic
  • Table 8-27 U.S. Use of Depilatories, by Race or Ethnicity, 2006 (Adults, In Thousands)
  • Hispanics Command Minority Use of Shave Cream
  • Table 8-28 U.S. Use of Shaving Cream and Gel, by Race or Ethnicity, 2003-2006 (Adults, In Thousands)
  • Big Three Minorities Each Host Increased Numbers of
  • Aftershave Users
  • Table 8-29 U.S. Use/Purchase of Aftershave, Cologne, Talc, etc., by Race or Ethnicity, 2003-2006 (Adults, In Thousands)

Chapter 9 Trends and Opportunities

• Never Again Underestimate Ethnic-Specific HBC
  • More Up-to-Date Ethnic-Specific Products Needed
  • Unmined Ethnic-Specific HBC Dollars in Prestige and
  • Natural Channels
  • Target the Assimilated
  • Curry Crossover Biz -- in Both Directions

Appendix: Addresses of Selected Marketers