Cosmeceuticals Seek Inspiration from the Beauty Services Industry

Another opportunity for retailers to promote themselves as a beauty destination is by offering do-it-yourself (DIY) at-home devices. Photo rejuvenation devotees who don’t want to visit a dermatologist or the Osmotics counter can purchase the Marvel Mini Rejuvenating Facial Light Therapy devices for $225. Those familiar with microcurrent technology from spa facials can purchase the NuFace device, which claims to lift and tone skin using “non-invasive and gentle electrical stimulation.” The more affluent can purchase the Wellbox Lipo Massage Machine for $1,595 to treat cellulite and other conditions at home.

Makers of tooth whiteners have sought to gain consumers by playing up the convenience and lower cost of at-home products versus professional whitening treatments. The U.S. retail tooth whiteners market was valued at $379 million in 2007, up 9.5 percent from 2006. Like anti-agers that promote themselves as offering near Botox procedures without the needle, tooth whiteners seek to position themselves as a gentle, painless method for the millions who fear the dentist’s drill.

The current weakness in the U.S. economy may offer opportunities for manufacturers and retailers to target heavy users of the beauty services industry. The housing downturn and high gasoline prices have led to weakening consumer confidence. Spas should continue to grow over the next few years, albeit at a lower pace, due to fears of a recession. The large number of Baby Boomers who seek out the latest in technology and visible results will lead to continued demand for minimally-invasive procedures and cosmetic dentistry. However, some consumers will choose to forgo optional procedures such as Botox while others will space out Restylane treatments over a longer time period. This situation could allow manufacturers to introduce more cosmeceuticals that claim to offer similar results to Botox and Restylane so consumers can use at-home treatments in place of Botox or to “extend” their Botox injection.

Retailers will continue to copy successful spa concepts by offering facials and skin diagnosis. Americans are not expected to give up their fast-paced lifestyles and these free or low-priced services allow women to feel pampered, much as they do when they get a manicure. Direct sellers will likely offer more skin diagnosis and education as well. Nu Skin already uses the Nu Skin Profiler, a hand-held device that takes images of the skin and offers information such as pore size, lines and wrinkles. Rodan + Fields, previously owned by Esteé Lauder, switched from selling in department stores to the direct selling model in March 2008. The skin care company started by the creators of acne care phenomenon Proactiv had previously offered skin diagnosis via photos showing ultraviolet (UV) damage at department store counters. The company’s direct sales consultants will likely be trained to offer skin diagnosis to persuade consumers to purchase their products which cost up to $89. ■

Virginia Lee is a senior research analyst at Euromonitor International, which she joined in 2000. In her role, Lee helps Euromonitor’s clients make informed strategic decisions by providing insights into consumer trends, new product developments and retail channel developments. She has shared her knowledge of health and wellness at conferences, and has been quoted in numerous national publications.