Wednesday, January 28, 2009

U.S. Prestige Beauty Sales Decline 3.3%

A report released by marketing research firm, NPD Group, Inc. shows that U.S. sales of prestige beauty products dropped 3.3% in 2008.

Among the global markets that were tracked by NPD, the U.S. prestige market -- which are products sold mainly in U.S. department stores -- showed the largest decline. France and Italy showed decreases of 0.3% and 0.5% respectively, while China boasted an increase of 17.2%.

U.S. makeup sales also showed a decline, but there was a bright spot in the skincare category. Overall growth in the category remained flat, however NPD says that there is opportunity for growth due to increase interest in anti-aging skincare products.

Karen Grant, NPD's senior global industry analyst and vice president of beauty, said that U.S. fragrance category showed the biggest decline in sales of all the categories that were tracked. “The most pressing concerns for the fragrance category are not only the loss of users, but decreasing frequency of usage," said Ms. Grant. "It is important that the industry find new ways to engage consumers, especially as they become more independent about their product selection".

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