Cosmetics Makeover Ahead

It's an era of tightened budgets and shrinking retail display space for upscale cosmetic and fragrance marketers and their P-O-P vendors. At the same time, they must contend with an ever-increasing number of product launches and a dizzying array of P-O-P material choices.It's understandable then, that marketers and vendors alike feel a bit pinched in the middle of an industry in transition. There is one area of agreement however: Self-serve displays --open sell -- in department stores is the dominant topic of conversation."The use of self-selling units is a major difference in the market from a few years ago," says Gerry Yablans, president of P.O.P. Inc., Woodside, N.Y. "It's not a future trend, it's happening right now." That movement began several years ago when New York-based Calvin Klein Cosmetic Corp. introduced CKOne, a unisex fragrance that used floorstand displays for its debut. Adds Mike DeGennaro, ceo for Consumer Promotions International, Mount Vernon, N.Y., "Many other companies are looking at that approach. Obviously, they think they might be able to ride on the coattails of that success."John Rowan, director of package design at New York-based Elizabeth Arden Co., agrees that these displays are growing, but he credits other factors besides the coattail effect. "We are definitely producing more self-serve units than we did two or three years ago," he says. "Changes in retail outlets have increased the need for this type of unit. I believe this trend will continue to expand."Less Time To ShopRetailers are finding that consumers have little discretionary time for shopping, even for upscale products such as cosmetics and fragrances. Customers want to find the desired product and leave quickly. That's difficult to do with the wide array of cosmetic products available, creating a tricky balance for everyone in the channel. "The beauty adviser interaction is still vital," says Howard Annenberg, president of Shannen Promotions Inc., New York. "But as stores cut back on personnel, it becomes more difficult to provide that. So retailers are looking more at the value of impulse sales through self-service displays."Adds Arden's Rowan, "The time a potential customer spends at our counter doesn't allow us to pass along much in-depth information. The use of information booklets and cards that the customer can take away have become very popular again."Officials at New York-based Origins Natural Resources Inc. have noted those trends too, and created a store-within-a-store approach that features a self-serve format and more informational materials. Three years ago, the company had no self-service formats, but this year it will open its 90th such unit, says Daria Myers, vice president of marketing. The displays use wall space to create a version of the company's own retail stores. Each product offers its own tester, as well as information-driven packaging. Shelf talkers clipped in front of each product supplement this. "Our goal is to involve the customers, let them proceed at their own pace and not have salespeople all over them," she says.Department stores have been very receptive, she notes. "They're eager to take this approach." In fact, stores that have switched to Origins' self-service format from counter displays have seen their sales double.But not everyone will benefit from self-service formats, argues CPI's DeGennaro. "In my opinion, a lot of the companies don't have the brands or approaches to use self-service units effectively," he says. "CKOne and its display intrigued buyers and stores enough to put it up. But I don't think you can put just anything on a floorstand, and I don't think retailers are going to allow their stores to begin looking like supermarkets, with a lot of floorstands in the aisles. I think it's going to be hard to place some of these units."Impulse vs. PilferageShannen's Annenberg points to another key problem: pilferage. The high cost and compact size of cosmetics and fragrances caused them to be kept behind glass in the first place. "In today's environment, every product has to be glued down," he says. "Self-service formats allow consumers to be educated and be involved directly with the product, and that's great. But the impulse value has to be balanced by the chance of pilferage."Shelf-management also becomes a key concern, notes P.O.P. Inc.'s Yablans. Feeding product to the front of the display and keeping it clean and attractive are vital concerns. Ensuring long life for the unit also is vital, adds Jac Lankelis, vice president of national accounts for East Rutherford, N.J.-based Trans World Marketing. "The most successful open-sell displays so far have been those that incorporate updatable features and a promotional calendar that keep the fixture looking new and fresh," he says. Good examples of this flexibility include inter-changeable signage, casters for mobility, and on-board testing.Counters Go Self-ServeThe need to serve fast-moving consumers affects counter displays, too, notes John Butcher, senior director of package development at Halston Borghese International Inc., New York. "It's becoming harder to be effective in department stores overall," he says. "Displays must be approachable for testing from both the customer side of the counter as well as the sales side. That has a basic effect on construction and the materials you can use."The reduction in salespeople also affects the display look, Butcher notes. "They have to be able to stay clean and presentable without attention from the sales help," he says. "That presents a completely different set of requirements."In addition, counter display space is shrinking, forcing displays to become more compact and modular to meet the needs of all stores, regardless of the space they offer. "Small, concise approaches work best now," says Cynthia Rapp, associate creative director at Liz Claiborne Cosmetics Inc., New York. "Compact displays are the most dominant approach."Multi-product displays are also offering more flexibility, says CPI's DeGennaro. "In the past, we combined everything into one deluxe merchandiser," he explains. "Now there is such a broad spectrum of products within a line that combining everything makes the display too big." As a result, his firm creates modular looks, such as a lipstick tower, a makeup unit and a foundation section, that can be combined however the retailer desires. "Department stores realize they have to keep units compact to keep from blocking off the countertops."Providing More ImpactChanel Inc.'s approach to creating more in-store impact in less space centers on telling one focused story, says Rich Bleaman, executive director of sales development for the New York-based company. "We may do displays for a group of products or a full category, but they all project a single message," he explains. "We want to ensure our story is not confusing the customer, so they receive the message instantly."Other firms also realize that need, says Shannen's Annenberg. He's receiving more orders for short-term, high-impact promotional items such as canopies, banners and streamers. "These pieces can give a product an instant identification with consumers," he says. "It pulls the product away from the ordinary in-counter look."The need for secondary display positions has also grown, he notes. "There's nearly a supermarket concept at play," he explains. "The counter or shelf receive great impact, but there might also be a secondary display that pulls the product off the counter for a promotional period. This can create a separate outpost that adds additional identification for the consumer."New Products SwellSpecial focus becomes critical for new-product launches, all agree. "Highly targeted, single-product displays are very effective for new-product launches because they enable marketers to highlight product packaging, communicate brand imagery, and reinforce media advertising," says Trans World's Lankelis.And, adds Shannen's Annenberg, "New products are coming faster and faster to capture new markets. Launches are going for big splashes, and then companies have to go on to the next one. New ideas are coming faster all the time, and the marketers are making tremendous strides to be new and updated in promotions to create a new image."But some marketers suggest that new products aren't coming as fast as they used to. "Companies are thinking harder about putting products out," says Halston's Butcher. "You always want new products coming out, but the shrinking size of the retail space in department stores makes us think more carefully about the type of product, when it's introduced and who the target audience will be. Financially, we have to be certain that we'll benefit from the development work that's been done and ensure we make the most of it." That's also true at Chanel, says Bleaman, noting that the company is now preparing to launch its first new women's fragrance in 11 years.Softer Materials DominateThese trends also lead companies such as Arden to take a new look at their material choices, Rowan notes. "We're using less chrome and glitz, and more soft materials, such as natural wood finishes and marble-type finishes. These materials are more customer friendly, more approachable. We're looking at a more muted but more elegant look."Others agree that new materials are becoming popular. High-end metals, including brushed-brass and aluminum, were mentioned by several. P.O.P. Inc.'s Yablans says his firm is using a sophisticated spraying technique to give plastics a high-tech lacquered look. In addition, notes Arden's Rowan, there is growing awareness of the need to keep the materials recyclable. "The ecological concerns, the shrinking budgets, and the desire for future use have all entered our thinking," he says. "The search for new materials that are environmentally friendly and fit pre-set budgets will be an important ingredient in future design considerations."Budget Battles ContinueBudgets remain a key concern. After a downturn from two years ago, budgets have not recovered their previous highs, most say. "The overriding trend in 1995 was the shrinking budgets," says Arden's Rowan. "We, along with our competitors, looked to stretch what display budgets we had by getting a better value. This was accomplished by designing units with longer counter life and units that could be refurbished or updated."At CPI, budget obstacles are being hurdled by sharing tools and molds between American and European product launches, DeGennaro notes. "Usually they're launched separately, so we can produce the display in the States and then ship the tools over to launch in Europe."Adds Shannen's Annenberg, "Without question, 1995 had been a year of budget reductions. The commitment to promotions has been there, but I also see a real sharpening of pencils on quantities and overages."As for what lies ahead, many see a continuation of existing ideas, with nothing revolutionary in techniques or materials. But that also was the outlook right before CKOne arrived. "Everyone is striving to find that next new material or revolutionary display," says CPI's DeGennaro. "Your guess is as good as mine as to where it will come from, but we keep trying to find it. Everyone's hoping that they'll be the one to hit the next home-run."

Cosmetics Makeover Ahead

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