NPD Paints A Rosy Face On Department Store Makeup Sales

Leading market information provider, The NPD Group, announced that although sales of fragrances in U.S. department stores were sluggish from February through July of 2001, makeup sales went against that trend by increasing nine percent in dollar volume.

During this period, prestige makeup sales were $1.1 billion while total prestige beauty sales, including makeup, skincare and fragrances, amounted to $3.1 billion. "Despite the tentative consumer outlook these days, shoppers appear to be pampering themselves with 'affordable luxuries'," said Timra Carlson, vice president of NPD BeautyTrends.

Lip gloss, eye shadow and mascara led the upswing in sales, surpassing the impact of traditional growth drivers foundation and lip color. Since 1997, lip gloss has posted double digit gains and tripled its share of lip-related product sales (i.e., color, liner, gloss). Eye shadows registered double-digit growth from February through July of this year, increasing four share points in the eye segment from 1997. Similarly, mascara sales, which have posted consistent moderate gains in the past three years, picked up speed with a strong 11 percent increase.

Several factors have contributed to the strong performance of these prestige beauty categories. Lip gloss, eye shadows and mascaras average $15 per piece as opposed to an average price of $24 for foundation. With lower prices, these items are perceived as more economical choices.

"Much of the excitement in the department store cosmetic area has been due to the many advanced technologies coming from the heavy hitters as well as up-and-coming niche brands," said Armi Rowe of NPD BeautyTrends. "New makeup products represented four percent of total makeup sales this year, slightly ahead of new launches last year."

For example, five of the new mascara products that were introduced in the past 12 months alone quickly hit the top 25 best-seller list. There's been a shift away from regular lip color products toward lip glosses that offer rich hues, moisturizers, long wear and lightweight properties. New eye shadows feature super-fine powder that provides long wear and smooth! application. The fastest growing of the best-selling eye shadows now come in either single packaging or as palettes with four or more colors, making them even more economical and convenient.