Bare Escentuals To Grow On Intensified Sampling, Color Cosmetics, Skin Care
This article was originally published in The Rose Sheet
Executive Summary
Increased sampling of its core powder foundations and expansion of its color and skin-care offerings are key growth initiatives for mineral makeup pioneer Bare Escentuals, execs said during a June 10 session of the Piper Jaffray Consumer Conference
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Bare Escentuals
Mineral cosmetics firm books $138.5 mil. in sales for second quarter of fiscal 2008, up 12% versus the prior-year period, "significantly" outpacing 4% retail growth of prestige beauty market overall, according to July 30 release. However, "broader economic concerns, combined with added mineral competition in the mass market, is causing us to have to work harder to acquire the more price-sensitive consumer. Specifically we have seen a clear trend of consumers increasingly favoring lower-priced non-kit-products over higher-priced kits," CEO Leslie A. Blodgett notes during same-day call. In June Bare Escentuals indicated that it would count on updated, $60 Get Started Kit releasing this fall to hook new customers, recognizing that "the vast majority of customers that try bareMinerals stick with the brand" (1"The Rose Sheet" June 23, 2008, p. 10). Now firm is "seeing reduced volumes" in its infomercial channel, "as we believe this customer has become more reluctant to purchase a $60 kit without the benefit of experiencing the product first-hand," Blodgett said. Firm is toying with the infomercial's format to improve its effectiveness and remains committed to the channel, which together with QVC represents the second most common way users are introduced to its brands, the CEO noted. Meanwhile Bare Escentuals has expanded its sampling efforts and use of non-traditional marketing in increasingly competitive mineral cosmetics market...
Bare Escentuals
Mineral cosmetics firm books $138.5 mil. in sales for second quarter of fiscal 2008, up 12% versus the prior-year period, "significantly" outpacing 4% retail growth of prestige beauty market overall, according to July 30 release. However, "broader economic concerns, combined with added mineral competition in the mass market, is causing us to have to work harder to acquire the more price-sensitive consumer. Specifically we have seen a clear trend of consumers increasingly favoring lower-priced non-kit-products over higher-priced kits," CEO Leslie A. Blodgett notes during same-day call. In June Bare Escentuals indicated that it would count on updated, $60 Get Started Kit releasing this fall to hook new customers, recognizing that "the vast majority of customers that try bareMinerals stick with the brand" (1"The Rose Sheet" June 23, 2008, p. 10). Now firm is "seeing reduced volumes" in its infomercial channel, "as we believe this customer has become more reluctant to purchase a $60 kit without the benefit of experiencing the product first-hand," Blodgett said. Firm is toying with the infomercial's format to improve its effectiveness and remains committed to the channel, which together with QVC represents the second most common way users are introduced to its brands, the CEO noted. Meanwhile Bare Escentuals has expanded its sampling efforts and use of non-traditional marketing in increasingly competitive mineral cosmetics market...
Bare Escentuals Q1
Sales for first quarter of fiscal 2008 rose 21% to $140.4 mil. due to growth in firm's premium wholesale business and Bare Escentuals boutiques, company says May 1. With results continuing "positive brand momentum" from prior year, firm is looking to expand internationally. "We are on track to significantly expand our points of presence domestically and internationally, including our recent launch at Selfridges in London, our first department store in the United Kingdom. At the same time, we're excited about our new business initiatives, including the growth of our mineral skin-care line, RareMinerals," CEO Leslie Blodgett notes. Bare Escentuals will enter Canadian and Spanish markets by end of 2008 and will test-market in Japan and Germany in 2009...