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Reply-To: "Merilee Kern" <merileek@kerncommunications.com>
From: "Merilee Kern" <merileek@kerncommunications.com>
To: "'Ed Schack'" <ed@eescosmetic.com>,
	<merileek@kerncommunications.com>
Cc: "Raoul Davis" <raouldavis@ascendantstrategy.net>
Subject: SkinInc.com Placement
Date: Tue, 18 Jan 2011 15:10:02 -0800
Organization: Kern Communications
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http://www.skininc.com/spabusiness/trends/113361329.html


The State of Cosmetics in 2011 With Exclusive Commentary About Becoming =
a Spa With a Conscious
Posted: January 12, 2011
Only on SkinInc.com: Exclusive spa-focused commentary by Edward Schack =
follows this news item explaining details a spa should consider if they =
are considering becoming a socially conscious entity.

With the cosmetics industry earning record revenues, with niche sectors, =
such as "men's" and "organics" rapidly gaining market share, and with =
social media, eco-consciousness and cause-based consumerism greatly =
impacting product purchasing decisions, the cosmetics industry is an =
ever-changing behemoth that's become integral to the national economy. =
But, what makes this insatiable industry tick, and will it continue to =
thrive amid consumers' collective quest to remain youthful, attractive =
and selfconfident?

Veteran cosmetics executive Edward Schack, principal of EES Cosmetics =
Solutions, Inc, offers insight on past and current personal care =
industry trends and how the beauty industry has become far more than =
skin deep.

Buoyancy of the 'beauty bubble.' Despite an ailing recession, the U.S. =
cosmetic and toiletries sector generated more than $10 billion in =
revenue last year from 13,000 beauty-centered stores nationwide, =
according to Ibis World Reports. How will the industry remain =
recession-proof?

The burgeoning men's cosmetics sector. American consumers spent $4.8 =
billion on men's grooming products in 2009, according to market data =
firm Euromonitor International. In 1997, the figure was half that--$2.4 =
billion. The fastest growing men's segment is skin care (nonshaving =
products such as facial cleansers, moisturizers and exfoliants), with =
the category growing more than fivefold during the period, to $217 =
million from $40.9 million. A 2009 report by market research firm =
Packaged Facts also expressed optimism for the men's cosmetics sector.

Role of 'emotional bond' in consumer loyalty to cosmetic brands. =
Cosmetic brands scored high on a Brand Keys "Loyalty Leaders" report, =
which found that, even in a bad economy, consumers stick with their =
favorite premium cosmetic brands alongside cheaper ones, also noting =
that the emotional connection forged with cosmetic brands is due to =
impact on self-image.

Why cosmetics top the list of shoplifted goods. "Health and beauty care =
items" accounted for 20% of all items stolen from supermarkets in 2008, =
according to a survey from the Food Marketing Institute, with Oil of =
Olay skin creams topping the list of swiped items.

Youth and cosmetics. According to The NPD Group Inc., in 2005 the =
average age a woman began using beauty products was 17; today it is =
13.7. Experian Market Research shows that 43% of six- to nine-year-olds =
are already using lipstick or lip gloss, 38% use hairstyling products =
and 12% use other cosmetics (J. Bennett: Newsweek article "Generation =
Diva").

Cosmetic buying habits related to perceived health and safety concerns. =
According to Datamonitor, 28% of consumers currently deliberately avoid =
certain cosmetics or toiletries because of fears about certain =
ingredients, and 39% are somewhat or extremely concerned about parabens =
or petrochemicals used in beauty product formulations. FDA statistics =
confirm that cosmetics are one of the safest categories of products used =
by Americans: With more than 11 billion personal care products sold each =
year, only 150 adverse experiences (mostly skin rashes or allergies) =
have been reported.

How being 'green' affects consumer spending in the cosmetic category. =
According to Grail Research, a full 93% of consumers feel that a company =
being green is important to their purchase decision, with 80% of =
consumers citing "natural" as the most important green attribute for =
cosmetic/toiletry products. According to the U.S. Census Bureau's 2008 =
Annual Survey, manufacturers of beauty products consumed less than a =
third of the kilowatt hours of electricity relative to the average of =
other U.S. manufacturers. However, most are either not aware or cannot =
recollect companies' green initiatives.

The importance of socially conscious business practices. Consumers also =
value brands that support causes--85% of Americans have a more positive =
image of a product or company when it supports a good cause. The =
cosmetics industry is very involved in philanthropy and contributes =
twice as much to charitable causes than any other industry. Each year, =
beauty companies donate over one million individual products and raise =
more than $2 million for cancer patients through the Look Good... Feel =
Better Program.

Schack tells SkinInc.com how can a company be socially conscious as well =
as make their clients aware of its social consciousness? First of all, =
the spa must genuinely have a heart for social consciousness. You can't =
fake caring about the world around you and not just profits. When =
companies try, it's usually quite evident and often fail miserably. In =
the realm of cause-driven commerce, actions speak louder than words and =
ultimately lead the way. It's a way of thinking, and all staffers must =
be on board as social consciousness is a company culture, not a =
marketing strategy. Whatever the socially-driven mission of the company =
and no matter the cause being supported, it must be known to staffers at =
every level of the operation--from the CEO down to the receptionist-- =
and implemented on a daily basis.=20

A company's social consciousness often starts quietly, behind the =
scenes. Spas should be engaged in the community that they are in while =
maintaining the bigger picture as well. They should be seeking =
opportunities to "give back" and looking for areas of need that, in this =
economic climate, are seemingly endless. The most successful social =
companies today typically send a portion of their profits to charities =
of their choice--something consumers are now monitoring closely. =
Consumers want to "feel good" about where their money is being spent, =
and are even willing to justify higher expenditures in kind.

Some of the best ways for a company to convey its socially conscious =
values is to weave information about their efforts into applicable =
marketing vehicles: websites, brochures, spa menus and the like. Spas =
can also tactfully use elegant signage highlighting the charities they =
contribute to and events they have supported, as well as ways they are =
specifically safeguarding the environment. For example, "We use all =
natural, organic products." It's also effective for spas to teach their =
staff to engage this type of discussion in their conversations with the =
clients. Clients will sense the pride staff members have in being a =
socially conscious business, and clients will soon share that pride in =
frequenting a spa with charitable, cause-conscious values.

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<DIV><FONT size=3D2 face=3DArial><A=20
href=3D"http://www.skininc.com/spabusiness/trends/113361329.html">http://=
www.skininc.com/spabusiness/trends/113361329.html</A></FONT></DIV>
<DIV><FONT size=3D2 face=3DArial></FONT>&nbsp;</DIV>
<DIV><A href=3D"http://www.skininc.com/" target=3D_blank><IMG border=3D0 =

alt=3D"Skin Inc."=20
src=3D"http://images.clickability.com/partners/325936/mainLogo.gif"></A><=
/DIV>
<DIV>
<H1><FONT size=3D5>The State of Cosmetics in 2011 With Exclusive =
Commentary About=20
Becoming a Spa With a Conscious</FONT></H1>
<H6 class=3Dposted>Posted: January 12, 2011</H6>
<P><STRONG><EM>Only on SkinInc.com: Exclusive spa-focused commentary by =
Edward=20
Schack follows this news item explaining details a spa should consider =
if they=20
are considering becoming a socially conscious entity.</EM></STRONG></P>
<P>With the cosmetics industry earning record revenues, with niche =
sectors, such=20
as =93men=92s=94 and =93organics=94 rapidly gaining market share, and =
with social media,=20
eco-consciousness and cause-based consumerism greatly impacting product=20
purchasing decisions, the cosmetics industry is an ever-changing =
behemoth that=92s=20
become integral to the national economy. But, what makes this insatiable =

industry tick, and will it continue to thrive amid consumers' collective =
quest=20
to remain youthful, attractive and selfconfident?</P>
<P>Veteran cosmetics executive Edward Schack, principal of EES Cosmetics =

Solutions, Inc, offers insight on past and current personal care =
industry trends=20
and how the beauty industry has become far more than skin deep.</P>
<P><STRONG>Buoyancy of the =91beauty bubble.=92</STRONG> Despite an =
ailing=20
recession, the U.S. cosmetic and toiletries sector generated more than =
$10=20
billion in revenue last year from 13,000 beauty-centered stores =
nationwide,=20
according to Ibis World Reports. How will the industry remain=20
recession-proof?</P>
<P><STRONG>The burgeoning men=92s cosmetics sector.</STRONG> American =
consumers=20
spent $4.8 billion on men=92s grooming products in 2009, according to =
market data=20
firm Euromonitor International. In 1997, the figure was half that--$2.4 =
billion.=20
The fastest growing men=92s segment is skin care (nonshaving products =
such as=20
facial cleansers, moisturizers and exfoliants), with the category =
growing more=20
than fivefold during the period, to $217 million from $40.9 million. A =
2009=20
report by market research firm Packaged Facts also expressed optimism =
for the=20
men=92s cosmetics sector.</P>
<P><STRONG>Role of =91emotional bond=92 in consumer loyalty to cosmetic=20
brands.</STRONG> Cosmetic brands scored high on a Brand Keys =93Loyalty =
Leaders=94=20
report, which found that, even in a bad economy, consumers stick with =
their=20
favorite premium cosmetic brands alongside cheaper ones, also noting =
that the=20
emotional connection forged with cosmetic brands is due to impact on=20
self-image.</P>
<P><STRONG>Why cosmetics top the list of shoplifted goods.</STRONG> =
"Health and=20
beauty care items" accounted for 20% of all items stolen from =
supermarkets in=20
2008, according to a survey from the Food Marketing Institute, with Oil =
of Olay=20
skin creams topping the list of swiped items.</P>
<P><STRONG>Youth and cosmetics.</STRONG> According to The NPD Group =
Inc., in=20
2005 the average age a woman began using beauty products was 17; today =
it is=20
13.7. Experian Market Research shows that 43% of six- to nine-year-olds =
are=20
already using lipstick or lip gloss, 38% use hairstyling products and =
12% use=20
other cosmetics (J. Bennett: <EM>Newsweek</EM> article =93Generation =
Diva=94).</P>
<P><STRONG>Cosmetic buying habits related to perceived health and safety =

concerns.</STRONG> According to Datamonitor, 28% of consumers currently=20
deliberately avoid certain cosmetics or toiletries because of fears =
about=20
certain ingredients, and 39% are somewhat or extremely concerned about =
parabens=20
or petrochemicals used in beauty product formulations. FDA statistics =
confirm=20
that cosmetics are one of the safest categories of products used by =
Americans:=20
With more than 11 billion personal care products sold each year, only =
150=20
adverse experiences (mostly skin rashes or allergies) have been =
reported.</P>
<P><STRONG>How being =91green=92 affects consumer spending in the =
cosmetic=20
category.</STRONG> According to Grail Research, a full 93% of consumers =
feel=20
that a company being green is important to their purchase decision, with =
80% of=20
consumers citing =93natural=94 as the most important green attribute for =

cosmetic/toiletry products. According to the U.S. Census Bureau's 2008 =
Annual=20
Survey, manufacturers of beauty products consumed less than a third of =
the=20
kilowatt hours of electricity relative to the average of other U.S.=20
manufacturers. However, most are either not aware or cannot recollect =
companies'=20
green initiatives.</P>
<P><STRONG>The importance of socially conscious business =
practices.</STRONG>=20
Consumers also value brands that support causes=97-85% of Americans have =
a more=20
positive image of a product or company when it supports a good cause. =
The=20
cosmetics industry is very involved in philanthropy and contributes =
twice as=20
much to charitable causes than any other industry. Each year, beauty =
companies=20
donate over one million individual products and raise more than $2 =
million for=20
cancer patients through the Look Good... Feel Better Program.</P>
<P><EM><STRONG>Schack tells SkinInc.com how can a company be socially =
conscious=20
as well as make their clients aware of its social =
consciousness?</STRONG> First=20
of all, the spa must genuinely have a heart for social consciousness. =
You can=92t=20
fake caring about the world around you and not just profits. When =
companies try,=20
it=92s usually quite evident and often fail miserably. In the realm of=20
cause-driven commerce, actions speak louder than words and ultimately =
lead the=20
way. It=92s a way of thinking, and all staffers must be on board as =
social=20
consciousness is a company culture, not a marketing strategy. Whatever =
the=20
socially-driven mission of the company and no matter the cause being =
supported,=20
it must be known to staffers at every level of the operation--from the =
CEO down=20
to the receptionist-- and implemented on a daily basis. </EM></P>
<P><EM>A company=92s social consciousness often starts quietly, behind =
the scenes.=20
Spas should be engaged in the community that they are in while =
maintaining the=20
bigger picture as well. They should be seeking opportunities to =93give =
back=94 and=20
looking for areas of need that, in this economic climate, are seemingly =
endless.=20
The most successful social companies today typically send a portion of =
their=20
profits to charities of their choice--something consumers are now =
monitoring=20
closely. Consumers want to =93feel good=94 about where their money is =
being spent,=20
and are even willing to justify higher expenditures in kind.</EM></P>
<P><EM>Some of the best ways for a company to convey its socially =
conscious=20
values is to weave information about their efforts into applicable =
marketing=20
vehicles: websites, brochures, spa menus and the like. Spas can also =
tactfully=20
use elegant signage highlighting the charities they contribute to and =
events=20
they have supported, as well as ways they are specifically safeguarding =
the=20
environment. For example, =93We use all natural, organic products.=94 =
It=92s also=20
effective for spas to teach their staff to engage this type of =
discussion in=20
their conversations with the clients. Clients will sense the pride staff =
members=20
have in being a socially conscious business, and clients will soon share =
that=20
pride in frequenting a spa with charitable, cause-conscious=20
values.</EM></P></DIV></BODY></HTML>

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