1 / 31

Doing Personal Care Product Business in USA A Brief Overview

Doing Personal Care Product Business in USA A Brief Overview. Presented by Mike Nave President – PBD / BIR, Inc. Who is Mike Nave ?. 50 year career in beauty products industry Distributor Publisher Dot com company VP Communications Free lance writer for industry trade pubs.

kaili
Download Presentation

Doing Personal Care Product Business in USA A Brief Overview

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Doing Personal Care Product Business in USA A Brief Overview Presented by Mike Nave President – PBD / BIR, Inc.

  2. Who is Mike Nave ? • 50 year career in beauty products industry • Distributor • Publisher • Dot com company VP Communications • Free lance writer for industry trade pubs. • Sales and marketing consultant

  3. PBD Size of U.S. Personal Care Markets • Mass retail market segment sales excluding Wal Mart* • Total Haircare sales $4.3 billion -1.5% • Total Ethnic HABA sales $107 million -7.5% • Total Hair Coloring Products sales $1.09 billion +4.4% • Skin Care sales $2.79 billion +4.9% • Grooming aids sales $1.11 billion +.04% • Shaving needs sales $1.81 billion +4.9% • Deodorants sales $1.26% +1.9% *(52 week sales total through May 14, 2005 (Source AC Nielsen)

  4. Size of U.S. Personal Care Markets PBD • Annual revenues of salon services and product sales $60+ Billion. • Total salon industry professionals 754,000 • Natural/Organic personal care sales $4.3 billion projected to reach $6.6 billion by 2010

  5. Market Segment (A brief description) Mass Retail Market • Department Stores (Federated, Nordstrom’s, Saks Fifth Avenue) • “Masstige” (Ulta, Sephora) • MVRs (Costco, Sam’s, Target, Wal Mart) • Grocery (Safeway, Albertsons) • Chain Drug (Rite Aid, CVS, Walgreen) • Specialty (Bed Bath & Beyond, Hot Topics, Bath & Body Works) • Electronic Retailing (QVC, HSC)

  6. Independent Salons (45,000) Chain Salons (25,000) Salon beauty stores (2,000) Distributor’s professional-only beauty stores (1,800) OTC beauty stores general market (3,000) OTC beauty stores Multi-Cultural market (9,000) Sally Beauty Supply (2,800 stores in U.S.) Distributors (350 exclusive and open line) Spa (5000 estimate) Nail Salons (60,000) Barber (85,000) Beauty Schools (1,500) Market Segments (A brief description) Professional Beauty Market

  7. Alternative Marketing Initiative Direct On-line Manufacturer Sales,a new marketing concept of manufacture selling on-line direct to consumers while at the same time establishing distributor/retail relationships.

  8. Marketing to the US Mass Retail and Pro Beauty Markets  a Good News/Bad News story!

  9. First, The Good News(The Reward) • Awesome opportunity selling to the world’s largest market in terms of buying power. • U.S. consumers are major shoppers always looking for something new and innovative.

  10. Now, The Bad News ( The Challenges!) • Huge marketing challenges due to consolidations in all major market segments • Surviving Mass Market Retailers’ shelf-space is a premium. You want it you buy it! Or more accurately, you rent it! • In mass market payment terms can stretch out 6 months or more. (Being paid promptly – Forget It!)

  11. Now, The Bad News ( The Challenges!) • In order to have credibility with large account retailers you must be represented by a high profile broker. • Pro beauty field consists of multiple submarkets with overall limited sales potential requiring two step pricing accessed primarily by rep groups and distributors • Both segments require large margins to cover high cost of doing business. • Your product line must be unique and different, or address a untapped market niche. • There must be a compelling reason for your product line’s existence.

  12. What Accounts Expect • Need manufacturer to create product demand • Need manufacturer to promote product • Need manufacturer to bring consumers into stores • Need US distribution center for timely replenishment • Need complete timely shipments • Need professional sales representation • Want company decision maker on the key sales call • Require $5 million product liability insurance

  13. Payment Terms • Standard terms 2% 30, net 31 • Introductory first order 2% 60, net 61 • Seasonal terms • Pay at end of season, return remaining product • % payment in 60 days, balance end of season • Major accounts: • Pay on scan • Expect free goods

  14. Product Returns • Guaranteed Sale • Return product if it does not sell • Failure Rate on New Products is 75%! • Product fails, company goes out of business, chain stuck with inventory

  15. What Brokers Expect • Plenty of Samples • Professional Sales Materials • Compelling Sales Story, reason for being: • Patent, previous success, strong advertisings, excellent packaging and displays, timely shipping • 7-10% commission paid promptly • Long Range growth opportunity • Company responsiveness and professionalism • Factory field key account sales support

  16. What Brokers Do • Represents a large number of companies • Regular sales calls on food, drug & mass accounts • Handles all paperwork • Checks stores for distribution, pricing, location, • Speaks to buyers frequently • “Eyes, Ears, Feet”— extension of manufacturer • Brokers respect what manufacturers inspect

  17. Barrier to Entry • Lack of knowledge of the market • Major investment required • Need to have US point of distribution • Public Warehouse • Joint Venture • Company Owned Operation • Meeting US Customs import regulations

  18. How to Market • Gain adequate working knowledge of the U.S. marketplace by doing the preliminary investigative activities • Attending trade shows • Contacting trade associations • Hiring a marketing/sales consultant • Create strategic marketing plan • Choosing right broker or rep organization • Using public relations versus advertising to start

  19. How to Market(Exhibiting at Trade Shows) • Pro Beauty Market • Major salon trade shows (4) • Rep association sponsored shows (2) • ISPA Spa Show plus additional smaller spa shows (6) • International Esthetics Cosmetics and Spa Conference (2) plus half a dozen other esthetics shows • Professional nail shows (5)

  20. How to Market(Exhibiting at Trade Shows) • Mass Retail Market • NACDS (chain drug) • GMDC (grocery) • ASD/AMD (general merchandise 6) • ECRM-EPPS (one-on-one apts. with major retail accounts 30+)

  21. ECRM-EPPS • Guaranteed 20 minute meeting with buyer and/or category manager in a 4 or 5 star     hotel room setting • 60 retailers in attendance • Food, Drug & Mass • Perfect way to jump start distribution in mass market

  22. How to Market Packaging Make sure it meets U.S. market requirements from both a regulatory and marketing effectiveness standpoint.

  23. Important Information • Key Trade Associations • NACDS (National Chain Drug Store Association) • PBA (Professional Beauty Association) • ISPA (International Spa Association)

  24. Important Information(Mass Retail Market Publications) • ChainDrug Review • Drug Store News • Mass Market Retailers • Supermarket News • NACS Magazine

  25. American Salon Modern Salon Salon Today Beauty Store Business OTC Beauty Magazine Beauty Times Skin Inc Derma Scope Day Spa American Spa Nails Nailpro Launchpad Important Information(Pro Beauty Market Publications)

  26. and last but not least, my newsletter the Beauty Industry Report. Important Information(Pro Beauty Market Publications)

  27. The Beauty Industry Report was founded in 1997 to fill a need for sharing timely, interesting, entertaining information between all segments of the professional salon industry. Today, the BIR is the only executive newsletter serving the professional beauty industry, including manufacturers, reps, distributors, associations, chain salons, day spas and top independent salons, with behind-the-scenes information about the people, products and companies that are meaningful to our readers. With the landscape of the salon industry rapidly changing, BIR is the "score card" that lets you know who's on first, who's striking out and who's scoring big. I continue to serve as the editor and principal reporter of BIR. In addition, every month, I invite a guest columnist to present his or her views on a chosen topic. Our team strives to make BIR the place where the various segments of the professional salon industry can be heard. We value your input, and invite you to contact us anytime with your ideas and input. The BIR is published 12 times a year with each issue being 12 or more pages. The paid circulation is 1,500 and growing. In addition, the circulation may include up to 1,000 extra copies as part of promotional mailings or show distributions. The BIR is published in Travers, MI and mailed bulk third class, usually arriving in the middle of the issue month. This email was sent by Mike Nave, Beauty Industry Report, 22287 Mulholland Hy. #403, Calabasas, United States 91302-5157 to catchick@worldnet.att.net Unsubscribe

  28. Get Your eBIR Free Trial Subscription Complete the Hand out form and submit to Mike Nave or Fax to: 001-818-222-7828 or email Mike Nave with your request to MikeNave@beautyIndustryReport.com Remember, if you ain’t reading the “Blue Thing,” you know NOTHING!

  29. Important Information(Valuable Resources) • Reshare Corporation, a provider of patented channel management software. (www.reshare.com) • Katherine Frank Creative, a full service marketing and trade show management group. (www.katherinefrank.com) • Kirschner Group USA (Sales rep organization covering the pro beauty market on national basis. (www.kirschnergroup.com) • John O’Maley & Associates, Sales & Marketing Consultants covering mass retail market on national basis. (www.omaley.com) • Fred O'kasick Sales Inc. Sales rep organization that covers the U.S. Chain Drug Store market. (www.foksales.com) • Joni Rae Russell/JRA Associates. Full service marketing organization specializing in product development and packaging design. jonijra@aol.com • ECRM-EPPS Efficient Collaborative Retail Marketing - Efficient Program Planning Sessions a business process that streamlines the consumer packaged goods sales and marketing supply chain (www.ecrm-epps.com)

  30. So where do you go from here? • Use a knowledgeable consultant to gain sufficient information to make an intelligent decision, whether to market in the U.S. or not. • Do the necessary home work • Visit trade shows • Do store checks • Contact trade associations,

  31. Thank You for the Opportunity! PBD / BIR, Inc. Publisher of the Beauty Industry Report International Representive Master Broker Consulting Michael Nave President 22287 Mullholland Hwy. Suite 403 Phone: 818-225-8353 Calabasas, Ca. U.S.A 91302-5157 Fax: 818-222-7828 mikenave@beautyindutryreport.com Mobile: 310-614-9880

More Related