Skin Care Industry Analysis

Part
01
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Part
01

Skin Care Industry Analysis

Eight other skincare companies that offer anti-aging products include RoC Skincare, Neocutis, Naturopathica, Nu Skin, Differin, Cerave, Ole Henriksen, and Caudalie. Details on these companies can be found in the attached spreadsheet.

Summary

Research Strategy

In finding companies that compete with Olay and some other skincare companies, we conducted our search by first looking for skincare companies with top anti-aging products. We made sure that each company were mainly skincare companies, meaning we avoided companies such as L'Oreal Paris and Avon. In finding an MLM company, we looked for MLM skincare companies that also offered anti-aging companies. Like before, we made sure that the company was mainly dedicated to skincare.
Part
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Part
02

Skin Care Industry Analysis- 2

Anti-aging products for Olay include the Regenerist Whip Face Moisturizer, Eyes Ultimate Eye Cream, and Golden Aura Youth Essence, among others. This spreadsheet provides further details of the products for Olay, SkinCeuticals, and SkinMedica.

1. OLAY

  • Olay is a skincare brand operating within Procter & Gamble's portfolio, and was established in 1952 as "Oil of Olay."
  • Its scientists embody a deep understanding of "skin aging, superior ingredients and formulations, and proven performance testing," to design and develop skincare products that work.
  • Olay's anti-aging skincare products include but are not limited to the Regenerist Whip Face Moisturizer, Eyes Ultimate Eye Cream, and Golden Aura Youth Essence.

2. SKINCEUTICALS

  • SkinCeuticals was established in 1977 as a company that "develops innovative dermatology products designed to combat signs of aging and help prevent serious skin conditions."
  • It was conceived out of decades of skin cancer research knowledge that led to groundbreaking discoveries for antioxidants. The company utilizes high potency formulas, concentrated in pure actives, and proven to penetrate optimally into skin."
  • The company's anti-aging products include but are not limited to the Triple Lipid Restore 2:4:2, Retinol 1.0, and A.G.E. Interpreter.

3. SKINMEDICA

  • SkinMedica is "focused on developing, acquiring, and commercializing products that improve the appearance of skin."
  • Allergen acquired it in 2012, and its headquarters is in Carlsbad, California, United States
  • The company's anti-aging products include but are not limited to the AHA/BHA Cream, GlyPro Antioxidant Serum, and GlyPro Renewal Cream.
Part
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Part
03

Skin Care Industry Analysis- 3

Organic CBD Skincare, RoC Skincare, and Neocutis manufacture anti-aging and other skincare products. In rows 6-8, columns D and E, of the attached project spreadsheet, information on the anti-aging products, description, and pricing has been provided.

Summary

  • Organic CBD Skincare only has one anti-aging focused product called Créme de la Terre.
  • Creme de la Terre is currently priced at $150 and has a Buy-One-Get-One (BOGO) deal.
  • RoC Skincare has several anti-aging focused products including the Multi Correxion 5-in-1 Daily Moisturizer. This product is priced at $28.99.
  • Other anti-aging products from RoC Skincare include the Retinol Correxion Deep Wrinkle Daily Moisturizer, Retinol Correxion Eye Cream, and Retinol Correxion Sensitive Eye Cream.
  • Neocutis also has several anti-aging focused products including the Bio Serum, Bio Serum Firm, Micro Night, and Journee.

Research Strategy

We commenced our research on the website of each of the three companies covered in this request, to identify their anti-aging products and prices. Regarding the marketing examples for all three companies, we made use of their social media pages on Instagram, Facebook, and Twitter, as well as third-party ad information websites such as iSpot.tv. We ensured that each of the marketing examples entered in the project spreadsheet is from 2019. We have provided all the requested information in the spreadsheet.


Part
04
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Part
04

Skin Care Industry Analysis- 4

Differin, Nu Skin, and Naturopathica manufacture anti-aging and other skincare products. In rows 9-11, columns D and E, of the attached project spreadsheet, information on the anti-aging products, description, and pricing has been provided. Below is an overview of the research.

Naturopathica

1. Plant Cell Booster Serum

2. Vitamin C Revitalizing Lotion

  • Vitamin C Revitalizing Lotion is an ultra-light daily moisturizer that helps prevent the visible signs of aging, and it also improves the elasticity of the skin.
  • Price: $58.

3. Argan & Peptide Wrinkle Repair Eye Cream

  • Argan & Peptide Wrinkle Repair Eye Cream is a concentrated age-defying formula that helps visibly reduce the appearance of fine lines, wrinkles, and 360° dark circles around the eyes.
  • Price: $86.

4. Argan & Peptide Wrinkle Repair Cream

5. Rosehip Seed Regenerating Facial Oil

  • Rosehip Seed Regenerating Facial Oil is a radiance-boosting blend of rejuvenating seed oils that promotes firmer, younger-looking skin.
  • Price: $58.

Naturopathica Examples of Marketing

  • The firm uses social media platforms to market itself.
  • On Twitter, it posts about its products that can make one younger. In one of its tweets, it encourages those who want "baby-soft skins" to use its products to activate and rejuvenate their skins.
  • On Facebook, the firm also markets its anti-aging products. For example, the company markets its ''Argan and Peptides'' duo products that help in wrinkle repair. It also says its products ''help reduce wrinkles by 26% per-cent'' and are clinically proven.

Nu Skin

1. ageLOC® Youth

  • ageLOC® Youth is designed to promote the youth span; this is, the years' someone can enjoy life being more active, energetic, and healthy.
  • Price: $179.65

2. ageLOC® Future Serum

  • ageLOC® Future Serum is a powerful, clinically tested formula that reveals younger-looking skin in eight ways. It combines the benefits of many anti-aging products into a single product.
  • Price: $236.25

3. Pharmanex Anti-Aging Package

  • Pharmanex Anti-Aging Package includes ageLOC Youth, LifePak Nano, and ageLOC Vitality.
  • Price: $384.35

4. ageLOC® Gentle Cleanse & Tone

  • ageLOC® Gentle Cleanse & Tone is an effective time-saver; this dual-action formula helps in maintaining the skin’s natural healthy pH and delivers an infusion of ageLOC to the skin, targeting the sources of aging, while leaving skin feeling refreshed and youthful.
  • Price: $54.05

5. ageLOC Elements + Future Serum

6. ageLOC® Elements

7. ageLOC® Transformation Package

  • ageLOC® Transformation Package includes ageLOC Gentle Cleanse & Tone, ageLOC Future Serum, ageLOC Radiant Day SPF 22, and ageLOC Transforming Night, packaged in a Premium Box.
  • Price: $415.30

8. ageLOC® Tru Face® Essence Ultra

  • ageLOC® Tru Face® Essence Ultra makes the skin to look more youthful. The product is formulated with the power of Ethocyn® and revolutionary anti-aging science to target the sources of aging that lead to the loss of firmness.
  • Price: $205.

9. ageLOC® Body Shaping Gel

  • ageLOC® Body Shaping Gel is an intensive spa-quality treatment that targets the appearance of fat and cellulite so that it smooth, refresh, and purify them while reducing the visible signs of aging.
  • Price: $54.05

Nu Skin Examples of Marketing

  • On Facebook, the company markets itself by using the word ignite, in its 0ctober 2019 live event, it allowed its customers to make changes in their lives by revealing their true potential by use of anti-aging products. Additionally, the firm markets itself by talking about the Nutricentials System, which is bio-adaptive botanical that helps the skin bounce back from aging.
  • Nu Skin is also running a campaign on Facebook known as #ShareYourNuSkinStory, which ask customers to share written messages or 30-45 second videos on why they love Nu Skin and its products, including the anti-aging products.
  • On YouTube, the firm posts videos of the 2019 Galvanic Spa System, which is a comprehensive at-home beauty device, designed to help deliver charged treatment products that visibly improve skin and help in anti-aging.

Differin

  • The firm has only one product, Differin® Gel, that can be used as an anti-aging since it contains retinoids, which increase collagen production that reduces fine lines and wrinkles. Differin® Gel is non-comedogenic and fragrance-free.
  • On Amazon, the price for Differin® Gel is $12.79.

Differin Examples of Marketing

  • The company ran a TV commercial known as ''Excuses'' that markets Differin® Gel on how it clears acne and prevents future breakouts.
  • On Twitter, the firm uses the hashtag #differin, which reveals different customers' testimonials on the use of Differin® Gel as a product that clears acne.
  • On Facebook, the firm markets itself by asking customers to get the Differin Gel to clear and prevent acne. It also informs them that the retinoid formula will help to keep pores from clogging and targets acne before it starts.


Part
05
of eight
Part
05

Anti-Aging Skincare Trends

Some trends in the CBD skincare industry include increasing consumer adoption of skincare oils containing CBD, increasing consumer adoption of CBD skincare products in the North American region, a high demand for CBD skincare products that contain hemp seed oil, an increasing demand for CBD creams and moisturizers (especially those that are touted for their anti-inflammatory properties), and an increasing number of product launches for makeup products that are infused with CBD, due to its numerous skin benefits. A deep dive of these trends has been provided below.

Increasing Consumer Adoption of Skincare Oils Containing CBD

  • Skincare oils containing CBD is the top-selling product segment in the global CBD skincare market. As of 2018, this segment had a 40.9% share of the market.
  • According to a 2018 market report, "this product type has been gaining an increasing popularity in the personal care market. It is highly beneficial for acne, aging, and wrinkle prone skin conditions due to its anti-inflammatory properties. CBD oil also has antioxidant attributes, which help in reducing the visible signs of aging."
  • The company Herbivore has a product called Emerald — CBD Deep Moisture Glow Oil, which is designed to hydrate, calm, and sooth the skin.
  • Joise Maran has a product called Skin Dope, which is a CBD-based argan oil.

Increasing Consumer Adoption of CBD Skincare Products in North America

  • Recently published industry reports show that there is a "growing adoption of CBD skincare products" in the North American region. In 2018, North America had a 40% share of the global CBD skincare market.
  • This trend is being spurred by the legalization of cannabis production, of which it can be logically assumed is making these materials more widely available and accepted. A 2018 report notes that there is a high demand for CBD skincare products in the U.S. and Canada and that North America will be the fastest-growing market for these products through 2025.
  • Additionally, there is a concentration of prominent beauty product manufacturers in North America is which expected to further contribute to this trend.
  • Unilever, Estee Lauder, and L'oreal are examples of companies that are operating in the CBD skincare market in North America.

High Demand for CBD Skincare Products Containing Hemp Seed Oil

  • Within the CBD skincare market, hemp-based products have a 62.8% share, as of 2018.
  • Help has a high level of fatty acids, which are helpful in soothing and rejuvenating damaged or dry skin. Further, they have anti-aging benefits which is also driving adoption of this product type.
  • Hemp seed oil is used in skincare products as a cleanser, emollient, conditioner, and surfactant. Its tiny molecules help the product penetrate skin more easily, giving it an effective advantage over other available options.
  • Earthly Body makes a body butter product that contains hemp seed oil.
  • Pure & Essential Minerals makes a healing balm that uses hemp seed oil as a primary ingredient.

Increasing Demand for CBD Creams and Moisturizers (Especially for Anti-Inflammatory Purposes)

  • Next to oils, CBD creams and moisturizers is the second largest segment within the overall CBD skincare market.
  • CBD-bsaed creams and moisturizers are popular in part because CBD can be used on all types of skin, and is especially effective for individuals who have sensitive skin, inflammatory issues, acne and skin dryness. This is due to the fact that CBD has anti-inflammatory properties that aid in the natural healing process of the skin.
  • CBD-based creams and moisturizes can reduce the length of breakouts related to acne and eczema, and can help reduce pain associated with skin inflammation.
  • Cannuka makes a CBD-based body cream that has anti-inflammatory properties.
  • Myaderm makes a CBD-based blemish cream that has anti-inflammatory properties.

Increasing Launches of Makeup Products Infused with CBD

  • Industry experts have noted increases in the number of CBD-infused makeup products launching into the market in 2019.
  • According to a 2019 report published by Adroit Market Research, the numerous skin benefits provided by CBD are the main driver of growth in the CBD cosmetics industry. Industry experts note that CBD contains the full range of amino acids and lots of other vitamins, making it helpful when it comes to fighting acne and treating hair (including eyebrows and eyelashes).
  • A CBD lip gloss was launched by Saint Jane Beauty.
  • A CBD aromatherapy mist was launched by Necessary Luxury.
Part
06
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Part
06

Clean/Non-Toxic Skincare Trends

Trends in the clean/non-toxic skincare space are CBD, healthy bacteria, innovative ingredients, sustainable sourcing, greener packaging and bespoke products.

CBD and Hemp

  • CBD is starting to appear in a multitude of skincare products, from body lotion to cosmetics.
  • Brands claim that CBD can help with inflammation, acne, pain, redness, as well as naturally soothing aches and pains.
  • While there is a lack of scientific research to substantially support claims about CBD, consumers enjoy incorporating it into products they already use.
  • Additionally, beauty brands are turning to CBD's cheaper cousin, hemp seed oil, as an alternative plant seed oil to incorporate into their products.
  • The CBD skincare market size is predicted to see an astronomical 32.9% CAGR from 2019 through 2025.
  • Beauty giant Sephora has tried to capitalize on this trend with its High Beauty line, which uses hemp stem cells.

Healthy Bacteria and Microorganisms

  • Some brands are adding healthy bacteria or microorganisms to their products to "strengthen immunity".
  • Consumers feel that pollution is contributing to aging skin, so they aim to combat this through their skincare products.
  • As more consumers identify as having sensitive skin, companies are responding with products that are "micro-biome friendly".
  • Research has started to reveal that the micro-biome of the skin is just as important as the gut, so brands are not only making their products more micro-biome friendly via things like pH levels but actually adding in good bacteria to promote the skin's micro-biome.
  • A new brand, Kinship, has launched skincare products containing probiotics.

Innovative Ingredients

  • Mintel has predicted three ingredients to trend in the near future: bakuchiol, pumpkin and blue algae.
  • These ingredients are all from natural sources and represent brands increasingly turning to plants for innovative ingredients.
  • Niod, a UK brand, has launched its "skincare vaccine" product, moisturizing serum that reportedly creates a breathable 'seal' on the skin (using blue algae) to prevent moisture loss.
  • Some brands are experimenting further with integrating plants into skincare. To oppose single-use cleansing wipes, Argentum Apothecary came out with a fina sea sponge and milk combination. The sea sponge is ethically-harvested, regrows quickly and is reusable by the consumer.
  • Sephora are constantly expanding their natural beauty lines, incorporating new ingredients from spinach to oat milk to kale.

Sustainable Sourcing and Traceability

  • Shisiedo recently raised awareness for the sourcing of mica, a major component for many beauty products. It is mined in north-east India, where there are concerns about child labor and health risks. It is encouraging other brands to sign up to the Responsible Mica Initiative.
  • As consumers become more aware of environmental and ethical issues, such as palm oil, supply chain visibility becomes a priority.
  • Brands have started using Kezzler codes, which helps identify the source of ingredients.
  • This also protects against counterfeits.
  • "Farm-to-face" beauty brands are growing in popularity, which signals that consumers increasingly care about where their skincare products come from. For example, The Body Shop's Community Trade program allows consumers to see which farm the 'hero ingredient' of the product came from.

Zero Waste Packaging/Greener Materials for Packaging

  • Terracycle's Loop program in select cities (New York, London, Paris) allows consumers to send back empty packaging to be washed, refilled and sold again.
  • Other brands like Follain and Bathing Culture have also launched refillable glass jars where consumers can take to a store for refills or purchase a refill pouch.
  • Brand giant Olay has been experimenting with refillable pods.
  • Brands have also started using ocean plastic waste for their packaging.

Bespoke/Personalized Beauty

  • As more and more brands enter the 'natural' segment, they increasingly need to win over new customers.
  • Brands are experimenting with digital initiatives where consumers can "try on" products.
  • Furthermore, the use of AI can suggest products to users based on photos or Q&A.
  • Additionally, consumers are becoming more interested in tailor-made products. For example, Naked Poppy will formulate products after an online quiz.
  • Atolla uses a sophisticated kit to test skin's moisture, pH levels and more to create custom serums.




Part
07
of eight
Part
07

Sustainability in Skincare Case Studies/Examples

SUSTAINABLILTY IN SKINCARE CASE STUDIES

L'Oréal, REN Clean Skincare, and Juice Beauty are skincare companies that are leading the way in sustainability in the skincare industry.

L'OREAL SUSTAINABILITY

  • Eugène Schueller founded L'Oréal in 1909, since then, L'Oréal has been instrumental in shaping the world's cosmetics industry. Over the past century, the company has grown through four stages, and from 1984 to 2000, it became the beauty industry's most notable company.
  • L'Oréal has put particular emphasis on sustainability in the current phase when establishing itself to be a renowned brand in the cosmetics industry. Its sustainability program is aimed at enhancing sustainability in production, innovation, development, and living.
  • L'Oréal's sustainability program has had a beneficial impact on the reduction of carbon footprints, deforestation, waste management, water management, research, education, and social development since its inception. It has been reviewed annually since its inception in 2013; its objectives are set to be complete by 2020.
  • L'Oréal's 'Innovating Sustainably' initiative has four points of action: respecting biodiversity, reducing environmental footprint, zero deforestation, and optimized packaging.
  • L'Oréal focuses on improving the packaging and the use of recycled material and products that can be refilled. This reduces the overall cost of packaging and plastic recycling without compromising on customer satisfaction.
  • L'Oréal is dedicated to ensuring that none of its products or raw materials are linked to deforestation.

REN CLEAN SKINCARE SUSTAINABILITY

  • When REN Clean Skincare uses glass to bottle its products, they ensure that both the cap and bottle are 100% recyclable. Also, when using plastic, they innovate to push boundaries and make a product "as recyclable as it can be."
  • In 2018, REN Clean Skincare partnered with TerraCycle to build a watch bottle that contains 20% recycled ocean plastic waste. The bulk of the bottle, 80%, is made from recycled plastic, creating a cycle that ensures that waste is kept from landfills.
  • REN Clean Skincare's recent innovation, the Clean Screen Mineral SPF 30, which contains one monotype plastic and 50% recyclable plastic, reduces pollution in the recycling stream.

JUICE BEAUTY SUSTAINABILITY

  • Juice Beauty skin products are made from sourced certified organic ingredients and formulas that improve antioxidant contents and limit synthetic fertilizer residues and pesticides. 99% of Juice Beauty products are certified organic products.
  • According to Karen Behnke, the founder of Juice Beauty Farm, the mission of Juice Beauty Farm is to grow rich organic ingredients for skincare and makeup.
  • Juice Beauty skin products are produced using sustainable energy, and their boxes are made of FSC certified paper or recycled, printed in non-toxic ink/US soy.

Part
08
of eight
Part
08

35+ Skincare Consumer Psychographics

The Generation X skincare consumer is motivated by authentic, eco-conscious brands that positively improve their over-scheduled and under-budgeted lives, is a discerning and research-based shopper, and is more concerned with aging gracefully than fighting the process with products. The Baby Boomer skincare consumer is attached to long-standing skincare routines, is highly brand-loyal and less adventurous in trying new products, and has more money to spend on top-shelf products than other generations.

Generation X

  • Generation X includes individuals born between 1965 and 1980, and is noted for the long hours they put in at work, the depth and breadth of their time spent in online activities, and their varied approaches to purchasing products.
  • The majority of individuals in this demographic work full-time (and often part-time at second jobs), and have children or elderly parents at home. They are better educated than any other generation, and their lives “are defined by constant multi-tasking,” thus making efficiency (in everything) a necessary requirement for them.
  • The characteristics that make this generation unique are their high adoption and willingness to use technology, their high work ethic, their education and intelligence, and their respectful attitudes toward others/everything.

Generation X: Buying Habits & Motivations

  • Experts note that Gen Xers are “shrewd online shoppers who possess a keen understanding of marketing and media.” These characteristics, combined with their love and dedication of searching all aspects of a product/service before purchasing it and comparing it across multiple aspects with its competitors, should be kept in the forefront of all brands wishing to reach this group. Presenting information to them through subtle persuasion with facts and data to back it up will “educate them into buying,” and be more likely to appeal to their sense of loyalty.
  • They search for genuine and realistic approaches in brand messaging, and most prefer brands that reflect their own values and lives, completely eschewing brands with “over-the-top claims.” They want authenticity, sustainability, and brands that are good for the environment or community at-large.
  • This group has often been found to be “both cynical and sophisticated about products, ads, and shopping.” If something about a particular brand (or brand’s approach to them) shakes their confidence, they will lose faith in the credibility of the brand, and it will be tough (if not impossible) for that brand to restore their loyalty. Treat this group “like family,” or risk losing their business forever.
  • Generation Xers use technology intuitively and are “truly omnichannel.” They research brands they follow or are interested in, and seek to “stay informed about new products and services” by checking reviews and watching “tutorials carefully before buying.” Notably, the category of “beauty and personal care” is among the top five most-watched categories for Gen Xers on Youtube, to which 73% of this generation “regularly tunes into.”
  • Although they make purchases regularly in brick-and-mortar stores, many prefer to shop online for their needs. Additionally, they want to be wooed by brands differently than those brands woo other generations of consumers; they want “to be acknowledged, courted, and catered to.”

Generation X: Attitudes & Beliefs on Skincare

  • For beauty and skincare products, one expert analysis divided the group into two segments, each with a somewhat-different profile. The first segment, called the “practical professionals,” includes those balancing busy work and family lives. They are “the caregivers and multi-taskers, with barely any time left over for themselves.” This consumer segment prefers “good quality basic beauty products and are more interested in aging gracefully than ‘anti-aging.’” They prefer to purchase quality off-brand (generic) products, but will also splurge on “the occasional trusted luxury beauty product.”
  • The second segment, the “urban hipsters,” includes many from the youngest cohort of this demographic individuals “who curate their own look and lifestyle.” These dare-to-be-different/unique folks don’t follow the crowd, but instead “celebrate uniqueness,” even in their skincare and beauty routines. They tend to be highly eco-conscious, and prefer to purchase brands made from more-natural/organic ingredients. They are “drawn to eclectic brand stories and customized beauty products.”
  • This generation came of age in the 1980s, when powerful, glamorous women who ruled their respective worlds and did so with perfectly coiffed hair, full make-up on perfect skin, and a stylishly put together outfit. These “beacons of beauty” helped define the self-expression of GenXers (most notably women), as well as helping to shape how they “viewed the role of beauty” in their lives.
  • This generation views itself “as having youthful-ish skin” and opts for “skincare products that will maintain our skin’s youthful appearance.” As they continue to get older, they are “edging toward products that address our concerns about wrinkles and skin elasticity.” Notably, this group spends more on plastic surgery and appearance-related injectables than any other generation, and will happily spend “money on age prevention vs reversing the effects of aging.”
  • This generation cites “fine lines and wrinkles” as their top overall skincare concern, with 71% of all consumers (across all demographics) noting that “their [skincare] needs aren’t” being fully met. The majority of Gen X consumers use between three and five skincare products every day, with the most commonly used products including the “basics (cleanser, exfoliator), along with targeted topical products (eye cream, anti-aging treatments)”.
  • Different from younger generations, 70% of Gen Xers prefer skincare and make-up products that are the correct color/shade for their skin over products that provide a “natural look.”Other research identified the most important factors to these consumers (in skincare/make-up products) as: having a short list of ingredients, being hypoallergenic, being all-natural, being cruelty-free, and being a fair trade product.
  • For skincare and make-up products, Gen Xers see the quality of the product as the most important factor in determining which products to buy. This is followed by (in order of importance) positive reviews from other consumers, price point, and the variety of shades/options offered.
  • Nearly three-quarters (70%) of women aged 40+ “want to see more perimenopausal and menopausal beauty and personal grooming products” on the market.

Generation X: Marketing Insights

  • Since they are constantly plugged in to their work and personal emails and generally respond positively to email marketing tactics, this is one of the best ways to reach this generation. Gen Xers are less prone to following trends, and “more likely to buy a service or product that somehow benefits society or the environment.” So, highlighting the ways a brand gives back to the community at-large is how to reach these folks.
  • This generation spends an inordinate amount of time online, especially on various social media channels (like Facebook, Youtube, and Twitter), and providing ways to make their lives easier (through a product or service, like subscription programs, for example) via targeted marketing through these channels is highly recommended by experts.
  • If a product/service offering helps Gen Xers by adding much-needed breaks of enjoyment to their lives, then it’s more likely they will purchase that brand. As an example, since a huge percentage of these individuals take yearly vacations, running a sweepstakes that offers a chance to win a get-away trip, or offering solutions for addressing the concerns they experience related to taking these vacations, is recommended. Especially significant is that these vacations (or options or solutions) should be “family-friendly” and not just for two, since many in this generation have children (and/or elderly parents) living with them.
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Baby Boomers

  • Baby Boomers includes individuals born between 1946 and 1964, and is noted for being slower than other generations to adopt and use technology. Surprisingly, however, Boomers spend more than other generations in purchasing technology-related products (like the newest versions of smartphones and premium cable, as examples). This may due, in part, to the high discretionary spending funds that many in this generation have available to them.
  • This demographic “represents a largely untapped market for beauty companies,” especially as more and more of them continue to retire.

Baby Boomers: Buying Habits

  • Boomers hold the “highest value as consumers in the market today” and are more inclined than other generations to “splurge on items that aren’t on the grocery list.” Additionally, they are more likely to purchase high-end or “top-shelf” products and have the money to do so.
  • There are notable differences between younger and older Boomers, especially as related to drivers for purchasing products. Younger Boomers are more adventurous than their older counterparts, and are very likely to be brand-loyal. Older Boomers are “less brand-focused and are open to items under different labels,” though they are less likely to try out a new product (preferring to stick with tried-and-tried products they know and love).
  • On the whole, most Boomers have very “health- and wellness-centric attitudes,” and this translates into the products they choose to purchase, especially those related to personal care (like skincare products).
  • These consumers like to have clear understanding on the personal value of a product they might purchase, as well as how that product will make their lives easier without being pushed to make a specific purchase.
  • With 48% of Boomers relying on and regularly using credit cards for purchases, and with this generation’s preference of spending “more as opposed to leaving money on the table,” cash-back rewards programs work very well as an incentive for them.
  • Notably, and different from other generations, Boomers are “least likely to make a purchase on their smartphones.”

Baby Boomers: Attitude & Beliefs on Skincare

  • Baby Boomers generally have a long-established “go-to skin and hair care regimens,” and are less likely to “explore new brands and products.” They are not impulse buyers and are highly unlikely to buy a beauty or skincare product “on a whim.”
  • For Boomers, the most important factors to consider in skincare and make-up products are that the products are hypoallergenic, that they’re all-natural, cruelty-free, and fair trade products (in order from most to least important of top considerations). The biggest drivers of their skincare and make-up purchases are the brand name of the product, the variety of shades/options offered, the quality of the product, the price point, and consumer reviews/ratings of the product (in order from most to least important of the top factors).
  • This diverse group “redefined beauty and didn’t let anyone define it for them.” They are dichotomous in their skincare and beauty choices as they “love efficacious skincare products that make their skin look and feel good,” and they will seek out products that “make them feel pretty.”
  • The women especially in this demographic do not particularly focus on products designed to “turn back time” with their anti-aging properties, as they would rather purchase products that “directly address skin, hair care, and health concerns, while also emphasizing feeling and looking good.” They have shifted the focus of their skincare needs from “anti-aging products and practices to pro-aging ones,” and prefer to be “empowered by products that they see as positive and, from a health and wellness perspective, preventive and proactive.”
  • Well over half (60%) of this demographic “look for products with moisturizing and hydrating properties,” and a surprisingly-low 38% are more focused on the anti-aging claims and properties of the products. This group prefers brands that clearly define the “beauty and health benefits of their products.”
  • Notably, over half (53%) of Boomers believe they are largely “ignored by the beauty and personal grooming industry.”
  • Although surprising for this generation, a “growing number of Baby Boomer men are embracing and consuming” beauty, body, and skincare products, and they have the discretionary income to spend a lot on these types of products.
  • More than half of consumers in this demographic stated they would be willing to try skincare products that included therapeutic cannabis (like CBDs, about which this group holds an 83% positive feeling). Additionally, a whopping 41% of all social media posts related to CBDs (and products with CBDs in them) are posted by those in this demographic.

Baby Boomers: Marketing Insights

  • Boomers are highly loyal to products, especially those they’ve used for a long time and are of high quality.
  • Boomers are not as receptive as other generations to things like Facebook remarketing ads, but have proven to be quite “receptive to direct marketing/sales tactics.” Additionally, upsell tactics work on those in this generation, especially if they can see the immediate value the additional purchase would add to their lives, so those techniques are recommended by brands wishing to get and keep Boomers as customers. Offering free samples is another way to catch a Boomer consumer’s eyes (and wallet).
  • Traditional sales and marketing tactics work best with this generation, and the majority of them want to “talk to a real person before they make a purchase,” though not so much on the phone, and not so much during times considered to be set aside for family (like dinnertime). They also respond well to “traditional television and newspaper ads.”
  • Boomers are less likely than other generations to read long blog posts, so ensuring posts targeted to this group are a maximum of 300 words long is important to keeping them active with the post (and brand).
  • A whopping 69% of consumers ages 50+ believe that “media images are ageist,” and 70% “would consider switching to a brand they feel represents people in their age” group. A full 80% also believe that most marketing portrays people in their demographic “based on stereotypes,” rather than reality of who they actually are.

Research Strategy

To identify the psychographics of skincare product consumer aged 35+, we broke down our search into two distinct groups Generation X and Baby Boomers. For each demographic set, we then pulled expert findings from a wide variety of sources that outlined the buying habits, attitudes/beliefs on skincare, and other relevant details, and synthesized them into our findings.

Sources
Sources

From Part 03
From Part 06