Natural Beauty
Published: Saturday, September 01, 2001
Natural cosmetics companies have to work hard to set themselves apart from the expanding pack of large, mainstream companies that are turning out their own variety of “natural” beauty products. Besides good service, natural cosmetics companies rely on information-based marketing campaigns and an expertise with natural ingredients that helps them create increasingly diverse lines of products.
What are natural cosmetics? “A balance between science and nature,” says Karayan, who founded NaturElle in 1991 after years of frustration over the beauty industry's dearth of effective natural products. “There were a lot of natural products, but they were never quite right—they didn't have glamour,” she says. “They were either all for sensitive skin, or they were too heavy, or didn't have just the right shade I needed.”
But with no official regulatory definition, natural cosmetics are whatever one chooses to call “natural.” Large cosmetics firms often take liberties with the term, says Sally Malanga, president of Wayne, N.J.-based Ecco Bella, which did several million dollars in sales last year. Adding an herb to a conventional product does not make it natural, she points out.
Consumers are understandably confused about natural beauty products, says Laurie DeMerrit of the Bellevue, Wash.-based Hartman Group. A survey by the market research firm found that 14 percent of consumers polled reported that they use natural cosmetics. But DeMerrit believes that number may be inflated due to consumer confusion. “Some people think because the name of a shampoo is Herbal Essence that it is a natural product,” she says.
It's clear, however, that the markets for conventional cosmetics and their natural counterparts are healthy. Globally, cosmetics and toiletries account for $56 billion in revenues, with make-up ringing up $7.68 billion in North and South America, according to Karayan.
And according to San Francisco-based market researcher SPINS, natural beauty products generated sales of $6.7 million in the U.S. this year, a figure 37 percent higher than in 2000.
Consumers have varying reasons for buying personal care products that are natural, says DeMerrit. “We found that 53 percent of those surveyed used the product because it worked well, 34 percent because of health reasons, 29 percent looked at whether a product was tested on animals, 23 percent because of the environment, and 15 percent because of price,” DeMerrit reports. Conversely, 59 percent of interviewees never have considered using a natural personal care product, and 13 percent said they don't purchase natural products because of lack of availability.
Tampa, Fla.-based Aubrey Organics is thriving on consumer enthusiasm for natural beauty products. “We're enjoying particularly excellent growth in Canada, where we've just introduced bilingual labeling,” says Susan Hussey, VP of marketing and advertising for the 34-year-old natural skin and hair care manufacturer. “The large stores do very well for us, and we are continuing to develop in-house techniques for developing sales in the smaller stores,” she says. Direct sales from Aubrey's website are also growing, although not at a rate that poses a threat to the company's retail partners, Hussey adds. “I think this is because we don't discount the products [online], and we have an up-to-date store locater that allows anybody to find the store nearest them that carries our products.” She declined to disclose specific sales figures.
The mega-advertising campaigns of mainstream beauty companies are difficult to compete with, Malanga acknowledges. Her company tries to appeal to the LOHAS consumer by publicizing the “greenness” of Ecco Bella. “What we attempt to do is reach the Cultural Creative consumer who has an open mind and is willing to learn about the differences between an environmentally responsible company vs. a big beauty company,” she says.
In Hussey's view, the battle will be won by the expertise of natural cosmetics companies. “We think our customers want natural products that work,” she says. “We can compete with larger companies because we can do this, and they can't.”
“As people learn not to settle for just any old health and beauty aid, they will turn to natural cosmetics manufacturers for the most innovative and effective products available,” Malanga predicts. “I see nothing but a rosy future ahead for natural cosmetics—there are so many herbs out there, so many potential new products.”