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NPD REPORTS THE INTERNET IS THE FASTEST GROWING CHANNEL FOR BEAUTY PRODUCTS

Future Looks Bright for Buying Beauty Online

(press release from The NPD Group, Inc.

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PORT WASHINGTON, NEW YORK, June 29, 2005- The total U.S. beauty market continues to grow. Not only have sales increased, but shopping options have increased as well. According to The NPD Group’s latest report, Emerging Channels: Beauty Care Products on the Internet, women spend an average of $83 per year on beauty products through the Internet. The study finds women increased their spending on beauty over the Web by 38 percent in the past year, more than any other channel of distribution.

The future looks bright for beauty product shopping over the Internet. One in five women told NPD they intend to spend more over the Internet for beauty products over the next year than they did in the past, making it the number one ranked channel for future purchases.

“What may be even more surprising to many manufacturers and retailers is that the Internet has already surpassed some of the more traditional channels for beauty products in terms of future purchase intent, such as fine department stores, kiosks at malls and phone or mail order channels,” said Timra Carlson, NPD Beauty.

Top Five Reasons Women Will Buy
More Beauty Products over the Web
REASONS PERCENTAGE OF
WOMEN
Easier to shop there 69%
More products I like 56%
Will purchase more beauty products in general 26%
Quality of products have increased 22%
Quality of services has increased 20%
Source: The NPD Group / NPD Beauty / Emerging Channels: Beauty Care Products on the Internet

According to the report, seven out of ten women will shop on the Internet because it’s easy to use. Availability of product follows second with 56 percent of women saying there are “more products I like.”

Quality and cost issues are also among the reasons why women intend to purchase more beauty products over the Web. Nearly one-quarter (22%) of consumers think that the “quality of products have increased” and 20 percent say that the “quality of services increased.”

“The Internet continues to gain prominence as an important player among the various distribution channels available to beauty consumers. The most telling indication of the Web’s growth and influence in the beauty category is the breadth of products available – everything from hair care to foot care, with products for every part of the body in-between,” said Carlson.

About the Report
Emerging Channels: Beauty Care Products on the Internet is a brand-new report just released from NPD Beauty, a division of The NPD Group. This report provides the information and insights both retailers and manufacturers need to capitalize on the rapidly changing beauty landscape. More detailed information was collected on three key emerging channels – the Internet, Specialty Stores and TV Home Shopping

The survey was administered between March 28 and April 6 to a nationally representative sample of about 6,860 females age 18-64 selected from the NPD Online Panel who reported shopping for a beauty care product in the past 12 months.

About NPD Beauty
NPD Beauty is a division of the NPD Group, the authority and leading provider of sales and marketing information for the beauty industry. NPD Beauty introduced the first retail point-of-sale tracking service for beauty in the U.S. department stores in 1996. Since then, the Beauty division has developed a line of products and services to address the needs of the growing fragrance, color cosmetics and skincare industries. This includes shade level detail in makeup, weekly data in fragrances, scent and concept testing and ad-hoc and in-depth consumer reports on issues that impact the clients’ bottom line.

About The NPD Group, Inc.
Since 1967 The NPD Group has provided reliable and comprehensive consumer and retail information for a wide range of industries. Today more than 1,400 manufacturers and retailers rely on NPD to help them better understand their customers, product categories, distribution channels and competition in order to help guide their business. Information from The NPD Group is available for the following major vertical sectors: apparel, appliances, automotive, beauty, consumer electronics, food and beverage, foodservice, footwear, home improvement, housewares, imaging, information technology, music, software, travel, toys, video games, and wireless. For more information visit:
www.npd.com


 


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BETTER THAN BOTOX??

PLAZAN
Jennifer Lopez has revealed her skin care secret!

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DERMANEW
OBAGI
DERMABLEND
SkinCeuticals

IDEBENONE

Mason Pearson Hair Brushes

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CREASE RELEASE

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ZENO

Cellulean Cellulite Treatment

DuWop LIP VENOM

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