With the overall beauty industry floundering through this recession, there are untapped markets ripe for opportunity within the ethnic beauty sector, according to experts speaking at HBA’s “The Next Big Trend: The Ethnic Market Driving Sales in the Beauty Space.” Lisa Price, founder of Carol’s Daughter, and Linda Singh, senior marketing director with Coty, provided insight into and examples of how companies can better reach and connect with ethnic consumers.

According to Ms. Price, the early days of Carol’s Daughter—back when she was making products in her kitchen and selling them at craft shows and street fairs—provided her with tremendous opportunities to connect one-on-one with her customers.

“I had the pleasure to speak to customers on a regular basis. At the time, I didn’t realize how blessed I was,” she explained.

Today, the internet and social media have changed how companies connect with customers, but she warned against companies letting the close relationship falter.

“Customers are so good at reminding you what the mission is,” said Ms. Price. “You have to adapt. Facebook, Twitter and blogging are the way to communicate with people. Back then, you couldn’t think about launching anything without a paper catalog. Now it is email blasts. The landscape has changed, but the conversation is the same,” she insisted.

Coty has found success with ethnic consumers by looking closely at demographics as well as cultural aspects. For example, Hispanic consumers have lower average household incomes but a strong connection to family.

“They live and shop in groups,” Ms. Singh said, noting that because of this, they tend to respond to larger packs of items offered in club stores.

Ms. Singh also suggested CPGs look beyond December in terms of holiday marketing to grow sales with Hispanic consumers. She cited Mother’s Day and Cinco De Mayo as key holidays “rooted in ethnicity” that are important to Hispanic consumers.