The New Beauty Shopper and Path to Purchase

John Deputato, of SymphonyIRI Group, says as we exit the recession, the key to success for both manufacturers and retailers will be to get the basics right.

WRITTEN BY: John Deputato

AUTHOR BIO: John Deputato is a senior vice president and leader of the Beauty and Personal Care, Client Team Vertical, at SymphonyIRI Group. With more than 25 years’ experience in the health and beauty care industry, he has held a number of CPG marketing positions, including senior marketing executive for the Stetson brand at Coty and product manager for Old Spice at The Shulton Company.

Last week we received some very surprising news. The recession is over. In fact, it ended more than a year ago, in June of 2009, according to the National Bureau of Economic Research, a panel of experts who determine when serious economic downturns begin and end. It apparently takes a year or so to make these calls.

Who knew?

Certainly not the people the government classifies as both unemployed and underutilized. Those two segments totaled about 17% of the population in August 2010 according to the U.S. government. In fact, Gallup reports a similar metric called total underemployment, which includes those out of work and those who work part-time but seek full-time jobs. That number was almost 19% during this same time period. For these folks the answer to their economic recovery is beyond cutting taxes; it’s about creating new industries that deliver real job opportunities.

The economy has certainly had a major effect on the way we shop, and shopping for beauty is no exception. But have things really improved since June of last year, the so-called end of the recession?

The best way to understand that is to measure the attitudes of your shopper. Understanding how they are behaving and what they are thinking is key, and even more important is to understand your heavy beauty shoppers. They represent 11% of total beauty shoppers and account for 40% of the dollars purchased. Heavy shoppers buy more new products, shop in multiple outlets and do their best to look great every day. But at the same time, they are also doing more to save money than the average shopper. Making their products last longer, changing where they shop to save money and shopping for more multi-functional products are key strategies for these shoppers. They are indeed the savviest shopping strategists, according to SymphonyIRI Group.

To appeal to these heavy shoppers, manufacturers must do their homework. These shoppers will have a different path to purchase than the average shopper. For new products they might look to channels with wider selection where more product advice is available, while for repeat purchases they may simply seek the best value and know exactly where to find it—perhaps just a click away.

To attract the heavy shopper, product packaging will need to be clean and easy to understand. Heavy shoppers will purchase based on claims and market research results, so these facts should be displayed on the package along with an advice line or website address.

The key to success for both manufacturers and retailers will be to get the basics right.

Understand your shopper and their attitudes, price the product right, and track the all important path to purchase, which has changed dramatically in this new world environment.

And please, the next time the economy takes a drastic change – don’t wait over a year to tell us.