Ethnic Beauty Enthusiasts Spend A Mind-Boggling $5 Billion in 2008

By Phylencia Taylor

In 2009 the US budget deficit  is estimated to soar to $1.2 Trillion, our economy is suffering greatly. (A)  Major US industry business setbacks, Blagojevich corruption, Madoff fraud;  unemployment is higher than it has been in 16 years.  Corporate bailout requests are beyond expectation (Adult Entertainment Industry Bailout - Really?) and the scarcity appears endless.

Albeit, in 2008 the Beauty Industry as a whole closed at a whopping 

$10 Billion. (a)

• General Market consumption is more than double the ethnic spend, estimated at over $5 Billion (a).
• Ethnic beauty spending is estimated to close at an abundant $2.6 Billion in HBC (Health, Beauty, Cosmetics) (a), plus an additional estimated 50% of the market share is attributed to Beauty & Barber (B&B) store sales (stores without product scanners, direct sale shipments from distributors/manufacturers) totaling $5 Billion.

Beauty Supply Stores (B&B's) are more commonly known in urban neighborhoods across the US as the "Korean Beauty Supply Stores."  [Read Shine Magazine Winter 2009 issue, an in-depth feature on "Ethnic Beauty Distributors Revealed" for more on this topic]

The CIA World Fact Book reported, 18 Dec 08 (b), the Ethnic US Population at 35%.

• 20.04% - African America (12.85%), Asian (4.43%), Amerindian/Alaska Native (.97%), Native Hawaiian and other Pacifica Islander (.18%), Other - two or more races (161% July 07 estimate)
• 15.1% - Hispanic - NOTE:  The US Census Bureau lists the growing Hispanic/Latin population separately, defined as persons of Latin American descent (ex. Cuban, Mexican, Puerto Rican,...)

Ethnic Beauty is up, 7% increase in Ethnic Beauty since 2007 (d), despite a sluggish economy.  It seems mind-boggling...here's how:

• The ethnic population increased, largely attributed to the Hispanic population growth
• Ethic buyers have an on-going desire for upscale, premium, prestige products (priced higher)
• General Market HBC products are being purchased to replace or in combination with ethnic products
• Retailers expect a ROI by expanding their distribution with ethnic HBC brands
• "Dr. Endorsed" products lend credibility to products and influence purchase, such as Dr. Andrew Weil for Origins, and Dr. Miracle (ethnic hair care line)
• Natural products are becoming increasingly popular, yet relaxers still lead the ethnic HBC category

In essence, less than half of the US population, the ethnic consumer, spends more than 50% of the entire beauty market share.  Clearly the ethnic consumer places a premium on appearance. Beauty professionals and enthusiasts appreciate a smart appearance and continue to support the beauty industry, despite a rainy economy.

Shine Expo Beauty Culture understands "He Who Knows It Feels It," and the connection between your appearance and confidence is intertwined.  For many industries a polished appearance is paramount.  

So...Shine On! | 

Source:

A| www.washingtonpost.com/wp-dyn/content/article/2009/

a|c|d| Pacakged Facts.com, Nov 1, 2008

b| www.cia.gov/library/publications/the-world-factbook/fields/275.html - Dec. 18, 2008