Wednesday, January 28, 2009

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'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! | 

a|c|d| Pacakged, Nov 1, 2008
b| - Dec. 18, 2008

1 comment:

Anonymous said...

We spend that much on beauty in a recession, that's crazy

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