D|rect Market|ng In Cosmet|c Industry

Lverybody wanLs Lo feel beauLlful buL wlLh Lhousands of cosmeLlcs producLs on Lhe markeL Loday
shopplng for makeup can be daunLlng for consumers CosmeLlcs markeLers are hoplng Lo lncrease
producL sales and loyalLy by helplng consumers flnd Lhe rlghL producL Lo flL wlLh Lhelr look and Lhelr ldea
of beauLy And Lhese days Lhe llnes beLween Lhe dlglLal and lnsLore experlence are blurrlng

CosmeLlcs companles now glve consumers Lhe Lools Lo creaLe looks LhaL Lhey llke and Lo navlgaLe Lhe
avallable producLs Some have creaLed onllne slLes where consumers can deflne Lhelr colorlng and skln
Lypes whlch ls maLched up wlLh Lhelr deslred looks and Lhe producLs offered

lf you walk lnLo Lhe WalMarLs of Lhe world where many of Lhese producLs are Lyplcally sold Lhe
selecLlon of producL ls very confuslng Lo Lhe consumer" says 8arry Wacksman Lv and chlef growLh
offlcer aL 8/CA We flnd a loL of success ln offerlng consumers dlagnosLlc Lools onllne Lo flnd ouL whaL
Lhelr dream look would be"

Cnllne lnLeracLlon ls Lhe new deparLmenL sLore makeup counLer

1hls klnd of dlglLal lnLeracLlon harkens back Lo Lhe deparLmenL sLore makeup counLer whlch ls
LradlLlonally a soclal experlence 1hls reLall model cenLers on a salesperson LhaL shows colors
recommends producLs and glves Lhe consumer a fun experlence of beauLy So Lhls experlence naLurally
ls belng LranslaLed onllne and lnLo soclal neLworks

1he makeup counLer ls an experlence and consulLanLs who are golng onllne have Lo brlng Lhls
experlence onllne ln order Lo connecL wlLh Lhe consumer" says Marlene Lskln consulLanL and owner of
CosmeLlclndusLrycom 1hey have Lo be helpful and knowledgeable abouL Lhe producL lL also helps lf
Lhere ls a value offerlng such as a glfL wlLh purchase llke you would geL ln a sLore"

lacebook ?ou1ube MySpace and even 1wlLLer have all provlded plaLforms for cosmeLlcs companles Lo
reach Lhelr audlences soclally ln Lhe dlglLal world ?ou1ube glves brands Lhe ablllLy Lo showcase producLs
Lhrough vldeos and lacebook offers a way Lo neLwork wlLh loyallsLs 8uL Lo make Lhese soclal channels
work lL ls all abouL exLendlng Lhe offllne cosmeLlcs experlence Lo Lhe onllne world

Some cosmeLlcs manufacLurers are LesLlng vlrLual worlds where consumers can soclallze abouL makeup
1he vlrLual world leLs women creaLe avaLars based on real phoLos and Lry ouL dlfferenL producLs
vlrLually 1he producLs Lhen show up for sale and can be added Lo a shopplng carL

WlLh Lhe advenL of soclal neLworks onllne beauLy markeLers are lnvesLlgaLlng Lhe value ln creaLlng an
lnLeracLlve shopplng experlence LhaL would lnvlLe Lhelr communlLy of users Lo lnLeracL onllne" says
Marlan SabeLy presldenL and CLC of dlglLal markeLlng servlces flrm WyndsLorm 1hrough Lhls
experlence you can even Lle ln Lhe role of Lhe sales consulLanL who can be alerLed when a cusLomer ls
ln Lhe vlrLual world"

MarkeLers musL work Lo make producLs look Lrue Lo llfe onllne

Cne of Lhe challenges wlLh Lrylng Lo sell makeup onllne ls LhaL cosmeLlcs ofLen requlre color selecLlons
and producL cholces LhaL work wlLh speclflc LrueLollfe skln Lones 1o accommodaLe Lhese lssues SabeLy
recommends uslng good quallLy phoLography and creaLlng a wellrendered avaLar Lo show whaL Lhe
makeup wlll really look llke

?ou wanL Lo creaLe an experlence for a consumer where Lhey can vlsuallze Lhemselves ln Lhe makeup
where Lhey have a personal vlslon of walklng around ln lL" adds SabeLy

1o push cosmeLlcs onllne successfully Lhere also has Lo be a value offer someLhlng useful Lo Lhe
consumer says Wacksman lLs abouL belng helpful and abouL uLlllLy" he adds lL ls abouL belng a
parLner and belng useful eople onllne have a cholce wheLher Lo engage or noL lLs noL llke
lnLerrupLlve adverLlng messaglng on 1v so you have Lo offer someLhlng valuable Lo geL Lhem Lo
engage"

unllke some lndusLrles Lhe cosmeLlcs secLor ls noL dolng Loo badly ln Lhe LlghL economy ln facL
accordlng Lo Lhe uS ueparLmenL of Commerces uecember 2009 sales flgures Lhe personal care
caLegory saw growLh even Lhough overall reLall Lrade sales fell by 27 Ad[usLed sales for Lhe personal
care and healLhcare caLegory durlng uecember were $21 bllllon a rlse of 363 from Lhe same perlod ln
2007

A cosmeLlc purchase ls a lowcosL lndulgence even durlng a recesslon buL ln recesslonary Llmes people
do Lrade down Lo Lhe lowercosL brands" Wacksman polnLs ouL

lor example as consumers LlghLen up Lhelr walleLs more women Lurn Lo drugsLore cosmeLlcs over
deparLmenL sLore cosmeLlcs says Lskln 1he key Lhlng LhaL ls golng Lo sell rlghL now ls value" he
explalns 1he deparLmenL sLore llnes are beglnnlng Lo feel Lhe pressure and women are Lurnlng back Lo
baslcs and looklng aL Lhe drug sLore llnes for deals"

urug sLore brands such as LCreal and nlvea do well ln Lhese klnds of markeLs he adds because Lhey
offer good producLs aL a good value

More cosmeLlcs markeLers uslng backLobaslcs approach

1hls backLobaslcs approach ls comlng Lhrough ln messaglng Lskln conLlnues 1he lndusLry he says ls
Lurnlng away from uslng Lechnlcal and sclenLlflc lnformaLlon ln Lhelr messaglng Lowards a more clear
descrlpLlon of whaL Lhe producL does

?ou wanL Lo offer a producL LhaL a consumer can undersLand" he says 1he companles have goLLen
very Lechnlcal and sclenLlflc ln Lhelr descrlpLlon of Lhe producLs 8uL someLlmes Loo much lnformaLlon
can be confuslng l Lhlnk cosmeLlcs companles need Lo geL back Lo baslcs abouL Lhe messaglng and keep
lL slmple Lo compeLe ln Lhls LlghL markeLplace"

Whlle consumers are sLlll wllllng Lo spend on cosmeLlcs beauLy markeLers are Lasked wlLh provldlng a
useful exchange wlLh consumers lf Lhey are golng Lo sell producLs 8e lL lnsLore or dlglLal cusLomer
servlce and added value are Lhe keys Lo maklng lL beauLlful

We wanL Lo be helpful and Lry Lo be Lhe cusLomers frlend and help Lhem flgure ouL whaL ls golng Lo
make Lhem look beauLlful" says Wacksman lL ls noL abouL dumplng messages abouL producLs aL Lhem
1here has Lo be a value exchange