PROFESSIONAL SKIN CARE BRANDS GET BOOST FROM REALITY SHOWS, SPAS

LITTLE FALLS, NJ, July 9, 2004 – Bolstered by heightened media attention and a growing distribution in a wide variety of outlets, the U.S. market for professional skin care products continues to outperform the market for standard retail skin care products to a significant degree. A newly proposed update to a benchmark research study by Kline & Company will explore the wealth of opportunities that are still available in this thriving market sector.

THE U.S. PROFESSIONAL SKIN CARE MARKET 2003, published last year by Kline, found that sales in this segment, estimated at more than $0.5 billion at the manufacturer level, have grown nearly 10% per year over the last five years. The traditional market for facial treatments has expanded by just 5.4% during the same period.

A big reason for the growth of professional brands has been increased media exposure, especially for clinical brands marketed by dermatologists, including N.V. Perricone M.D. Cosmeceuticals and Dr. Brandt. But these products have also benefited indirectly from the reality TV craze, according to Lenka Contreras, vice president of Kline’s Consumer Products Practice.

“The recent media focus on cosmetic surgery has probably helped high-priced professional brands more than it has harmed them,” says Contreras. “Shows like ‘Extreme Makeover’ and ‘The Swan’ have sparked people’s desire to improve their physical appearance, but not everyone is willing to undergo surgery or Botox shots to do it. Compared to a painful $5,000 procedure, a $75 tube of anti-aging skin cream seems like a bargain.”

“People that do elect to get cosmetic surgery are also more likely to buy professional brands to try to maintain the effects of the procedure they’ve just spent a ton of money for,” she adds.

Over the past five years, day spas, destination spas, dermatologists, and other medical care providers have also become a highly visible force to meet and influence consumer skin care needs. These facilities provide a variety of treatments, from facials to Botox injections. A hybrid facility, the medi-spa, emerged two years ago as a venue that is physician-based but also focuses on cosmetic invasive and noninvasive skin care treatments.

“Spas and medical care providers have contributed to sales of professional brands, but there’s still a load of untapped potential for take-home sales,” Contreras says. “Considering how the number of spa locations has increased, there are definitely more possibilities for growth to exploit here.”

In addition to these outlets, professional skin care products are seeing steady growth in sales through retail stores. The 2004 update of Kline’s study will include expanded coverage of sales channels like specialty stores, department stores, and health food stores. The new edition will also include a consumer survey to determine purchasing and usage patterns.

For information on how to subscribe to either the 2003 or 2004 edition of THE U.S. PROFESSIONAL SKIN CARE MARKET, go to www.klinegroup.com/y562.htm or contact at (973) 435-3407. Potential subscribers based in Europe should contact at +32-2 776 0738.

Established in 1959, Kline & Company (www.klinegroup.com) is a business consulting and market research firm serving clients worldwide in the cosmetics and toiletries, household cleaning products, and other consumer products sectors.