Mastering The Makeup Game Cosmetics Sell Even When Retail Business Is Weak

Jessica Brown held back in the shoe department at Bloomingdale’s and she didn’t let herself go in the sportswear section either.

“Those slingbacks, I loved them, but not for $88, and I saw a few shirts, but made it out without buying a thing,” the 29-year-old accountant said.

But her resistance crumbled at the M.A.C. makeup counter, where she couldn’t help buying a new brown lipstick, and then the matching lip pencil, and some pressed face powder and - why not? - a new eyeliner.

Fifty dollars poorer, Brown joined the millions of consumers who have helped the cosmetics industry withstand the economy’s ups and downs and even flourish when other retail segments were struggling.

“When you want to spend money on something that gives you pleasure, it’s an inexpensive way to do something special for yourself,” said Edie Weiner, president of Weiner, Edrich, Brown Inc., a New York-based trend watcher.

Worries over the economy made many consumers cautious when it came to shopping in stores and malls the past few years. Apparel stores were particularly hurt, with many of the nation’s largest retail chains reporting bleak sales figures for 1995. Sales have only recently started to revive at some retailers.

But as many people shied away from buying that new sweater or pair of pants, they still spent money - and lots of it - on cosmetics.

“When someone’s uneasy or blue, they won’t buy a new dress, but will buy a new lipstick,” said Leonard Lauder, chief executive of Estee Lauder, which produces the Clinique, M.A.C., Origins, Prescriptives and Estee Lauder brands.

Combined, department store outlets, mass merchandisers and direct sellers saw cosmetics sales grow 7 percent last year, said Allan Mottus, publisher of the Informationist, a New York-based health care and beauty trade journal.

Much of the industry’s growth in recent years came from a barrage of new products such as long-lasting and anti-aging makeup and creams.

“We’ve started offering products that do work. We’re offering results instead of hype,” said Curran Dandurand, executive vice president for Dallas-based Mary Kay Inc., which had record sales of $950 million in 1995. “These products are relevant to a woman’s lifestyle.”

Smudge-proof makeup has been one of the big hits in recent years. What started with lipstick - exemplified by Cindy Crawford’s “Won’t Kiss Off” campaign for Revlon - has evolved into similar versions of eye shadows, blushes and mascaras.

In addition, new anti-aging makeup and creams designed to cover wrinkles have been embraced with great enthusiasm, especially from Baby Boomers who are seeing signs of middle age in the mirror.

Many of these products are made with alpha-hydroxy acid, which exfoliates, or gently scrubs, the skin, allowing it to have a smooth appearance.

“In apparel, there has been very little new in the last few years,” said Jerry Levin, chairman and CEO of Revlon, which saw its sales balloon nearly 12 percent to $1.94 billion in 1995. “But we have put a whole new technology in the market … giving reason for the consumer to come to the shelves.”

Of course, buying cosmetics isn’t a new phenomenon. For years, women have spent on everything from blue eye shadows to sexy scents. But the market is changing.

The growing presence of women in the workplace has had a major impact, creating demand for easy-to-use, long-lasting products for customers who can’t keep primping and reapplying. And with more women pulling in a paycheck, there’s more money to spend on cosmetics.

“We believe as women go forward they have less and less time, but beauty is something they are looking for,” said Andrea Jung, president of marketing at Avon Products Inc., where sales improved 5 percent to $4.49 billion in 1995.

Men are also showing a growing interest in cosmetics - buying creams, fragrances and even makeup products like tanning lotions and pressed powders.

Cosmetics manufacturers have always been big advertisers, grabbing the front pages of magazines and buying time on TV. But to capture a bigger market share now, they’ve become even more aggressive.

Last year, Revlon hiked its advertising budget by 23 percent, while Avon spent nearly 24 percent more on marketing.

“A lot of (the industry’s) marketing is about image,” said Laura Ries, vice president at Ries & Ries marketing consultants in Greck Neck, N.Y. “They want the consumer to feel a certain way when using it, and that fuels a lot of purchasing.”

In the past, consumers were loyal to one or two brands for their cosmetics. But now they are more inclined to buy from an array of lines, swayed by ads and by product giveaways that many big manufacturers frequently offer in department stores.

That has pitted the different segments of the industry against one another. Department store outlets now are up against mass merchandisers, which sell their products through discounters, supermarkets and drug stores, and direct sellers like Avon, which use independent sales people to solicit customers.

One of the factors behind Sears, Roebuck and Co.’s revitalization has been the introduction of cosmetics counters in some of its stores.

“You see women buying their mascara when they do grocery shopping, blush at the department store,” Mary Kay’s Dandurand said. “Women like to experiment. Try a new shade. Try a new segment.”

Wall Street has taken notice of the cosmetics industry’s strength. Estee Lauder and Revlon were both warmly greeted when they sold stock for the first time during the last year. Other cosmetics stocks have remained steady despite some weakness in the overall stock market this spring.

Analysts attribute the investor interest to the reputable global brand names of cosmetics makers and the stability within the industry.

Back at the cosmetics department at Bloomingdale’s, it looked like Christmas time as shoppers crowded to stock up on some of the new summer fads.

Wallets opened for shimmering pink nail polishes, glistening blushes, frosty eye shadows - “The silvery things are so in,” gasped one woman at Chanel.

Others were more interested in the summer staples like moisturizers, sun block and self-tanners.

Deb Simon of New York spent $40 in one pop on cream and lipstick at the Clinique counter. “I needed that stuff,” she said.

“Well, maybe need is stretching it.”

Graphic: Makeup sales