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Micro-Segmentation: The Future of Cosmetics

With increasing demand and the drive to continue bringing new and innovative products to consumers, manufacturers are paying attention to micro-segmentation. So what does micro-segmentation refer to in the cosmetic industry? It’s the process of creating products that serve more than one purpose.

 

The first cosmetic and toiletries sector to utilize the concept of micro-segmentation in manufacturing and marketing their products was the hair care market. Today micro-segmentation is one of the newest buzzwords in the beauty industry. The move towards this is a result of manufacturers wanting to beat the competition at meeting consumers’ demands for better products. Consumers being better informed about what they want are demanding products that can combat a range of skin or beauty problems in one application. Manufacturers are responding to this demand and hence the growth of micro-segmentation. According to Diana Dodson, Euromonitor analyst, " Cosmetic companies use segmentation as a way of differentiating their products from competitors and at the same time adding value to them by offering something more".

Micro-segmentation has resulted in a number of cosmetic and toiletry items utilizing gimmicks to differentiate themselves from the competition. Some fragrance manufacturers are now including anti-aging ingredients in their products as well as using scents that have aromatherapy benefits. Givaudan is one such company; the company’s website refers to Givaudan has having “the vision to be the Essential Source of Sensory Innovation for customers”.  

 

Eco Lips Energy prides itself on developing an innovative product that does a number of different things for the wearer. It is a lip balm made with an infusion of caffeine, green tea and vitamin B12 to give the user an energy boost, while also moisturizing and healing the lips.

 

According to market research company, Mintel, consumers are demanding that deodorants do more than prevent sweating.   Manufacturers have listened and many deodorants now offer skin care benefits or have properties that help prevent or slow underarm hair growth.

 

One of the biggest trends in the micro-segmentation drive is the addition of active ingredients with anti-aging properties. This is meant to cater to the ever-increasing market for products to counter the effects of aging.

 

Others in the industry are also taking note of the move towards micro-segmentation and are not so sure this trend will last. Some experts believe that a trend is growing towards simplifying skin care, and this will result in a backlash against micro-segmentation. Industry market research company, Euromonitor believes that the proliferation of multipurpose products is proving to be confusing to consumers and they will revert to buying and using basic items. The Euromonitor report states that some dermatologists in order to help their patients are recommending that they use three basic products. These are a cleanser, a moisturizer and sunscreen, and if necessary something for anti-aging or spots.

 

Whether or not this trend is just a passing phase or will last is uncertain, for now manufacturers continue to cater to the needs of consumers and create products that they need. The numerous researches and surveys being done by cosmetic manufacturers and market research companies will continue to provide information on what consumers are looking for in skin care and toiletries, and for now its multipurpose products.

 



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