March 12, 2007
Is Service Coming Back in Beauty?
By Faye Brookman, special to GMDC
Retailing trends come in cycles. Years ago, the nation’s drugstores and combination food/drug chains offered trained cosmeticians in just about every store. As the move to self-service took hold, those beauty consultants became a thing of the past.
But with fewer and fewer chains for shoppers to choose from, many merchants are adding service back in as a reason to encourage shoppers to pick one drug, food or discount store over the other. The more sophisticated products available at mass as well as the growth of exclusive labels also dictate the need for trained sales help.
The most recent move is at Target where Boots, the well-known British power brand, is expanding its test of its products in the discount chain. According to Martin Waters, chief executive officer of North American operations for Boots, 260 Target stores will soon feature Boots-trained beauty advisors. This is a major development for Target, which will be one of the first discounters to have service in cosmetics.
Drug chains have been experimenting with putting service back into beauty for the past few years. CVS also has Boots-trained consultants as well as beauty experts positioned in its stores with dermatological departments selling upscale products such as Vichy and Avene. Brooks-Eckerd also has these healthy skin care departments with staffing. And, Walgreens never walked away from beauty advisors. There are more than 21,000 advisors on staff at Walgreens’ stores across the country who help match products with shoppers’ needs, according to Kathy Steirly, the divisional vice president and general merchandise manager for beauty and fashion at Walgreens.
The obvious benefits to having beauty consultants are that shoppers have someone to ask advice about colors and the new upscale skin care products sold in mass doors. Walgreens is using that to its advantage for its new European skin care collection it launched a few months ago. Too often, mass retailers lose sales to specialty stores like Sephora where shoppers feel they can get advice.
The downside is, of course, cost. Staffing the beauty department adds at least
two more people to the payroll, often sales associates who warrant slightly
higher pay than stocking clerks. Assigning them other duties, such as housekeeping
and stocking, takes them away from their real job of selling – and may not
make the position particularly attractive to the type of people a retailer
would want. Twenty years ago, beauty firms offset costs of training these associates,
but most of those programs have been eliminated. There is also the question
of whether stores are busy enough at all hours to justify the sales staffing.
But for many, the key to survival in beauty for the future will be to put back
in an expert – a counterpart to the pharmacist – at the beauty counter.
Discussion
Questions: Are beauty consultants necessary to make a mass-market retail
store’s cosmetics department achieve high sales levels? Should they work on
commission? Should they be paid additional promotion monies for pushing brands?
BrainTrust
Recent Discussions
Discussion Questions
Poll
Will in-store cosmeticians add to sales levels of Beauty and Anti Aging products through consultant advice? Absolutely. Should they earn a commission on products they convince shoppers to add to their baskets? This will help offset the cost of their compensation so the answer is…you know they will help keep retailer labor costs down. Should they earn supplier commissions by “pushing” and “endorsing” specific supplier products? We all know that will happen, and it’s unfortunate because it goes against offering the best shopper advice possible.
Shoppers want professional help and consultation, but they also want unbiased information on the best products for their individual needs. Savvy retailers will understand and control this dynamic, or the allure of the consultative specialist will lose its glamor very quickly.
Shoppers Drug Mart has 800 stores in Canada, and their commission salespeople sell fragrances and cosmetics. They sell many of the same department store brands sold by commission salespeople in USA department stores like Macy’s, Nordstrom, and Saks. The commission sales formula works because the margins make it worthwhile. If the brands were widely discounted, there’d be no money for salespeople.
Face it (oops, pardon the pun)–most of us want to look as good as we possibly can and we want to think that other people think we look good as well so having someone to show and tell us which cosmetic products are the most suitable is flattering in the extreme. Flattery will get retailers everywhere.
Health and beauty purchases are aspirational. It is extremely useful to have a professional opinion and, more importantly, a confirmation of the product value.
Service is making a comeback in retailing. Look at how many people ask the Pharmacist’s opinion about OTC products. Walgreens is now opening in-store health clinics as well as pharmacy services.
Service is an important element of retailing products where the benefit is intangible or difficult for the consumer to judge. Cosmetics fit this description.
You don’t pick trained and licensed cosmeticians/cosmetologists off a tree in the back yard. And in the years since they were commonly employed in high-end department store cosmetics departments, the requirements for certification have become more stringent. The discovery that herpes simplex was being transmitted via sampler lipsticks drove this in part, but (unreasonable) concerns about possible HIV transmission and “inappropriate touching” also fueled the changes. Requirements for cosmeticians to wear rubber gloves, for instance, is common in most states.
At some point, in-store beauty “consultants” must become “demonstrators” in order to sell high-priced skincare products. This often involves touching the customer, and there are all kinds of rules about that.
Companies like Macy’s and other high end department stores have long been staffing cosmetics counters in stores to address the beauty needs of customers. Although it may not be prudent to have half a dozen different vendors represented in separate booths like Macy’s, the idea of having the expert advice of a cosmetician or trained beauty adviser would more than pay for itself. Paying commission on cosmetics and fragrances would be a small incentive to pay for the expert advice being dispensed, and would be a worthwhile investment.
As mass retailers continue to edge up into department store territory with their prices, beauty consultants are indeed becoming more necessary. I was quite impressed a few weeks ago when a “miss” in my business travel bag sent me scurrying to Walgreen’s. The consultant there helped me cut to the chase and find exactly what I needed (a drug store version of my department store fave). I was sent to her after asking the store manager for help (he admitted he was clueless and literally ran to get her). I was out of there in a flash.
As for Boots; not a new initiative. The minute Boots went into test mode with Target over a year ago, Boots specialists were onsite in every store ensuring that every customer was greeted and walked through their more-than-extensive offerings(you knew they were there because their darling Boots-branded cars were in the parking lot!) Easy to assume that this early care and feeding sealed the deal on the recently-announced roll out (at both Target and CVS). No one told Boots to do this and I know a couple of major brand cosmetic companies that wish they had taken similar initiative rather than pinching pennies at execution time (program loss remorse).
One fact may make this a good idea and that is there is no mass market anymore. For a select target market segment, this may make a real difference and for others just a waste of time. At a higher level, the issue is how much service to offer. On one end we have department stores presenting a high service level and dollar stores at the the other end offering no services. Knowing your target customer is the deciding factor.
I wonder whether some of this can be done online and increase cost efficiency. We know from the recent Deloitte & Touche study that 63% of shoppers last holiday season did some kind of pre-shopping online.
I love the example of headsets.com. I had terrible luck with phone headsets. Then, one day, in despair, I Googled “headsets” and was directed to their site. I apathetically decided to purchase one, and wrote in the comments field that I had lots of bad headset experiences, and while I hoped this headset worked, I wasn’t very optimistic. Thirty minutes later a customer service rep called asking me detailed questions about my phone. Now, whenever I change phones, I go online to Headsets.com. But now they have live online chat. It’s great.
As I think about in-store consultants, I wonder…I love Shiseido cosmetics. I would love to go to their site and ask live-chat questions about new products. Then I would walk into the store and just make the purchase instead of talking to a consultant. Online chat has the same customer service boost, and it’s more scalable/economic.
Mass merchants venturing into higher-end rather than mass cosmetics (in the case of Target, the Boots initiative vs. mass brands they still carry) need a different business model to make it work. Beauty advisers may be part of the puzzle in order to drive higher price points, more complex skincare products, and multiple-unit transactions. Vendor support according to the traditional department store model makes it easy to fund staffing, but if mass merchants have to cover this expense themselves they need to look long and hard at the incremental payroll costs vs. the incremental sales.
Mass merchants and mid-tier retailers would be smart to ensure that their product development, packaging, marketing and fixture design can support customer self-selection of higher-end brands when there isn’t a beauty associate present. After all, mass brands like L’Oreal and Olay have had great success launching higher-ticket treatment products, and letting good marketing and location drive the business.
Given age and income trends, this is a no-brainer. For that matter, any number of channels could benefit from the service that customers want to pay for. This is all part of the shift from DIY to DIFM. Retailers who get into the game of helping consumers make more informed choices, rather than simply arraying products for them to choose amongst, will be the winners.
I feel that beauty consultants are very much back to stay. I think the key reason (along with the increasing differentiation being demanded from retailers) is the proliferation of products (and variants within the brands).
Increasingly, the “shopper” wants to have the indulgence of a shopping trip but wants to make sure that he/she maximizes what is gotten out of the trip. Getting the right product into the right hands also ensures the right product experience, something that ensures a steady business over a longer period of time.
On the issue of compensation–I am clear that there has to be a component connected to sale (commission, lot incentives). The only caveat is the QUALITY of service personnel being put into store. Mere numbers will not make the cut. The future of this strategy is to get the quality right. (Remember the erstwhile family run business’ and the involvement with the product and shopper).
As a beauty adviser for Walgreens, I think I have the answer. My company trains me in the brands we carry and we attend school annually to keep up on the trends. My customers appreciate the extra time I and others take to learn the differences between products when there so many similar ones out there. Ask any female looking for wrinkle repair and she will tell you she relies on information from the mass media. This is confusing, and it is a pleasant surprise for her that I am there to walk her through what is available and what would work best for her.
I have several customers that tell me that they are glad to have someone who is there specifically for beauty care. Walgreens has the right idea on this; low cost and someone to help you walk through the cosmetics department. Women come in with a need and I am there to make sure that need is fulfilled and that makes for a happy customer who will come back to me–and Walgreens. Education, training and having a specialized position in retail may be expensive, but in the long run it pays off in customer loyalty.
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Will in-store cosmeticians add to sales levels of Beauty and Anti Aging products through consultant advice? Absolutely. Should they earn a commission on products they convince shoppers to add to their baskets? This will help offset the cost of their compensation so the answer is…you know they will help keep retailer labor costs down. Should they earn supplier commissions by “pushing” and “endorsing” specific supplier products? We all know that will happen, and it’s unfortunate because it goes against offering the best shopper advice possible.
Shoppers want professional help and consultation, but they also want unbiased information on the best products for their individual needs. Savvy retailers will understand and control this dynamic, or the allure of the consultative specialist will lose its glamor very quickly.
Shoppers Drug Mart has 800 stores in Canada, and their commission salespeople sell fragrances and cosmetics. They sell many of the same department store brands sold by commission salespeople in USA department stores like Macy’s, Nordstrom, and Saks. The commission sales formula works because the margins make it worthwhile. If the brands were widely discounted, there’d be no money for salespeople.
Face it (oops, pardon the pun)–most of us want to look as good as we possibly can and we want to think that other people think we look good as well so having someone to show and tell us which cosmetic products are the most suitable is flattering in the extreme. Flattery will get retailers everywhere.
Health and beauty purchases are aspirational. It is extremely useful to have a professional opinion and, more importantly, a confirmation of the product value.
Service is making a comeback in retailing. Look at how many people ask the Pharmacist’s opinion about OTC products. Walgreens is now opening in-store health clinics as well as pharmacy services.
Service is an important element of retailing products where the benefit is intangible or difficult for the consumer to judge. Cosmetics fit this description.
You don’t pick trained and licensed cosmeticians/cosmetologists off a tree in the back yard. And in the years since they were commonly employed in high-end department store cosmetics departments, the requirements for certification have become more stringent. The discovery that herpes simplex was being transmitted via sampler lipsticks drove this in part, but (unreasonable) concerns about possible HIV transmission and “inappropriate touching” also fueled the changes. Requirements for cosmeticians to wear rubber gloves, for instance, is common in most states.
At some point, in-store beauty “consultants” must become “demonstrators” in order to sell high-priced skincare products. This often involves touching the customer, and there are all kinds of rules about that.
Companies like Macy’s and other high end department stores have long been staffing cosmetics counters in stores to address the beauty needs of customers. Although it may not be prudent to have half a dozen different vendors represented in separate booths like Macy’s, the idea of having the expert advice of a cosmetician or trained beauty adviser would more than pay for itself. Paying commission on cosmetics and fragrances would be a small incentive to pay for the expert advice being dispensed, and would be a worthwhile investment.
As mass retailers continue to edge up into department store territory with their prices, beauty consultants are indeed becoming more necessary. I was quite impressed a few weeks ago when a “miss” in my business travel bag sent me scurrying to Walgreen’s. The consultant there helped me cut to the chase and find exactly what I needed (a drug store version of my department store fave). I was sent to her after asking the store manager for help (he admitted he was clueless and literally ran to get her). I was out of there in a flash.
As for Boots; not a new initiative. The minute Boots went into test mode with Target over a year ago, Boots specialists were onsite in every store ensuring that every customer was greeted and walked through their more-than-extensive offerings(you knew they were there because their darling Boots-branded cars were in the parking lot!) Easy to assume that this early care and feeding sealed the deal on the recently-announced roll out (at both Target and CVS). No one told Boots to do this and I know a couple of major brand cosmetic companies that wish they had taken similar initiative rather than pinching pennies at execution time (program loss remorse).
One fact may make this a good idea and that is there is no mass market anymore. For a select target market segment, this may make a real difference and for others just a waste of time. At a higher level, the issue is how much service to offer. On one end we have department stores presenting a high service level and dollar stores at the the other end offering no services. Knowing your target customer is the deciding factor.
I wonder whether some of this can be done online and increase cost efficiency. We know from the recent Deloitte & Touche study that 63% of shoppers last holiday season did some kind of pre-shopping online.
I love the example of headsets.com. I had terrible luck with phone headsets. Then, one day, in despair, I Googled “headsets” and was directed to their site. I apathetically decided to purchase one, and wrote in the comments field that I had lots of bad headset experiences, and while I hoped this headset worked, I wasn’t very optimistic. Thirty minutes later a customer service rep called asking me detailed questions about my phone. Now, whenever I change phones, I go online to Headsets.com. But now they have live online chat. It’s great.
As I think about in-store consultants, I wonder…I love Shiseido cosmetics. I would love to go to their site and ask live-chat questions about new products. Then I would walk into the store and just make the purchase instead of talking to a consultant. Online chat has the same customer service boost, and it’s more scalable/economic.
Mass merchants venturing into higher-end rather than mass cosmetics (in the case of Target, the Boots initiative vs. mass brands they still carry) need a different business model to make it work. Beauty advisers may be part of the puzzle in order to drive higher price points, more complex skincare products, and multiple-unit transactions. Vendor support according to the traditional department store model makes it easy to fund staffing, but if mass merchants have to cover this expense themselves they need to look long and hard at the incremental payroll costs vs. the incremental sales.
Mass merchants and mid-tier retailers would be smart to ensure that their product development, packaging, marketing and fixture design can support customer self-selection of higher-end brands when there isn’t a beauty associate present. After all, mass brands like L’Oreal and Olay have had great success launching higher-ticket treatment products, and letting good marketing and location drive the business.
Given age and income trends, this is a no-brainer. For that matter, any number of channels could benefit from the service that customers want to pay for. This is all part of the shift from DIY to DIFM. Retailers who get into the game of helping consumers make more informed choices, rather than simply arraying products for them to choose amongst, will be the winners.
I feel that beauty consultants are very much back to stay. I think the key reason (along with the increasing differentiation being demanded from retailers) is the proliferation of products (and variants within the brands).
Increasingly, the “shopper” wants to have the indulgence of a shopping trip but wants to make sure that he/she maximizes what is gotten out of the trip. Getting the right product into the right hands also ensures the right product experience, something that ensures a steady business over a longer period of time.
On the issue of compensation–I am clear that there has to be a component connected to sale (commission, lot incentives). The only caveat is the QUALITY of service personnel being put into store. Mere numbers will not make the cut. The future of this strategy is to get the quality right. (Remember the erstwhile family run business’ and the involvement with the product and shopper).
As a beauty adviser for Walgreens, I think I have the answer. My company trains me in the brands we carry and we attend school annually to keep up on the trends. My customers appreciate the extra time I and others take to learn the differences between products when there so many similar ones out there. Ask any female looking for wrinkle repair and she will tell you she relies on information from the mass media. This is confusing, and it is a pleasant surprise for her that I am there to walk her through what is available and what would work best for her.
I have several customers that tell me that they are glad to have someone who is there specifically for beauty care. Walgreens has the right idea on this; low cost and someone to help you walk through the cosmetics department. Women come in with a need and I am there to make sure that need is fulfilled and that makes for a happy customer who will come back to me–and Walgreens. Education, training and having a specialized position in retail may be expensive, but in the long run it pays off in customer loyalty.