Marketers Scratch Their Heads as Nail-Product Category Goes Bust
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Nail products were the big hit of beauty in recent years, with stunning growth of more than 20% in both 2011 and 2012. But the surge has suddenly come to a halt, hurting results for the whole beauty business.
“The overall nail category can’t sustain the accelerated growth it enjoyed in the recent past,” said Coty CEO Michele Scannavini on an October earnings call. He cited a 4% decline in the category in the third quarter compared with a 21% increase in the same quarter last year.
Coty, the biggest nail-cosmetics player, wasn’t alone. L’Oral and Revlon got chipped in the crash, which appears to have intensified in October and November, when nail-polish sales fell 10% and 13% for the four weeks ended Oct. 26 and Nov. 23, respectively, according to Nielsen data from Deutsche Bank. Category sales were $814 million for the 52 weeks ended Nov. 23.
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