Chains seek to strike a balance, broaden product reach

The ethnic category is perhaps now undergoing the most seismic changes it has experienced in the past 20 years.

(To view the full Category Review, click here.)



Products once associated with ethnic hair care have broadened their reach to the wide swatch of people identified with textured hair. Additionally, more women are embracing natural hair looks, as reflected by IRI data showing a 4.1% decline in hair relaxer kit sales across multi-outlets and a 7% decline in drug stores based on data for the 52-week period ended April 9.



The opportunity to better serve multicultural consumers has retailers brimming with excitement, but perplexed at the same time.



Do shoppers want the traditional cordoned off ethnic assortment? Do they want an integrated department? Or — even though it is inventory intensive — do merchants need to double up on department locations.



Even the biggest and most sophisticated merchants, such as Walmart and Walgreens, want to make sure they don’t confuse shoppers as they merchandise for the new market. Already Target has seen an uptick in creating special displays bringing together multiple products that address specific hair needs. ShopRite also saw sales of SheaMoisture soar in a new planogram.



While retailers hammer out the right solution for each operation, they agree they can’t argue with the numbers. Data from Nielsen pegs multicultural spend at least $3.4 trillion dollars in 2014.



CVS continues to curate a mix for Hispanics with its CVS Pharmacy y mas, which debuted in four stores in the greater Los Angeles market recently. There also are 12 locations in Florida. There’s bilingual signage and at least 1,500 products selected because of Hispanic loyalty. Because Hispanic shoppers tend to buy more fragrances than non-Hispanic shoppers, the stores have beefed up fragrances.



On the brand side, Milani, for example, has hit upon the secret appealing to both multicultural and millennial consumers. “Cutting-edge analytics help direct engaging point-of-purchase displays, custom in-store events, digital marketing partnerships and event marketing that are designed to drive in-store traffic and market basket,” said Rhonda Baron, VP sales and business development.



For the 52 week period ended April 9, according to Nielsen, Milani’s sales growth rate is outpacing the category by more than three times.