According to market analyst Euromonitor the much-anticipated backlash against the segmentation trend, which has dominated the cosmetics and toiletries industry, is set to take hold, with simple products that have a no-frills concept gaining in popularity.
The company's 2007 Cosmetics and Toiletries Global Report claims that consumers are more willing to shop around for beauty products such as lipsticks and eye shadows, therefore hygiene essentials, such as soap and toothpaste, will be the first products to forge ahead in segmentation change.
Manufacturers are expected to adapt the basic toiletry lines into brands that are simple yet trusted by consumers, who have become 'overwhelmed' by too much choice in the market.
The backlash against micro-segmentation in cosmetics has been heralded for some time in the US, with many consumers no longer opting for products aimed at specific age groups, gender-specific, or hair type and color - categories that have weighed down store shelves with a range of products offering 'unique selling points'.
Indeed, women are being encouraged to streamline their beauty regime, with dermatologists promoting a three-step facial routine arguing that a good cleanser and moisturisor is all that is needed for healthy skin, and with sales of toners declining in the US since 2000, it seems consumers are paying attention.
Many manufacturers have already played this move to their advantage with leading cosmetics giants such as L'Oreal launching the Biotherm Healthy Difference facial moisurisor, which is branded as having none of the added extras of products tapping into segmentation.
However, Euromonitor has suggested that due to the micro-segmentation trend proving so successful in the past, many manufacturers are wary of steering away from it. Instead adjusting strategies to tap into 'physcographic' segments rather than the worn out age group or gender trends.
Consumers are increasingly associating themselves less with their associated gender and age groups, and are now relating more to people who lead similar lifestyles to themselves.
Euromonitor has predicted that lifestyle trends set to do well in product development include 'retreat', 'escape' and 'indulge' - the first referring predominately to the booming healthy and wellness trend that is dominating the cosmetics industry at present.
This group would be most pertinent to natural and organic products, while the 'escape' trend is set to target consumers who are seeking 'nostalgic' brands that provoke memories of 'innocent times', in turn buying into vintage and home-grown brands.
Finally, the 'indulge' branding will entice consumers who buy into luxury and premium products that portray the image of exclusivity.
Despite the structure of the cosmetics industry being set for a shake up, the future looks bright, with Euromonitor's global report predicting a growth rate of 16 per cent from 2006 -2011.
Even markets with more stagnant sales growth rates, such as the US and Western Europe, are predicted to deliver gains, while greater dynamism is anticipated following the rise of the emerging markets, including the Middle East.



