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Beauty brands pushed out of market, says report
Science and organic brands have displaced more traditional beauty brands in the US spa market, accounting for almost all sales, claims a new study by Diagonal Reports.
The failure of established cosmetic brands to develop suitable spa-specific lines has left a gap in the market, which has been filled by results-driven science brands and organic, green or natural product lines, according to the authors of the US Spa Market 2010 report.
The report - based on interviews with spa managers and experts in March and April 2010 - also found that customers were increasingly choosing basic over luxury services, with massage and facials generating more than half of all spa revenues. Meanwhile, demand for expensive treatments collapsed in 2008, with no significant upturn in spa spending expected until at least 2011.
But while many described 2009 as very challenging, some said, "the shakeout was overdue and will benefit the sector." According to the report: "Spas can no longer be viewed as a license to print money... businesses must control costs and offer services clients want." Details: www.diagonalreports.com
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