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The U.S. Hispanic Beauty Market

OPI, for example, launched its Mexico Collection of nail and lip shades last spring. “We were inspired by the gorgeous hues seen in daily Mexican life—the hand-painted tiles with touches of cobalt, the brightly colored doorways, the muted shades of sun-baked pottery, the vivid embroidered blouses, the bold red chilis,” says Suzi Weiss-Fischman, executive vice president and artistic director. The line was marketed to the general public, but received a good response from Latinas, according to the company. Room for Niche Brands Although global brands have a big opportunity among Hispanic consumers, there is a smaller, but healthy market of ethnic-specific brands. While general-use health and beauty products purchased by ethnic consumers are valued at $6 billion, ethnic-specific health and beauty brands still have an estimated value of only $1.5 billion, states Chicago-based Euromonitor International in a 2005 report called Changing Ethnic Mix: Impact of Immigration and Ethnicity on Consumer Market Demand to 2010. Ethnic-specific brands are clearly the underdogs in the race for the ethnic consumer, but they do serve value, especially in certain beauty segments. “Hair and skin care are the cosmetics and toiletries that are most relevant to ethnic consumers and offer the greatest potential for niche product development, due to physiological differences between races,” states the report. Activate Beauty, for example, is a hair care brand that was launched by a group of Latinas for Latina women. “We launched with seven products that address the different hair types that Latina women have. Typically, we have thick, coarse hair that is drier and more difficult to manage,” says Jacqueline Chariff, president and chief executive. Ouidad for curly hair is popular with Latinas. While not exclusive to the Hispanic market, the company now advertises in Latina magazines using Latina models. The products are distributed at mass-market chains such as Rite Aid and Walgreens in high-Hispanic areas. With targeted grassroots marketing and partnerships with magazines such as Cosmopolitan en Español, the young company has realized a number of successes and its distribution continues to grow. Other brands have found that their niche is especially attractive to Hispanics. Ouidad is not an ethnic-specific hair care brand, but its focus on curly hair makes it a favorite with Latina women—an ethnic group that frequently has wavy or curly hair, says the company. The brand has taken out ads in Latina magazines in the past and currently features two Latina models in its advertising campaigns