November 17, 2016 15:43 ET

Unilever and CVS Pharmacy Bridge Beauty Care, Health Care and Self-Care, Educating Consumers and Increasing Sales

Millennials and GenXers driving the beauty industry

COLORADO SPRINGS, CO--(Marketwired - November 17, 2016) - Global Market Development Center's (GMDC) latest Health & Wellness Best Practices whitepaper, "Retail Partnering to Serve the Beauty Shopper," explores how the Unilever and CVS Pharmacy companies connected beauty care, health care and self-care in the skin care aisle -- reinforcing the rapidly changing trends in the marketplace. Engaged consumers, strong sales and distinguished recognition were the results of the pioneering campaign.

In 2014, having realized their goals and values were aligned, Unilever and CVS Pharmacy partnered and created a platform that combined their skin care brands and skin health consumer education.

The outcome was Love Your Skin, a campaign that consisted of special offers available exclusively through CVS Pharmacy for different SKUs of three Unilever brands - Dove, Vaseline and Simple. The combination of product offers with non-branded content on skin care and health provided by Dr. Mona Gohara -- a well-known, highly respected, board-certified dermatologist -- made the campaign the first of its kind. At the time, no major manufacturers were providing comprehensive skin health information to consumers.

Both companies recognized the opportunity that was set before them - according to the GMDC/Nielsen HBW Hierarchy, beauty sales across all outlets totaled $16.52 billion, an increase of 1.5 percent year-over-year while it's projected that the beauty industry will grow through 2020 at an annual rate of two to three percent.

"The skin care category is an important business for both food and drug retailers, playing a key role in beauty care and over-the-counter health care," said GMDC's President/CEO Patrick Spear. "At the same time, growing numbers of consumers seek information about the ingredients and efficacy of the personal care products they use. Together, those trends encouraged a new kind of retailer-suppler partnership, one that demanded innovative departures from tried-and-true."

"For a manufacturer to take on the role of content provider and invest dollars in creating brand-agnostic health information, and then making it available to a retailer who provides that content to the shopper is very exciting, I think," said Andrea McGovern Galo, the manager of skin shopper marketing, drug channel at Unilever.

The fastest growing segments driving the beauty industry are the Millennial and Generation Xers. Nielsen has found that Millennial households spent $461 million on beauty products in a 12 month period, while Generation X households spent $337 million in the same period. In addition, Hispanics are also playing a larger role in the beauty industry, accounting for about 16 percent of total hair care sales, 14 percent of fragrance sales and 13 percent of cosmetics sales.

According to Cory Fraehsdorf, shopper marketing, drug channel at Unilever, an important factor underlying the success of Love Your Skin was the tremendous extent of customer research, which involved Kantar, a market research firm that surveyed CVS Pharmacy skin care shoppers about their attitudes toward their skin.

"What emerged from the survey is that there are two distinct groups who shop skin care at CVS Pharmacy," said McGovern Galo. "One is very involved in the category, uses very advanced regimens and is willing to try the latest products, including high-end items. At the other end of the spectrum is a group who uses a limited regimen and much more basic products."

These insights, along with data from the CVS Pharmacy ExtraCare loyalty program, provided Unilever with consumer-based information used to create personalized, relevant offers to CVS Pharmacy skin care customers.

From the CVS Pharmacy perspective, the program's success and the experience that led to it yielded additional wins that went beyond the numbers. "It required a deeper understanding of our customers' needs, an appreciation of our individual company strengths, and different ways of thinking and working together in both of our organizations to achieve our shared ambitious goals," said Maly Bernstein, a divisional merchandise manager at CVS Pharmacy.

Access the white paper here:

About GMDC

Global Market Development Center (GMDC) energizes members and the marketplace by advancing a culture of Connect-Collaborate-Create-Commerce. As the leading GM and HBW trade association, GMDC is dedicated to serving its ecosystem of more than 600 General Merchandise and Health Beauty Wellness retailers, wholesalers, suppliers and service/solution member companies by enabling consumer-facing innovation and retail reimagined. GMDC's combined member volume represents more than 125,000 retail outlets and more than $500 billion in sales. To learn more, visit

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