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Market Insight In Brief

Executive Summary

Kline study: To compensate for sluggish economy, U.S. department store retailers and brands in the U.S. are engaging customers by "marketing directly to [them] with online enticements like bonus gifts and free shipping with purchase," a study by Kline & Company finds. Market research firm identifies Lancome, Estee Lauder and Clarins as three beauty brands that have "stepped up" their marketing. Efforts to appeal directly to customers also include novel technological approaches such as interactive try-before-you-buy applications for the PC and iPhone and sampling programs with vending-machine-like mall kiosks. Kline notes that beauty marketers are under pressure to develop market-specific strategies in order to stay competitive on a global scale. For example, in Brazil, customers are drawn by direct consumer sales, while "fickle" shoppers in more mature beauty markets like the U.S. are lured in by exclusive offers and discounts
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