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12 May

Goal to Launch First Owned Nail Polish Brand, Defy

Goal to Launch First Owned Nail Polish Brand, Defy

In a step to further distinguish its beauty assortment from competition, Goal will launch its own nail color collection called Defy & Encourage.

The Goal-owned brand, its first in nail color, also exemplifies efforts to leverage the synergies in two of Goal’s signature categories — fashion and sweetness. Chief executive officer Brian Cornell has made it an initiative to seek out opportunities to supply high-quality reasonably priced products that may only be found at Goal. Beauty is amongst those with big potential, the chain said.

Bearing whimsical pop-culture names resembling Rose Ceremony and Real Housewife, the 38 shades, plus top and base coat, will debut in any respect 1,800 Goal stores and online on Jan. 17, retailing for $7.49 each.

“We feel we’ve a possibility to supply a high-quality, reasonably priced nail lacquer,” said Dawn Block, senior vp of beauty for Goal. Swimming against a sea of gel polish launches in addition to higher-ticket premium brands, she believes the road offers an answer for “time-starved, budget-conscious,” shoppers. “We feel that was missing from the market. We give back money and time in a fun color palette. Inside our colours, we expect there’s something for everybody.”

Market experts think the time might be right for mass merchants to mimic the success of indie nail brands resembling Butter London and Bonita, while bringing down price points at a time when branded names are boosting suggested retails beyond the $10 price point.

While Goal wouldn’t comment on projections, industry sources said Defy & Encourage, which will probably be updated seasonally, could achieve first-year sales of $10 million to $15 million.

Defy & Encourage joins a broad choice of nail lacquers at Goal including Sally Hansen, Essie and a gel-like exclusive for Goal made by Orly called Color Amp’d. Goal joins other resembling CVS which is the first seller of Spoiled, Rite Aid which is the dominant outlet for Julie G. and the private-label offers at Sephora and Ulta Beauty.

It’s the most recent of an industry barrage of proprietary cosmetics brands as chains seek to lure shoppers to their doors versus the chain down the road, while also plumping up gross margins. The margins in nail color are especially attractive — as high as 60 percent — industry sources said, with production costs low versus retail.

“It seems that national brands as we knew them are breaking down and stores are taking the initiative to introduce proprietary brands to distinguish themselves from competitors. In olden days, there was a knock against quality control and thin margins for retailer proprietary brands. Most of the quality issues have been improved by private-label corporations and the margins for retailers as large as Goal look like good,” said industry consultant Allan Mottus. Ulta Beauty and Sephora have strong private-label nail businesses, CVS is the first seller of Spoiled and Rite Aid is the foremost chain selling Julie G.

Goal is not any stranger to nurturing its own logos with strength throughout several categories resembling fashion and residential. Last yr Goal purchased the Sonia Kashuk line, credited with being one of the successful exclusive labels with estimated sales of around $75 million. The deal signified a stronger emphasis on beauty at Goal, which plans on using the Sonia Kashuk brand as a platform to develop its own internal product design and development.

Defy & Encourage will get special treatment in 1,000 doors on Goal’s newly designed end caps. Online, Goal will use the platform to inform the brand story and offer suggestions and tricks. The gathering incorporates a patented, dual polymer technology providing a long-lasting quality without lights or special top coats. The formula can also be freed from harmful chemicals resembling toluene, formaldehyde, formaldehyde resin or camphor and DBP.

The nail color category is showing signs of rebirth after two years of pale sales increases. While Nov. 1, 2015 IRI data showed nail color down 6 percent in multiunit outlets, retailers expect the category to return to black in 2016. “We’re pleased with the best way nail is acting at Goal. It’s certainly one of our top-selling categories in cosmetics. We’ve taken a step of differentiation and offer items that aren’t available in all places. We feel Defy & Encourage is just one other step forward.”

Nail color, a source accustomed to the category said, is nearly 50 percent impulse. “If Goal builds a giant display and does great ads like they’re known for, it will do well,” she said.

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