In an
attempt to capitalize on their foot traffic, 7-Eleven is rolling out an
exclusive line of cosmetics called Simply Me Beauty.
Cosmetics are a $46 billion industry so it makes sense that they want a piece of it.
Cosmetics are a $46 billion industry so it makes sense that they want a piece of it.
But
what will consumers think?
The company notes that consumers often buy makeup products on impulse. And that private labels and exclusive lines are growing faster than traditional brands. (Brookman, 2017)
The company notes that consumers often buy makeup products on impulse. And that private labels and exclusive lines are growing faster than traditional brands. (Brookman, 2017)
Jet.com
is of course another company jumping on the private label band wagon with their
Uniquely J for Millennials. They are
counting on bright packaging, BPA-free plastic and product names like
"Badass Espresso" to win over their hearts and minds. And of course it doesn't hurt that the
WalMart name is nowhere near the products, except maybe when they arrive. (Vena,
2017)
So,
based on what we have learned this term about consumer behavior, what do you
think? Why do you think private label
products are on a roll? What kinds of
items do you buy on impulse? How will consumer
perceptions of 7-Eleven impact the likelihood of people buying cosmetics there? What about Uniquely J? How important is packaging in
decision-making? Has it influenced your
purchases?
Brookman,
F. (2017, November 21) 7-Eleven Hopes
Women Want Cosmetics With Their Coffee. wwd.com. Retrieved November 22, 2017, from
Vena,
D. (2017, October 23) Jet.com Launches
Uniquely J to Target Millennials. fool.com.
Retrieved November 22, 2017, from
https://www.fool.com/investing/2017/10/23/jetcom-launches-uniquely-j-to-target-millennials.aspx
16 comments:
The purchase of private labels has become extremely popular among consumers, since 2012 there has been a up tick on these products that are not named branded. One of the reason according to an article came across was because of the economic downturn. Another reason that private labels have been on a roll is because of the fact that consumer have noticed the quality of products. There had always been the assumption that if something was expensive the quality was good. However, private labels have proven to be less expensive and are also the same, if not better quality then that of your popular name brand that you were used to buying. About 42% of Millennials also think that private labels are more innovative then those that people are used to buying.
Items that I usually buy on impulse tend to be food related. I usually take any chance I get to buy a snack especially in a place that I least expect it. At the University bookstore they now have snacks while you are walking to the check out and I have constantly found myself buying a snacks from there. In regards to 7-eleven selling cosmetics I don’t see it being successful. The reason being is that I view them as a food place and the last thing I expect to buy at a place that I’m buying food is anything for my body like cosmetics or lotion or anything along those lines. I don’t even consider 7-Eleven a pharmacy for them to have cosmetics.
Uniquely J’s decision to use new product names and bright packaging in order to target millenials is a good decision. As someone who constantly orders things online, I actually enjoy when my boxes are another color besides brown. Packaging has influenced my purchases, for example when I purchased a pair of headphones the box it was packaged in was nice and till this day I still have it in my room. When purchasing sneakers as well I have kept the sneaker boxes because of how nice they look.
The links posted below are where I found research for my comments on this article:
http://business.time.com/2012/11/01/brand-names-just-dont-mean-as-much-anymore/
https://www.mediapost.com/publications/article/244180/42-of-millennials-think-private-label-foods-are-m.html
Based on what we've touched on this semester, I am reminded of an article in our readings called "The Psychology of Decision Making." As human beings, we rely on established cognitive mechanisms to rationalize and expedite the choices we make on a daily basis. These mechanisms include a range of simplifying and confidence-sustaining mental short cuts (heuristics) that help us to make quick decisions when pausing to undertake a full analysis would be unwise. Using this rationale, it would seem that 7-11 is poised for success, however due to its brand being heavily identified with on-the-go snacks and convenience items, I can only guess that the average woman would not organically think of 7-11 to make such a purchase.
Uniquely J will do well because they have brand cohesion with Jet.com, a factor I don't see in a product called "Simply Me Beauty" coming from a brand like 7-11.
Private label brands enjoy success among Millennial consumers because of their counter-culture feel and that they often appear to be craft made and less glossy/commercial than established market leaders.
Packaging counts, as visual stimulation in several areas of our brain can be a trigger to galvanize interest and move towards a final purchase. In the aforementioned article, we learned of 'post-decision evaluation.' This psychological perspective sees people as driven to achieve cognitive mastery of their environment. Packaging that affirms our purchase decision removes doubt that we've made the right choice.
I'm often spurred to purchase electronics and Blu-Rays on impulse when in a store like Best Buy. If the packaging of the item is well designed I may buy the Blu-Ray, even if the movie itself is a stinker.
Actually I didn’t know that 7-eleven comes out a makeup line called Simply Me Beauty until I read this article. At first, I was surprised that 7-eleven enters cosmetics market. They are famous for junk food, sandwiches or soda. Their Simply Me Beauty makeup line actually catch my eyes. I would like to buy it because it’s cheap but also have good quality. Privates labels become more and more popular. People willing to spend money on private label item because has a lower-cost but the same quality of that merchandise.
For me, I will buy makeup merchandise on impulse. I like makeup and also watching makeup tutorial video on YouTube. After makeup master recommend makeup-related merchandise on their channel, I will definitely buy it. Besides, I go to Sephora once a week. Every time I stay in Sephora store, looking around all the makeup brands, I will buy some makeup even I don’t need it. Sometimes, when I go to Target to buy groceries, I will check out the makeup counter.
Actually, I don’t think 7-eleven comes out the Simply Me Beauty is a good idea. 7-eleven is convenient store, everything in this store is not expensive. People will think makeup from 7-elevn is also a low quality with low price one. At lease I do think so. Consumer willing to spend more money on their face, I think most consumer think quality more over the price for their makeup.
Packing is an important reason for millenials to purchase. Online media is so popular right now, millenials will like to purchase good packing staff and take pictures then post on Instagram or Facebook. I think that’s kind of consumer behavior that people wants to be unique.
Name : Jinjin Lu
Why do you think private label products are on a roll?
I think private label products are getting popular because millennials have more disposable income. Even though millennials are earning more they still don’t earn enough to buy big brand name products. According to Forbes millennials are still on a budget and they are looking for quality and cheaper products. According to another Forbes article millennials buying private label brands because they believe it is better quality than brand name products.
What kinds of items do you buy on impulse?
I usually buy nutrition bars on impulse, these snack bars are usually strategically placed next to the check-out counter and I find myself picking them up even if I didn’t intend to buy any before I entered the store.
How will consumer perceptions of 7-Eleven impact the likelihood of people buying cosmetics there?
I’m not a 7-Eleven shopper, but I think some people view 7-Eleven as a mini Walgreens or Duane Reads. So, I see the possibility that people would actually buy cosmetics there. However, I think 7-Eleven should not advertise Simply Me Beauty as their own brand. I just don’t see people getting excited about a cosmetic product, which was made by the same company that sells the grossest hotdogs, pizzas and the BIG GULP
How important is packaging in decision-making?
I think packaging is one of the most important part of marketing (B2C) especially in the retail environment. The consumers first impression is depending on the packaging. If it doesn’t look and feel right, the costumer might not even take a closer look at the product. In my experience, you can wrap the same product in different colors and you would attract a different crowd. When I was working with a nutrition supplement company, we actually redesigned the packaging of the product to attract a new target audience and it work. (The product stayed exactly the same)
Has it influenced your purchases?
Packaging actually influences me a lot in my purchases, I’m more likely to buy products with aesthetic packaging. I feel like the packaging (colors, images, font, material choices) tell a lot about the company that sells it. If they didn’t make enough effort to perfect the packaging how I can be sure they did a good job developing the product.
Adam Nagy
References:
https://www.forbes.com/sites/pamdanziger/2017/07/28/growth-in-store-brands-and-private-label-its-not-about-price-but-experience/#6a02f362505f
https://www.forbes.com/sites/onmarketing/2014/07/21/no-longer-uncool-millennials-love-store-brands/#7125b3b33eab
https://www.forbes.com/sites/pamdanziger/2017/07/28/growth-in-store-brands-and-private-label-its-not-about-price-but-experience/#6a02f362505f
https://www.7-eleven.com
Private Labeling has created an advantage for retailers over production and pricing because they have preference on shelve space and they can determine the production cost to deliver higher profitability. On the costumers side private label has shown to be continuously increasing. As a forbes article mentioned, “The nation’s grocery chains have caught on and understand the value that their private label brands add to their bottom line and their shoppers’ satisfaction.” (Danziger,2017).For that reason, to compete in the market they have improved the quality and the presentation of private level products.
For me packaging is everything. I realized that I apply Cialdini’s principal of liking because I base my purchase decision on whether it looks nice. The presentation gives me a status. I believe that the presentation of the packaging could help the 7 eleven private labeling. Yet, I am not entirely sure it will position the product as fair priced, rather than cheap because of where it will be advertised.
I believe impulse purchases are made when we are placed into a highly emotional situation. Whenever I am hungry and I make the wrong decision to go to the supermarket I may be more likely to make the impulsive decision to purchase something unhealthy that will satiate my appetite. I am more incline to fall for the candy at the checkout counter. In phsychology today I found a study that said that “Impulse buying is related to anxietyand unhappiness,” and that traits are what define this impulsive action. The personality type that I would classify an impulsive buyer would be ESFJ-T. The personality is turbulent and highly emotional for that reason it is more likely to make purchase decisions base don his physical appearance and social status. However, I am not quite sure how 7-elev will attrack this personality type because I do not see this company fulfilling the “popularity” status.
https://www.psychologytoday.com/blog/sold/201207/what-motivates-impulse-buying
https://www.forbes.com/sites/pamdanziger/2017/07/28/growth-in-store-brands-and-private-label-its-not-about-price-but-experience/2/#6caf939c2600
Private labels are successful because consumers are always looking for ways to stretch their dollar. Retailers understand that consumers are on a tighter budget and welcome private labels product as long as that provides a similar function as the branded product.
Innovation over the past several years and the increase in quality of the private label product lines has helped these products compete against the national brand. A lot of companies have seen over the last few years that in many categories that private labels are being preferred over the national brand because of their price point and because a lot of consumers feel that the private labels are offering a similar or superior quality product.
7 eleven is making a bold move based on the data that shows that 67% of their customers are women, but I am not convinced that these customers will shop at 7 eleven for cosmetics because most people usually stop at 7 eleven either on their way out. (work, party, etc.)
It seems like even a convenience store company wants to dip in the ink of the lucrative cosmetics business. Even though the beauty line is designed to attract millennials and time-pressed women, I don’t think it even works for its target. If a woman breaks her lipstick, she might run into any store to buy another one as soon as possible because she needs it. In this case, 7-Eleven can be a choice. However, most customers don’t buy beauty products because they need them, but simply because they buy them on impulse. An eye brow pencil can be used for over three months. In this case, beauty business would go out of business if customers don’t buy a new one unless they run out of it. One of the reasons that beauty business is so lucrative is because costumers buy the products they don’t even use, or maybe just use for once or twice. The consumption of beauty products is perceived more as a self-indulgence or social experience. In other words, female customers enjoy the experience of trying different beauty products on their own or with their friends, and might purchase them after the experience triggers their impulsive drive. No matter how busy women are, they would still have time for shopping. Time-pressed women would not buy beauty products while they are on the go unless they are in need of them, but what are the odds that they will be in need of them? What’s more, drug stores provide more options and are available everywhere, what else can be a better reason for a customer to go into a 7-Eleven, a place that they won’t stay for over five minutes, to buy beauty products?
On another hand, I think Uniquely J stands a bigger chance of attracting their target market. Of course quality is the main thing that customers care about a product. If a private label product offers the same quality but costs less, it definitely wins the business in the long run. Word-of-mouth would be an effective marketing approach. The innovative packaging is a just a plus for this winning game. After all, human beings are visually appealed creatures.
Privare label:
I think private label will be on roll. According to Nelson’s private label research on 2014 in especially regions like Europe, Private labels are growing faster than traditional brands. (https://www.nielsen.com/content/dam/nielsenglobal/kr/docs/global-report/2014/Nielsen%20Global%20Private%20Label%20Report%20November%202014.pdf).
I think the lower price offered by private labels are being attracted to many consumers. What’s more, seen also from the Nelson report, private labels delivers both quality and values. 67% of consumers believe private label offers extremely good value for money and 62% say buying private label makes them feel like a smart shopper.
Also to my surprised, when I googled Private label cosmetics, a research says that many traditional brands products are actually manufactured in private label labs. Private label labs have been remain in the industry’s shadow and are recently coming to light. More and more users get to know this fact, which so what build up their confidence to private labels.
(https://fashionista.com/2017/06/private-label-beauty-products-cosmetics)
Mascara:
In regard of mascara, most women have more than 1 mascaras. According to research, a woman most purchase two to 3 times as much makeup as they use daily.
As a result, I think private label mascaras will sell.
Hi class!
There is great opportunity in the cosmetic industry, as numbers reveal that it is a whopping $46 billion-dollar industry. That said, I doubt consumers, especially Millennials, will head to 7-Eleven to purchase makeup. In my opinion, I would only ever purchase makeup at 7-Eleven if I were on-the-go, filling my gas tank, and forgot my makeup bag. And, to be honest, I would rather go without makeup than purchase it from 7-Eleven. Do you feel the same way?
It is not the fact that it is a private label and/or drug store makeup. Articles upon articles reveal the benefit, especially with regard to pricing, on drugstore makeup. See https://www.glamour.com/gallery/best-drugstore-makeup. What concerns me, however, is the fact that it is 7-Eleven. This reminds me of the Walmart conversation. Regardless of the prices of their items or the convenience of shopping there, Millennials do not want to go to Walmart. In my opinion, it will be the same for 7-Eleven.
With regard to packaging, I do not intentionally purchase items because of their packaging, but I must do so without even knowing. Inc’s article reveals that “every year, 95 percent of new products fail. The reason is simple: Most customers don't have the time or energy to weigh the advantages and disadvantages of the products in their shopping carts, so they use a shortcut to make their decision. That shortcut is your product’s packaging” (https://www.inc.com/joshua-conran/why-your-product-s-packaging-is-as-important-as-the-product-itself.html). I truly never thought of it this way until I read the article, but it makes perfect sense. No wonder packaging is so important.
Best,
Grace
Private labels are getting so popular is because the needs of people are getting more specific than before. It meets the labels' owners' specifications, at the same time, it meets customers' requirements. Millennials like to listen to other's opinions before purchasing, and they are the group like to spend money wisely. By having private labels, it helps to secure and ensure their buying decisions. Also, Millennials are very sensitive to price, by having private labels, it is easier to control the prices.
I always by on impulse, especially during the night. Earlier in this course, we talk about what impact your buying decision, and I found out that our brain and emotions have a significant impact on making decisions, especially when we are hungry, sad, and during the night. I buy cosmetics products on impulse. I have tons of eyeshadow palettes, and they are very similar because I love wine colors and brown colors. Whenever I see those two colors in some palettes, I would automatically buy them, forget about the facts that I already had a lot of them sitting in my drawer.
Having a cosmetics line in seven-eleven, I think it will work out. People always buy cosmetics at Wallgreen, and it is possible for them to move to seven-eleven, especially the prices are cheap out there. If there are some emergency situations you need to do some simple makeup, and you don't want to spend so much money, seven elven could be a new choice.
Reference:
http://upstreamcommerce.com/blog/2016/03/27/10-advantages-private-label-branding
https://www.entrepreneur.com/article/253582
I’m very surprised to hear that 7 eleven is trying to sell makeup (it sounds gross). I guess it sounds like a good idea to get into the cosmetic game since they already sell some items beauty related (I am thinking of lip balm). However, like many of my peers wrote before me, I don’t see it working out buying makeup just on the fact that in the article it states that millennials like to “try and buy”. I just cannot fathom anyone wanting to sit around 7-eleven to try on its 3-5-dollar makeup products. The only way to do so, would again be through “impulse buying” yet still, I can’t see anyone impulse buying makeup at a place where people go to get a quick snack.
However, Jets idea of targeting through millennial shoppers with packaging and private labeling, would most definitely work in my eyes. Since I am a millennial, the main thing that I impulse buy is beer, I tend to buy more specialized products otherwise known as craft beers, and I always pick the product that “catches my eye”. It just not only lets me know I’m trying something new, but also gives a feeling that this is not the same old beer that my dad drinks with the specialized packaging.
I personally wouldn’t every buy cosmetics from 7-Eleven, and I don’t see other people doing it either. I think private label products are on a roll because they are lower prices and there are more options - this is why they work for the “CVS” or drugstore shopper. Uniquely J on Jet.com is a much better idea given the jet.com shopper. Packaging is important, but not a deal-breaker for me. For example E.L.F., a new “cheap” makeup brand is very minimal in the way they package and I purchase their products quite often. In the end, when you hear 7-Eleven, you don’t think “quality.”
In my opinion, Private Label companies are doing well for a few reasons, 1) they are usually more affordable 2) consumers have more access to information and understand that often a higher price tag is not due to higher quality but instead only because of packaging and branding 3) private labels seem to be offering natural, cleaner products and banking off of health trends and consciousness of consumers.
I used to impulse buy cosmetics until I found “my” items that I am now loyal to, however, I think makeup at 7-11 is a great idea. When I was a teen in rural Pennsylvania we never had anything to do…we often found ourselves at 7-11 multiple times a day…buying snacks, gas, etc because it was open 24/7 it was our go-to store. 16 year old me would have bought all the make-up! Also, I cannot tell you how many times I traveled and forgot my makeup bag at home only to have to find a store specifically for makeup. 7-11 makeup adds convenience to that dilemma.
A consumer who buys make up at drug stores (Walgreens, CVS, RiteAid, Walmart, etc) probably would have no issue with purchasing makeup at 7-11. For me, packaging sometimes plays a role but not really. Most packaging looks the same to me, all I really care about is that the packaging won’t break or spill during travel and I think most companies are sympathetic to that.
Private label products are doing so well because of convenience. They are strategically placed for compulsive shopping and often one of those things you grab just because it’s there. I think that retailers are efficiently capitalizing on their companies ability to provide their own products rather than the brand name. Often they are slightly less expensive than the one consumers may buy and their quality displays that. As we discussed a few classes back, Duane Reade makes their own label nuts and trail mix, which is convenient and decently priced but not exactly appetizing to say the least. For food brands I think it works well, but I do not see many 20-somethings buying their cosmetic products from 7-Eleven. When it comes to cosmetics, I think people tend to use their favorite brands and are less likely to try something new without proof that it would be worth it. There are products I compulsively buy that are typically by the counter, such as candy, hand lotion, or nick nacks, but I tend to never compulsively buy beauty products. I think the consumer of 7-Eleven as an on-the-go or stop and grab type of shop will negatively affect their ability to sell cosmetics. Although people buy drugstore brands, 7-Eleven isn’t even on that level. CVS and Duane Reade have a fairly well developed beauty section, what qualifies 7-Eleven to sell me cosmetics? I also pay attention to packaging for my cosmetics. If I am in a store where I can’t try them on, the package is the only judge I have to its quality, despite the fact the quality is all relatively similar.
Not even one hour after posting this, I received an advertisement on my phone for Private label, cruelty-free, travel safe cosmetics! "stowaway"
First of all, who will buy cosmetics from 7-11? This sounds a bad idea. On the other hand private labels are becoming bigger and bigger since it's a great method to promote your own products while saving money.
I always buy some new video games on impulse,and I think people will think the cosmetics at 7-11 are some flammable cheap makeups. Uniquely J will do fine since they team up with jet.com. At last, I think packaging is so vital that you can persuade someone that don't want to buy your products, some times I even buy some ridiculous stuffs because they have some nice packaging.
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