Would you like some mascara with your coffee?

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. 

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)

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

http://wwd.com/beauty-industry-news/color-cosmetics/7-eleven-hopes-women-want-cosmetics-11054772/

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

"Brandless" may succeed, but brands are here to stay.

Last month a new online retailer named "Brandless" was launched.  Its concept is similar to that of the Dollar Shave Club.  Everything on the site is $3.00.  Kind of like the Dollar Stores, but 3x as much.  Still a significant savings over the prices that people typically pay for branded items. (Gilbertsen, 2017)

So the question is - why do people pay more for brand names?

The answer is that all decisions are emotional.  And we bond with brands the same way that we bond with people.  So we are willing to pay a bit more for the detergent that our moms used because the scent brings back good memories of our childhood. (Murray, 2013)

On the other hand, private label product sales increased 24.6% from 2009- 2014 (Blair, 2016), and many Millennials are strapped for cash.  They have also shown a propensity for buying everything online, so "Brandless" may be their cup of tea.  But I don't see them giving up all their brand names - just look at their love for Apple.

Gilbertsen, C. (2017, August 3)  Is The Future Brandless?  mediapost.com.  Retrieved August 4, 2017, from

https://www.mediapost.com/publications/article/305242/is-the-future-brandless.html?utm_source=newsletter&utm_medium=email&utm_content=headline&utm_campaign=104498&hashid=qPjrjs2d4CzuoIyymSYheeVOsxs

Murray, P. (2013, February 26)  How Emotions Influence What We Buy.  psychologytoday.com.  Retrieved August 4, 2017, from

https://www.psychologytoday.com/blog/inside-the-consumer-mind/201302/how-emotions-influence-what-we-buy

Blair, W. (2016, December 8) Private Label Growth Trends Drive Increased M&A Interest.  williamblair.com.  Retrieved August 4, 2017, from

https://www.williamblair.com/News-Items/2016/December/08/Private-Label-Growth-Trends-Drive-Increased-MA-Interest.aspx