NEWS — FEBRUARY 2, 2004
CONSUMER-DRIVEN HEALTH SERVICES
Beauty & Skin Care... L'Oreal (Paris, France) reported slightly lower sales of approximately $17.5 billion for 2003, which represents a 1.8% decline from 2002 volumes. Eliminating the impact of acquisitions, currency fluctuations, and divestments resulted in a 7.1% increase in "underlying sales" of well-known branded product lines such as Biotherm (skin care), Lancome (cosmetics), Maybelline (cosmetics), and L'Oreal (hair care).
In an effort to make further gains into China market, L'Oreal has acquired Yue-Sai, a company that specializes in fragrances and make-up that address the needs of Chinese consumers. Yue-Sai achieved sales worth approximately $48.0 million in 2003, and demand for cosmetics in China is estimated to be growing 30% annually. Distribution of Yue-Sai makeup is extensive, with placement in 800 department stores. In 2003, L'Oreal sales in China reached approximately $200 million, with a 69% increase over 2002 levels.
Another competitor in the beauty care segment, Procter & Gamble Company (Cincinnati OH) reported second quarter 2003 net sales of approximately $13.2 billion, demonstrating underlying sales that increased 6% (using the same criteria shown above). Strong gains were made by the Herbal Essences (hair care), Olay (skin care), and Pantene (hair care) branded product lines. Hair care gains were boosted by acquisition of Wella AG (Germany) in September 2003.
Cardiac Scanning... In late January, San Francisco Cardiac Center (San Francisco CA) was opened to provide consumers with preventive imaging services. A multi-slice computed tomography system is used for bone density, brain, full body, heart, and lung scanning, as well as virtual colon screening. The goal is to address ongoing demand for consumer-driven services and "mainstream, physician-referred procedures".
Diabetes... Used in conjunction with diet and exercise, recently reported research indicates that Xenical (orlistat) can help obese individuals reduce development of Type 2 diabetes. The study involved 3,305 subjects who were obese and had normal or impaired glucose tolerance. Approximately half were given orlistat to use three times daily, and 850 completed the treatment. Another 564 individuals completed treatment using the placebo. After four years, the orlistat-treated patients had cumulative rates of diabetes of 6.2 percent compared with 9.0% for placebo-treated participants. Those who took orlistat also averaged significantly greater weight loss.
Medical Spas... Results from a Citysearch poll conducted in 2003 resulted in first place positioning of Blue Water Spa (Raleigh NC) as the #1 day spa in the Triangle 2003 survey. This result is especially gratifying to the owners because Blue Water Spa is in its first year of business. The Company is apparently gaining success by meeting spa-goer demand for "immediate, visible results" that have a minimal impact on consumers' daily routine. The facility offers medical treatments using innovative technologies in a high-end day spa environment. One example of a combined offering is hot stone treatment provided in conjunction with Botox injection.
