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Kline Predicts Increasing Margin Pressures for Personal Care Marketers

Effective marketing and innovation to fuel industry

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By: TOM BRANNA

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Top marketers in the personal care industry spend about 29% of sales on cost of goods, 53% on marketing, and 7% on other expenses including R&D and administration, leaving an operating margin of about 11%, according to new data compiled by worldwide consulting and research firm Kline & Company. High oil prices during 2007 and much of 2008 drove production and distribution costs for personal care marketers up significantly. Since then, oil prices have decreased, which has helped to e...

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