PARSIPPANY, N.J. — As rising costs eat into margins, personal care marketers are reducing marketing expenditures, integrating their supply chain and consolidating distribution for improved efficiency, according to findings of recent research from Kline & Co.
According to the research firm’s “Personal Care: U.S. Competitor Cost Structures 2011” report, costs of goods sold — which includes raw materials, packaging, processing and overhead — have increased on average to claim 11.1% of the net sales total in 2011, compared with 10.6% in 2009.