Monday, Mar. 10, 1986

Business Notes Advertising

Six million customers of Saks Fifth Avenue, Neiman-Marcus and about a dozen other department-store chains are now getting more than bad news in their monthly bills. Stuffed in with the statements are paper advertising inserts that contain samples of eye shadow. By brushing a fingertip across a colored strip, a woman can try out this season's shades from Charles of the Ritz, Yves Saint Laurent and Christian Dior.

Perfume manufacturers have successfully promoted new scents by mailing out fragrance strips or inserting them in magazines, and new technology is making it possible for cosmetics producers to use the same advertising technique. Because of a special manufacturing process, the eye-shadow powder sticks to the paper but easily rubs off onto the finger.

Many cosmetics firms, including L'Oreal, Revlon and Chanel, are preparing to join the free-sample spree, which is expected to grow from some 250 million strips this year to at least 500 million in 1987. Convinced that the strips will boost sales, industry executives are already planning to offer samples of other makeup products. Expected this summer: lipstick strips.