beauty survey 2016: key insights and … survey 2016: key insights and system update ... mapping the...

BEAUTY SURVEY 2016: KEY INSIGHTS AND SYSTEM UPDATE October 2016

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INTRODUCTION

KEY INSIGHTS • Targeting Premium Buyers • Refining Naturals' Beauty Strategies • Beauty Routines by Generations

UPDATED SYSTEM OVERVIEW

Industry Evolution

• High intensity of innovations and new product developments characterise a constantly evolving industry and a growing need for gap assessment and consumer profiling.

Consumer Demand

• Consumer preferences are changing on multiple levels: as people age, their hair and skin changes, their spending power changes, and as they become aware of new trends and products their beauty routines and attitudes evolve.

Why study the grooming routines, buying patterns and brand preferences of global beauty shoppers?

Beauty Survey provides consumer insights to top industry players INTRODUCTION

To understand: • Consumer beauty routines and product usage • Purchase motivators and influencers • Consumer brand perceptions


INTRODUCTION



…more extensive beauty routines than non-premium buyers

...stronger digital influence on their purchasing decisions

...higher expectations of tangible results and good value for money equally important

...more interest in natural ingredients and ethical quality brand than non-premium buyers.

0% 15% 30% 45% 60%

Generation Z

Millennials

Generation X

Baby Boomers

Consumers with Premium Preferences by Generation

- 2016

Hair Care Skin CareColour Cosmetics

Premium beauty buyers’ key characteristics TARGETING PREMIUM BUYERS

Premium buyers tend to have…

Premium beauty brands’ most attractive target consumers are Generations Y and X, with over half of them expressing premium preferences across all three categories.


0%10%20%30%40%50%60%70%80%90%

100%

Premium buyer Non-premiumbuyer

Breakdown of Beauty Buyers by Type of Hair Care Routine

Extensives (4-7 HC products usedweekly)Moderates (2-3 HC products usedweekly)Minimalists (0-1 HC productsused weekly)

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100%


Breakdown of Beauty Buyers by Type of Skin Care Routine

Extensives (8-14 SC productsused weekly)Moderates (4-7 SC products usedweekly)Minimalists (0-3 SC productsused weekly)

0%10%20%30%40%50%60%70%80%90%

100%


Breakdown of Beauty Buyers by Type of Make-up Routine

Extensives (7-16 CC productsused weekly)Moderates (2-6 CC products usedweekly)Minimalists (0-1 CC productsused weekly)

More extensive beauty routines among premium buyers TARGETING PREMIUM BUYERS

Although globally consumers with extensive beauty routines are more likely to be premium buyers, regional differences are significant: while in China and South Korea over 50% of premium buyers are ‘extensives’, in countries such as France, Germany and the UK, premium buyers tend to be ‘moderate’ users.


INTRODUCTION



Across all three product categories tested, green product features, including “natural or organic” and “environmentally-friendly or ethical” rest among the top five features sought by internet-connected consumers in 2015 and 2016. Green features are secondary only to

efficacy, suitability, and a quality-price balance in consumers’ decision-making for beauty products, and are actually more salient in purchasing deliberations than low prices and strong brand names. This strong importance placed on green

features by consumers must be acknowledged and addressed by beauty brands, manufacturers and ingredient suppliers who are interested in sales growth. The market is going green, and smart companies will be greening right along with it, giving consumers the beauty products that they want.

Mapping the market for green and natural beauty products REFINING NATURALS' BEAUTY STRATEGIES

Green features remain one of the top five traits that consumers look for in beauty products, before even brand names.

Well-to-do consumers in emerging markets leading charge for green beauty.

All-natural, plant-derived and free-from claims are the most powerful green features.

Products associated with concentrated chemical ingredients or with deep penetration of skin or hair have the most latent green potential.

Six in 10 green buyers are willing to pay more to get the natural and botanical ingredients they value.


Where is demand for green beauty unmet and/or growing? REFINING NATURALS' BEAUTY STRATEGIES

Demand for “natural or organic” or “environmentally-friendly or ethical” features in beauty products varies substantially by market, with green features more prominent in selection decisions made by internet-connected consumers in emerging markets in East and South-east Asia and the Middle East.

0% 50% 100%

JapanGermany

United KingdomUSA

FranceAustralia

South KoreaItaly

PolandBrazil

MexicoThailand

South AfricaColombia

TurkeyRussia

Middle EastChina

IndonesiaIndia

Desired Green Hair Care Features 2016

0% 50% 100%

JapanUnited…

GermanyUSA

FranceAustralia

South KoreaItaly

BrazilPoland

ThailandSouth Africa

MexicoColombia

RussiaTurkey

Middle EastChinaIndia

Indonesia

Desired Green Skin Care Features 2016

0% 50% 100%

JapanUSA

United KingdomGermany

South KoreaFrance

BrazilAustralia

South AfricaPoland

ThailandItaly

RussiaMexico

ColombiaTurkey

Middle EastChinaIndia

Indonesia

Desired Green Cosmetics Features 2016


INTRODUCTION



Extensive beauty routines most typical for consumers under 40

Millennials the most frequent users of all hair care products...

..but Generation X is the most focused on skin care

Desired hair care product features show subtle differences across generations

Changing routines at different life stages BEAUTY ROUTINES BY GENERATIONS

Beauty routine evolution is both driven by and reflects industry-defining trends and changes in consumer behaviour. Technological and digital developments

aid the increasing focus on personalisation in beauty. Consumer demand is moving from ‘suitable for me’ towards a ‘made for me’ level of customisation. This is achieved through individual product formulations, digital consultation on brands’ and retailers’ websites to find most suitable product ranges and smart devices and applications providing constant feedback on efficacy. The next generation of beauty

innovations are going to be aligned better with trends of customisation to identified consumer base’s characteristics and expectations with strong focus on product experience.


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10%

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30%

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60%

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15-1

920

-24

25-2

930

-34

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940

-44

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950

-54

55-5

960

-64

65+

Hair Care Routine Types by Age Group – 2016

Extensives (4-7 HC products used weekly)

Moderates (2-3 HC products usedweekly)Minimalists (0-1 HC products usedweekly)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

15-1

920

-24

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930

-34

35-3

940

-44

45-4

950

-54

55-5

960

-64

65+

Skin Care Routine Types by Age Group – 2016

Extensives (8-14 SC products usedweekly)Moderates (4-7 SC products used weekly)

Minimalists (0-3 SC products usedweekly)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

15-1

920

-24

25-2

930

-34

35-3

940

-44

45-4

950

-54

55-5

960

-64

65+

Women’s Make-up Routine Types by Age Group – 2016

Extensives (7-16 CC productsused weekly)Moderates (2-6 CC products usedweekly)Minimalists (0-1 CC productsused weekly)

Extensive beauty routines most typical for consumers under 40 BEAUTY ROUTINES BY GENERATIONS


INTRODUCTION



The Panel

Usage and Grooming Routines

Professional Beauty Services

Path to Purchase

Brand Preferences & Perceptions

Retrospective Changes in Usage

The Questionnaire

Who we surveyed and what we asked SYSTEM OVERVIEW

Geographic coverage 20 emerging and developed markets

Sample size 1,000 respondents per market

Age distribution 15-70+ years old*

Gender distribution In 2016 70% of respondents in each country were female, and 30% male

* Due to limitations in internet penetration in certain emerging markets, the target age range does not extend all the way to age 69 in four markets: Indonesia, Middle East, Thailand, and Turkey.

500+ questions measure consumers’ attitudes and behaviour relating to:

Over 20,000 online panellists participate in the Beauty Survey annually


Country coverage: 20 markets surveyed SYSTEM OVERVIEW

Note: Middle East market pools responses from Egypt, Lebanon, Qatar (2016 only), Saudi Arabia, United Arab Emirates. A 21st country, Nigeria, was surveyed only in 2015 and fielding was discontinued due to issues with recruiting online respondents.

US, Mexico,

Colombia, Brazil

UK, France, Germany,

Italy, Turkey, Russia, Poland

China, Japan,

South Korea

India, Indonesia, Thailand, Australia

Middle East, South Africa


COLOUR COSMETICS Lipstick Lip gloss Lip liner Tinted lip balm Nail polish or treatment Eye make-up (e.g. eye shadow,

mascara, eyeliner, eye primer) Foundation Concealer Finishing facial powder Highlighter Blusher Bronzer BB cream or CC cream Primer Pore minimiser Oil blotter

HAIR CARE Hair shampoo (wet) Hair shampoo (dry) 2-in-1 shampoo/conditioner Hair conditioner or treatment Hair styling products Heat protection spray Hair colour or dye In-home perm kit In-home relaxant kit Hair loss treatment

SKIN CARE Acne treatments Face masks Facial cleansers Facial moisturisers Facial mists, sprays or waters Facial toners Anti-ageing products Pre-shave products Post-shave products Body moisturisers Hand care Untinted lip moisturisers

(balms or creams) Sunscreen or dedicated sun

protection products Self-tanning products

Category coverage: colour cosmetics, hair care and skin care SYSTEM OVERVIEW


% of Sales by Category – 2015

Companies Colour Cosmetics Hair Care Skin Care

Procter & Gamble Co 6% 30% 10%

L’Oréal Groupe 27% 29% 28%

Unilever Group 1% 29% 16%

Estée Lauder 41% 3% 33%

Beiersdorf AG 0% 7% 51%

Robust and relevant coverage SYSTEM OVERVIEW

20 markets surveyed covers

80% of global beauty in retail value sales

terms

Skin care, hair care and colour cosmetics combined account for

55% of global beauty in retail value sales

terms

Core Categories of Leading Beauty Players


0

500

1,000

1,500

2,000

US$

mill

ion

BB/CC Cream Retail Value Sales – 2010-2015

• Global comparability of millions of data points • Syndicated, cost-efficient survey methodology • Time series data, updated annually to allow identification and tracking of trends • Analysis contextualising consumer habits and attitudes with broader industry trends • Data visualisations and written analysis provide at-your-fingertips insights for system users

Unique features SYSTEM OVERVIEW

Beauty Survey Beauty and Personal Care


Usage frequency and grooming routines

Obstacles to use

Desired product features

Functionality must-haves

Green concerns

Selection trade offs

Purchase influencers

Purchase outlets

Brand perceptions

Brand loyalty

Beauty survey offers insight into the most relevant industry topics SYSTEM OVERVIEW

What are the most important product features for ageing

consumers?

What are the most powerful marketing influencers in colour

cosmetics?

How does channel positioning impact consumers’ brand

perception?

What are the key hair concerns for

consumers by hair type by region?

Who are the most brand-loyal

consumers? Who is open to trying

new brands?

Whose usage is driving growth of

new products, such as BB creams?


Granular data organised by theme and topic, annually updated SYSTEM OVERVIEW


Standardised questions aid comparability SYSTEM OVERVIEW

Comparisons between countries, between consumer segments, between products within a category, and even between categories are all straightforward, thanks to standardised questions, translated into local languages for respondents.


Data easily searched and analysed in state-of-the-art dashboards SYSTEM OVERVIEW

Keyword search enables users to find topics of interest quickly and easily. Interactive dropdown menus facilitate exploration of survey results and discovery of new, relevant insights.


Two years of data visualised through state-of-the-art dashboards SYSTEM OVERVIEW

Results displayed in easy-to-read dot plots for current and previous years, with ability to change to current year only or custom set of years in the “Change Topic” area.


Videocasts/Podcasts Datagraphics

Global Briefings Opinion Pieces

Strategic analysis for greater insight SYSTEM OVERVIEW


CONSUMER SEGMENTS Data that enables profiling of key consumer segments’ usage and purchase decision-making for each product category. Sample segments include: High-potential new users Premium buyers Value buyers Millennials Baby boomers Digital natives

BRAND STRENGTH AND AWARENESS Core data on consumers’ consideration of, and loyalty to brands in the purchase decision-making process. Trade-off preferences involving brands and

purchase decision-making Extent of brand loyalty Place of purchase for main brands Perceptions of each main brand used Subjective placement of brands along the mass

to premium spectrum

USAGE AND OCCASIONS Captures product usage in context, to help companies understand the different ways that various consumers across markets make use of products in their daily lives. Frequency of use by product Changes in usage from three years ago Product usage and related care activities at home

and by beauty services professionals

PURCHASE DECISION MAKING Examines product purchase frequency, typical price points and time spent deliberating. Also explores the “why” questions related to the purchase process: Sought-after and avoided product features Key traditional and digital media and other

influencers Impetus and barriers to purchase

Range of research applications SYSTEM OVERVIEW


Contact the Beauty Survey team SYSTEM OVERVIEW

Irina Barbalova Global Lead –

Beauty and Personal Care

Eileen Bevis Head of Consumer

Lifestyles and Survey

Priyanka Bagde Survey Analyst

Ildiko Szalai Senior Analyst –

Beauty and Personal Care

Chethana ArunKumar Survey Associate


Consulting Income and Expenditure

BPC Forecast Model Analytics

Tell the whole story with Euromonitor International data SYSTEM OVERVIEW


This research from Euromonitor International is part of a global strategic intelligence system that offers a complete picture of the commercial environment. Also available from Euromonitor International:

Global Briefings Timely, relevant insight published every month on the state of the market, emerging trends and pressing industry issues.

Interactive Statistical Database Complete market analysis at a level of detail beyond any other source. Market sizes, market shares, distribution channels and forecasts.

Strategy Briefings Executive debate on the global trends changing the consumer markets of the future.

Global Company Profiles The competitive positioning and strategic direction of leading companies including uniquely sector-specific sales and share data.

Country Market Insight Reports The key drivers influencing the industry in each country; comprehensive coverage of supply-side and demand trends and how they shape future outlook.

Learn More

To find out more about Euromonitor International's complete range of business intelligence on industries, countries and consumers please visit www.euromonitor.com or contact your local Euromonitor International office:

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beauty survey 2016: key insights and … survey 2016: key insights and system update ... mapping the...

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