global beauty and personal care: the year in …€¦ · · 2011-06-28© euromonitor...
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The year in review and winning strategies for the future
GLOBAL BEAUTY AND PERSONAL CARE: THE YEAR IN REVIEW AND WINNING STRATEGIES FOR THE FUTURE
IRINA BARBALOVA
29-31 MARCH 2011, IN-COSMETICS, MILAN
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The year in review and winning strategies for the future
Beauty beyond the crisis
Industry dynamics
New positioning and value perceptions
The beauty brand as an experience
The Outlook
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The year in review and winning strategies for the future
-2
0
2
4
6
8
10
2005 2006 2007 2008 2009 2010
% v
alu
e g
row
th
Retailing Growth
Retailing Grocery Retailers Non-Grocery Retailers Non-store Retailing BPC Non-store sales
MOVING OUT OF THE RECESSION
-10
-5
0
5
10
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
% g
row
th
Real GDP: % growth over previous period, annualised
World Advanced economies Developing economies
2006 2007 2008 2009 2010 2011
BEAUTY BEYOND THE CRISIS
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The year in review and winning strategies for the future
WESTERN EUROPE CONSUMER EXPENDITURE SLOWEST TO RECOVER
-15
-10
-5
0
5
10
15
2006-07 2007-08 2008-09 2009-10
% g
row
th (
US
$)
Health Goods and Medical Services Personal Care
Alcoholic Beverages and Tobacco Food and Non-Alcoholic Beverages
Clothing and Footwear
BEAUTY BEYOND THE CRISIS
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The year in review and winning strategies for the future
MORE HURDLES TO BE OVERCOME
Source: Euromonitor International from national statistics
Data refer to 80 major economies
14Number of countries
with an unemployment rate above 10% in 2007
25Number of countries
with an unemployment rate above 10% in 2010
BEAUTY BEYOND THE CRISIS
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The year in review and winning strategies for the future
THE CONSUMER IN 2011 AND BEYOND
Value-seeking
Digital and connected
Staying ahead
and well
Experience-focused
Nuanced luxury
The post-recession consumer
BEAUTY BEYOND THE CRISIS
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The year in review and winning strategies for the future
Beauty beyond the crisis
Industry dynamics
New positioning and value perceptions
The beauty brand as an experience
The Outlook
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The year in review and winning strategies for the future
GLOBAL INDUSTRY RECOVERS FROM THE SLUMP
-1
0
1
2
3
4
5
6
7
8
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
2005 2006 2007 2008 2009 2010
% V
alu
e g
row
th
US
$ m
illio
n
Total BPC % Total growth % Prem growth % Mass growth
INDUSTRY DYNAMICS
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The year in review and winning strategies for the future
2010 COUNTRY PERFORMANCE
2010 Country performance
INDUSTRY DYNAMICS
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The year in review and winning strategies for the future
PREMIUM COSMETICS ON THE REBOUND
1%
11%
12%
1%
9%
2%1%
INDUSTRY DYNAMICS
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The year in review and winning strategies for the future
PREMIUM MARKET SHARE STILL LOW IN LATIN AMERICA
Premium Cosmetics
Mass Cosmetics
INDUSTRY DYNAMICS
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The year in review and winning strategies for the future
MASS COSMETICS TO DRIVE FUTURE GROWTH
0
10
20
30
40
50
60
70
80
90
100
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
% v
alu
e (
US
$)
Global Premium Cosmetics Global Mass Cosmetics
72%
24%
76%
28%
INDUSTRY DYNAMICS
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The year in review and winning strategies for the future
TOP CATEGORY BY REGION
INDUSTRY DYNAMICS
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The year in review and winning strategies for the future
DISCRETIONARY CATEGORIES PICK UP
0
1
2
3
4
5
6
7
8
9
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
% v
alu
e g
row
th
US
$ m
illio
n
2010 US$mn 08-09 % growth 09-10% growth
INDUSTRY DYNAMICS
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The year in review and winning strategies for the future
Beauty beyond the crisis
Industry dynamics
New positioning and value perceptions
The beauty brand as an experience
The Outlook
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The year in review and winning strategies for the future
PRIVATE LABEL PICKS UP MARGINALLY
0
2
4
6
8
10
12
14
2006 2007 2008 2009 2010
% v
alu
e s
hare
Private label share
World USA
France Germany
United Kingdom Spain
Germany
Spain
NEW POSITIONING AND VALUE PERCEPTIONS
Global PL growth by category
Colour Cosmetics (+10%)
Men’s grooming (+10%)
Skin Care (+8.5%)
Oral Care (+5.6%)
Hair Care (+4.4%)
Bath & Shower (+0.5%)
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The year in review and winning strategies for the future
Tapping into budget and ‘high end’ lines
Focus on product efficacy and ingredients
Increasingly ‘green’ savvy
Diversifying existing lines
PRIVATE LABEL KEEPS UP THE PACE IN INNOVATION
NEW POSITIONING AND VALUE PERCEPTIONS
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The year in review and winning strategies for the future
INNOVATION IN BRANDS STILL A PRIME FOCUS
Scientifically-advanced innovation
New concepts and ‘professional’ status
Time-saving vs long-lasting beauty
Building on successful brands
NEW POSITIONING AND VALUE PERCEPTIONS
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The year in review and winning strategies for the future
NEW POSITIONING IN SKIN CARE
Category cross- over
New consumer
targets
Holistic skin care
Increased polarisation
NEW POSITIONING AND VALUE PERCEPTIONS
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The year in review and winning strategies for the future
Beauty beyond the crisis
Industry dynamics
New positioning and value perceptions
The beauty brand as an experience
The Outlook
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The year in review and winning strategies for the future
INTERNET CONTINUES TO RESHAPE THE WORLD
0
10
20
30
40
50
2000 2010 2020% o
f w
orl
d p
op
ula
tio
n
More than 40% of the world’s population will be on the
Internet in 2020
THE BEAUTY BRAND AS AN EXPERIENCE
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2000 2010 2020
% o
f w
orl
d’s
In
tern
et
use
rs
Half of all Internet users will be in Asia
Asia Rest of world
711 millionChinese Internet users in 2020
281 millionUS Internet users in 2020
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The year in review and winning strategies for the future
INCREASING IMPORTANCE IN BEAUTY RETAILING
26 27 26.9
13.1 13.4 13.4
10.6 9.7 9.5
12.4 12.9 12.8
14 15.3 16.1
0
10
20
30
40
50
60
70
80
2005 2006 2007 2008 2009 2010
% v
alu
e s
hare
Global Beauty Channel Breakdown
Non-Store Retailing Drugstores Department Stores
Beauty Specialists Super/Hypermarkets
THE BEAUTY BRAND AS AN EXPERIENCE
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The year in review and winning strategies for the future
VARIED PENETRATION ACROSS KEY MARKETS
0
1
2
3
4
5
6
7
8
9
S.Korea France USA UK Japan
% s
hare
of
to
tal
reta
il s
ale
s
Beauty Internet Retailing – Top Five Markets
THE BEAUTY BRAND AS AN EXPERIENCE
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The year in review and winning strategies for the future
NEW WAYS OF ENGAGING WITH BEAUTY CONSUMERS
Social Media
New In-store
Experience
Mobile Technology
THE BEAUTY BRAND AS AN EXPERIENCE
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The year in review and winning strategies for the future
• Facebook users500 million
• Pieces of content per month30 billion
• Minutes of log-in time per month 700 billion
• Average friends per user 130
• Of users between the age of 18-3462%
• Users of Facebookare female50%
• Registered tweets per day55 million
THE BEAUTY BRAND AS AN EXPERIENCE
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The year in review and winning strategies for the future
ONLINE PRESENCE AND SOCIAL MEDIA NOT TO BE IGNORED
Key players increasing online presence
Opportunities for smaller brands
Social commerce still limited
Blogging/’vlogging’ offer new experience
1,614,613
people like this
THE BEAUTY BRAND AS AN EXPERIENCE
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The year in review and winning strategies for the future
THE POWER OF THE SMARTPHONE APP
Key success factors:
Personalised
Added value
Interactive experience
Real-time updates
THE BEAUTY BRAND AS AN EXPERIENCE
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The year in review and winning strategies for the future
WHERE NEXT FOR VIRTUAL CONNECTIVITY?
THE BEAUTY BRAND AS AN EXPERIENCE
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The year in review and winning strategies for the future
IN-STORE BEAUTY EXPERIENCE VITAL FOR THE INDUSTRY
Beauty services challenged by at-home beauty
Creating value is key
Retailers enriching the in-store experience
Nail Polish (+17%)
Men’s skin care (+12%)
Mass fragrances (+9%)
Sun protection (8.5%)
Anti-agers (7.6%)
Colourants (+7%)
Eye liner/pencil (+7%)
Blusher/bronzer (+7%)
Fastest Growing Beauty Sectors
2009-10 (value)
THE BEAUTY BRAND AS AN EXPERIENCE
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The year in review and winning strategies for the future
RE-CREATING THE SPA EXPERIENCE
Innovative retail concepts
Mobile beauty becomes prominent
Health and wellness factor to driveinterest in spas
New consumer targets
Key Spa Tourism Markets,
absolute growth 2010-15 (million)
USA US$ 1,660
Japan US$ 1,350
China US$ 1,030
France US$ 856
Israel US$ 362
India US$ 363
Austria US$ 266
Vietnam US$ 221
THE BEAUTY BRAND AS AN EXPERIENCE
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31
The year in review and winning strategies for the future
Beauty beyond the crisis
Industry dynamics
New positioning and value perceptions
The beauty brand as an experience
The Outlook
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32
The year in review and winning strategies for the future
GROWTH TO CATCH UP WITH PRE-RECESSION LEVELS
THE OUTLOOK
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The year in review and winning strategies for the future
Value Efficacy
Personal touch
Experience
CONSUMER NEEDS BECOMING MORE DIVERSE
THE OUTLOOK
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The year in review and winning strategies for the future
BEAUTY INTERNET SALES TO BECOME MORE COMPETITIVE
0
5
10
15
20
25
30
35
40
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
US
$ m
illi
on
Beauty Internet Sales 2010-15
2010 2015 2010-15 CAGR
THE OUTLOOK
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The year in review and winning strategies for the future
GLOBAL GROWTH TO BE DRIVEN BY MASS BEAUTY
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5
Premium Colour Cosmetics
Premium Fragrances
Premium Skin Care
Mass Hair Care
Premium Hair Care
Mass Skin Care
Mass Colour Cosmetics
Mass Fragrances
% value growth (real terms)
THE OUTLOOK
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The year in review and winning strategies for the future
MORE OPPORTUNITIES TO BE HAD IN PREMIUM SKIN CARE
-2
0
2
4
6
8
10
12
14
16
18
20
0
2,000
4,000
6,000
8,000
10,000
12,000
2010 2011 2012 2013 2014 2015
% v
alu
e g
row
th
US
$ m
illio
n (
no
min
al)
China USA Japan China growth USA growth Japan growth
THE OUTLOOK
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The year in review and winning strategies for the future
2XChina’s premium cosmetics
market will double by 2015,
to reach $7billion
80%of Latin America’s industry
value will be accounted for by
mass products in 2015
$83 Latin America industry value
in 2015, third largest region
globally
BILLION
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The year in review and winning strategies for the future
THANK YOU FOR LISTENING
Q&A?
Irina Barbalova, Head of Beauty and Personal Care Research [email protected]