Table of Contents
Issues in the Market
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- Main themes
- Definitions
- Abbreviations
Future Opportunities
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- With a little help from your friends
- Proud, not obsessed
Market in Brief
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- Online beauty – a fledgling market that needs to be nurtured
- What is limiting growth?
- Turning obstacles into opportunities
- What do consumers want?
- Who is leading the market?
- What does the future hold?
Internal Market Environment
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- Key points
- Seasonal purchasing drives online beauty market
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- Figure 1: Type of websites purchased from in the last three months, April 2009-July 2010
- Price is the biggest driver of online sales
- The 2D beauty barrier: Inability to feel, touch and smell is main obstacle
- Using online video to engage consumers and encourage sales
- Multi-channels capitalise on convenience with flexibility
- Beauty’s e-consumer: e-ducated and e-mpowered
- Battle of the fakes
- M-commerce for the multichannel mix
- First e-commerce, then m-commerce... next up is f-commerce
Broader Market Environment
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- Key points
- ABs forecast to rise
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- Figure 2: Forecast adult population trends, by socio-economic group, 2005-15
- Consumer expenditure to remain fragile in 2011
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- Figure 3: GDP, PDI, consumer expenditure and savings, at constant 2010 prices, 2005-15
- Boom in best buyers: 25-34s
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- Figure 4: Trends in the age structure of the UK population, 2005-15
- The rise of the over-65s
- Rise in broadband penetration boosts e-commerce
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- Figure 5: Trends in broadband penetration, by age and socio-economic group, 2004-10
- Royal Mail under fire from UK e-tailers
Strengths and Weaknesses in the Market
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- Strengths
- Weaknesses
Who’s Innovating?
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- Key points
- Turning e-commerce into a luxury experience
- Bringing online make-up out of the shade
- User-generated content for the future
- Focus on Cult Beauty: Queen of expertise, integrity and functionality
- Targeted sampling
- Feelunique’s re-order reminder service
- Boots – streets ahead with loyalty scheme
- Max Factors in F-commerce
- The search for scent
Market in Context
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- Key points
- Online sales slow during recession
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- Figure 6: Online and total retail sales, at current prices, excluding VAT), 2005-10
- Beauty lags behind other online categories
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- Figure 7: Estimated online sales of cosmetics and toiletries and total online retail sales, at current prices, (including VAT), 2005-10
- Work in progress
- Online represents just 5% of beauty spending
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- Figure 8: Online spending, as a percentage of total spending on cosmetics and toiletries,2005-10
- Free delivery is a competitive selling point
Market Size and Forecast
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- Key points
- Online beauty sales up 25% in 2009
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- Figure 9: Market size and forecast of online consumer expenditure on cosmetics and toiletries, 2005-15
- Forecast
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- Figure 10: Market size and forecast of online consumer expenditure on cosmetics and toiletries, 2006-15
Brand Communication and Promotion
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- Key points
- Adspend declined in 2009
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- Figure 11: Main monitored media advertising spend on online beauty, 2006-10
- Press and TV spend curtailed
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- Figure 12: Main monitored media advertising spend on online beauty, by media type, 2006-10*
- Boots: Here Come The Ads
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- Figure 13: Total unique visitors to feelunique.com, 12 months to September 2010
- Figure 14: Profile of visitors to Feelunique.com, by age, September 2010
- Promotions with a difference
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- Figure 15: Main monitored media advertising spend on online beauty, by company, 2006-10
- Brands get creative with social media
- Internet browsing habits
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- Figure 16: Visitors to fragrances/cosmetics websites, top 30, September 2010
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- Figure 17: Profile of visitors to Cheapsmells.com, by age, September 2010
- Figure 18: Total unique visitors to Cheapsmells.com, 12 months to September 2010
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- Figure 19: Visitors to selected fragrances/cosmetics retailer websites, September 2010
- Brands launch apps to build loyalty
Channels of Distribution
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- Key points
- Brand shares
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- Figure 20: Brand shares in online sales of cosmetics and toiletries, 2010
- Boots dominates online as well as offline
- Supermarkets are functional leaders
- Pureplays offer strong online experience
- Lookfantastic vs. Feelunique
- Channel 4 opts 4Beauty sales
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- Figure 21: Websites from where beauty and personal care products have been bought online in the last year, September 2010
- Specialist retailers
- Department stores
- Brands mostly cynical but the proof is in the Burberry
Companies and Products
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- Major players
- Amazon
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- Figure 22: Profile of visitors to Amazon.com, by age, September 2010
- Figure 23: Total unique visitors to Amazon.com, 12 months to September 2010
- ASOS
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- Figure 24: Profile of visitors to ASOS.com, by age, September 2010
- Figure 25: Total unique visitors to ASOS.com, 12 months to September 2010
- Boots
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- Figure 26: Profile of visitors to Boots.com, by age, September 2010
- Cult Beauty
- Eyeslipsface
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- Figure 27: Total unique visitors to Eyeslipsface.com, December 2009-September 2010
- HQHair
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- Figure 28: Profile of visitors to HQHair.com, by age, September 2010
- Figure 29: Total unique visitors to HQHair.com, 12 months to September 2010
- Lookfantastic
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- Figure 30: Profile of visitors to Lookfantastic.com, by age, September 2010
- Figure 31: Total unique visitors to Lookfantastic.com, 12 months to September 2010
- Mankind
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- Figure 32: Total unique visitors to Mankind.com, 12 months to September 2010
- VIE at home
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- Figure 33: Profile of visitors to Vieathome.com, by age, September 2010
- Figure 34: Total unique visitors to Vieathome.com, 12 months to September 2010
- Zuneta
Who Buys Beauty Online?
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- Key points
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- Figure 35: Beauty and personal care products bought online in the last year and consideration for future buying, September 2010
- 44% buy beauty online... the majority remain to be convinced
- Over half of females and 25-34s have bought beauty
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- Figure 36: Beauty and personal care products bought online in the last year, by gender, September 2010
- Men’s market is much smaller, but shows potential
- Fragrance and everyday toiletries are top sellers
- Spa – spotting opportunity
Where They Buy Beauty
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- Key points
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- Figure 37: Websites from where beauty and personal care products have been bought online in the last year, September 2010
- Figure 38: Websites from where beauty and personal care products have been bought online in the last year, (continued) September 2010
- Supermarkets dominate overall and attract families
- Chemists attract 37% but lack stand-out category purchases
- Fragrance shoppers favour specialist retailers
- Three in ten buy from the brand
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- Figure 39: Websites from where would consider buying beauty and personal care products online, September 2010
- Figure 40: Websites from where would consider buying beauty and personal care products online, September 2010
- Golden opportunities: chemists appeal to 6 in 10 young female consumers
- Could supermarkets tempt make-up and fragrance shoppers?
- Speciality retailers have further scope with fragrance buyers
How Engaged Are Consumers Online?
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- Key points
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- Figure 41: Online activities undertaken in the last 12 months and future consideration, September 2010
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- Figure 42: Online activities undertaken in the last 12 months, by gender, September 2010
- Finding the best price is crucial for beauty shoppers
- Turning research into sales
- Who reads and posts reviews online?
- Students most likely to read blogs
- The future in feedback
- Web attracts beauty bargain-hunters
- Department store customers are more engaged online
Attitudes Towards Buying Beauty Online
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- Key points
- Competitive pricing drives online appeal
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- Figure 43: Attitudes towards shopping online for beauty and personal care products, September 2010
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- Figure 44: Attitudes towards shopping online for beauty and personal care products, by gender, September 2010
- Six in ten know what they want to buy
- Convenience appeals to 25-34s
- Mums spend significantly more on beauty online than in-store
- Barriers to shopping online
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- Figure 45: Attitudes towards shopping online for beauty and personal care products, September 2010
- Figure 46: Attitudes towards shopping online for beauty and personal care products, by gender, September 2010
- Consumers want to try before they buy
- Inability to test is an obstacle for women
- Women more likely to repeat purchase
- Returns and delays in delivery are a problem for 16-24s
- Free delivery most important to those with babies and toddlers
- Over half of women are nervous buying from unfamiliar sites
- Under-35s like bargain beauty, while 45-54s seek quality
Target Groups
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- Key points
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- Figure 47: Marketing targets for online beauty, September 2010
- Online Enthusiasts (34%)
- Net Neutrals (33%)
- Bargain Hunters (34%)
Appendix – Who Buys Beauty Online?
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- Figure 48: Beauty and personal care products bought online in the last year, by demographics, September 2010
- Figure 49: Beauty and personal care products bought online in the last year, by demographics, September 2010
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- Figure 50: Beauty and personal care products would consider buying in future, by non-online buyers in last year, by demographics, September 2010
- Figure 51: Beauty and personal care products would consider buying in future, by non-online buyers in last year, by demographics, September 2010
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- Figure 52: Beauty and personal care products would consider buying in future, by non-online buyers in last year, by demographics, September 2010
- Figure 53: Beauty and personal care products would consider buying in future, by non-online buyers in last year, by demographics, September 2010
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Appendix – Where They Buy Beauty
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- Figure 54: Websites from where beauty and personal care products bought online in the last year, by demographics, September 2010
- Figure 55: Websites from where beauty and personal care products bought online in the last year, by demographics, September 2010
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- Figure 56: Products bought online in the last year from supermarket, by type of product and demographics September 2010
- Figure 57: Products bought online in the last year from online chemist, by type of product and demographics, September 2010
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- Figure 58: Products bought online in the last year from online specialist or opureplay retailer, by type of product and demographics September 2010
- Figure 59: Would consider buying beauty products online, by type of online retailer and demographics September 2010
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- Figure 60: Would consider buying beauty products online, by type of online retailer and demographics September 2010
- Figure 61: Would consider buying beauty products online from online supermarket, by type of product and demographics September 2010
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- Figure 62: Would consider buying beauty products online from online supermarket, by type of product and demographics September 2010
- Figure 63: Would consider buying beauty products online from online chemist/drugstore, by type of product and demographics September 2010
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- Figure 64: Would consider buying beauty products online from online chemist/drugstore, by type of product and demographics, September 2010
- Figure 65: Would consider buying beauty products online from online specialist retailer, by type of product and demographics, September 2010
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- Figure 66: Would consider buying beauty products online from online department store, by type of product and demographic, September 2010
- Figure 67: Would consider buying beauty products online from direct seller, by type of product and demographics September 2010
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- Figure 68: Would consider buying beauty products online from direct seller, by type of product and demographics September 2010
- Figure 69: Would consider buying beauty products online from online only store, by type of product and demographics, September 2010
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- Figure 70: Would consider buying beauty products online from online only store, by type of product and demographics September 2010
- Figure 71: Would consider buying beauty products online direct from a brand’s website, by type of product and demographics September 2010
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- Figure 72: Would consider buying beauty products online directly from a brand’s website, by type of product and demographics September 2010
- Figure 73: Would consider buying beauty products online from other website, by type of product and demographics September 2010
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- Figure 74: Would consider buying beauty products online but don’t know from which type of website, by type of product and demographics September 2010
- Figure 75: Would consider buying beauty products online but don’t know from which type of website, by type of product and demographics, September 2010
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Appendix – How Engaged Are They Online?
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- Figure 76: Online activities done in the last 12 months, by demographics, September 2010
- Figure 77: Online activities done in the last 12 months, by demographics, September 2010
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- Figure 78: Online activities done in the last 12 months, by demographics, September 2010
- Figure 79: Online activities would consider doing in future, by non-participants in last 12 months, by demographics, September 2010
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- Figure 80: Online activities would consider doing in future, by non-participants in last 12 months, September 2010
- Figure 81: Online activities would consider doing in future, by non-participants in last 12 months, by demographics, September 2010
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- Figure 82: Online activities not done in the last 12 months and would not consider in future, by demographics, September 2010
- Figure 83: Online activities not done in the last 12 months and would not consider in future, by demographics, September 2010
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- Figure 84: Online activities not done in the last 12 months and would not consider in future, by demographics, September 2010
- Figure 85: Online activities done in the last 12 months and future consideration, by websites from where beauty and personal care products bought online in the last year, September 2010
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- Figure 86: Online activities done in the last 12 months and future consideration, by websites from where beauty and personal care products bought online in the last year, September 2010
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Appendix – Attitudes Towards Buying Online
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- Figure 87: Attitudes towards shopping online for beauty and personal care products, by demographics, September 2010
- Figure 88: Attitudes towards shopping online for beauty and personal care products, by demographics, September 2010
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- Figure 89: Attitudes towards shopping online for beauty and personal care products, by demographics, September 2010
- Figure 90: Attitudes towards shopping online for beauty and personal care products, by demographics, September 2010
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- Figure 91: Attitudes towards shopping online for beauty and personal care products, by demographics, September 2010
- Figure 92: Attitudes towards shopping online for beauty and personal care products, by demographics, September 2010
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Appendix – Target Groups
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- Figure 93: Target groups, by demographics, September 2010
- Figure 94: Attitudes towards shopping online for beauty and personal care products, by target groups, September 2010
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- Figure 95: Attitudes towards shopping online for beauty and personal care products, by target groups, September 2010
- Figure 96: Beauty and personal care products bought online in the last year and consideration for future buy, by target groups, September 2010
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- Figure 97: Websites from where would consider buying beauty and personal care products online, by target groups, September 2010
- Figure 98: Online activities done in the last 12 months and future consideration, by target groups, September 2010
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