Table of Contents
Overview
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- What you need to know
- Products covered in this report
Executive Summary
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- Pace of online sales growth begins to slow
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- Figure 1: Best- and worst-case forecast for online consumer expenditure on beauty products, 2010-20
- Supermarkets most commonly used BPC online retailer
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- Figure 2: Online retailers used to purchase BPC products, October 2015
- YouTube a powerful force in BPC social media
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- Figure 3: BPC online activities, October 2015
- Drawbacks of online BPC shopping
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- Figure 4: Attitudes towards BPC online, October 2015
- Skin tracker apps have untapped potential
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- Figure 5: Attitudes towards beauty apps, October 2015
- Blogs have a poor perception outside of their core target
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- Figure 6: Correspondence analysis – Opinion of online beauty sources, October 2015
- What we think
Issues and Insights
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- A more challenging environment for online beauty sales
- The facts
- The implications
- Less blogging, more vlogging for today’s Millennials
- The facts
- The implications
- Men need more guidance in the online BPC arena
- The facts
- The implications
The Market – What You Need to Know
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- Pace of online sales growth begins to slow
- Smartphone and tablet ownership continues to grow
- Changes in online activities
- New delivery charges
- Retail calendar event sales tempt shoppers
- Supermarkets challenge chemists and drugstores
- Pureplayers struggle to further grow share
Market Size and Forecast
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- Pace of online sales growth begins to slow
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- Figure 7: Market size and forecast of online consumer expenditure on beauty products, 2010-20
- Future growth slower but stable
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- Figure 8: Best- and worst-case forecast for online consumer expenditure on beauty products, 2010-20
Market Drivers
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- PDI improves post-recession
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- Figure 9: Trends in how respondents would describe their financial situation, February 2009-September 2015
- Smartphone and tablet ownership continues to grow
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- Figure 10: Personal ownership of smartphones, tablets and smartwatches amongst UK consumers, by generation, June 2015
- Changes in online activities
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- Figure 11: Online activities performed in the past three months, June 2014-June 2015
- New delivery charges
- Consumers suspicious of cheap products online
- Retail calendar event sales tempt shoppers
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- Figure 12: Example of Black Friday 2015 promotion, November 2015
Channels to Market
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- Supermarkets challenge chemists and drugstores
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- Figure 13: Retailer shares of online sales of BPC products, 2013-15
- Pureplayers struggle to further grow share
Key Players – What You Need to Know
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- Social media users enjoy exclusives
- Online retailers launch exclusive offers
- Brands focus on consumer engagement
Brand Communication and Innovation
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- Social media
- Burberry Snapchat previews
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- Figure 14: Burberry backstage fashion week posts, September 2015
- Marc Jacobs Tweet Shop
- The Beauty Boy YouTube success
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- Figure 15: The Beauty Boy eyebrow tutorial, November 2015
- Adverts now on Instagram
- Brand Initiatives
- Kind is Simple store
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- Figure 16: The #KindIsSimple store, London, May 2015
- L’Oréal explores connected make-up to learn about consumers
- LiLash launches feedback comp
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- Figure 17: LiLash reviews competition, November 2015
- Tarte cosmetics partners with ShadeScout
- Netflix publish moustache styling guide
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- Figure 18: Screenshot of Netflix Moustache search on Twitter, November 2015
- Retailer campaigns
- Feelunique.com celebrates 10 years
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- Figure 19: Promotional email for feelunique.com purchasing incentives, September 2015
- Space.NK boosts online sales with exclusive online discount
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- Figure 20: Space.NK online sales promotion, October 2015
- The Outnet launches beauty offering
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- Figure 21: The Outnet beauty launch, October 2015
- Tesco Beauty Bloggers
The Consumer – What You Need to Know
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- Supermarkets most commonly used BPC online retailer
- Subscription market shows growth
- Consumers more likely to use web for research
- YouTube a powerful force in BPC social media
- Building a more educated BPC consumer base
- Drawbacks of online BPC shopping
- Skin apps have untapped potential
- Apps can help guide product purchases
- Beauty blogs have a loyal audience
- Brand websites have the expertise
BPC Online Retailer Preferences
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- Supermarkets most commonly used BPC online retailer
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- Figure 22: Online retailers used to purchase BPC products, October 2015
- Subscription market shows growth
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- Figure 23: Amazon Dash button example, 2015
- Older men are not online
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- Figure 24: Those who have not shopped for BPC products online in the last 12 months, by age and gender, October 2015
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- Figure 25: Space.NK email marketing communications, September 2015
BPC Online Activities
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- Consumers more likely to use web for research
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- Figure 26: BPC online activities, October 2015
- Online facilitates price comparisons
- YouTube a powerful force in BPC social media
- Reviews are valued but not given
Attitudes towards BPC Online
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- Building a more educated BPC consumer base
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- Figure 27: Attitudes towards BPC online, October 2015
- Drawbacks of online BPC shopping
- Connected devices should target the male market
Beauty Apps
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- Skin tracker apps have untapped potential
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- Figure 28: Attitudes towards beauty apps, October 2015
- Scalp health of interest to young men
- Apps can help guide product purchases
- Young women key app users
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- Figure 29: Young women’s attitudes towards beauty apps, October 2015
Opinion of Online Beauty Sources
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- Blogs have a poor perception outside of their core target
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- Figure 30: Correspondence analysis – Opinion of online beauty sources, October 2015
- Online beauty retailers considered impartial
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- Figure 31: Perceptions of online beauty sources, October 2015
- Brand websites have the expertise
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- Figure 32: Lipcote Lipstick Finder, December 2015
- Magazine websites compete with blogs
Appendix – Data Sources, Abbreviations and Supporting Information
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- Data sources
- Abbreviations
- Fan chart forecast
- Correspondence analysis
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