Table of Contents
Executive Summary
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- The issues
- Beauty market slated for growth
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- Figure 1: Total US sales and fan chart forecast of beauty products, at current prices, 2010-20
- Amazon rivals specialty retailers as preferred retail channel
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- Figure 2: Retailers shopped, October 2015
- Rinse and repeat
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- Figure 3: Reasons for buying beauty products, October 2015
- The opportunities
- Men are beauty buyers too
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- Figure 4: Beauty items purchased by men, by age, October 2015
- Unlock the mobile moments
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- Figure 5: Behaviors and attitudes toward using mobile devices to shop for beauty products, October 2015
- Give them what they want
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- Figure 6: Interest in retail innovations, by heaviest beauty shoppers, October 2015
- What it means
The Market – What You Need to Know
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- Steady outlook
- Crowded landscape
- Population trends impact the beauty market
Market Size and Forecast
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- Steady market growth should hold in the foreseeable future
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- Figure 7: Total US sales and fan chart forecast of beauty products, at current prices, 2010-20
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- Figure 8: Total US retail sales and forecast of beauty products, at current prices, 2010-20
Market Breakdown
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- Color cosmetics clearly lead this multidimensional category
- Share leaders
- Fast-growing categories
- Facing challenges
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- Figure 9: Total US retail sales of beauty products, by segment, at current prices, 2013 and 2015
- Drug stores comprise nearly 20% of beauty sales
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- Figure 10: Total US retail sales of beauty products, by channel, at current prices, 2010-15
Market Factors
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- Population growth among women bodes well for beauty market
- Men take a vested interest in their appearance
- Multicultural segments are key targets
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- Figure 11: US population, by race and Hispanic origin, percent of total population, 2010-20
- A brighter economy will help support sales in the market
- Increasing interest in organic and natural beauty products
Key Players – What You Need to Know
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- Drug stores are holding their own while department stores slip back
- Many men have no qualms about using grooming products
- Technology is transforming how the category is shopped
What’s Working?
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- Drug stores experiencing success
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- Figure 12: Factors that influence where to shop, by primary retailer shopped – Drug stores, October 2015
- Marketing to men
What’s Struggling?
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- Department stores trying to keep up
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- Figure 13: Factors that influence where to shop, by primary retailer shopped – Any department store, October 2015
What’s Next?
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- Subscription services are beginning to make an impact
- Technology continues to invigorate the category
- In-store immersion
- Virtual tools
The Consumer – What You Need to Know
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- Opportunity to extend targeting efforts
- Path to purchase gets more complex
- Ample opportunity for experimentation by retailers and consumers alike
- Mobile phones as personal beauty shopping assistants
Who’s Shopping for Beauty Products?
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- Over half of beauty purchasers are “heavy” buyers
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- Figure 14: Repertoire of beauty shoppers, October 2015
- Figure 15: Beauty items purchased by store type, by repertoire of beauty shoppers, October 2015
- Young parents are another key target group
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- Figure 16: Repertoire of heavy beauty shoppers*, by demographics, October 2015
- Don’t overlook the men
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- Figure 17: Mean skincare and haircare expenditures, by gender and race/Hispanic origin, February 2014-March 2015
Retailers Shopped
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- Signs of channel shifting and blurring
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- Figure 18: Retailers shopped, October 2015
- Men and women shop the category differently
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- Figure 19: Select retailers also shopped at, by gender, October 2015
- Department stores commonly visited by multicultural consumers
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- Figure 20: Select retailers also shopped at, by race and Hispanic origin, October 2015
- Grocery stores for beauty products?
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- Figure 21: Select retailers also shopped at, by repertoire of beauty shoppers, October 2015
Reasons for Choosing Where to Shop
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- Attractive prices and convenient locations drive nearly half of beauty buyers to their retailer of choice
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- Figure 22: Factors that influence where to shop, October 2015
- Easy-to-navigate stores draw young male buyers
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- Figure 23: Agree that easy to shop/navigate the store/website impacts retailer choice for beauty products, by gender and age, October 2015
- To help or not to help
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- Figure 24: Attitudes toward sales associates – Agree, by gender and age, October 2015
- In their words
Beauty Items Purchased
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- Grooming staples are commonly purchased items
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- Figure 25: Beauty items purchased, October 2015
- High/low buying strategy in place
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- Figure 26: Beauty items purchased by store type, October 2015
- Hispanic women see beauty products as tools to enrich their looks
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- Figure 27: Any beauty items purchased by store type, by female race and Hispanic origin, October 2015
- In their words
Reasons for Buying Beauty Products
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- Bee-lining to the products she knows and trusts
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- Figure 28: Reasons for buying beauty products, October 2015
- Young and multicultural women key targets for trial tactics
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- Figure 29: Agreement to trying something new as a reason for buying beauty products, by select demographics, October 2015
- Product reviews can impact purchase decisions
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- Figure 30: Agreement to read a review of a product online and then bought it as a reason for buying beauty products, by select demographics, October 2015
- In their words
Shopping Process Revealed
Attitudes toward Digital Technology
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- Power of the mobile device
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- Figure 31: Behaviors and attitudes toward using mobile devices to shop for beauty products, October 2015
- Geo-fencing mobile strategies and beacon technology can help retailers engage with customers
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- Figure 32: Agreement to redeem coupons received on mobile device while shopping for beauty products, by select demographics, October 2015
- Men prefer to consult their phones for advice instead of a human
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- Figure 33: Attitudes toward digital technology, by gender, October 2015
- In their words
CHAID Analysis
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- Figure 34: CHAID analysis among those who agree they would be interested in smartphone/tablet apps that give them beauty product offers to redeem in-store, October 2015
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Role of Social Media
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- Influenced and influential
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- Figure 35: Attitudes toward social media's influence on beauty purchases, by gender, age, and repertoire of heaviest beauty shoppers, October 2015
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- Figure 36: Reasons for buying beauty products and/or choosing where to shop related to social media, by select demographics, October 2015
- Over half of heavy beauty buyers use YouTube
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- Figure 37: Social media sites visited daily by repertoire of heaviest beauty shoppers, October 2015
- In their words
Interest in Retail Innovations
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- More samples please
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- Figure 38: Desired retail innovations and/or improvements, October 2015
- Younger consumers interested in delivery and pickup services
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- Figure 39: Select desired retail innovations and/or improvements, by gender and age, October 2015
- Hispanics and Blacks like personalized assistance
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- Figure 40: Select desired retail innovations and/or improvements, by race and Hispanic origin, October 2015
- If consumers were beauty store owners…
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Consumer qualitative research
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – The Market
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- Figure 41: Total US retail sales and forecast of beauty products, at inflation-adjusted prices, 2010-20
- Figure 42: Female population by age, 2010-20
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- Figure 43: Consumer confidence and unemployment, 2007-November 2015*
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Appendix – The Consumer
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- Figure 44: Attitudes toward digital technology, CHAID analysis, October 2015
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- Figure 45: Amount spent on beauty products in last three months – Makeup, haircare, and skincare, July 2014-September 2015
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- Figure 46: Attitudes and opinions about social media, July 2014-September 2015
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