Table of Contents
Executive Summary
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- The market
- Shoppers go online for research and purchase
- Gifts should be genderless for Generation Z
- Impact of COVID-19 on Gifting in Beauty and Personal Care
- BPC is a low priority in light of COVID-19
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- Figure 1: Expected impact of COVID-19 on the gifting in beauty and personal care sector, short, medium and long-term, 27th April 2020
- Companies and brands
- NPD in BPC gift sets show a decline
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- Figure 2: NPD in BPC gift set launches, by category, 2016-19
- The consumer
- Consumers prefer individual gifts to personalise their choice
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- Figure 3: Purchase of BPC gifts, December 2019
- Gifting of beauty experiences will be impacted by COVID-19
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- Figure 4: Purchase of gift vouchers/beauty experiences, December 2019
- Men aren’t gifted as much as women
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- Figure 5: Types of BPC gifts received from others, by gender, December 2019
- Health & beauty retailers are popular
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- Figure 6: Places of purchase of BPC gifts, in-store and online, December 2019
- Spend is limited
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- Figure 7: Typical amount spent on a BPC gift, December 2019
- Christmas gifting sees a rise
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- Figure 8: BPC gifting occasions, December 2019
- Consumers stick to brands they know
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- Figure 9: BPC gifting purchase behaviours, December 2019
- Personalisation is important
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- Figure 10: Interest in BPC gifting options, December 2019
- Ethical considerations will be more important after COVID-19
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- Figure 11: Attitude towards sustainability in BPC gifting, December 2019
- What we think
The Impact of COVID-19 on Gifting in Beauty and Personal Care
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- Short, medium and long-term impact on the industry
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- Figure 12: Expected impact of COVID-19 on the gifting in beauty and personal care sector, short, medium and long-term, 27th April 2020
- Short-term
- Medium-term
- Long-term
- Opportunities and Threats
- Long-term impact of COVID-19 will be limited
- A time for new gifting occasions
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- Figure 13: Feelunique makeup offers, May 2020
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- Figure 14: Drest Christian Louboutin challenge, May 2020
- Brands need to diversify gifting options
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- Figure 15: Lookfantastic skincare superstars, May 2020
- An emotional need for community and co-operation
- The crisis will reinforce growing environmental concerns
- Impact on the Gifting in Beauty and Personal Care market
- Gifting will become digitised
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- Figure 16: Feelunique gift page, April 2020
- Bricks and mortar stores need to allay hygiene concerns
- Shifts in consumer behaviour
- Beauty was a low priority in the initial weeks
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- Figure 17: Personal or family behaviour changes as a result of the COVID-19/coronavirus outbreak, 9th April – 16th April 2020
- Overall BPC sees little change in spend
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- Figure 18: Changes in spending habits on BPC, 26th March-23rd April
- BPC offers a pick-me-up for consumers
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- Figure 19: The Bodyshop care packages, May 2020
- Gifting experiences will be impacted
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- Figure 20: Hershesons consultations, May 2020
- Figure 21: Katherine daniels at-home facials, May 2020
- Brands that help the effort will benefit in the long term
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- Figure 22: Dove courage is beautiful, April 2020
- Impact on key consumer segments
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- Figure 23: Revlon self-care sunday, May 2020
- How a COVID-19 recession will reshape the market
- Unemployment will impact discretionary spend
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- Figure 24: Birchbox, April 2020
- Savvy shopping behaviours will be revived
- The experience economy will be impacted
- Impact on the marketing mix
- The future of department stores will have a significant long term impact
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- Figure 25: Kiehl’s healthy skin hub, April 2020
- Discounting periods will see a bigger race to the bottom
- COVID-19: Market context
Issues and Insights
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- Men should be given gifts too
- The facts
- The implications
- Sustainability is a concern even in gifting
- The facts
- The implications
The Market – What You Need to Know
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- Rising population of elders will need help
- Online sector is becoming more important
- Gender parameters need a rethink
- Explore new gifting occasions
- Sustainability is important
- COVID-19 will impact buying behaviours
Market Drivers
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- Older shoppers will need help for gifting
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- Figure 26: Trends in the age structure of the UK population, 2019-29
- Shoppers go online for research and purchase
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- Figure 27: Online sales as % of all retail sales, 2015-19
- Premium retailers should aid product discovery
- COVID-19 will impact buying behaviours in 2020
- Explore genderless BPC gifting
- Men are under pressure to look good
- Cater to the ever-increasing ethnically diverse society
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- Figure 28: Change in UK’s ethnic groups, England and Wales, 2001-11
- Finding sustainable options amid plethora of plastic packaging
Companies and Brands – What You Need to Know
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- Overall decline in NPD for BPC gift sets
- Colour cosmetics sees a greater focus
- Wellbeing is theme in skincare
- Lime Crime led gift-set innovations in 2018
- Estée Lauder focused on lips in 2019
Launch Activity and Innovation
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- Fragrance gift sets continue to decline in NPD
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- Figure 29: NPD in BPC gift sets, by category, 2016-19
- Colour cosmetics increases its share in NPD
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- Figure 30: BeneFit Chinese New Year gift set, 2019
- Skincare NPD focuses on wellness
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- Figure 31: Examples of NPD in skin-care gift sets focusing on wellness, 2019
- Little in NPD for men
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- Figure 32: Examples of NPD in men’s BPC gift sets, 2018-19
- Lime Crime and Estée Lauder focused on colour cosmetics in 2018
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- Figure 33: NPD in BPC gift sets, by ultimate company and others, 2018
- Figure 34: Tom Ford Boys & Girls 50-piece lipstick gift set, 2018
- Estée Lauder leads NPD in 2019
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- Figure 35: NPD in BPC gift sets, by ultimate company and others, 2019
- Figure 36: MAC Starring You gift sets, 2019
- L’Occitane taps into the Easter season in 2019
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- Figure 37: L’Occitane’s delicious almond easter egg body care gift set, 2019
The Consumer – What You Need to Know
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- Individual gifts are preferred over gift sets
- Gift vouchers for beauty experiences are popular
- Health & beauty retailers are popular
- Rise in Christmas gifting
- Research is important
- Women want to personalise gifts
- Consumers feel strongly about sustainability
BPC Gifts Purchased and Received
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- A note on COVID-19
- Consumers prefer individual gifts
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- Figure 38: Purchase of BPC gifts, December 2019
- Fragrance gift sets are popular
- Gifting is high in hair and skincare
- Thinking outside the norm
- Gifting experiences
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- Figure 39: Purchase of gift vouchers/beauty experiences, December 2019
- Men are less likely to receive
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- Figure 40: Types of BPC gifts received from others, by gender, December 2019
Buying BPC Gifts
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- Health & beauty retailers are most popular point of purchase
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- Figure 41: Places of purchase of BPC gifts in-store, by gender, December 2019
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- Figure 42: Boots concept store, Covent Garden, London 2019
- Women like to browse
- Young people gift on a budget
- Online-only retailers are popular
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- Figure 43: Places of purchase of BPC gifts online, by gender, December 2019
- Use technology to aid online shopping
- Spend is limited
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- Figure 44: Typical amount spent on a BPC gift, December 2019
- Spend is higher on special occasions
BPC Gifting Occasions
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- Christmas gifting witnesses an upsurge
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- Figure 45: BPC gifting occasions, by gender, December 2019
- Birthdays are popular
BPC Gifting Purchase Behaviours
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- Brand familiarity is an integral purchase factor
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- Figure 46: BPC gifting purchase behaviours, December 2019
- Women are price sensitive
- Research is important
- Personalise gifts on a budget
- Environmental concerns are important
Interest in BPC Gifting Options
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- Women want to personalise gifts
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- Figure 47: Interest in BPC gifting options, by gender, December 2019
- Seasonal gifts are popular
- Luxury brands appealing to Millennial women
Attitudes towards Sustainability in BPC Gifting
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- Consumers feel strongly about excessive packaging in gifts
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- Figure 48: Attitude towards sustainability in BPC Gifting, December 2019
- Retailers can play a role
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- Figure 49: Lush Lens gifting experience, December 2019
- Ethical buying is important in gifting
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
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