Table of Contents
Executive Summary
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- Top takeaways
- Market overview
- Impact of COVID-19 on beauty retailing
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- Figure 1: Short-, medium- and longer-term impact of COVID-19 on beauty retailing, September 2020
- Opportunities and challenges
- Position beauty as an uplifting act of self-care
- Interest and confidence in online shopping will continue to grow
- Sampling strategies can serve as an opportunity for increased engagement
- Value-seeking shoppers will limit discretionary spend and trade down
The Market – Key Takeaways
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- Discretionary spending is measured in as a result of the economic slowdown
- Canadians are prioritizing wellness
- The face of the nation is aging
- The Canadian population continues to become more diverse
Market Factors
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- Impact of COVID-19 on beauty retailing
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- Figure 2: Short-, medium- and longer-term impact of COVID-19 on beauty retailing, September 2020
- Lockdown
- Re-emergence
- Recovery
- Discretionary spending is measured in as a result of the economic slowdown
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- Figure 3: Canada’s unemployment rate, January-December 2020
- Figure 4: Canada’s retail sales, January-October 2020
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- Figure 5: Sephora Canada Instagram post, August 2020
- Figure 6: Cheekbone Beauty Instagram post, September 2020
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- Figure 7: Estee Lauder Instagram post screenshot, April 2020
- Buy Now Pay Later schemes make purchases more palatable
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- Figure 8: Paybright Instagram post, July 2020
- Canadians are prioritizing wellness
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- Figure 9: Bite Beauty Instagram post, March 2020
- The face of the nation is aging
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- Figure 10: Population aged 0-14 and 65+, 1995-2035*
- Figure 11: BPC product repertoire, seniors vs overall, September 2020
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- Figure 12: MAYE MUSK for COVERGIRL, November 2017
- Figure 13: Get your glow back with Age Perfect Golden Age | L'Oreal Paris NZ, August 2020
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- Figure 14: Narsissist Instagram post, October 2020
- Figure 15: Grandma knows best when it comes to makeup advice, December 2018
- The Canadian population continues to become more diverse
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- Figure 16: Visible minority population in Canada, 1981-2036*
- Figure 17: Fenty Beauty Instagram post, January 2021
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- Figure 18: Sephora Instagram post, January 2021
- Figure 19: Sephora Canada Instagram post, January 2021
Market Opportunities
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- Non-traditional outlets are gaining steam
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- Figure 20: Those who have tried a new shopping service for BPC products as a result of COVID-19, by age, September 2020
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- Figure 21: L’Oréal Instagram post, December 2020
- Figure 22: The Sims Instagram post, June 2020
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- Figure 23: Nintendo Instagram post, January 2021
- Figure 24: Urban Decay Game of Thrones Vault Set (US), May 2019
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- Figure 25: Elmwood Spa Instagram post, January 2021
Companies and Brands – Key Takeaways
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- Digital tools can bridge the gap between in-person and online shopping
- Spotlight on Cover FX
Competitive Strategies
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- Digital tools can bridge the gap between in-person and online shopping
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- Figure 26: Swan Beauty LLC Instagram post, November 2020
- Figure 27: Lush Cosmetics Instagram post, April 2020
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- Figure 28: HiMirror Mini - See your beauty needs clearly, September 2018
- Spotlight on Cover FX
- Personalization
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- Figure 29: Cover FX Custom Cover Drops (Canada), June 2019
- Expansion into skincare
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- Figure 30: Cover FX Instagram post, January 2021
- Figure 31: Cover FX Instagram post, January 2021
- Virtual Try-On
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- Figure 32: ‘I have used/would like to use tools that allow you to virtual test products’ (% agree), men vs women, September 2020
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- Figure 33: Cover FX Instagram post screenshot, August 2020
The Consumer – Key Takeaways
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- Hygiene basics top Canadian BPC shopping lists
- The pandemic has caused many Canadians to make adjustments to their typical BPC routines
- Canadians are increasing their online shopping frequency
- Sampling will remain an important element to drive sales
Products Used in the Past Six Months
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- Canadians are using a wide assortment of beauty and personal care products
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- Figure 34: Products used in the past six months, September 2020 vs September 2019
- Not surprisingly, usage skews heavily towards women
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- Figure 35: Give and Take | Old Spice, February 2019
- Figure 36: Products used in the past six months, men vs women, September 2020
- Beauty has been deprioritized as a result of the pandemic
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- Figure 37: Women who have worn makeup worn in the past six months, September 2020 vs September 2019
- Younger Canadians are more engaged in the BPC market
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- Figure 38: Products used in the past six months, 18-44s vs over-45s, September 2020
- Asians have elevated BPC product usage
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- Figure 39: Products used in the past six months, Chinese Canadians and South Asians* vs overall, September 2020
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- Figure 40: Realistic Skincare Commercial, January 2019
- Figure 41: Vaishali says beauty is strength, February 2017
- Shoppers of all income levels are able to find appropriate products to fit their budgets
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- Figure 42: Sun protection used in the past six months, by income, September 2020
Products Purchased in the Past 12 Months
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- Hygiene basics top Canadian BPC shopping lists
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- Figure 43: Products purchased in the past 12 months, September 2020
- Women are far more invested in BPC product purchases
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- Figure 44: Products purchased in the past 12 months, men vs women, September 2020
- Younger Canadians are focusing on discretionary purchases
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- Figure 45: Products purchased in the past 12 months, 18-44s vs 45+, September 2020
Purchase Channels Used in the Past 12 Months for Beauty Products
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- Canadians are increasing their online shopping frequency
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- Figure 46: Share of online vs in-store shopping, 2020 vs 2018, September 2020 and April 2018
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- Figure 47: Frequency of online shopping, 2020 vs 2018, September 2020 and April 2018
- Most online shoppers also visit the retailer in person
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- Figure 48: Retailers used to purchase beauty and personal care products in the past 12 months (net in store/online), September 2020
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- Figure 49: Retailers used to purchase beauty and personal care products in the past 12 months, online vs in store, September 2020
- Younger consumers are more likely to be shopping online
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- Figure 50: Online retailers used to purchase beauty and personal care products in the past 12 months, 18-44 vs 45+, September 2020
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- Figure 51: Those buying a BPC product online that would usually be purchased in person as a result of the COVID-19 pandemic, by age, September 2020
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- Figure 52: Lush Cosmetics Instagram post, April 2020
- Women are seeking out more specialized beauty retailers
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- Figure 53: Beauty and personal care products purchased at specific retailers in the past 12 months, men vs women, September 2020
- Regional differences exist in online shopping behaviours
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- Figure 54: Any beauty and personal care products purchased online in the past 12 months, by region, September 2020
COVID-19 Related Beauty Routine Changes
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- The pandemic has caused many Canadians to make adjustments to their typical BPC routines
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- Figure 55: Changes made to beauty routine as a result of the COVID-19 pandemic, September 2020
- As women’s beauty routines are more ‘situation-dependent’, they have faced greater disruption
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- Figure 56: Changes made to beauty routine as a result of the COVID-19 pandemic, men vs women, September 2020
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- Figure 57: Clairol Color Instagram post, May 2020
- Figure 58: Shoppers Beauty Instagram post, April 2020
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- Figure 59: DHC eyelash tonic conditioner (US), December 2020
- Younger shoppers have altered their routines most, but have also adapted more easily to online shopping
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- Figure 60: Changes made to beauty routine as a result of the COVID-19 pandemic, by age, September 2020
- Parents are turning online to find BPC products
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- Figure 61: Honest Instagram post, November 2020
- Figure 62: COVID-19 pandemic-related beauty routine changes, parents vs non-parents, September 2020
Beauty Product Shopping Behaviours
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- Canadians rely on routine for shopping, but are willing to experiment
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- Figure 63: Frequency of BPC shopping behaviours, September 2020
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- Figure 64: Habitual BPC shopping behaviour frequency (% always or most of the time), by age, September 2020
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- Figure 65: Online BPC shopping behaviour frequency (% always or most of the time), by age, September 2020
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- Figure 66: Online BPC shopping behaviour frequency (% always or most of the time), Asians vs overall, September 2020
- Sampling will remain an important element to drive sales
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- Figure 67: ‘I’m no longer interested in the option to sample products in stores’ (% agree), by those comfortable/uncomfortable receiving beauty treatments as a result of COVID-19, September 2020
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- Figure 68: Marie Claire Edit Instagram post, August 2020
- Figure 69: Product sample-related BPC shopping behaviour (% always or most of the time), by age, September 2020
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Consumer qualitative research
- Mintel Trend Drivers
- Abbreviations
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