Table of Contents
Issues in the Market
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- Main themes
- Definitions
- Sources
- Abbreviations
Future Opportunities
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- Reviewing and re-evaluating
- Prove it – Accountability
- The reluctant ‘male groomer’
Market in Brief
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- Protracted and fragile recovery forecast
- Mixed fortunes in the beauty market
- Consumer context
- Specialists competitive landscape
- Channels of distribution
Internal Market Environment
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- Key points
- Pricing
- Value-aware consumers
- Budget options in new product development
- Own brands
- Own brands resonate with shoppers too
- Recent developments
- Driving loyalty
- Repeat business matters in recession
- Loyalty cards
- Product exclusives
- In-store experience
- Online developments
- Discretionary beauty spend comes under pressure
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- Figure 1: Trends in what extra money is spent on, Nov 09-Dec 09
Broader Market Environment
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- Key points
- Mixed impact of changing demographics
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- Figure 2: UK: Implications of changing population demographics for beauty market, 2009-14(f)
- The economy – still in recession
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- Figure 3: UK: GDP growth, 1989 Q1-2009 Q3
- Tough times still to come
- Consumer confidence on the rebound
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- Figure 4: UK: Nationwide Consumer Confidence Index, Jan 2006-November 2009
- Retail sales
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- Figure 5: UK: Retail sales value growth, 2007-09 (October)
- Implications for beauty retailers
- Inflation eases
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- Figure 6: UK: Consumer prices, percentage change year-on-year, 2003-09
- Consumer price implications for beauty retailers
Competitive Context
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- Key points
- Personal care spending contracts in 2009
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- Figure 7: UK: Consumer spending on selected categories, 2004-09
- Perfumes, cosmetics and toiletries
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- Figure 8: UK: Sales of cosmetics, fragrances and toiletries, by category, 2004, 2006, 2007 and 2008
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- Figure 9: UK: Relative sales importance of categories vs Western Europe, 2008
Strengths and Weaknesses in the Market
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- Strengths
- Weaknesses
Who’s Innovating?
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- Adding value and driving loyalty through new ideas
Sector Size and Forecast
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- Key points
- Technical notes
- Retail forecasts
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- Figure 10: UK: Health and beauty retailers’ sales, 2004-14
- Beauty retailers’ prospects
- Past trends
- NHS business grows faster than other health and beauty sales
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- Figure 11: UK: Estimated total health and beauty retailers’ sales, 2004-08
- Cosmetics/toiletries specialists hold their market share
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- Figure 12: UK: Beauty specialists* as a % of the personal care market**, 2004-08
- Outlet and enterprise data
- Enterprises
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- Figure 13: UK: Health and beauty retailers, number of enterprises, by sub-sector, 2003-07
- Outlets
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- Figure 14: UK: Health and beauty retailers, number of outlets, by sub-sector, 2003-07
Channels of Distribution
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- Key points
- Supermarkets dominate
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- Figure 15: UK: Beauty and toiletries market, channels of distribution, 2008
- Grocery retailers
- Health and beauty specialists
- Boots
- Department stores and other mixed goods retailers
- Non-store
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- Figure 16: UK: Beauty market, leading direct sellers, 2009
Retail Competitor Analysis
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- Key points
- Leading specialists
- Technical note
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- Figure 17: UK: Leading beauty specialists, 2008/09
- Market shares
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- Figure 18: UK: Leading specialists’ market shares, 2008
- Evaluation
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- Figure 19: UK: Beauty specialists, evaluation, 2008
Retail Advertising and Promotion
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- Key points
- Advertising expenditure continues to rise
- Total spend continues to rise in 2008
- But concentrated into just a few hands
- Upper end retailers cut back
- Avon a high spender relative to turnover
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- Figure 20: Main media advertising spend on cosmetics and toiletries, by retailer, 2004-08
- Spending by media
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- Figure 21: Main media advertising spend, by leading beauty specialists, by media, 2008
- Advertising themes
Brand Elements
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- Key points
- Brand map
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- Figure 22: Attitudes towards and usage of beauty retail brands, December 2009
- Brand qualities of beauty retail brands
- Service and a smile most important for beauty shoppers
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- Figure 23: Personalities of various beauty retail brands, December 2009
- Experience of beauty retail brands
- Prestige brands have niche awareness
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- Figure 24: Consumer visitation of various beauty retail brands, December 2009
- Brand consideration for beauty retail brands
- Avon not for everyone
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- Figure 25: Consideration of various beauty retail brands, December 2009
- Brand satisfaction for beauty retail brands
- Boots most rounded, Molton Brown offers best experience
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- Figure 26: Satisfaction with various beauty retail brands, December 2009
- Brand commitment to beauty retail brands
- Boots has loyalty, department stores less desirable
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- Figure 27: Commitment to various beauty retail brands, December 2009
- Brand intentions for beauty retail brands
- Boots has best retention
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- Figure 28: Future visiting intentions for various beauty retail brands, December 2009
- Brand recommendation for beauty retail brands
- Avon gets thumbs up from audience
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- Figure 29: Commitment to various beauty retail brands, December 2009
- Superdrug
- What the consumer thinks
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- Figure 30: Attitudes towards the Superdrug brand, December 2009
- Debenhams
- What the consumer thinks
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- Figure 31: Attitudes towards the Debenhams brand, December 2009
- Lush
- What the consumer thinks
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- Figure 32: Attitudes towards the Lush brand, December 2009
- Tesco
- What the consumer thinks
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- Figure 33: Attitudes towards the Tesco brand, December 2009
- Molton Brown
- What the consumer thinks
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- Figure 34: Attitudes towards the Molton Brown brand, December 2009
- Boots
- What the consumer thinks
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- Figure 35: Attitudes towards the Boots brand, December 2009
The Consumer – Where They Buy Beauty Products
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- Key points
- Where they buy beauty products
- Boots dominates, but sales growth is minimal
- Superdrug repositions
- Supermarket channel acceptable to many
- Department stores struggle to win the popular vote
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- Figure 36: Where they bought beauty products in the last 12 months, November 2009
- Who buys where
- Women far more enthusiastic shoppers than men
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- Figure 37: Top nine retailers: where they bought beauty products in last 12 months, by gender, November 2009
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- Figure 38: Leading retailers: Where they bought beauty products in last 12 months, by gender, November 2009
- The major retailers dominate across all age groups
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- Figure 39: Leading retailers: where they bought beauty products in the last 12 months, by age, November 2009
- But The Body Shop and Specialists have a younger bias
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- Figure 40: Beauty specialist and The Body Shop: Penetration levels, by age, November 2009
- Department stores and Avon have wider appeal
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- Figure 41: Department stores and Avon: Penetration levels, by age, November 2009
- While M&S and chemist/drugstores have an older skew
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- Figure 42: Chemist/drugstores and M&S: Penetration levels, by age, November 2009
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- Figure 43: Other retailers: Where they bought beauty products in last 12 months, by age, November 2009
- Winners and losers in the socio-economic stakes
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- Figure 44: Selected retailers: Where they bought beauty products in the last 12 months, by socio-economic group, November 2009
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- Figure 45: Selected retailers: Where they bought beauty products in last 12 months, by socio-economic group, November 2009
- Potential to collaborate?
- Boots and Waitrose
- Who else?
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- Figure 46: Selective retailers: Where bought beauty products in the last 12 months, by where they shop for groceries, November 2009
- Repertoire – Superdrug shoppers less loyal
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- Figure 47: Beauty cosmetics, skincare products or fragrances/aftershaves bought from, by repertoire of beauty cosmetics, skincare products or fragrances/aftershaves bought from, November 2009
- Women and ABC1 families shop around a lot more
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- Figure 48: Repertoire of beauty cosmetics, skincare products or fragrances/aftershaves bought from, by demographics, November 2009
The Consumer – The Way They Shop For Beauty Products
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- Key points
- Many have not changed their habits
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- Figure 49: The way they shop for beauty products, November 2009
- The capricious
- Future intentions
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- Figure 50: Future spending intentions on clothing (July 2009) and beauty (November 2009)
- Women have changed their habits more than men
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- Figure 51: Way in which they shop for beauty brands, by gender, November 2009
- Older people less likely to change
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- Figure 52: Those with unchanged shopping habits and those shopping around more, by age, November 2009
- Young people and families most likely to have cut back
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- Figure 53: Those spending less or changing brand habits, by lifestage, November 2009
- Consumers shopping habits by where they’ve shopped
- Trust
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- Figure 54: Those sticking to a few retailers they trust, by where they bought beauty products, November 2009
- Spending less
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- Figure 55: Those spending less this year than last, by where they bought beauty products, November 2009
The Consumer – Attitudes to Beauty Shopping
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- Key points
- Practicalities matter
- Loyalty cards appeal to a significant minority
- Call to action
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- Figure 56: Attitudes to beauty shopping, November 2009
- Young people actively managing their budgets
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- Figure 57: Attitudes to beauty shopping, 16-24s vs all, November 2009
- The gender divide
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- Figure 58: Main differences by gender in attitudes to beauty shopping, November 2009
- Some common ground
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- Figure 59: Other attitudes to beauty shopping, by gender, November 2009
- Other findings
A.S. Watson (UK)
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- Figure 60: AS Watson UK: Sales as share of UK health and beauty retailers’ sales, 2004-08
- Figure 61: Superdrug: Sales as share of UK health and beauty retailers’ sales, 2004-08
- Figure 62: Savers Health & Beauty: Sales as share of UK health and beauty retailers’ sales, 2004-08
- Figure 63: The Perfume Shop: Sales as share of UK health and beauty retailers’ sales, 2004-08
- Strategic evaluation
- Recent history
- Financial performance
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- Figure 64: AS Watson UK: Financial performance, 2004-08
- Store portfolio
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- Figure 65: AS Watson UK: Outlet data, 2004-08
- Retail offering
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Boots UK
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- Figure 66: Boots UK: Sales as share of health and beauty retailers’ sales, 2004-08
- Strategic evaluation
- Recent history
- Financial performance
- UK Health and Beauty Division
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- Figure 67: Alliance Boots UK Health and Beauty Division: Financial performance, 2004-08
- Store portfolio
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- Figure 68: Alliance Boots UK Health and Beauty Division: Outlet data, 2004-08
- Retail offering
- Market positioning
- Brands
- Product offer
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- Figure 69: Alliance Boots UK Health and Beauty: Sales mix by major product category, 2008/09
- Pricing
- Advertising and marketing
- e-commerce and home shopping
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Lush
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- Figure 70: Lush Retail Ltd: Sales as share of UK health and beauty retailers’ sales, 2004-08
- Recent history
- Financial performance
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- Figure 71: Lush Retail Ltd: Financial performance, 2004-08
- Store portfolio
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- Figure 72: Lush Retail Ltd: Outlet data, 2004-08
- Retail offering
- Market positioning
- Product offer and brand
- e-commerce
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Molton Brown
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- Figure 73: Molton Brown Ltd: Sales as share of UK health and beauty retailers’ sales, 2005-08
- Recent history
- Financial performance
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- Figure 74: Molton Brown Retail Division: Sales performance, 2004-08
- Store portfolio
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- Figure 75: Molton Brown: UK Outlet data, 2004-08
- Retail offering
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Space NK
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- Figure 76: Space NK Ltd: Sales as share of health and beauty retailers’ sales, 2004-08
- Recent history
- Financial performance
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- Figure 77: Space NK: Group financial performance, 2004-08
- Store portfolio
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- Figure 78: Space NK: Outlet data, 2004-08
- Retail offering
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The Body Shop
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- Figure 79: The Body Shop UK & Republic of Ireland: Estimated sales as share of UK health and beauty retailers’ sales, 2004-08
- Strategic evaluation
- Recent history
- Financial performance
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- Figure 80: The Body Shop UK & Republic of Ireland: Financial performance, 2004-08
- Store portfolio
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- Figure 81: The Body Shop UK: Outlet data, 2004-08
- Retail offering
- Market positioning
- Product offer
- Pricing
- Advertising and marketing
- e-commerce and home shopping
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Appendix – Where They Buy Beauty Products
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- Figure 82: Next most popular beauty cosmetics, skincare products or fragrances/aftershaves bought from, by demographics, November 2009
- Figure 83: Other beauty cosmetics, skincare products or fragrances/aftershaves bought from, by demographics, November 2009 (continued)
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- Figure 84: Least popular beauty cosmetics, skincare products or fragrances/aftershaves bought from, by demographics, November 2009 (continued)
- Figure 85: Agreement with selected lifestyle statements on appearance/beauty, GB, by demographics, 2009
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Appendix – The Way They Shop For Beauty Products
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- Figure 86: Most popular statements on buying cosmetics, skincare and fragrances/aftershaves, by demographics, November 2009
- Figure 87: Next most popular statements on buying cosmetics, skincare and fragrances/aftershaves, by demographics, November 2009 (continued)
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- Figure 88: Most popular statements on buying cosmetics, skincare and fragrances/aftershaves, by demographics, November 2009 (continued)
- Figure 89: Beauty cosmetics, skincare products or fragrances/aftershaves bought from, by most popular statements on buying cosmetics, skincare and fragrances/aftershaves, November 2009
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- Figure 90: Beauty cosmetics, skincare products or fragrances/aftershaves bought from, by next most popular statements on buying cosmetics, skincare and fragrances/aftershaves, November 2009 (continued)
- Figure 91: Beauty cosmetics, skincare products or fragrances/aftershaves bought from, by other statements on buying cosmetics, skincare and fragrances/aftershaves, November 2009 (continued)
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Appendix – Attitudes to Beauty Products
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- Figure 92: Most popular attitudes towards buying cosmetics, skincare, fragrances/aftershaves, by demographics, November 2009
- Figure 93: Next most popular attitudes towards buying cosmetics, skincare, fragrances/aftershaves, by demographics, November 2009 (continued)
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- Figure 94: Other attitudes towards buying cosmetics, skincare, fragrances/aftershaves, by demographics, November 2009 (continued)
- Figure 95: Beauty cosmetics, skincare products or fragrances/aftershaves bought from, by most popular attitudes towards buying cosmetics, skincare, fragrances/aftershaves, November 2009
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- Figure 96: Beauty cosmetics, skincare products or fragrances/aftershaves bought from, by next most popular attitudes towards buying cosmetics, skincare, fragrances/aftershaves, November 2009 (continued)
- Figure 97: Beauty cosmetics, skincare products or fragrances/aftershaves bought from, by other attitudes towards buying cosmetics, skincare, fragrances/aftershaves, November 2009 (continued)
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