Table of Contents
Issues in the Market
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- Main themes
- Definitions
- Sources
- Abbreviations
Future Opportunities
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- Trend: No More Mainstream
- Trend: Re-teching the Past
Market in Brief
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- Spending on personal care set to outperform all retail sales
- Consumer context
- Mixed results from the specialists
- Channels of distribution – department stores lose out in 2009 but bounce back in 2010
Internal Market Environment
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- Key points
- Consumers continue to seek value
- Own brands
- Buying loyalty
- Extra beauty spending a low priority
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- Figure 1: Trends in what extra money is spent on, November 2009 and November 2010
- Online
- In-store innovation
Broader Market Environment
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- Key points
- Implications for beauty retailers
Competitive Context
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- Key points
- Personal care spending returns to growth in 2010
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- Figure 2: UK: Consumer spending on selected categories, 2005-10
- Spending breakdown
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- Figure 3: UK: Consumer spending on personal care, by major category, 2009
- A volatile picture for beauty inflation
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- Figure 4: UK: Consumer prices inflation for selected categories, Jan 2009-Nov 2010
Strengths and Weaknesses in the Market
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- Strengths
- Weaknesses
Who’s Innovating
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- Online innovation
- Popping up in the UK
- Sampling
- In-store technology
- Beauty on a budget
- In-store spas
- Experiences
Sector Size and Market Forecast
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- Key points
- Economic and consumer outlook
- Beauty retailers’ prospects
- Market size forecasts
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- Figure 5: Personal care spending forecast confidence range, 2005-015
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- Figure 6: Personal care* market value forecast, best and worst case data, 2005-15
- Sector sales
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- Figure 7: UK: Estimated total health and beauty retailers’ sales, 2005-09
- Cosmetics/toiletries specialists lose share
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- Figure 8: UK: Beauty specialists* and Boots** as a % of the personal care market, 2005-09
- Outlet and enterprise data
- Enterprises
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- Figure 9: UK: Health and beauty retailers, number of enterprises, by sub-sector, 2004-08
- Outlets
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- Figure 10: UK: Retail outlets by sector, 2004-08
Channels of Distribution
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- Key points
- Boots gained most ground in 2009
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- Figure 11: UK beauty and toiletries market, channels of distribution, 2009
- Grocery retailers
- Health and beauty specialists
- Boots
- Department stores and other mixed goods retailers
- Non-store – a mixed picture
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- Figure 12: UK: Beauty market, leading direct sellers, 2010
- Online channel grows rapidly driven by the multi-channel players
- But the pureplay segment is particularly innovative
Retail Competitor Analysis
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- Key points
- Technical note
- Leading specialists
- The market leaders shine
- The Body Shop fails to impress
- Mixed performances from smaller players
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- Figure 13: UK: Leading beauty specialists, 2009/10
- Market shares
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- Figure 14: UK: Leading specialists’ market shares, 2008 and 2009
Retail Advertising and Promotion
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- Key points
- Beauty advertising expenditure declines
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- Figure 15: Leading retailers’ advertising spending, cosmetics and toiletries, 2006-09
- Spending relative to turnover
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- Figure 16: Selected retailers’ advertising spending, as % of sales, 2005-09
- Spending by media
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- Figure 17: Leading beauty retailers’ spending on toiletries and cosmetics advertising, by media, 2009
- Advertising content
Brand Elements
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- Brand map
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- Figure 18: Attitudes towards and visitation of beauty retail brands, December 2010
- Brand attitudes
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- Figure 19: Attitudes, by beauty retail brand, December 2010
- Brand personality
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- Figure 20: Beauty retail brand personality – macro image, December 2010
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- Figure 21: Beauty retail brand personality – micro image, December 2010
- Correspondence analysis
- Brand experience
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- Figure 22: Beauty retail brand visitation, December 2010
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- Figure 23: Satisfaction with various beauty retail brands, February 2010
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- Figure 24: Consideration of beauty retail brands, December 2010
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- Figure 25: Consumer perceptions of current beauty retail brand performance, December 2010
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- Figure 26: Beauty retail brand recommendation – Net Promoter Score, December 2010
- Brand index
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- Figure 27: Beauty retail brand index, December 2010
- Figure 28: Beauty retail brand index vs. recommendation, December 2010
- Target group analysis
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- Figure 29: Target groups, December 2010
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- Figure 30: Beauty retail brand usage, by target groups, December 2010
- Group One – The Conformists
- Group Two – Simply the Best
- Group Three – Shelf Stalkers
- Group Four – Habitual Shoppers
- Group Five – The Individualists
The Consumer – Where They Buy Beauty Products
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- Key points
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- Figure 31: Where they bought beauty products in the last 12 months, November 2010
- Changing allegiance
- A higher proportion of Tesco shoppers buy into beauty
- Superdrug gains customers and market share
- Boots still comfortably leading the pack
- Internet making inroads
- Department stores lose some ground
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- Figure 32: where they bought beauty products in the last 12 months, November 2009 and 2010
- Retailer market positioning
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- Figure 33: UK: market positioning of leading retailers/channels, November 2010
- Repertoire – Boots customer loyalty strengthens further
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- Figure 34: Beauty cosmetics, skincare products or fragrances/aftershaves bought from, by repertoire of beauty cosmetics, skincare products or fragrances/aftershaves bought from, November 2010
The Consumer – How They Shop for Beauty Products
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- Key points
- Shopping habits 2010
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- Figure 35: The way they shop for beauty products, November 2010
- 2010 compared to 2009
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- Figure 36: The way they shop for beauty products, November 2009 and 2010
- Patterns of behaviour by age and affluence
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- Figure 37: how they shop for beauty, by age and affluence, November 2010
The Consumer – Attitudes to Beauty Shopping
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- Key points
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- Figure 38: Attitudes to beauty shopping, November 2010
- The gender divide
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- Figure 39: Attitudes to beauty shopping, November 2010
- Target groups
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- Figure 40: Beauty target groups, November 2010
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- Figure 41: Attitudes towards beauty purchasing, by target groups, November 2010
- Group 1: The Price Aware (22%)
- Who are The Price Aware?
- Group 2: The Quality Led (19%)
- Who are The Quality Led?
- Group 3: The Enthusiasts (11%)
- Who are The Enthusiasts?
- Group 4: The Indifferent (48%)
- Who are The Indifferent?
- Where people shop by typology
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- Figure 42: Where they bought beauty products, by consumer target group, November 2010
Boots UK
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- Figure 43: Boots UK: Sales as share of health and beauty retailers’ sales, 2005-09
- Strategic evaluation
- Group strategy
- Beauty plays second fiddle
- Extending the own brand reach
- Customer loyalty a key battleground
- Forming strategic partnerships
- Convincing market leader
- Recent history
- Financial performance
- Group context
- UK health and beauty division
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- Figure 44: Alliance Boots UK Health and Beauty Division: Financial performance, 2006-10
- First half 2010/11
- Store portfolio
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- Figure 45: Alliance Boots UK Health and Beauty Division: Outlet data, 2006-10
- Retail offering
- e-commerce
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A.S. Watson (UK)
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- Figure 46: AS Watson UK: Sales as share of UK health and beauty retailers’ sales, 2005-09
- Figure 47: Superdrug: Sales as share of UK health and beauty retailers’ sales, 2005-09
- Figure 48: Savers Health & Beauty: Sales as share of UK health and beauty retailers’ sales, 2005-09
- Figure 49: The Perfume Shop: Sales as share of UK health and beauty retailers’ sales, 2005-09
- Strategic evaluation
- Recent history
- Financial performance
- The Perfume Shop continues its strong performance
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- Figure 50: AS Watson UK: Financial performance, 2005-09
- Store portfolio
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- Figure 51: AS Watson UK: Outlet data, 2005-09
- Retail offering
- Superdrug focusing on beauty
- Savers’ wider offer
- The Perfume Shop’s successful niche
- Advertising
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Lush
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- Figure 52: Lush Retail Ltd: Sales as share of UK health and beauty retailers’ sales, 2005-2008
- Strategic evaluation
- Struggling, but growing
- The cost of a clear conscience
- Spreading the risk
- Recent history
- Financial performance
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- Figure 53: Lush Retail Ltd: Financial performance, 2005-09
- Store portfolio
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- Figure 54: Lush Retail Ltd: Outlet data, 2005-09
- Retail offering
- e-commerce
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Space NK
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- Figure 55: Space NK Ltd: Sales as share of health and beauty retailers’ sales, 2005-09
- Strategic evaluation
- Recent history
- Financial performance
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- Figure 56: Space NK: Group financial performance, 2006-10
- Store portfolio
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- Figure 57: Space NK: Outlet data, 2006-10
- Retail offering
- E-commerce
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The Body Shop
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- Figure 58: The Body Shop UK & Republic of Ireland: Estimated sales as share of UK health and beauty retailers’ sales, 2005-09
- Strategic evaluation
- Recent history
- Financial performance
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- Figure 59: The Body Shop (UK & RoI): Group financial performance, 2005-09
- Store portfolio
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- Figure 60: The Body Shop UK: Outlet data, 2005-09
- Retail offering
- Market positioning
- E-commerce and home shopping
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Appendix – Broader Market Environment
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- Population
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- Figure 61: Europe Top 5: Population breakdown, by age group, 2005
- Figure 62: Europe Top 5: Population breakdown, by age group, 2010
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- Figure 63: Europe Top 5: Population breakdown, by age group, 2015
- Figure 64: Europe Top 5: Population breakdown, by age group, 2020
- GDP
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- Figure 65: Europe Top 5: GDP (in current prices) 2000- Q3 2010
- Figure 66: Europe top 5: GDP growth rates (in constant prices), 2000- Q3 2010
- Consumer spending
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- Figure 67: Europe Top 5: Consumer spending (in current prices) 2001-Q3 2010
- Figure 68: Europe Top 5: Consumer spending growth rates (in constant prices) 2001-Q3 2010
- Consumer prices
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- Figure 69: Europe Top 5: Consumer prices, 2001-Oct 2010
- Unemployment
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- Figure 70: Europe Top 5: Average rate of unemployment, 2001-Q3 2010
- Interest rates
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- Figure 71: UK and Eurozone: Interest rates, 2004-Q3 2010
- Consumer confidence
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- Figure 72: Europe Top 5: Consumer confidence, March 2009-November 2010
Appendix – The Consumer – Where They Buy Beauty Products
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- Figure 73: Most popular where they bought beauty products in last 12 months, by demographics, November 2010
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- Figure 74: Next most popular where they bought beauty products in last 12 months, by demographics, November 2010
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- Figure 75: Other where they bought beauty products in last 12 months, by demographics, November 2010
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- Figure 76: Least popular where they bought beauty products in last 12 months, by demographics, November 2010
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- Figure 77: Repertoire of where they bought beauty products in last 12 months, by demographics, November 2010
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Appendix – The Consumer – How They Shop for Beauty Products
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- Figure 78: Most popular how they shop for beauty, by demographics, November 2010
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- Figure 79: Next most popular how they shop for beauty, by demographics, November 2010
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Appendix – The Consumer – Attitudes to Beauty Shopping
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- Figure 80: Most popular attitudes towards beauty purchasing, by demographics, November 2010
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- Figure 81: Next most popular attitudes towards beauty purchasing, by demographics, November 2010
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- Figure 82: Other attitudes towards beauty purchasing, by demographics, November 2010
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- Figure 83: Target groups, by demographics, November 2010
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