Table of Contents
Introduction
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- Report scope
- Changes to our UK report
- Sources
- Definitions and abbreviations
- Financial definitions
- VAT
- Sales per store, sales per sq m
- Other
- Abbreviations
Executive Summary
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- The market
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- Figure 1: UK: Consumer spending on beauty and personal care products through retail channels (incl. VAT), 2007-17
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- Figure 2: Consumer spending on beauty products through retail channels (incl. VAT), 2007-17
- Market factors
- Online
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- Figure 3: UK: Estimated annual sales of beauty and personal care goods online, 2007-13
- Companies, brands and innovation
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- Figure 4: UK: Leading 15 beauty retailers’ share of total consumer spending on personal care goods, 2011
- Space allocation
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- Figure 5: Health and beauty space allocations, December 2012
- Channels of distribution
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- Figure 6: UK: Estimated distribution of spending on beauty and personal care goods, 2012
- The consumer
- Where they buy
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- Figure 7: UK: Where they buy beauty products, November 2012
- How they shop
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- Figure 8: UK: How they buy beauty products, November 2012
- Important factors in buying
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- Figure 9: UK: What factors are very/fairly important in consumer choices, November 2012
- Attitudes towards beauty treatments and products
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- Figure 10: UK: Attitudes towards beauty/grooming treatments and products, November 2012
- Mobile shopping attitudes
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- Figure 11: UK: Mobile shopping attitudes, November 2012
- What we think
Issues in the Market
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- How has the beauty treatments market changed and what opportunities has this delivered to store based retailers?
- How engaged are beauty shoppers with m-commerce and how can retailers capitalise on this?
- How is new technology driving innovation in beauty product testing?
- How can retailers leverage the power of personal recommendations and trust?
- Who are the retail winners and losers?
Trend Application
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- Inspire trend: FSTR and HYPR
- Inspire trend: Slow It All Down
- 2015 trend: Transumers
The Market Environment
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- Key points
- Demography
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- Figure 12: Ethnic composition of England and Wales, 2011
- Inflation
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- Figure 13: Harmonised indices of consumer prices: annual % change, selected categories, Jan 2011-Oct 2012
- Figure 14: Annual % change in harmonised indices of consumer prices versus annual % change in average weekly earnings, Jan 2011-Oct 2012
- Economy
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- Figure 15: Gross domestic product: Real-terms growth, Q1 2010-Q3 2012
- Figure 16: Consumer confidence levels, Jan-Dec 2012
Market Size, Forecast and Segmentation
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- Key points
- Defining ‘beauty’
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- Figure 17: UK: Total consumer spending on personal care goods (Incl. VAT), 2007-12
- Forecasts to 2017
- Spending on beauty and personal care products
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- Figure 18: UK: Consumer spending on beauty and personal care products through retail channels (incl. VAT), 2007-17
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- Figure 19: UK: Consumer spending on beauty and personal care products through retail channels (incl. VAT), 2007-17
- Spending on beauty products
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- Figure 20: Consumer spending on beauty products through retail channels (incl. VAT), 2007-17
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- Figure 21: UK: Consumer spending on beauty products through retail channels (incl. VAT), 2007-17
- Spending on personal care products
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- Figure 22: Consumer spending on personal care products through retail channels (incl. VAT), 2007-17
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- Figure 23: UK: Consumer spending on personal care products through retail channels (incl. VAT), 2007-17
- Segmentation by product category
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- Figure 24: Breakdown of spending through retail channels on beauty and personal care products, 2012
- Figure 25: Consumer spending through retail channels on major beauty and personal care categories (incl. VAT), 2007-12
- The Mintel forecast
Sector Size
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- Key points
- H&B specialists sector sales
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- Figure 26: Health and beauty specialists’ sales (Incl. VAT), 2007-12
- Enterprises, outlets, and employees
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- Figure 27: Health and beauty specialists: Number of enterprises, 2008-11
- Figure 28: Health and beauty specialists: Number of outlets, 2008-10
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- Figure 29: Health and beauty specialists: Number of employees – full-time equivalents, 2008-10
Strengths and Weaknesses
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- Strengths
- Weaknesses
The Consumer – Customer Profile Comparisons
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- Key points
- Age profile
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- Figure 30: Beauty retailers customer age profile, December 2012
- Regional profile
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- Figure 31: Beauty retailers customer regional profile, December 2012
- Socio-economic groups
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- Figure 32: Beauty retailers customer Socio-economic group profile, December 2012
- Finances
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- Figure 33: State of finances of beauty product purchasers, December 2012
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- Figure 34: Beauty retailers customer finances profile, December 2012
The Consumer – Where They Buy
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- Key points
- What we asked
- Where consumers buy
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- Figure 35: UK: Where they buy beauty products, November 2012
- Why they choose particular retailers
- Where consumers buy – offline/online split
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- Figure 36: UK: Where they buy beauty products, in-store or online, November 2012
- Perceived benefits of online and in-store shopping
- Click and collect
- Who shops where
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- Figure 37: UK: Where they buy by age and affluence, November 2012
- Shopping repertoire
- Men and older age groups are the most loyal
- And the under 35s are the most fickle
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- Figure 38: repertoire of where they bought beauty products in the last 12 months, by demographic, November 2012
The Consumer – How They Buy
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- Key points
- What we asked
- How consumers buy
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- Figure 39: UK: How they buy usually beauty products, November 2012
- Convenience and speed are important to men
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- Figure 40: UK: How they buy beauty products, by gender, November 2012
- One in five 25-34-year-olds habitually use the internet to shop for beauty
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- Figure 41: Those who usually look and buy online by age, November 2012
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- Figure 42: Where 25-34-year-olds shop online for beauty products, November 2012
The Consumer – Key Drivers
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- Key points
- What we asked
- The power of friends and family
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- Figure 43: UK: what factors are very/fairly important in consumer choices, November 2012
- Free samples
- Face-to-face advice
- Social media opportunities
- Who thinks what
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- Figure 44: What factors are very/fairly important in consumer choices by age and affluence, November 2012
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- Figure 45: What factors are fairly/very important in consumer choices, by age, November 2012
- Unimportant factors
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- Figure 46: What factors are fairly unimportant/not at all important in consumer choices, November 2012
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- Figure 47: What factors are fairly unimportant/not at all important in consumer choices, by age, November 2012
The Consumer – Attitudes Towards Beauty Treatments and Products
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- Key points
- What we asked
- Trying out products in-store matters
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- Figure 48: UK: attitudes towards beauty/grooming treatments and products, November 2012
- One in five are prepared to have beauty treatments on the shopfloor
- Who thinks what
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- Figure 49: UK: consumer attitudes to beauty products and treatments, by age and affluence, November 2012
- Attitudes by where they shop
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- Figure 50: Those liking new technology in more stores by where they shop, November 2012
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- Figure 51: Those liking more websites with virtual makeover tools, by where they shop, November 2012
The Consumer – Mobile Shopping Attitudes
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- Key points
- What we asked
- More consumers are browsing and shopping on-the-move
- A captive audience
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- Figure 52: UK: Mobile shopping attitudes, November 2012
- Where existing mobile shoppers buy beauty products
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- Figure 53: Those who have used a smartphone to buy beauty by where they shop for beauty products, November 2012
- Potential mobile shoppers
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- Figure 54: Those who would consider using their smartphone to buy beauty products in future by where they shop for beauty products, November 2012
- On-the-move researchers
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- Figure 55: Those who use their smartphone to check products and prices but not to buy, by where they shop for beauty products, November 2012
- The under 35s and the ABs want more choice of beauty apps
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- Figure 56: UK: Mobile shopping attitudes, November 2012
- ‘Mobile money’ – the next big thing on the digital horizon
CHAID Analysis
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- Methodology
- Virtual makeover tools are particularly important to young mothers in helping to decide what to buy
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- Figure 57: beauty retailing – CHAID – Tree output, November 2012
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- Figure 58: Beauty Retailing – CHAID – Table output, November 2012
Who’s Innovating?
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- Key points
- In-store clinics and beauty bars
- Store makeovers for a more engaging shopping experience
- Men aisles
- Making shopping for beauty a special and enjoyable experience
- Fittings which bring beauty products to life in-store
- T-commerce and e-catalogues
- Social media
- Superdrug first to market with content rich magazine style app
- RoboShop
- Ground-breaking online health and beauty store
- Online beauty store opens on the high street
Channels of Distribution
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- Figure 59: UK: Estimated distribution of spending on beauty and personal care goods, 2012
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Space Allocation Summary
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- Key points
- Space allocations
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- Figure 60: Boots: Estimated space allocation, December 2012
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- Figure 61: Body Shop, Superdrug, Savers, Avon, John Lewis: Estimated space allocation, December 2012
- Figure 62: Major food retailers: Estimated space allocation, December 2012
- Summary
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- Figure 63: Health and beauty space allocations, December 2012
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- Figure 64: Proportion of H&B space allocated to BPC products, December 2012
- Figure 65: Beauty and personal care products space allocations, December 2012
- Sales mix
The Retailers: Financials and Outlets
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- Key points
- Lessons learnt
- Boots
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- Figure 66: Boots Health & Beauty UK: Revenue breakdown, 2007-11
- Superdrug
- Premium specialists
- Others
- 2012
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- Figure 67: UK: Leading beauty specialists by revenues, 2007-11
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- Figure 68: UK: Leading beauty specialists: CAGR in revenues, 2007-11
- Store numbers and sales per outlet
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- Figure 69: UK: Leading beauty specialists’ outlet numbers, 2007-11
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- Figure 70: UK: Leading beauty specialists’ sales per outlet, 2007-11
- Figure 71: UK: Leading beauty specialists: CAGR in sales per outlet, 2007-11
- Operating profits and margins
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- Figure 72: UK: Leading beauty specialists’ operating profits, 2007-11
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- Figure 73: UK: Leading beauty specialists’ operating margins, 2007-11
The Non-Specialists: Leading Retailers and Profiles
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- Key points
- Leading non-specialists
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- Figure 74: UK: Leading non-specialist retailers’ estimated beauty and personal care sales, 2010-11
- The non-food discounters
- The department stores
- Debenhams: New moves bolster beauty
- John Lewis: Excelling through investment
- Marks & Spencer: moving forward at last
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- Figure 75: Marks & Spencer beauty departments: Old (Marble Arch, 2012), and new (Cheshire Oaks, 2012)
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- Figure 76: MarksandSpencer.com beauty homepage, January 2013
- The grocers
- Tesco: Investing and improving
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- Figure 77: Tesco.com’s beauty homepage, January 2013
- J. Sainsbury: Trailing online
- Asda: All about price
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- Figure 78: Asda.com: Health & beauty homepage, January 2013
- Morrisons: Functional and undynamic
Market Shares
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- Key points
- Fragmented spending…
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- Figure 79: UK: Leading 15 beauty retailers’ share of total consumer spending on personal care goods, 2011
- And a concentrated specialists sector
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- Figure 80: UK: Leading 20 beauty retailers’ share of total consumer spending on personal care goods, 2010 and 2011
Online and Social Media
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- Key points
- The online market
- Online BPC sales
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- Figure 81: UK: Estimated annual sales of beauty and personal care goods online, 2007-13
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- Figure 82: UK: Estimated distribution of sales of beauty and personal care goods online, 2012
- Leading retailers
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- Figure 83: Leading online beauty-retail pureplayers, (excl. vat), 2010 and 2011
- Profiling retailers’ online shoppers
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- Figure 84: UK: Where they buy beauty products online, by gender, November 2012
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- Figure 85: UK: Where they buy beauty products online, by age, November 2012
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- Figure 86: Where they buy beauty products online, by socio-economic group, November 2012
- The consumer: Shopping online by category
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- Figure 87: What has been bought online in the last 12 months, leading categories, May 2012
- The consumer: Shopping online by device
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- Figure 88: UK: Percentage of consumers having shopped online (for any goods) in the last three months, by type of device, September 2012
- Social media
- The consumer: Social media usage
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- Figure 89: Frequency of usage of Facebook and Twitter, January 2012
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- Figure 90: UK: Ways in which people have contacted or shared thoughts on new beauty and personal care products or brands, January 2012
- The consumer: Usage of Facebook and Twitter
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- Figure 91: Ways in which people have used Facebook or Twitter to discuss or contact a beauty and personal care brand, January 2012
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- Figure 92: Usage of Facebook and Twitter for making contact with or sharing thoughts on beauty and personal care brands, by age group and gender, January 2012
- Social media follower numbers
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- Figure 93: Leading retailers’ follower numbers on selected social media, December 2012
Advertising and Promotion
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- Key points
- Beauty advertising expenditure increasing
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- Figure 94: Leading retailers’ advertising spend on cosmetics, personal care, healthcare and bodycare, 2009-11
- Spending relative to turnover
- Spending by media type
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- Figure 95: Percentage breakdown of leading beauty retailers’ advertising spend, by media type, 2011
- What we saw in 2012
Brand Research
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- Brand map
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- Figure 96: Attitudes towards and usage of brands in the beauty retail sector, November 2012
- Correspondence analysis
- Brand attitudes
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- Figure 97: Attitudes by beauty retail brand, November 2012
- Brand personality
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- Figure 98: Beauty retail brand personality – macro image, November 2012
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- Figure 99: Beauty retail brand personality – micro image, November 2012
- Brand experience
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- Figure 100: Beauty retail brand usage, November 2012
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- Figure 101: Satisfaction with various beauty retail brands, November 2012
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- Figure 102: Consideration of beauty retail brands, November 2012
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- Figure 103: Consumer perceptions of current beauty retail brand performance, November 2012
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- Figure 104: Beauty retail brand recommendation – Net Promoter Score, November 2012
- Brand index
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- Figure 105: Beauty retail brand index, November 2012
- Figure 106: Beauty retail brand index vs. recommendation, November 2012
- Target group analysis
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- Figure 107: Target groups, November 2012
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- Figure 108: Beauty retail brand usage, by target groups, November 2012
- Group One – Conformists
- Group Two – Simply the Best
- Group Three – Shelf Stalkers
- Group Four – Habitual Shoppers
- Group Five – Individualists
A.S. Watson UK (Superdrug, Perfume Shop, Savers)
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- What we think
- Background
- Company performance
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- Figure 109: A. S. Watson UK: Group financial performance, 2007-12
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- Figure 110: A. S. Watson UK: Outlet data (part estimated), 2007-12
- Retail offering
Boots UK
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- What we think
- Walgreens strategic partnership
- Leveraging the own brand potential
- A good fit with real potential?
- Expanding reach through online and multichannel
- Mobile moves
- Company background
- Company performance
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- Figure 111: Alliance Boots UK health and beauty division: Financial performance, 2007/08-2012/13
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- Figure 112: Boots UK: Outlet data, 2007/08-2011/12
- Store formats
- Retail offering
Lush Retail Ltd
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- What we think
- Background
- Company performance
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- Figure 113: Lush Retail Ltd: Group financial performance, 2006/07-2010/12
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- Figure 114: Lush Retail Ltd: UK outlet data, 2007-12
- Store formats
- Retail offering
Space NK Ltd
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- What we think
- Outperforming in difficult times
- The future is digital
- Background
- Company performance
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- Figure 115: Space NK Ltd: Group financial performance, 2006/07-2011/12
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- Figure 116: Space NK Ltd: Outlet data, 2006/07-2011/12
- Store format
- Retail offering
The Body Shop
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- What we think
- “Beauty with heart”
- Pulse concept reinjects excitement
- Talking to target consumers
- Campaigns remain key
- Background
- Company performance
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- Figure 117: The Body Shop: Group financial performance, 2007-12
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- Figure 118: The Body Shop: Estimated UK sales performance, 2007-12
- Figure 119: The Body Shop: Outlet data, 2007-11
- Retail offering
Appendix – Brand Research
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- Figure 120: Brand usage, November 2012
- Figure 121: Brand commitment, November 2012
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- Figure 122: Brand momentum, November 2012
- Figure 123: Brand diversity, November 2012
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- Figure 124: Brand satisfaction, November 2012
- Figure 125: Brand recommendation, November 2012
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- Figure 126: Brand attitude, November 2012
- Figure 127: Brand image – macro image, November 2012
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- Figure 128: Brand image – micro image, November 2012
- Figure 129: Profile of target groups, by demographics, November 2012
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- Figure 130: Psychographic segmentation, by target groups, November 2012
- Figure 131: Brand usage, by target groups, November 2012
- Brand index
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- Figure 132: Brand index, November 2012
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Appendix – The Consumer – How They Shop
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- Figure 133: How they buy, by demographics, November 2012
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- Figure 134: Most popular they bought instore + bought online beauty products in last 12 months, by demographics, November 2012
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- Figure 135: Next most popular they bought instore + bought online beauty products in last 12 months, by demographics, November 2012
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- Figure 136: Other they bought instore + bought online beauty products in last 12 months, by demographics, November 2012
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- Figure 137: Other they bought instore + bought online beauty products in last 12 months, by demographics, November 2012
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- Figure 138: Most popular they bought in-store beauty products in last 12 months, by demographics, November 2012
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- Figure 139: Next most popular they bought in-store beauty products in last 12 months, by demographics, November 2012
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- Figure 140: Other they bought in-store beauty products in last 12 months, by demographics, November 2012
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- Figure 141: Least popular they bought in-store beauty products in last 12 months, by demographics, November 2012
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- Figure 142: Most popular they bought online beauty products in last 12 months, by demographics, November 2012
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- Figure 143: Next most popular they bought online beauty products in last 12 months, by demographics, November 2012
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- Figure 144: Other they bought online beauty products in last 12 months, by demographics, November 2012
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Appendix – The Consumer – Key Drivers
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- Figure 145: The importance of testers available in-store influencing choice of products, by demographics, November 2012
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- Figure 146: The importance of free samples available influencing choice of products, by demographics, November 2012
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- Figure 147: The importance of personal recommendations (eg from a friend or family member) influencing choice of products, by demographics, November 2012
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- Figure 148: The importance of money off vouchers influencing choice of products, by demographics, November 2012
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- Figure 149: The importance of in-store advice influencing choice of products, by demographics, November 2012
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- Figure 150: The importance of online reviews, advice or blogs influencing choice of products, by demographics, November 2012
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- Figure 151: The importance of TV/magazine/online advertisements influencing choice of products, by demographics, November 2012
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- Figure 152: The importance of magazine reviews influencing choice of products, by demographics, November 2012
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- Figure 153: The importance of video clips of makeovers (eg on retailers websites, YouTube) influencing choice of products, by demographics, November 2012
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- Figure 154: The importance of virtual makeover tools used in store or online influencing choice of products, by demographics, November 2012
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- Figure 155: The importance of comments on social network sites (eg Facebook) influencing choice of products, by demographics, November 2012
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Appendix – The Consumer – Attitudes Towards Beauty Treatments
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- Figure 156: Most popular attitudes towards beauty/grooming treatments and products, by demographics, November 2012
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- Figure 157: Next most popular attitudes towards beauty/grooming treatments and products, by demographics, November 2012
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Appendix – The Consumer – Mobile Shopping Habits
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- Figure 158: Most popular attitudes around smartphones and beauty shopping, by demographics, November 2012
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- Figure 159: Next most popular attitudes around smartphones and beauty shopping, by demographics, November 2012
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Appendix – Repertoire Analysis
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- Figure 160: Repertoire for where they bought beauty products in last 12 months, by demographics, November 2012
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