Table of Contents
Overview
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- What you need to know
- Products covered in this Report
Executive Summary
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- The market
- Consumer spending on BPC items continues to rise
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- Figure 1: Market size and forecast for consumer spending on beauty and personal care products (including VAT), 2012-22
- Health and beauty specialists outperforming the market
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- Figure 2: Health and beauty specialists’ sales (including VAT), 2012-22
- Rising inflation puts pressure on UK consumers
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- Figure 3: Real wage growth – Average weekly earnings vs inflation, January 2014-October 2017
- An ageing population threatens growth in the market
- Companies and brands
- Specialist retailers strengthen position in the BPC market
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- Figure 4: Estimated distribution of spending on beauty and personal care products, 2017
- Boots continues to struggle, whilst Superdrug excels
- Market leaders struggle to grow market share
- Online sales forecast to reach £1.4 billion by 2022
- Beauty retailers investing in store experience
- Advertising expenditure thought to have fallen in 2017
- Boots and Superdrug benefit from high levels of trust
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- Figure 5: Attitudes towards and usage of selected brands, November 2017
- The consumer
- Most consumers shop for beauty or personal care
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- Figure 6: Beauty and personal care products purchased, October 2017
- Tendency for trading up in the fragrance market is high
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- Figure 7: Beauty and personal care brand types purchased, October 2017
- In-store remains the preferred channel for BPC shoppers
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- Figure 8: How beauty and personal care products were purchased, October 2017
- Supermarkets most used retailer, but specialists capture higher-spending customers
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- Figure 9: Where beauty and personal care products were purchased, October 2017
- Low prices are a priority, but brands are important too
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- Figure 10: Important factors when buying beauty and personal care products, October 2017
- More product recommendations wanted online
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- Figure 11: Interest in online innovations, October 2017
- In-store food and drink facilities are most popular when shopping for beauty and personal care
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- Figure 12: Interest in in-store innovations, October 2017
- Most consumers want to browse without help from store staff
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- Figure 13: Attitudes towards buying beauty and personal care, October 2017
- What we think
Issues and Insights
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- Smaller, niche specialists gain momentum
- The facts
- The implications
- Downward pressure on pricing continues
- The facts
- The implications
- The best way to capture today’s beauty consumer
- The facts
- The implications
The Market – What You Need to Know
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- BPC market grows 1.4% in 2017
- Beauty continues to outperform personal care
- Sales through specialists forecast to rise 3.6% in 2018
- Pressure on UK consumer incomes
- Retailers need to respond to an ageing population
- Beauty trends shaping the market
Market Size and Forecast
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- Sales of beauty and personal care set to reach £10.1 billion
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- Figure 14: Market size and forecast for consumer spending on beauty and personal care products (including VAT), 2012-22
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- Figure 15: Market size and forecast for consumer spending on beauty and personal care products (including VAT), at current and constant prices, 2012-22
- Forecast methodology
Market Segmentation
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- Beauty continues to see strong growth
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- Figure 16: Market size and forecast for consumer spending on beauty products (including VAT), 2012-22
- Figure 17: Market size and forecast for consumer spending on beauty products (including VAT), at current and constant prices, 2012-22
- Beauty category performance
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- Figure 18: Consumer spending on beauty products (including VAT), by category, 2015-17
- Colour cosmetics
- Fragrances
- Facial skincare
- Body, hand and footcare
- Personal care market less robust
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- Figure 19: Market size and forecast for consumer spending on personal care products (including VAT), 2012-22
- Figure 20: Market size and forecast for consumer spending on personal care products (including VAT), at current and constant prices, 2012-22
- Personal care category performance
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- Figure 21: Consumer spending on personal care products (including VAT), by category, 2015-17
- Haircare
- Oral hygiene
- Soap, bath and shower
- Shaving and hair removal
- Deodorants and body spray
- Suncare
- Hair colourants
- ONS consumer spending on personal care items
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- Figure 22: Total consumer spending on personal care items (including VAT), 2012-16
- Forecast methodology
Sector Size and Forecast
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- BPC specialists performing well
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- Figure 23: Health and beauty specialists’ sales (including VAT), 2012-22
- Figure 24: Health and beauty specialists’ sales (including VAT), at current and constant prices, 2012-22
- Notes on Mintel’s sector size
- Outlet and enterprise numbers
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- Figure 25: Health and beauty specialists’ outlet numbers, 2013-17
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- Figure 26: Health and beauty specialists’ enterprise numbers, 2013-17
- Forecast methodology
Market Drivers
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- Consumer spending power under pressure…
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- Figure 27: Real wage growth – Average weekly earnings vs inflation, January 2014-October 2017
- …but personal care inflation remains low
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- Figure 28: Annual percentage change in consumer prices, October 2016-October 2017
- A decline in consumer confidence
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- Figure 29: Consumers’ future financial confidence, January 2009-October 2017
- Priorities in disposable income
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- Figure 30: Trends in what extra money is spent on, October 2017
- Changes in the structure of the UK population
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- Figure 31: Trends in the age structure of the UK population, 2016-26
- Figure 32: Trends in the age structure of the UK population, 2016-26
- Consumers spending more online
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- Figure 33: Online purchasing levels in the past year, by age, May 2017
- Make-up trends boosting sales
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- Figure 34: Usage and interest in make-up trends, March 2017
- Sources of beauty information
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- Figure 35: Sources of information, March 2017
- Changes in women’s facial skincare routines
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- Figure 36: Behavioural changes amongst female facial skincare users in the last 12 months, March 2017
- Changes in men’s skincare regimes
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- Figure 37: Behavioural changes amongst male facial skincare users in the last 12 months, March 2017
- Natural hair trends impact the market
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- Figure 38: Changes in hair washing habits in the last 12 months, November 2016
Companies and Brands – What You Need to Know
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- Beauty specialists and supermarkets continue to dominate
- Boots struggling, whilst Superdrug grows
- Department stores benefit from investment
- Many leading retailers losing market share
- Online accounting for a bigger share of total BPC spending
- Innovation focused on in-store experience
- Advertising spend up in 2016, but looks to have fallen in 2017
- Lush differentiates itself with ethics and innovation
Channels to Market
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- Specialists growing market share
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- Figure 39: Estimated distribution of spending on beauty and personal care products, 2017
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- Figure 40: Estimated distribution of spending on beauty and personal care products (including VAT), 2015-17
Leading Specialists
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- Robust growth sustained at Superdrug
- Boots continues to struggle
- Kiko Milano sales up as expansion continues
- Leading specialists by sales
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- Figure 41: Leading specialist retailers’ net revenues (excluding VAT), 2012-16
- Online retailers strengthening position
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- Figure 42: Leading online/home shopping specialist retailers’ net revenues (excluding VAT), 2012-16
- Leading pharmacies by sales
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- Figure 43: Leading pharmacy chains’ net revenues (excluding VAT), 2012-16
- Outlet numbers and sales per outlet
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- Figure 44: Leading specialist retailers’ outlet numbers, 2012-16
- Figure 45: Leading specialist retailers’ estimated sales per outlet, 2012-16
- Operating profits and margins
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- Figure 46: Leading specialist retailers’ operating profits, 2012-16
- Figure 47: Leading specialist online/home shopping retailers’ operating profits, 2012-16
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- Figure 48: Leading specialist retailers’ operating margins, 2012-16
- Figure 49: Leading specialist online/home shopping retailers’ operating margins, 2012-16
Leading Non-specialists
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- Department stores outperform the market
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- Figure 50: Leading non-specialist retailers’ estimated sales growth, by segment, 2016
- Discount grocers continue to strengthen position
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- Figure 51: Leading non-specialist retailers’ estimated beauty and personal care goods sales (excluding VAT), 2014-16
- Non-specialists’ space allocation
- The supermarkets
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- Figure 52: Leading department stores’ estimated health and beauty space allocation, 2017
- The department stores
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- Figure 53: Leading department stores’ estimated health and beauty space allocation, 2017
- The discounters
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- Figure 54: Leading discounters’ estimated health and beauty space allocation, 2017
- Fashion specialists disrupt the beauty market
Market Share
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- Leading retailers lose market share, while smaller retailers gain
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- Figure 55: Leading specialist and non-specialist retailers’ estimated market shares, 2016
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- Figure 56: Leading specialist and non-specialist retailers’ estimated market shares, 2014-16
- Note on market shares
Space Allocation Summary
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- Figure 57: Leading health and beauty retailers: health and beauty products estimated space allocation, December 2017
- Boots closing photo labs, The Body Shop focusing on in-store attractions, Superdrug and Savers expanding store network
- Department stores experience-led beauty shopping
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- Figure 58: Leading health and beauty retailers: Health and beauty products estimated detailed space allocation, December 2017
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- Figure 59: Leading health and beauty retailers: Health and beauty products estimated detailed space allocation, December 2017
- Health and beauty space as a percentage of total floor space in non-specialists
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- Figure 60: Non-specialists: Estimated health and beauty space as a percentage of total floor space, December 2017
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Online
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- Online beauty spending set to reach £1.2 billion in 2018
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- Figure 61: Estimated market size and forecast of online consumer expenditure on beauty products, 2012-22
- Department stores growing share of online spending
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- Figure 62: Estimated retailer shares of online sales of BPC products, 2015-17
Launch Activity and Innovation
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- Beauty masterclasses highlight expertise
- Rising use of chatbots
- When fashion and beauty collide
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- Figure 63: ASOS Make-Up, 2017
- Figure 64: Boohoo Beauty, 2017
- When music and beauty collide
- Male grooming continues to gain momentum
- Driving seasonal sales of BPC products
- Bolstering reward schemes
- Beauty services take centre stage
- Speeding up online delivery services
- London becomes the home to new flagship stores
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- Figure 65: L’Occitane London Flagship, 2017
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- Figure 66: Aēsop London flagship store, 2017
- Increasing use of in-store technology
- Pop-ups generate brand hype
- Subscription services get a bricks-and-mortar makeover
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- Figure 67: Birchbox Carnaby Street Pop-up store, 2017
- Tapping into the rise in veganism
- The importance of personalised and inclusive beauty
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- Figure 68: Fenty Beauty homepage, December 2017
- Moral make-up
Advertising and Marketing Activity
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- Total beauty advertising spend decreases, but top retailers increase spend
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- Figure 69: Recorded above-the-line advertising expenditure on beauty and personal care, total market, 2012-16
- Figure 70: Recorded above-the-line, online, display and direct mail total advertising expenditure on beauty and personal care, by leading retailers, 2014-17
- Key campaigns
- Boots relies on familiarity and nostalgia with Christmas 2017 campaign
- Superdrug’s new direction
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- Figure 71: ‘That Superdrug Feeling’ campaign video still, 2017
- Digital increases in importance
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- Figure 72: Recorded above-the-line advertising expenditure percentage on beauty and personal care, by media type, total market, 2016
- Nielsen Ad Intel coverage
Brand Research
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- What you need to know
- Brand map
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- Figure 73: Attitudes towards and usage of selected brands, November 2017
- Key brand metrics
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- Figure 74: Key metrics for selected brands, November 2017
- Brand attitudes: Boots is the most trustworthy retailer
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- Figure 75: Attitudes, by brand, November 2017
- Brand personality: Jo Malone seen as exclusive
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- Figure 76: Brand personality – Macro image, November 2017
- Savers has an impersonal and basic brand image
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- Figure 77: Brand personality – Micro image, November 2017
- Brand analysis
- Boots benefits from high levels of brand awareness
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- Figure 78: User profile of Boots, November 2017
- Lush attracts a young shopper with its fun, ethical brand image
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- Figure 79: User profile of Lush, November 2017
- Superdrug’s value pricing resonates with consumers
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- Figure 80: User profile of Superdrug, November 2017
- Savers also benefits from its low-price proposition
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- Figure 81: User profile of Savers, November 2017
- Jo Malone expensive but worth paying more for
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- Figure 82: User profile of Jo Malone, November 2017
- Lookfantastic.com popular among affluent Millennials
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- Figure 83: User profile of lookfantastic.com, November 2017
The Consumer – What You Need to Know
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- Almost all UK consumers are BPC buyers
- Mass-market brands still dominate
- Most still shop in-store
- Supermarkets remain popular
- Consumers want consistent pricing more than promotions
- Strong demand for product recommendations online
- The appeal of in-store beauty services
- Most trade down in tough times
What They Buy
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- High levels of BPC purchasing in the UK
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- Figure 84: Beauty and personal care products purchased, October 2017
- Deodorants and body sprays most purchased
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- Figure 85: Beauty and personal care products purchased, October 2017
- Women still drive BPC purchasing
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- Figure 86: Beauty and personal care products purchased, by gender, October 2017
- Young people less likely to buy personal care
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- Figure 87: Beauty and personal care products purchased, by age, October 2017
- Young women buy a wide range of products
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- Figure 88: Repertoire of beauty and personal care products purchased, October 2017
Brand Types Purchased
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- Consumers willing to invest in premium fragrances
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- Figure 89: Beauty and personal care brand types purchased, October 2017
- Encouraging higher value purchases
How and Where They Shop
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- In-store remains the most popular channel
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- Figure 90: How beauty and personal care products were purchased, October 2017
- Convenience and price attract people online
- Supermarkets attract most shoppers
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- Figure 91: Where beauty and personal care products were purchased, October 2017
- The popularity of Booth and the non-specialists further highlighted in qualitative research
- Young people prefer the specialists
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- Figure 92: Where beauty and personal care products were purchased, by age, October 2017
- Department stores popular with affluent shoppers
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- Figure 93: Where beauty and personal care products were purchased, by socio-economic group, October 2017
- Amazon holds dominant position in online market
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- Figure 94: Where beauty and personal care products were purchased, October 2017
- Specialists attract beauty and haircare shoppers
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- Figure 95: Where beauty and personal care products were purchased, by products purchased, October 2017
- Repertoire
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- Figure 96: Repertoire of where beauty and personal care products were purchased, October 2017
Important Factors
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- Demand for consistent pricing
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- Figure 97: Important factors when buying beauty and personal care products, October 2017
- Women more drawn in by promotions
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- Figure 98: Important factors when buying beauty and personal care products, by gender, October 2017
- Perceptions of Boots 3 for 2 promotions resoundingly positive
- Brand selection important to young consumers
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- Figure 99: Important factors when buying beauty and personal care products, by age and income, October 2017
- Make-up buyers most interested in loyalty schemes
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- Figure 100: Important factors when buying beauty and personal care products, by products purchased, October 2017
- Department stores need knowledgeable staff
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- Figure 101: Important factors when buying beauty and personal care products, by retailer used, October 2017
- Brand ethics aren’t a priority
Interest in Online Innovations
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- Personalised recommendations most likely to resonate
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- Figure 102: Interest in online innovations, October 2017
- Women show more interest in online innovations
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- Figure 103: Interest in online innovations, by gender, October 2017
- Subscription services tap into older Millennials
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- Figure 104: Interest in online innovations, by age, October 2017
- Affluent want to see more online tutorials
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- Figure 105: Interest in online innovations, by socio-economic status, October 2017
- Interest in buying via social media peaks among those who buy electrical BPC devices
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- Figure 106: Interest in online innovations, by products purchased, October 2017
Interest in In-store Innovations
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- Demand for in-store facial treatments high
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- Figure 107: Interest in in-store innovations, October 2017
- Women want a range of beauty services in-store
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- Figure 108: Interest in in-store innovations, by gender, October 2017
- Young shoppers most engaged with in-store innovation
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- Figure 109: Interest in in-store innovations, by age, October 2017
- Innovations also show higher appeal among affluent
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- Figure 110: Interest in in-store innovations, by age, October 2017
- Toiletries shoppers show little interest in store experience
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- Figure 111: Interest in in-store innovations, by products purchased, October 2017
Attitudes towards Buying Beauty and Personal Care
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- Most don’t want staff interaction
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- Figure 112: Attitudes towards buying beauty and personal care, October 2017
- Incentives to purchase capture female shoppers
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- Figure 113: Attitudes towards buying beauty and personal care, by gender, October 2017
- Two thirds of 16-24s research online ahead of purchase
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- Figure 114: Attitudes towards buying beauty and personal care, by age, October 2017
- Less affluent more overwhelmed by choice
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- Figure 115: Attitudes towards buying beauty and personal care, by socio-economic status, October 2017
- Millennials unsatisfied with recommendations
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- Figure 116: Attitudes towards buying beauty and personal care, by age, October 2017
- The lack of trust in store staff confirmed by qualitative research
AS Watson (UK)
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- What we think
- Following the UK
- Discounting
- Service
- Online
- Where next
- Company background
- Company performance
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- Figure 117: AS Watson (Europe): group financial performance, 2012-16
- Figure 118: AS Watson (Europe): outlet data, 2012-16
- Retail offering
- AS Watson in Europe
- UK
- Superdrug
- Savers
- The Perfume Shop
The Body Shop
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- What we think
- Distinct USP suffered under the weight of L’Oréal ownership
- Mobile-first e-commerce platform roll-out
- Shop-in-shop deal with El Corte Inglés an opportunity to attract more customers
- Company background
- Company performance
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- Figure 119: The Body Shop – Retail sales: group financial performance, 2012-16
- Figure 120: The Body Shop: estimated UK sales performance, 2012-16
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- Figure 121: The Body Shop – Retail sales: estimated outlet data, 2012-16
- Retail offering
Debenhams
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- What we think
- Debenhams Redesigned focuses on store experience
- ‘Right sizing’ of stores aims to improve profitability
- Beauty at heart of Debenhams’ future plans
- Beauty Club relaunch aims to strengthen relationships with customers
- Blow Ltd investment helps to scale up beauty services offer
- Is online running out of steam?
- What next?
- Company background
- Company performance
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- Figure 122: Debenhams: group financial performance, 2012/13-2016/17
- Figure 123: Debenhams: outlet data, 2012/13-2016/17
- Retail offering
The Fragrance Shop
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- What we think
- New try-before-you-buy fragrance subscription service
- Concession store partnership with House of Fraser
- Customer feedback initiative helping drive sales
- Company background
- Company performance
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- Figure 124: The Fragrance Shop: group financial performance, 2012/13-2016/17
- Figure 125: The Fragrance Shop: outlet data, 2012/13-2016/17
- Retail offering
House of Fraser
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- What we think
- Beauty at the heart of sales growth
- Online sales growth stutters at just the wrong time
- Strong delivery proposition offers potential for differentiation
- What next?
- Company background
- Company performance
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- Figure 126: House of Fraser Plc: group financial performance, 2012/13-2016/17
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- Figure 127: House of Fraser Plc: outlet data, 2012/13-2016/17
- Retail offering
John Lewis (Department Store)
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- What we think
- New Oxford store points way to retail as theatre
- Beauty to grow in importance
- What next?
- Company background
- Company performance
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- Figure 128: John Lewis Plc (department store): group financial performance, 2012/13-2016/17
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- Figure 129: John Lewis Plc (department store): outlet data, 2012/13-2016/17
- Retail offering
Kiko Milano
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- What we think
- 20-year celebration leads to collaboration with Vogue Italia
- KikoID opens in Milan
- #kikotrendsetters
- New CEO
- Company background
- Company performance
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- Figure 130: Kiko Milano: group sales performance, 2012-17
- Figure 131: Kiko Milano: estimated outlet data, 2012-17
- Retail offering
Lush Retail
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- What we think
- Bigger and better shops
- New app and virtual shopping assistant to boost customer experience
- Expanded payment option with Bitcoin digital currency
- Company background
- Company performance
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- Figure 132: Lush Retail Ltd: Group financial performance, 2012/13-2016/17
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- Figure 133: Lush Retail Ltd: Outlet data, 2012/13-2016/17
- Retail offering
Walgreens Boots Alliance
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- What we think
- A respected brand
- NHS pressures represent an opportunity
- Advantage loyalty card: time for a reboot?
- Is Boots lacking parent company management focus?
- Company background
- Company performance
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- Figure 134: Walgreens Boots Alliance: group sales performance, 2012/13-2016/17
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- Figure 135: Walgreens Boots Alliance: outlet data, 2012/13-2016/17
- Retail offering
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Forecast methodology
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