Table of Contents
Executive Summary
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- The market
- Online beauty market set to grow 11.4% in 2019
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- Figure 1: Best- and worst-case forecast for online consumer expenditure on beauty products, 2014-24
- Online-only retailers increase market share
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- Figure 2: Retail share of online consumer expenditure on beauty products, 2019 (est)
- Companies and brands
- Personalisation is paramount
- The rise of social shopping
- The consumer
- Store-based retailers are dominant
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- Figure 3: Types of retailers used to purchase beauty/grooming products online in the last 12 months, August 2019
- Most research ahead of purchase
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- Figure 4: Sources of research when purchasing beauty/grooming products online, August 2019
- Consumers are looking for product information
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- Figure 5: Reasons for researching ahead of making a beauty/grooming purchase online, August 2019
- Price comparison is rife
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- Figure 6: Participation in online beauty/grooming activities, August 2019
- Trust in reviews is driven by volume
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- Figure 7: Online beauty/grooming shopping behaviours, August 2019
- Online will not replace physical stores
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- Figure 8: Attitudes towards shopping online for beauty/grooming products, August 2019
- What we think
Issues and Insights
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- Retailers need to offset intense price competition in the online beauty market
- The facts
- The implications
- Interest in sustainability will impact the online beauty market
- The facts
- The implications
- Tapping into research as an integral part of the online purchase journey
- The facts
- The implications
The Market – What You Need to Know
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- Online continues to outpace the wider market…
- …but a significant slowdown is forecast
- Non-specialists are losing market share
- The reasons for and against shopping online are complex
- Device ownership is shaping the beauty retail landscape
- Social media’s influence on purchasing
Market Size and Forecast
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- Online beauty sales have doubled since 2014
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- Figure 9: Market size and forecast for online consumer expenditure on beauty products, 2014-24
- Growth in the market in slowing
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- Figure 10: Best- and worst-case forecast for online consumer expenditure on beauty products, 2014-24
- Forecast methodology
Channels to Market
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- Beauty specialists are gaining share
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- Figure 11: Retail share of online consumer expenditure on beauty products, 2017-19 (est)
- The department stores are struggling
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- Figure 12: Retail share of online consumer expenditure on beauty products, 2019 (est)
Market Drivers
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- Rising internet access boosts the online beauty market
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- Figure 13: Household internet access, 2009-18
- Smartphone ownership is changing the way we shop
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- Figure 14: Personal device ownership, June 2019
- Social media is a powerful tool
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- Figure 15: Frequency of social network usage, March 2019
- Declining footfall reflects changing shopping habits
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- Figure 16: Change in UK retail footfall, by location, January 2018-September 2019
- Low prices are driving beauty buyers online
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- Figure 17: Why beauty and personal care consumers shop online, November 2018
- Enjoyment keeps people shopping in-store
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- Figure 18: Why beauty and personal care consumers don’t shop online, November 2018
- A need to engage older consumers
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- Figure 19: Trends in the age structure of the UK population, 2016-26
- Declining print magazine market will boost online content consumption
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- Figure 20: Types of magazines read in the last 6 months, October 2018
Companies and Brands – What You Need to Know
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- Personalisation becomes more sophisticated
- Merging the online and offline experience
- Social media sites strengthen ecommerce offer
- Sustainability is becoming more important
Innovation and Launch Activity
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- New retailer puts a spotlight on sustainability
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- Figure 21: SUST beauty homepage, November 2019
- Seizing the untapped potential of beauty reselling
- Online-only brands move into the real world
- New platform encourages price comparison
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- Figure 22: Cosmetify homepage, November 2019
- More retailers experiment with AR
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- Figure 23: John Lewis Virtual Lipstick Experience, April 2019
- Personalisation in the online beauty world
- Online advice is becoming more advanced
- The rise of digital diagnostics
- Social shopping
- Voice commerce is the next frontier
- Delivery gets a speedy makeover
- Lush UK becomes a social media recluse
The Consumer – What You Need to Know
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- Young consumers are driving the market
- Most research ahead of purchase
- Product reviews are influencing what people buy
- Price comparison is a mainstream activity
- Retailers have an opportunity to offer more grooming advice
- Stores remain important to many consumers
Where Consumers Shop
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- Most now shop online
- Online-only retailers are popular
- Subscription box usage remains low
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- Figure 24: Types of retailers used to purchase beauty/grooming products online in the last 12 months, August 2019
- Young consumers are driving the shift online
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- Figure 25: Any purchase of beauty/grooming products online in the last 12 months, by age and gender, August 2019
- Channel loyalty is relatively strong
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- Figure 26: Repertoire of the types of retailers used to purchase beauty/grooming products online in the last 12 months, by gender, August 2019
Research Ahead of Purchase
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- Consumers are doing their homework
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- Figure 27: Sources of research when buying beauty/grooming products online, August 2019
- Young consumers are researching in-store
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- Figure 28: Sources of research when buying beauty/grooming products online, by age, August 2019
- Products reviews are important
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- Figure 29: Reasons for researching products ahead of making an online beauty/grooming purchase, August 2019
- An opportunity to tap into interest in ingredients
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- Figure 30: Reasons for researching products ahead of making an online beauty/grooming purchase, by age, August 2019
- Online is an important source of product information
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- Figure 31: Sources of research when buying beauty/grooming products online, by reasons for researching ahead of purchase, August 2019
Online Beauty and Grooming Activities
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- Savvy shoppers are comparing prices
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- Figure 32: Participation in online beauty/grooming activities, August 2019
- Few consumers are utilising AR technology
- Young adults are more active online
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- Figure 33: Any participation in online beauty/grooming activities, by age and gender, August 2019
- Most are not engaging in online beauty or grooming content
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- Figure 34: Repertoire of participation in online beauty/grooming activities, by gender, August 2019
Online Shopping Behaviours
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- Discount codes encourage impulse purchases
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- Figure 35: Online beauty/grooming shopping behaviours, August 2019
- Men want advice from retailers
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- Figure 36: Online beauty/grooming shopping behaviours, by gender, August 2019
- Young consumers want to see how a product will look
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- Figure 37: Online beauty/grooming shopping behaviours, by age, August 2019
Attitudes towards Shopping Online
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- An ongoing preference for physical stores
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- Figure 38: Attitudes towards shopping online for beauty/grooming products, August 2019
- Women are overwhelmed by the choice online
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- Figure 39: Attitudes towards shopping online for beauty/grooming products, by gender, August 2019
- Young consumers are distrustful of brands created by social media stars
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- Figure 40: Attitudes towards shopping online for beauty/grooming products, by age, August 2019
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
- Forecast methodology
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