Table of Contents
Executive Summary
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- The market
- Financial situations are up
- Colour cosmetics sees a boost in spend
- Companies and brands
- NPD remains high
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- Figure 1: Prestige, luxe and super-luxe BPC products, by launch type, January 2015-September 2019
- The consumer
- Fragrances remains the most popular premium category
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- Figure 2: Brand types of beauty products most commonly used, October 2019
- Men gift, women treat themselves
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- Figure 3: Purchase of prestige beauty products for self or for others, by gender, October 2019
- Purchase from health & beauty retailers is high
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- Figure 4: Places of purchase for prestige products, October 2019
- Browsing is essential
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- Figure 5: Sources of information when buying prestige BPC products, October 2019
- Scent is essential in premium brands
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- Figure 6: Factors important for a prestige BPC brand, October 2019
- Quality perception is high
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- Figure 7: Prestige vs regular BPC brands, October 2019
- What we think
Issues and Insights
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- Informed consumers have driven demand for premium products
- The facts
- The implications
- In-store environments are crucial
- The facts
- The implications
The Market – What You Need to Know
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- Growth in prestige sector driven by fine fragrances
- Facial skincare declines, whilst body sees a rise
- Rising seniors poses opportunities for the sector
- Money is less of a barrier
- Prestige packaging needs a rethink
- Premium private label brands offer competition
Market Segmentation
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- Growth is not even across all sectors
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- Figure 8: UK retail value sales of prestige products in the BPC markets, 2017-18
- Body skincare fares better than facial skincare
Market Drivers
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- Prestige products are enjoyed by seniors
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- Figure 9: Trends in the age structure of the UK population, 2013-23
- Money is less of a barrier
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- Figure 10: Trends in how respondents would describe their financial situation, October 2018 and October 2019
- Premium packaging needs a rethink
- Competition from premium own-label
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- Figure 11: Beauty and personal care brand types purchased in the last 12 months, November 2018
- Experience economy
Companies and Brands – What You Need to Know
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- Increased NPD in 2018
- Skincare leads NPD
- Ethical claims see a rise
- Digital campaigns target younger consumers
- Brands use voice-led sampling
- Heritage fashion brands have strong brand associations
Launch Activity and Innovation
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- New brands enter the sector in 2019
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- Figure 12: Prestige, luxe and super-luxe BPC products, by launch type, January 2015-September 2019
- Skincare targets informed shoppers
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- Figure 13: Prestige, luxe and super-luxe BPC product launches, by category, January 2015-September 2019
- Figure 14: Doctor Babor Pro range extension, 2019
- Colour cosmetics diversifies
- Haircare lags behind
- Ethical claims see a rise
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- Figure 15: Fastest growing claims in prestige, luxe and super-luxe BPC category, 2017-18
- Figure 16: Examples of fragrance launches with cruelty-free claims, 2018
- The environment is a focus area in 2019
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- Figure 17: Example of Fulfilled launch, October 2019
- Estée Lauder leads NPD in 2018
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- Figure 18: Prestige, luxe and super-luxe BPC products, by top ultimate companies and other, 2018
Advertising and Marketing Activity
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- Brands invest beyond TV
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- Figure 19: Total above-the-line, online display and direct mail advertising expenditure on prestige beauty products, January 2016-September 2019
- Influencers are used to target the youth
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- Figure 20: Noonoouri on Dior makeup Instagram, July 2018
- Brands try new techniques for sampling
- Premium brands promote diversity
- Nielsen Ad Intel coverage
Brand Research
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- Brand map
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- Figure 21: Attitudes towards and usage of selected brands, October 2019
- Key brand metrics
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- Figure 22: Key metrics for selected brands, October 2019
- Brand attitudes: Chanel, Dior and YSL have similar scorings
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- Figure 23: Attitudes, by brand, October 2019
- Brand personality: Clarins and Clinique are accessible
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- Figure 24: Brand personality – macro image, October 2019
- Heritage fashion brands are considered indulgent
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- Figure 25: Brand personality – micro image, October 2019
- Brand analysis
- Dior is appealing to the youth
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- Figure 26: User profile of Dior, October 2019
- Chanel is exclusive
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- Figure 27: User profile of Chanel, October 2019
- Yves Saint Laurent is glamorous
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- Figure 28: User profile of Yves Saint Laurent, October 2019
- Clinique is expert
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- Figure 29: User profile of Clinique, October 2019
- Jo Malone instils pride
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- Figure 30: User profile of Jo Malone, October 2019
- Clarins is accessible
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- Figure 31: User profile of Clarins, October 2019
- Shiseido appeals to younger consumers
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- Figure 32: User profile of Shiseido, October 2019
- Limited visibility impacts Shu Uemura
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- Figure 33: User profile of Shu Uemura, October 2019
The Consumer – What You Need to Know
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- Skincare and colour cosmetic sees more users
- Men are prestige gift givers
- In-store purchase is preferred
- Health & beauty retailers are the destination of choice
- Browsing is important
- Consumers pay attention to ingredients
- Premium brands are perceived to perform better
Usage of Prestige Beauty Products
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- Face products have more premium users
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- Figure 34: Usage of prestige beauty products, October 2016 and October 2019
- Fragrances remains most popular premium category
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- Figure 35: Brand types of beauty products most commonly used, October 2019
Purchase of Prestige Beauty Products
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- Men gift, women treat themselves
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- Figure 36: Purchase of prestige beauty products for self or others, by gender, October 2019
- In-store trumps online
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- Figure 37: Purchase of prestige products online vs in-store, by age, October 2019
- Health & beauty retailers are the destination of choice
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- Figure 38: Places of purchase for prestige products, October 2019
- Skincare buyers shop at department stores
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- Figure 39: Purchase of prestige products in-store at a health & beauty retailer or a department store, amongst buyers of premium brands in selected categories, October 2019
- Department stores are preferred by seniors
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- Figure 40: Places of purchase of prestige products, amongst 16-24s and 65+s, October 2019
- Older shoppers use online-only retailers
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- Figure 41: Purchase of prestige products at online-only retailers, by age, October 2019
Sources of Information
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- Browsing is an important step
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- Figure 42: Sources of information when buying prestige BPC products, October 2019
- Social media plays a smaller role
Important Factors in Prestige Brands
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- Scent is essential
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- Figure 43: Factors important for a prestige BPC brand, October 2019
- Consumers pay attention to ingredients
- Environmental considerations are lower
- Premium offers personalisation
Perception of Prestige vs Regular Products
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- Premium products perform better
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- Figure 44: Prestige vs regular brands, October 2019
- But they need to be more innovative
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
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