Shopping for Beauty Products - US - December 2013

SCOPE AND THEMES
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
Overview
The market
Figure 1: Fan chart forecast of total US retail sales of beauty products, at current prices, 2008-18
Market factors
Growth in key demographic groups—women, Hispanics, and aging population
Figure 2: Female population aged 18 or older, by age, 2008-18
Figure 3: Hispanic population aged 18 or older, by age, 2008-18
Figure 4: Population aged 55 or older, by age group, 2008-18
The impact of online and mobile shopping
The consumer
Mass merchandisers and drug stores favored for beauty products
Figure 5: Types of retailers shopped for beauty products, September 2013
Most buy beauty products as replacement items, some impulse buys
Figure 6: Reasons for buying beauty products, September 2013
Beauty shoppers are multitaskers, loyal, creatures of habit
Figure 7: Beauty products shopping behavior, September 2013
Convenience and sampling would improve the shopping experience
Figure 8: Innovations/improvements sought in shopping for beauty products, September 2013
What we think
ISSUES AND INSIGHTS
Where are the growth areas for the beauty products market?
The issues
The implications
Helping consumers focus on their retail options
The issues
The implications
Understanding how people shop for beauty products
The issues
The implications
How to encourage people to buy beauty products more often
The issues
The implications
TREND APPLICATION
Inspire Trend: Return to the Experts
Inspire Trend: Life Hacking
Mintel Futures: Generation Next
MARKET SIZE AND FORECAST
Key points
Continued growth expected for beauty product sales
Figure 9: Total US retail sales and forecast of beauty products, at current prices, 2008-18
Figure 10: Total US retail sales and forecast of beauty products, at inflation adjusted prices, 2008-18
Color cosmetics represents largest share of beauty market
Figure 11: Total US retail sales of beauty products, by segment, at current prices, 2012-13
Fan chart forecast
Figure 12: Fan chart forecast of total US retail sales of beauty products, at current prices, 2008-18
MARKET DRIVERS
Key points
Growing female population likely to support growth in beauty market
Figure 13: Female population aged 18 or older, by age, 2008-18
Growing Hispanic population represents opportunity for beauty products
Figure 14: Hispanic women aged 18 or older, by age, 2008-18
Figure 15: Hispanic men aged 18 or older, by age, 2008-18
The impact of online and mobile shopping
Aging population and its impact on the market
Figure 16: Population, aged 18 or older, by age, 2008-18
More retail choices when it comes to buying beauty products
RETAILER OVERVIEW
Beauty specialists
Sephora
Ulta
Bath & Body Works
The Body Shop
Issues and opportunities for beauty specialists
Department stores
Nordstrom
Macy’s
Bloomingdale’s
Issues and opportunities for department stores
Mass merchandisers
Target
Walmart
Issues and opportunities for mass merchandisers
Drug stores
CVS
Walgreens
Duane Reade
Issues and opportunities for drug stores
Online-only retailers
Amazon.com
Beautybar.com and Soap.com
Drugstore.com and Beauty.com
Issues and opportunities for online only retailers
Direct sellers
Amway
Avon
Mary Kay
Guthy-Renker
Issues and opportunities for direct sellers
Beauty Subscription Services
INNOVATIONS AND INNOVATORS
Sephora truck dishes out samples
Figure 17: The Sephora Source Truck, April 2013
Sephora launches beauty classes in stores
Amazon debuts prestige beauty offering
Figure 18: Amazon.com’s Luxury beauty site, October 2013
Fashion designers expand into beauty products
Figure 19: Sephora email ad “Marc Jacobs beauty has arrived,” August 2013
Benefit introduces airport kiosks
Figure 20: Benefit cosmetics airport kiosk, august 2013
Mr. Porter enters grooming category
Target hosts Sonia Kashuk pop-up store in New York’s Grand Central Station
SOCIAL MEDIA – SHOPPING FOR BEAUTY PRODUCTS
Key findings
Key social media metrics
Figure 21: Key social media metrics, Nov. 2013
Market overview
Brand usage and awareness
Figure 22: Brand usage or awareness, September 2013
Interaction with beauty product retailers
Figure 23: Interactions with selected beauty product retailers, Sept. 2013
Online conversations
Figure 24: Online conversations on selected beauty product retailers, by day, May 26-Nov. 25, 2013
Where are people talking about beauty product retailers?
Figure 25: Word cloud for blog mentions on the selected beauty product retailers, May 26-Nov. 25, 2013
Figure 26: Online conversations on selected beauty product retailers, by page type, May 26-Nov. 25, 2013
What are people talking about?
Figure 27: Conversations surrounding selected beauty product retailers, May 26-Nov. 25, 2013
Analysis by brand
Sephora
Figure 28: Social media metrics—Sephora, Nov. 2013
Ulta
Figure 29: Social media metrics—Ulta, Nov 2013
Birchbox
Figure 30: Social media metrics—Birchbox, Nov. 2013
Walmart
Figure 31: Social media metrics—Walmart, Nov. 2013
Target
Figure 32: Social media metrics—Target, Nov. 2013
Walgreens
Figure 33: Social media metrics—Walgreens, Nov. 2013
MARKETING STRATEGIES
Strategy: Elevating the level of customer service
Figure 34: Target’s Beauty concierge program, in-store signage, November 2013
Figure 35: Sephora email ad, august 2013
Strategy: Offering exclusive products
Strategy: Making shopping easier
Figure 36: Screen shot of Neiman Marcus beauty replenishment service, October 2013
OVERVIEW OF BEAUTY PRODUCT PURCHASES
Key points
Everyday essentials purchased by most consumers
Figure 37: Types of beauty products bought, in-store vs. online, September 2013
TYPES OF RETAILERS SHOPPED FOR BEAUTY PRODUCTS
Key points
Mass merchandisers and drug stores favored for beauty products
Figure 38: Types of retailers shopped for beauty products, in-store vs. online, September 2013
Men shop for beauty items at department stores
Figure 39: Types of retailers shopped for beauty products (in-store), by gender, September 2013
Young adults shop for beauty at a variety of channels
Figure 40: Types of retailers shopped for beauty products (in-store), by age, September 2013
Lower-income shoppers visit dollar stores, higher-income shoppers prefer beauty specialists
Figure 41: Types of retailers shopped for beauty products (in-store), by household income, September 2013
REASONS FOR BUYING BEAUTY PRODUCTS
Key points
Most buy beauty products as replacement items, some impulse buys
Figure 42: Reasons for buying beauty products, September 2013
Women buying beauty items for a wider range of reasons than men
Figure 43: Reasons for buying beauty products, by gender, September 2013
Younger consumers like to try new beauty products and buy on impulse
Figure 44: Reasons for buying beauty products, by age, September 2013
Regardless of income level, all have similar reasons for buying
Figure 45: Reasons for buying beauty products, by household income, September 2013
REASONS FOR CHOOSING CERTAIN RETAILERS WHEN BUYING BEAUTY PRODUCTS
Key points
Store location, product selection impact where people shop for beauty
Figure 46: Reasons for choosing particular retailers when shopping for beauty products, September 2013
Women choose certain retailers for more reasons than men do
Figure 47: Reasons for choosing particular retailers when shopping for beauty products, by gender, September 2013
Older shoppers seek convenience, younger adults like selection
Figure 48: Reasons for choosing particular retailers when shopping for beauty products, by age, September 2013
Higher-income consumers seek more attributes when selecting retailers
Figure 49: Reasons for choosing particular retailers when shopping for beauty products, by household income, September 2013
BEAUTY PRODUCTS SHOPPING BEHAVIOR
Key points
Beauty shoppers are multitaskers, loyal, creatures of habit
Figure 50: Beauty products shopping behavior, September 2013
Women savvier shoppers than men, both loyal to certain products
Figure 51: Beauty products shopping behavior, by gender, September 2013
Younger adults more engaged in beauty shopping
Figure 52: Beauty products shopping behavior, by age, September 2013
Little difference in shopping behavior across household income levels
Figure 53: Beauty products shopping behavior, by household income, September 2013
INNOVATIONS/IMPROVEMENTS DESIRED WHEN SHOPPING FOR BEAUTY PRODUCTS
Key points
Convenience and sampling would improve the shopping experience
Figure 54: Innovations/improvements sought in shopping for beauty products, September 2013
Men seek convenience, women want samples, gift with purchase
Figure 55: Innovations/improvements sought in shopping for beauty products, by gender, September 2013
Older shoppers most likely to seek assistance from sales associates
Figure 56: Innovations/improvements sought in shopping for beauty products, by age, September 2013
Similar improvements sought by shoppers of all income levels
Figure 57: Innovations/improvements sought in shopping for beauty products, by household income, September 2013
RACE AND HISPANIC ORIGIN
Key points
Hispanics likely to buy items in all beauty product categories
Figure 58: Types of beauty products purchased in-store, by race/Hispanic origin, September 2013
Blacks and Hispanics likely to shop at mass, dollar, and discount stores
Figure 59: Types of retailers shopped for beauty products (in-store), by race/Hispanic origin, September 2013
Whites replenish beauty products, Blacks and Hispanics like to try something new
Figure 60: Reasons for buying beauty products, by race/Hispanic origin, September 2013
Convenience and selection drive store choices
Figure 61: Reasons for choosing particular retailers when shopping for beauty products, by race/Hispanic origin, September 2013
Comparison pricing common among Asian/Pacific Islanders, Hispanics
Figure 62: Beauty products shopping behavior, by race/Hispanic origin, September 2013
Blacks want more samples, better trial area in stores
Figure 63: Innovations/improvements sought in shopping for beauty products, by race/Hispanic origin, September 2013
APPENDIX – OTHER USEFUL CONSUMER TABLES
Beauty Product Purchases – In-store
Figure 64: Types of beauty products purchased in-store, by age, September 2013
Figure 65: Types of beauty products purchased in-store, by household income, September 2013
Figure 66: Types of beauty products purchased in-store, by marital/relationship status, September 2013
Figure 67: Types of beauty products purchased in-store, by presence of children in household, September 2013
Figure 68: Types of beauty products purchased in-store, by employment, September 2013
Figure 69: Types of beauty products purchased in-store, by generations, September 2013
Beauty Product Purchases – Online
Figure 70: Beauty product purchases (online), by age, September 2013
Figure 71: Types of beauty products purchased online, by household income, September 2013
Figure 72: Types of beauty products purchased online, by race/Hispanic origin, September 2013
Figure 73: Types of beauty products purchased online, by marital/relationship status, September 2013
Figure 74: Types of beauty products purchased online, by presence of children in household, September 2013
Figure 75: Types of beauty products purchased online, by employment, September 2013
Figure 76: Types of beauty products purchased online, by generations, September 2013
Types of retailers shopped for beauty products
Figure 77: Types of retailers shopped for beauty products (in-store), by marital/relationship status, September 2013
Figure 78: Types of retailers shopped for beauty products (in-store), by presence of children in household, September 2013
Figure 79: Types of retailers shopped for beauty products (in-store), by employment, September 2013
Figure 80: Types of retailers shopped for beauty products (in-store), by generations, September 2013
Figure 81: Types of retailers shopped for beauty products (in-store), by gender and household income, September 2013
Figure 82: Types of beauty products purchased in-store or online, by type of retailer shopped for beauty products (either in-store or online), September 2013 (part 1)
Figure 83: Types of beauty products purchased in-store or online, by type of retailer shopped for beauty products (either in-store or online), September 2013 (part 2)
Reasons for buying beauty products
Figure 84: Reasons for buying beauty products, by marital/relationship status, September 2013
Figure 85: Reasons for buying beauty products, by presence of children in household, September 2013
Figure 86: Reasons for buying beauty products, by employment, September 2013
Figure 87: Reasons for buying beauty products, by generations, September 2013
Figure 88: Reasons for buying beauty products, by gender and age, September 2013
Reasons for choosing certain retailers when buying beauty products
Figure 89: Reasons for choosing particular retailers when shopping for beauty products, by marital/relationship status, September 2013
Figure 90: Reasons for choosing particular retailers when shopping for beauty products, by presence of children in household, September 2013
Figure 91: Reasons for choosing particular retailers when shopping for beauty products, by employment, September 2013
Figure 92: Reasons for choosing particular retailers when shopping for beauty products, by generations, September 2013
Figure 93: Reasons for choosing particular retailers when shopping for beauty products, by gender and household income, September 2013
Figure 94: Reasons for choosing particular retailers when shopping for beauty products, by retailers shopped for beauty products (either in-store or online), September 2013 (part 1)
Figure 95: Reasons for choosing particular retailers when shopping for beauty products, by retailers shopped for beauty products (either in-store or online), September 2013 (part 2)
Beauty products shopping behavior
Figure 96: Beauty products shopping behavior, by marital/relationship status, September 2013
Figure 97: Beauty products shopping behavior, by presence of children in household, September 2013
Figure 98: Beauty products shopping behavior, by employment, September 2013
Figure 99: Beauty products shopping behavior, by generations, September 2013
Figure 100: Beauty products shopping behavior, by gender and household income, September 2013
Innovations/improvements desired when shopping for beauty products
Figure 101: Innovations/improvements sought in shopping for beauty products, by marital/relationship status, September 2013
Figure 102: Innovations/improvements sought in shopping for beauty products, by presence of children in household, September 2013
Figure 103: Innovations/improvements sought in shopping for beauty products, by employment, September 2013
Figure 104: Innovations/improvements sought in shopping for beauty products, by generations, September 2013
Figure 105: Innovations/improvements sought in shopping for beauty products, by gender and household income, September 2013
Figure 106: Innovations/improvements sought in shopping for beauty products, by retailers shopped for beauty products (either in-store or online), September 2013 (part 1)
Figure 107: Innovations/improvements sought in shopping for beauty products, by retailers shopped for beauty products (either in-store or online), September 2013 (part 2)
APPENDIX – SOCIAL MEDIA – SHOPPING FOR BEAUTY PRODUCTS
Brand usage or awareness
Figure 108: Brand usage or awareness, September 2013
Figure 109: Sephora usage or awareness, by demographics, September 2013
Figure 110: Ulta usage or awareness, by demographics, September 2013
Figure 111: Target usage or awareness, by demographics, September 2013
Figure 112: Walmart usage or awareness, by demographics, September 2013
Figure 113: Birchbox usage or awareness, by demographics, September 2013
Figure 114: Walgreens usage or awareness, by demographics, September 2013
Activities Done
Figure 115: Activities done, September 2013
Figure 116: Sephora – Activities done, by demographics, September 2013
Figure 117: Ulta – Activities done, by demographics, September 2013
Figure 118: Target – Activities done, by demographics, September 2013
Figure 119: Walmart – Activities done, by demographics, part 1, September 2013
Figure 120: Walmart – Activities done, by demographics, part 2, September 2013
Figure 121: Walgreens – Activities done, by demographics, September 2013
Online conversations
Figure 122: Online conversations on selected beauty product retailers, by week, May 26-Nov. 25, 2013
Figure 123: Online conversations on selected beauty product retailers, by page type, May 26-Nov. 25, 2013
Figure 124: Conversations surrounding selected beauty product retailers, May 26-Nov. 25, 2013
APPENDIX – TRADE ASSOCIATIONS