Beauty and Personal Care Retailing - Spain - January 2021

OVERVIEW
Key issues covered in this Report
Areas covered in this Report
EXECUTIVE SUMMARY
The market
Consumer spending
Figure 1: Spain: annual % change in total consumer spending on beauty and personal care and total household spending, 2014-20
Sector size and forecast 
Figure 2: Spain: annual % change in beauty specialists’ sales and total retail sales, 2014-20
Channels of distribution
Inflation
Figure 3: Spain: consumer price inflation on personal care products and services, annual % change, 2014-20
Companies and brands
Key metrics
Market shares 
Figure 4: Spain: leading BPC specialists’ shares of all cosmetics and perfumery specialists’ sales, 2019
Online
The consumer 
Beauty and personal care products purchased
Figure 5: Spain: beauty and personal care products purchased in the last 12 months, October 2020
Online and in-store shopping for beauty and personal care products 
Figure 6: Spain: in-store and online buyers of beauty and personal care products, October 2020
Where beauty and personal care products are purchased
Figure 7: Spain: where beauty and personal care products were purchased, October 2020
Attitudes to innovations in BPC
Figure 8: Spain: in-store beauty and personal care innovations, October 2020
THE IMPACT OF COVID-19 ON BEAUTY AND PERSONAL CARE RETAILING
Short, medium and long term impact on the sector
Figure 9: Short, medium and long term impact of COVID-19 on beauty and personal care retailing, February 2021
 OPPORTUNITIES AND THREATS
But the online experience can go so much further
Virtual consultations
Figure 10: Bobbi Brown Virtual Services Homepage, August 2020
Product recommendations using AI
Figure 11: The Inkey List #askINKEY Campaign, 2020
Figure 12: Boots No7 Personalised Skin Analysis, 2020
Adding the human touch with live-streaming
Making beauty shopping more fun
Making shopping safe will pay off
Cash-strapped consumers may restrict BPC spend
 HOW COVID-19 WILL RESHAPE THE INDUSTRY
Delivery and click-and-collect will continue to ride on convenience
Social media will play a greater role
The store-experience will need to be even better
BPC online audience has grown and specialists must embrace this
Sustainability will continue to be high on the agenda
Health and beauty specialists struggle in 2020
Figure 13: Europe Big Five: total health and beauty specialist retailers’ sales and forecast, 2015-25
Figure 14: Europe Big Five: total health and beauty specialist retailers’ sales and forecast, by country, 2015-25
 THE IMPACT OF COVID-19 ON CONSUMER BEHAVIOUR ACROSS EUROPE
Concerns around exposure to COVID-19 rise as second wave hits
Figure 15: Europe: those extremely worried about the risk of being exposed to COVID-19, March 2020-January 2021*
 THE FINANCIAL IMPACT OF COVID-19
Furlough and job losses
Spending falls and consumers look to save where possible
Figure 16: Europe: financial impact of COVID-19, January 2021*
 CHANGES TO SHOPPING BEHAVIOUR
Non-essential spending reduced
Desire to spend less time in-store
Cash is no longer king
Localism rises up the agenda
Online shopping receives major boost
Second wave leads to renewed stockpiling
Figure 17: Europe: changes to shopping behaviour since the start of the COVID-19 outbreak, January 2021*
Consumers are trying not to handle/touch products in-store
Figure 18: Europe: people who would feel uncomfortable handling/touching products in-store, November 2020*
 SPENDING INTENTIONS
Beauty sector sees planned spending decrease
Figure 19: Net balance* of expected spending on selected items in the next month, January 2021**
German consumers the only group planning to spend more on beauty
Figure 20: Europe: net balance* of expected spending on beauty products and toiletries in the next month, January 2021**
 HOW THE CRISIS IS IMPACTING ON KEY CONSUMER SEGMENTS
Women and older people most concerned about the pandemic
Figure 21: Europe: those extremely worried about the risk of being exposed to COVID-19, by gender and age, January 2021*
Women and older age groups also trying to limit time in-store
Figure 22: Europe: consumers trying to limit the time they spend in-store, by gender and age, January 2021*
Online shopping boom is relatively uniform
Figure 23: Europe: consumers shopping more online, by gender and age, January 2021*
Younger and middle-aged consumers more likely to be cutting back on non-essential spend
Figure 24: Europe: consumers cutting back on non-essential spending, by gender and age, January 2021*
 COVID-19: MARKET CONTEXT
UK
France
Germany
Italy
Spain
ISSUES AND INSIGHTS 
COVID moves focus from appearance to hygiene
Optimising physical and digital retail spaces
THE MARKET – KEY TAKEAWAYS
Personal care spending drops as pandemic hits
Specialist retailers see sales plummet as stores close
Inflation impacted services more than products
Lockdowns make supermarkets more dominant and drive online growth
CONSUMER SPENDING
Figure 25: Spain: consumer spending on beauty and personal care (incl. VAT), 2014-20
SECTOR SIZE AND FORECAST
Figure 26: Spain: health & beauty specialists, sales (excluding VAT), 2015-20
Figure 27: Spain: health & beauty specialists’ sales, forecasts, excluding VAT, 2020-25
INFLATION
Figure 28: Spain: consumer prices* of personal care items, annual % change, 2014-20
Figure 29: Spain: consumer price inflation (HICP *) on personal care products and services, annual % change, January 2019-November 2020
CHANNELS OF DISTRIBUTION
COMPANIES AND BRANDS – KEY TAKEAWAYS
A fragmented market
Store sales plummet as pandemic strikes
Online experiences unprecedented growth
LEADING PLAYERS
Douglas Group
Druni
Clarel
Other players
Figure 30: Spain: leading beauty specialists, sales, 2016-19
Figure 31: Spain: leading beauty and personal care specialists, outlets, 2016-20
MARKET SHARES
Figure 32: Spain: leading beauty specialists: shares of all beauty specialists’ sales, 2016-19
ONLINE
Online activity 
Figure 33: Spain: online buyers of beauty and personal care products, by age and gender, October 2020
Online BPC sales
Leading online players 
Figure 34: Spain: search interest on Google, selected BPC retailers, 12 months, January 2020-December 2020
THE CONSUMER – KEY TAKEAWAYS
Beauty and personal care purchasing still dominated by women
Shoppers are turning away from make-up and focusing on self-care
Almost 50% of beauty and personal care shoppers shop online
Specialists and online retailers appeal to younger consumers
Hygiene is a pressing concern for consumers in 2020
BEAUTY AND PERSONAL CARE PRODUCTS PURCHASED
Personal care products the most widely used
Figure 35: Spain: where beauty and personal care products were purchased, October 2020
Beauty and skincare products still predominantly bought by women
Figure 36: Spain: changes in beauty and personal care products purchased 2020 vs 2019, by gender, October 2020
Older consumers remain a key demographic
Figure 37: Spain: beauty and personal care products purchased in the last 12 months, by age group, October 2020
ONLINE AND IN-STORE SHOPPING FOR BPC PRODUCTS
In-store shopping remains first choice in Spain
Figure 38: Spain: in-store and online buyers of beauty and personal care products, October 2020
Women shopping more online than men
Figure 39: Spain: in-store and online buyers of beauty and personal care products, by gender, October 2020
Older shoppers reliant on shopping in-store
Figure 40: Spain: in-store and online buyers of beauty and personal care products, by age group, October 2020
WHERE BEAUTY AND PERSONAL CARE PRODUCTS ARE PURCHASED
Supermarkets/hypermarkets still dominate the sector
Figure 41: Spain: type of retailer used to purchase beauty and personal care products, October 2020
Younger consumers turn to specialists and online retailers
Figure 42: Spain: type of retailer used to purchase beauty and personal care products, by age, October 2020
Where people shopped and what they bought
Figure 43: Spain: specialists used and products bought, October 2020
Figure 44: Spain: non-specialists used and products bought, October 2020
ATTITUDES TO INNOVATIONS IN BPC
In-store
Hygiene and traceability are areas of interest for consumers
Figure 45: Spain: in-store buyers of beauty and personal care products interest in innovations, October 2020
Online
Sustainability a key concern when it comes to online retail
Figure 46: Spain: online buyers of beauty and personal care products interest in innovations, October 2020
Improved sustainability, hygiene and product information have broad appeal
Figure 47: Spain: online buyers of beauty and personal care products interest in innovations, by age, October 2020
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Data sources