Fragrances and Cosmetics - UK - June 2006

INTRODUCTION
Definitions
Consumer research
 ABBREVIATIONS
EXECUTIVE SUMMARY
Looking good
Figure 1: Indexed UK retail value sales of fragrances and colour cosmetics, at current and constant prices, 2001-06
The rise and rise of youth fragrances and celebrity labels
Glamour return to colour cosmetics
Boots rules the roost
Figure 2: UK retail value sales of fragrances and colour cosmetics, by outlet type, 2005
Familiar marques in the lead
The importance of being innovative
Usage linked to age and wealth
Positive prospects
Figure 3: Forecast indexed UK retail value sales of fragrances and colour cosmetics, at current and constant prices, 2005-10
MARKET DRIVERS
Shrinking violets?
Figure 4: Attitudes towards personal appearance, by country, 2005
Growing affluence gives a boost to sales…
Figure 5: UK PDI and consumer expenditure, at current and constant prices, 2000-10
Figure 6: UK adult population, by socio-economic group, 2000-10
…as does increasing female employment
Figure 7: UK workforce, by gender and employment status, 2000-10
Ageing population poses a challenge
Figure 8: UK adult female population, by age group, 2000-10
MARKET SIZE AND TRENDS
Still growing
Figure 9: UK retail value sales of fragrances and colour cosmetics, at current and constant prices, 2001-06
Figure 10: UK retail value sales of fragrances and colour cosmetics, by type, 2001-06
UK women top spenders on make-up
Figure 11: Annual per capita expenditure on fragrances, by adults (15+), by country, 2001-05
Figure 12: Annual per capita expenditure on colour cosmetics, by women (15+), by country, 2001-05
MARKET SEGMENTATION – FRAGRANCES
Continued growth
Figure 13: UK retail value sales of fragrances, at current and constant prices, 2001-06
Women’s fragrances outpace men’s products
Figure 14: UK retail value sales of fragrances, by type, 2003-05
Doing fine
Figure 15: UK retail value sales of women’s fragrances*, by type, 2003-05
Celebrities and designers behind many new launches
Figure 16: UK retail value sales of men’s fragrances, by type, 2003-05
Fragrance pairs replace unisex scents
Flankers and limited editions
Prestige in a bottle
Celebrity sells and image is everything
MARKET SEGMENTATION – COLOUR COSMETICS
Well made up
Figure 17: UK retail value sales of colour cosmetics, at current and constant prices, 2001-06
Figure 18: UK retail value sales of colour cosmetics, by type, 2003-05
Youthful avenues
New market entries
Face make-up takes its cue from skincare
Technological world
Volumising mascaras and multi-palette eyeshadows
Glossy lips
Product development continues in nail make-up despite declining sales
DISTRIBUTION
Boots remains number one distributor, but grocery multiples see best growth
Figure 19: UK retail value sales of fragrances and colour cosmetics, by outlet type, 2001-05
 FRAGRANCES
Figure 20: UK retail value sales of fragrances, by outlet type, 2001-05
Figure 21: UK retail value sales of women’s fragrances*, by outlet type, 2001-05
Figure 22: UK retail value sales of men’s fragrances, by outlet type, 2001-05
 COLOUR COSMETICS
Figure 23: UK retail value sales of colour cosmetics, by outlet type, 2001-05
THE SUPPLY STRUCTURE
 MANUFACTURERS’ SHARES
Chanel No5 – Marilyn’s legacy lives on
Figure 24: Brands’ retail value shares of women’s fine fragrances*, 2003-05
Figure 25: Brands’ retail value shares of women’s mass fragrances*, 2003-05
Classic scents lead in men’s fragrances
Figure 26: Brands’ retail value shares of men’s fine fragrances, 2003-05
Figure 27: Brands’ retail value shares of men’s mass fragrances, 2003-05
All main make-up players see sales grow
Figure 28: Manufacturers’ retail value shares of colour cosmetics, 2003-05
Figure 29: Brands’ retail value shares of colour cosmetics, 2003-05
 COMPANIES AND BRANDS
Boots The Chemist
Chanel
Coty UK
Estée Lauder
L’Oréal
Procter & Gamble
NEW PRODUCT DEVELOPMENT
Fragrances return to glamour
Make-up takes its cue from skincare
New product launches 2006
Fragrances
Colour cosmetics
THE CONSUMER
 PAN-EUROPEAN OVERVIEW OF PRODUCT USE
Figure 30: Penetration and frequency of using fragrances and colour cosmetics, by women, by country, 2005
Figure 31: Penetration and frequency of using fragrances, by men, by country, 2005
 TRENDS IN PRODUCT USE BY TYPE – WINNERS AND LOSERS
Figure 32: Trends in penetration and frequency of using fragrances and colour cosmetics, by women, 2001-05
Figure 33: Trends in penetration and frequency of using aftershave/male fragrance, 2001-05
 ATTITUDES TOWARDS PERSONAL APPEARANCE
Figure 34: Usage of fragrances and colour cosmetics by attitudes to personal appearance, 2005
 PENETRATION AND FREQUENCY OF USING FRAGRANCES AND COLOUR COSMETICS
Market maturity
Figure 35: Maturity of the GB consumer base for colour cosmetics, by sector, 2005
Perfume/eau de toilette
Aftershave/male fragrance
Foundation
Blusher/highlighter
Lipstick
Eye make-up
Nail varnish
THE CONSUMER – DETAILED DEMOGRAPHICS
Figure 36: Penetration and frequency of using fragrances and colour cosmetics, by women, by demographic sub-group, 2005
Figure 37: Penetration and frequency of using perfume/eau de toilette, by women, by demographic sub-group, 2005
Figure 38: Penetration and frequency of using aftershave/male fragrance, by men, by demographic sub-group, 2005
Figure 39: Penetration and frequency of using foundation, by women, by demographic sub-group, 2005
Figure 40: Penetration and frequency of using blusher/highlighter, by women, by demographic sub-group, 2005
Figure 41: Penetration and frequency of using lipstick, by women, by demographic sub-group, 2005
Figure 42: Penetration and frequency of using eye make-up, by women, by demographic sub-group, 2005
Figure 43: Penetration and frequency of using nail varnish, by women, by demographic sub-group, 2005
PROSPECTS AND FORECAST
 PROSPECTS
Consumer confidence remains high
Flankers and small formats remain in focus
Make-up concentrates on technology and gets its inspiration from skincare
 FORECAST
Continued growth
Figure 44: Forecast of UK retail value sales of fragrances and colour cosmetics, at current prices, in sterling terms, 2005-10
Figure 45: Forecast of UK retail value sales of fragrances and colour cosmetics, at current prices, in euro terms, 2005-10
Figure 46: Forecast of UK retail value sales of fragrances and colour cosmetics, at constant prices, in sterling terms, 2005-10
Figure 47: Forecast of UK retail value sales of fragrances and colour cosmetics, at constant prices, in euro terms, 2005-10
Factors used in the forecast