Beauty Online - UK - January 2016

OVERVIEW
What you need to know
Products covered in this report
EXECUTIVE SUMMARY
Pace of online sales growth begins to slow
Figure 1: Best- and worst-case forecast for online consumer expenditure on beauty products, 2010-20
Supermarkets most commonly used BPC online retailer
Figure 2: Online retailers used to purchase BPC products, October 2015
YouTube a powerful force in BPC social media
Figure 3: BPC online activities, October 2015
Drawbacks of online BPC shopping
Figure 4: Attitudes towards BPC online, October 2015
Skin tracker apps have untapped potential
Figure 5: Attitudes towards beauty apps, October 2015
Blogs have a poor perception outside of their core target
Figure 6: Correspondence analysis – Opinion of online beauty sources, October 2015
What we think
ISSUES AND INSIGHTS
A more challenging environment for online beauty sales
The facts
The implications
Less blogging, more vlogging for today’s Millennials
The facts
The implications
Men need more guidance in the online BPC arena
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Pace of online sales growth begins to slow
Smartphone and tablet ownership continues to grow
Changes in online activities
New delivery charges
Retail calendar event sales tempt shoppers
Supermarkets challenge chemists and drugstores
Pureplayers struggle to further grow share
MARKET SIZE AND FORECAST
Pace of online sales growth begins to slow
Figure 7: Market size and forecast of online consumer expenditure on beauty products, 2010-20
Future growth slower but stable
Figure 8: Best- and worst-case forecast for online consumer expenditure on beauty products, 2010-20
MARKET DRIVERS
PDI improves post-recession
Figure 9: Trends in how respondents would describe their financial situation, February 2009-September 2015
Smartphone and tablet ownership continues to grow
Figure 10: Personal ownership of smartphones, tablets and smartwatches amongst UK consumers, by generation, June 2015
Changes in online activities
Figure 11: Online activities performed in the past three months, June 2014-June 2015
New delivery charges
Consumers suspicious of cheap products online
Retail calendar event sales tempt shoppers
Figure 12: Example of Black Friday 2015 promotion, November 2015
CHANNELS TO MARKET
Supermarkets challenge chemists and drugstores
Figure 13: Retailer shares of online sales of BPC products, 2013-15
Pureplayers struggle to further grow share
KEY PLAYERS – WHAT YOU NEED TO KNOW
Social media users enjoy exclusives
Online retailers launch exclusive offers
Brands focus on consumer engagement
BRAND COMMUNICATION AND INNOVATION
Social media
Burberry Snapchat previews
Figure 14: Burberry backstage fashion week posts, September 2015
Marc Jacobs Tweet Shop
The Beauty Boy YouTube success
Figure 15: The Beauty Boy eyebrow tutorial, November 2015
Adverts now on Instagram
Brand Initiatives
Kind is Simple store
Figure 16: The #KindIsSimple store, London, May 2015
L’Oréal explores connected make-up to learn about consumers
LiLash launches feedback comp
Figure 17: LiLash reviews competition, November 2015
Tarte cosmetics partners with ShadeScout
Netflix publish moustache styling guide
Figure 18: Screenshot of Netflix Moustache search on Twitter, November 2015
Retailer campaigns
Feelunique.com celebrates 10 years
Figure 19: Promotional email for feelunique.com purchasing incentives, September 2015
Space.NK boosts online sales with exclusive online discount
Figure 20: Space.NK online sales promotion, October 2015
The Outnet launches beauty offering
Figure 21: The Outnet beauty launch, October 2015
Tesco Beauty Bloggers
THE CONSUMER – WHAT YOU NEED TO KNOW
Supermarkets most commonly used BPC online retailer
Subscription market shows growth
Consumers more likely to use web for research
YouTube a powerful force in BPC social media
Building a more educated BPC consumer base
Drawbacks of online BPC shopping
Skin apps have untapped potential
Apps can help guide product purchases
Beauty blogs have a loyal audience
Brand websites have the expertise
BPC ONLINE RETAILER PREFERENCES
Supermarkets most commonly used BPC online retailer
Figure 22: Online retailers used to purchase BPC products, October 2015
Subscription market shows growth
Figure 23: Amazon Dash button example, 2015
Older men are not online
Figure 24: Those who have not shopped for BPC products online in the last 12 months, by age and gender, October 2015
Figure 25: Space.NK email marketing communications, September 2015
BPC ONLINE ACTIVITIES
Consumers more likely to use web for research
Figure 26: BPC online activities, October 2015
Online facilitates price comparisons
YouTube a powerful force in BPC social media
Reviews are valued but not given
ATTITUDES TOWARDS BPC ONLINE
Building a more educated BPC consumer base
Figure 27: Attitudes towards BPC online, October 2015
Drawbacks of online BPC shopping
Connected devices should target the male market
BEAUTY APPS
Skin tracker apps have untapped potential
Figure 28: Attitudes towards beauty apps, October 2015
Scalp health of interest to young men
Apps can help guide product purchases
Young women key app users
Figure 29: Young women’s attitudes towards beauty apps, October 2015
OPINION OF ONLINE BEAUTY SOURCES
Blogs have a poor perception outside of their core target
Figure 30: Correspondence analysis – Opinion of online beauty sources, October 2015
Online beauty retailers considered impartial
Figure 31: Perceptions of online beauty sources, October 2015
Brand websites have the expertise
Figure 32: Lipcote Lipstick Finder, December 2015
Magazine websites compete with blogs
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Data sources
Abbreviations
Fan chart forecast
Correspondence analysis