Table of Contents
Introduction
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- Beauty and personal care retailing
- Beauty specialists
- Sources
- Abbreviations
- Technical notes
- Financial definitions
- Currencies
- Country codes
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- Figure 1: Country codes
- VAT
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- Figure 2: Europe: Standard VAT rates, 2010/11
Executive Summary
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- The market
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- Figure 3: All spending on beauty and personal care products, 2006-16
- Economic outlook
- The notion of treating will become a harder sell
- Winners and losers
- Market factors
- Competition heats up
- Multi-channel steams ahead
- M-commerce will gather momentum
- Maximising the impact of marketing campaigns
- Companies, brands and innovation
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- Figure 4: Leading retailers: Market shares of all beauty and personal care spending, 2010
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- Figure 5: Leading specialists: Share of cosmetic & toiletries specialists’ sales, 2010
- Innovation – loyalty, digital and collaborative developments
- Channels of distribution
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- Figure 6: Beauty and personal care spending: Channels of distribution, 2009 and 2010
- The consumer
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- Figure 7: Purchase drivers for beauty products, November 2011
- Figure 8: Attitudes to beauty shopping, November 2011
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- Figure 9: Beauty target groups, November 2011
- What we think
Issues in the Market
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- Which factors most influence purchasing decisions?
- Can Superdrug take on Boots with its loyalty card?
- And what does the future hold for loyalty schemes?
- How can retailers retain the interest of young people?
- The enduring challenge – how can retailers get more men into the grooming market?
Future Opportunities
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- Let’s Make a Deal
- Why buy?
Who’s Innovating?
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- Sephora’s mirror app
- Superdrug loyalty roadshow
- Do not disturb
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- Figure 10: Clinique’s ‘browsing bracelets’
- Harrods Beauty Apothecary and Colour Hall
- Taking in-store services further
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- Figure 11: John Lewis Retreat, Reading
- Cadbury’s Blissful treats
- Sephora unveils its mobile checkout system
- Sensory experiences from Sephora
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- Figure 12: Sephora’s Sensorium, New York
The Market: Economic and Demographic Background
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- Key points
- Demographic shifts
- Ethnic diversity
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- Figure 13: Number of passengers given leave to enter the UK for work and study by region of nationality, and grants of settlement by region of nationality, 2010
- Figure 14: Population estimate, by ethnic group, 2009
- Ageing population
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- Figure 15: UK: Over-65s as a percentage of the total UK population, 1991-2020
- Implications for retailers
- The economy
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- Figure 16: UK: Real-terms, year-on-year GDP growth, Q1 2009-Q3 2011(p)
- Figure 17: UK: consumer confidence and retail trade confidence, Dec 2010-Nov 2011
- Inflation
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- Figure 18: Consumer prices inflation in selected categories, Dec 2010-Nov 2011
- Implications for retailers
The Market: Consumer Spending on Beauty Products
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- Definitions
- Consumer spending breakdown
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- Figure 19: UK: Consumer spending on selected categories, 2006-11
- Beauty spending as a share of all spending
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- Figure 20: Consumer spending on personal care goods as a percentage of total consumer spending, 2006-11
- Spending on goods relative to services
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- Figure 21: Consumer spending on personal care goods relative to spending at hairdressing salons & personal grooming establishments, 2006-11
- Category performance and prospects
The Market: Sector Size and Forecast
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- Key points
- Economic and consumer outlook
- Health warning
- Economic outlook
- Beauty retailers’ prospects
- Winners and losers
- New investment
- Online developing fast
- M-commerce will gather momentum too
- Maximising the impact of marketing campaigns
- Collaborative links
- Market size forecast
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- Figure 22: Personal care spending forecast, 2006-16
- Forecast methodology
- Sector sales
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- Figure 23: UK: Estimated total health and beauty retailers’ sales, 2006-10
- Outlet data
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- Figure 24: UK: Retail outlets by sector, 2005-09
The Market: Strengths and Weaknesses
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- Strengths
- Weaknesses
The Retailers: Channels of Distribution
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- Key points
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- Figure 25: UK beauty and personal care market, channels of distribution, 2009 and 2010
The Retailers: Leading Retailers
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- Key points
- Technical note
- The retailers: Leading beauty specialists
- Mixed results
- Superdrug initiatives should start to bear fruit
- What lies ahead for Savers and The Perfume Shop?
- The Body Shop in need of fresh ideas
- Niche players hold up well
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- Figure 26: UK: Leading beauty specialists, 2010/11
- The retailers: Leading non-specialists and non-store retailers
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- Figure 27: Leading non-specialists, 2010/11
- Non-specialist and non-store retailers’ profiles
- Tesco
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- Figure 28: Tesco: Beauty consumer profile (relative to the average), by gender, age and socio-economic group, November 2011
- J. Sainsbury
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- Figure 29: J. Sainsbury exclusive brands, Mandara Spa and Dirty Works, and point-of-sale merchandising
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- Figure 30: Sainsbury’s: Beauty consumer profile (relative to the average), by gender, age and socio-economic group, November 2011
- Asda
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- Figure 31: Asda: Beauty consumer profile (relative to the average), by gender, age and socio-economic group, November 2011
- Morrisons
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- Figure 32: Morrisons: Beauty consumer profile (relative to the average), by gender, age and socio-economic group, November 2011
- Debenhams
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- Figure 33: Bliss spa, Debenhams, Oxford Street
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- Figure 34: Debenhams: Beauty consumer profile (relative to the average), by gender, age and socio-economic group, November 2011
- John Lewis
- House of Fraser
- Marks & Spencer
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- Figure 35: Beauty section, Marks & Spencer, Marble Arch
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- Figure 36: Marks & Spencer: Beauty consumer profile (relative to the average), by gender, age and socio-economic group, November 2011
- Avon Cosmetics
The Retailers: Market Shares
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- Figure 37: Leading retailers of personal care products’ shares of consumer spending on personal care goods, 2010
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- Figure 38: Leading cosmetics and toiletries specialists’ shares of the cosmetics/toiletries specialists sector, 2010
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The Retailers: Online
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- Key points
- Prospects for beauty online
- Market size
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- Figure 39: Estimated market size and forecast of online consumer spending on cosmetics and toiletries, 2006-11
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- Figure 40: Estimated distribution of online consumer spending on cosmetics and toiletries, by segment, 2010
- Leading pureplay retailers
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- Figure 41: Leading home shopping retailers’ online beauty and toiletries sales, 2010/11
- Website usage
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- Figure 42: Leading cosmetics/fragrance retail websites, three-month average to October 2011
- Figure 43: Leading healthcare retail websites, three-month average to October 2011
- The online consumer
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- Figure 44: Proportion of adult population buying toiletries/cosmetics/fragrances online in the preceding three months, July 2010-July 2011
- Figure 45: Proportion of adult population buying toiletries/cosmetics/fragrances online in the preceding three months, by socio-economic group, age and gender, July 2011
The Consumer: Brand Research
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- Brand map
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- Figure 46: Attitudes towards and usage of brands in the beauty retail sector, November 2011
- Correspondence analysis
- Brand attitudes
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- Figure 47: Attitudes by beauty retail brand, November 2011
- Brand personality
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- Figure 48: Beauty retail brand personality – macro image, November 2011
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- Figure 49: Beauty retail brand personality – micro image, November 2011
- Brand experience
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- Figure 50: Beauty retail brand usage, November 2011
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- Figure 51: Satisfaction with various beauty retail brands, November 2011
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- Figure 52: Consideration of beauty retail brands, November 2011
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- Figure 53: Consumer perceptions of current beauty retail brand performance, November 2011
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- Figure 54: Beauty retail brand recommendation – Net Promoter Score, November 2011
- Brand index
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- Figure 55: Beauty retail brand index, November 2011
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- Figure 56: Beauty retail brand index vs. recommendation, November 2011
- Target group analysis
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- Figure 57: Target groups, November 2011
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- Figure 58: Beauty retail brand usage, by target groups, November 2011
- Group One – Conformists
- Group Two – Simply the Best
- Group Three – Shelf Stalkers
- Group Four – Habitual Shoppers
- Group Five – Individualists
The Consumer – Who Shops Where for Beauty Products
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- Key points
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- Figure 59: Where they bought beauty products in the last 12 months, November 2011
- Shopper numbers fall in 2011
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- Figure 60: Where they bought beauty products in the last 12 months, November 2009, 2010 and 2011
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- Figure 61: Trends in those spending extra money on fragrances/toiletries/make-up and beauty treatments/haircuts, January-October 2011
- Boots maintains its lead
- Superdrug targets younger beauty shoppers
- Tesco cranks up its beauty proposition
- Other supermarkets…
- … and department stores
- The internet
- Retailer market positioning
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- Figure 62: UK: Market positioning of leading retailers/channels, November 2011
- Repertoire – the young and the affluent are more promiscuous
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- Figure 63: Repertoire of where they bought beauty products in the last 12 months, by demographics, November 2011
The Consumer – What Drives Beauty Purchasing
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- Key points
- What drove choice in 2011
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- Figure 64: Purchase drivers for beauty products, November 2011
- Location, location
- The dichotomy of quality and low prices
- Choice drivers by age and affluence
- Deals, loyalty cards and own brands more important to women
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- Figure 65: Select purchase drivers for beauty, by gender, November 2011
- Pre-/no family choices driven first and foremost by quality
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- Figure 66: Select purchase drivers for beauty, by pre-/no family lifestage, November 2011
- Low prices are key for families
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- Figure 67: Select purchase drivers for beauty, by family lifestage, November 2011
- Third age choices driven by deals and promotions
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- Figure 68: Select purchase drivers for beauty, by third age lifestage, November 2011
- Variety stores and supermarket shoppers most sensitive to price
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- Figure 69: Those driven by low prices, by where they shop, November 2011
- Specialist beauty store shoppers most driven by quality
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- Figure 70: Those driven by good quality, by where they shop, November 2011
- The power of the internet for personal recommendations
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- Figure 71: Those driven by personal recommendation, by where they shop, November 2011
The Consumer – Attitudes towards Beauty Shopping
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- Key points
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- Figure 72: Attitudes to beauty shopping, November 2011
- The gender divide
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- Figure 73: Attitudes to beauty shopping, by gender, November 2011
The Consumer – Target Groups
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- Figure 74: Beauty target groups, November 2011
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- Figure 75: Attitudes towards beauty purchasing, by target groups, November 2011
- Group 1: The Loyalists (24%)
- Who are The Loyalists?
- Group 2: The Canny Treaters (11%)
- Who are The Canny Treaters?
- Group 3: The Enthusiasts (9%)
- Who are The Enthusiasts?
- Group 4: The Indifferent (56%)
- Who are The Indifferent?
- Where people shop by typology
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- Figure 76: Where they bought beauty products in the last 12 months, by target groups, November 2011
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Boots UK
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- Figure 77: Boots UK beauty and toiletries sales: as share of all UK spending on beauty and personal care, 2006-10
- Strategic evaluation
- Background
- Company performance
- But continues to gain market share in beauty/toiletries
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- Figure 78: Alliance Boots UK Health and Beauty Division: Financial performance, 2006/07-2010/11
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- Figure 79: Boots UK: Outlet data, 2006/07-2010/11
- Store formats
- Consumer profile
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- Figure 80: Boots shoppers in last 12 months, by gender, age and socio-economic group, November 2011
- Figure 81: Boots shoppers in last 12 months, by region and ACORN group, November 2011
- Retail offering
- e-commerce
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- Figure 82: Boots: Online consumer demographics, three month average to October 2011
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A.S. Watson (UK)
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- Figure 83: A. S. Watson (UK): Sales as share of beauty and cosmetics specialists’ sales in UK, 2006-10
- Strategic evaluation
- Investment in own-brand and exclusive products
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- Figure 84: Superdrug: Optimum products, and brand-similar products, launched 2011
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- Figure 85: Reformatted Superdrug stores at Manchester (with brand ambassador Joanna Page) and Uxbridge
- The Perfume Shop
- Savers
- Background
- Company performance
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- Figure 86: A. S. Watson UK: Financial performance, 2006-10
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- Figure 87: A. S. Watson UK: Outlet data, 2006-10
- Consumer profile
- Superdrug
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- Figure 88: Superdrug shoppers in last 12 months, by gender, age and socio-economic group, November 2011
- Figure 89: Superdrug shoppers in last 12 months, by region, November 2011
- Figure 90: Superdrug shoppers in last 12 months, by ACORN group, November 2011
- Retail offering
- e-commerce and home shopping
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- Figure 91: A.S. Watson: Online consumer demographics for Superdrug.com, three month average to October 2011
- Figure 92: A.S. Watson: Online consumer demographics for ThePerfumeShop.com, three month average to October 2011
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Lush Retail Ltd
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- Figure 93: Lush Retail Ltd: Sales as share of beauty and cosmetics specialists’ sales in UK, 2006-09
- Strategic evaluation
- Background
- Company performance
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- Figure 94: Lush Retail Ltd: Group financial performance, 2005/06-2009/10
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- Figure 95: Lush Retail Ltd: Outlet data, 2006-10
- Store formats
- Retail offering
- e-commerce
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- Figure 96: Lush: Online consumer demographics, three month average to October 2011
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Space NK Ltd
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- Figure 97: Space NK Ltd: Sales as share of beauty and cosmetics specialists’ sales in UK, 2006-10
- Strategic evaluation
- Background
- Company performance
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- Figure 98: Space NK Ltd: Group financial performance, 2006/07-2010/11
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- Figure 99: Space NK Ltd: Outlet data, 2006/07-2010/11
- Store format
- Retail offering
- e-commerce
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- Figure 100: Space NK: Online consumer demographics, three month average to October 2011
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The Body Shop
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- Figure 101: The Body Shop UK: Estimated sales as share of UK cosmetics and toiletries specialists’ sales, 2006-10
- Strategic evaluation
- Background
- Company performance
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- Figure 102: The Body Shop: Financial performance, 2006-10
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- Figure 103: The Body Shop: Estimated UK and RoI sales performance 2006-10
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- Figure 104: The Body Shop: Outlet data, 2006-10
- Store formats
- Consumer profile
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- Figure 105: The Body Shop shoppers in last 12 months, by gender, age and socio-economic group, November 2011
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- Figure 106: The Body Shop shoppers in last 12 months, by region and ACORN group, November 2011
- Retail offering
- e-commerce and home shopping
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- Figure 107: The Body Shop: Online consumer demographics, three month average to October 2011
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Appendix – The Market
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- Population
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- Figure 108: Europe: Population, by age group, 2005
- Figure 109: Europe: Population, by age group, 2010
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- Figure 110: Europe: Population, by age group, 2015
- Figure 111: Europe: Population, by age group, 2020
- GDP
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- Figure 112: Europe: GDP (current prices), 2010
- Figure 113: Europe: GDP growth rates (current prices), 2001-Q3 2011
- Figure 114: Europe: GDP growth rates (constant prices), 2001-Q3 2011
- Consumer spending
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- Figure 115: Europe: Households’ consumer spending (current prices), 2010
- Figure 116: Europe: Households’ consumer spending growth rates (current prices), 2001-Q3 2011
- Figure 117: Europe: Households’ consumer spending growth rates (constant prices), 2001-Q3 2011
- Consumer prices
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- Figure 118: Europe: Harmonised index of consumer prices, 2001-10
- Unemployment
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- Figure 119: Europe: Average rate of unemployment, 2001-10
- Interest rates
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- Figure 120: Europe: Interest rates, 2005-Q4 2011
- Consumer confidence
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- Figure 121: Europe: Consumer confidence, Jan 2011-Dec 2011
Appendix – The Consumer – Brand Research
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- Figure 122: Brand usage, November 2011
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- Figure 123: Brand commitment, November 2011
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- Figure 124: Brand momentum, November 2011
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- Figure 125: Brand diversity, November 2011
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- Figure 126: Brand satisfaction, November 2011
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- Figure 127: Brand recommendation, November 2011
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- Figure 128: Brand attitude, November 2011
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- Figure 129: Brand image – macro image, November 2011
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- Figure 130: Brand image – micro image, November 2011
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- Figure 131: Profile of target groups, by demographics, November 2011
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- Figure 132: Psychographic segmentation, by target groups, November 2011
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- Figure 133: Brand usage, by target group, November 2011
- Brand index
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- Figure 134: Brand index, November 2011
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Appendix – The Consumer – Who Shops Where for Beauty Products
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- Figure 135: Most popular where they bought beauty products in the last 12 months, by demographics, November 2011
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- Figure 136: Next most popular where they bought beauty products in the last 12 months, by demographics, November 2011
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- Figure 137: Other where they bought beauty products in the last 12 months, by demographics, November 2011
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- Figure 138: Repertoire of where they bought beauty products in the last 12 months, by demographics, November 2011
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Appendix – The Consumer – What Drives Beauty Purchasing
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- Figure 139: Most popular important factors in the purchasing decision, by demographics, November 2011
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- Figure 140: Next most popular important factors in the purchasing decision, by demographics, November 2011
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Appendix – The Consumer – Attitudes towards Beauty Purchasing
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- Figure 141: Most popular attitudes towards beauty purchasing, by demographics, November 2011
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- Figure 142: Next most popular attitudes towards beauty purchasing, by demographics, November 2011
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Appendix – The Consumer – Target Groups
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- Figure 143: Target groups, by demographics, November 2011
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