GLOBAL BEAUTY AND PERSONAL CARE: THE YEAR IN …€¦ · · 2011-06-28© Euromonitor...

© Euromonitor International

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The year in review and winning strategies for the future

GLOBAL BEAUTY AND PERSONAL CARE: THE YEAR IN REVIEW AND WINNING STRATEGIES FOR THE FUTURE

IRINA BARBALOVA

29-31 MARCH 2011, IN-COSMETICS, MILAN


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Beauty beyond the crisis

Industry dynamics

New positioning and value perceptions

The beauty brand as an experience

The Outlook


3


-2

0

2

4

6

8

10

2005 2006 2007 2008 2009 2010

% v

alu

e g

row

th

Retailing Growth

Retailing Grocery Retailers Non-Grocery Retailers Non-store Retailing BPC Non-store sales

MOVING OUT OF THE RECESSION

-10

-5

0

5

10

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

% g

row

th

Real GDP: % growth over previous period, annualised

World Advanced economies Developing economies

2006 2007 2008 2009 2010 2011

BEAUTY BEYOND THE CRISIS


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WESTERN EUROPE CONSUMER EXPENDITURE SLOWEST TO RECOVER

-15

-10

-5

0

5

10

15

2006-07 2007-08 2008-09 2009-10

% g

row

th (

US

$)

Health Goods and Medical Services Personal Care

Alcoholic Beverages and Tobacco Food and Non-Alcoholic Beverages

Clothing and Footwear



5


MORE HURDLES TO BE OVERCOME

Source: Euromonitor International from national statistics

Data refer to 80 major economies

14Number of countries

with an unemployment rate above 10% in 2007

25Number of countries

with an unemployment rate above 10% in 2010



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THE CONSUMER IN 2011 AND BEYOND

Value-seeking

Digital and connected

Staying ahead

and well

Experience-focused

Nuanced luxury

The post-recession consumer



7



Industry dynamics



The Outlook


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GLOBAL INDUSTRY RECOVERS FROM THE SLUMP

-1

0

1

2

3

4

5

6

7

8

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

2005 2006 2007 2008 2009 2010

% V

alu

e g

row

th

US

$ m

illio

n

Total BPC % Total growth % Prem growth % Mass growth

INDUSTRY DYNAMICS


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2010 COUNTRY PERFORMANCE

2010 Country performance

INDUSTRY DYNAMICS


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PREMIUM COSMETICS ON THE REBOUND

1%

11%

12%

1%

9%

2%1%

INDUSTRY DYNAMICS


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PREMIUM MARKET SHARE STILL LOW IN LATIN AMERICA

Premium Cosmetics

Mass Cosmetics

INDUSTRY DYNAMICS


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MASS COSMETICS TO DRIVE FUTURE GROWTH

0

10

20

30

40

50

60

70

80

90

100

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

% v

alu

e (

US

$)

Global Premium Cosmetics Global Mass Cosmetics

72%

24%

76%

28%

INDUSTRY DYNAMICS


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TOP CATEGORY BY REGION

INDUSTRY DYNAMICS


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DISCRETIONARY CATEGORIES PICK UP

0

1

2

3

4

5

6

7

8

9

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

% v

alu

e g

row

th

US

$ m

illio

n

2010 US$mn 08-09 % growth 09-10% growth

INDUSTRY DYNAMICS


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Industry dynamics



The Outlook


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PRIVATE LABEL PICKS UP MARGINALLY

0

2

4

6

8

10

12

14

2006 2007 2008 2009 2010

% v

alu

e s

hare

Private label share

World USA

France Germany

United Kingdom Spain

Germany

Spain

NEW POSITIONING AND VALUE PERCEPTIONS

Global PL growth by category

Colour Cosmetics (+10%)

Men’s grooming (+10%)

Skin Care (+8.5%)

Oral Care (+5.6%)

Hair Care (+4.4%)

Bath & Shower (+0.5%)


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Tapping into budget and ‘high end’ lines

Focus on product efficacy and ingredients

Increasingly ‘green’ savvy

Diversifying existing lines

PRIVATE LABEL KEEPS UP THE PACE IN INNOVATION



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INNOVATION IN BRANDS STILL A PRIME FOCUS

Scientifically-advanced innovation

New concepts and ‘professional’ status

Time-saving vs long-lasting beauty

Building on successful brands



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NEW POSITIONING IN SKIN CARE

Category cross- over

New consumer

targets

Holistic skin care

Increased polarisation



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Industry dynamics



The Outlook


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INTERNET CONTINUES TO RESHAPE THE WORLD

0

10

20

30

40

50

2000 2010 2020% o

f w

orl

d p

op

ula

tio

n

More than 40% of the world’s population will be on the

Internet in 2020

THE BEAUTY BRAND AS AN EXPERIENCE

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2000 2010 2020

% o

f w

orl

d’s

In

tern

et

use

rs

Half of all Internet users will be in Asia

Asia Rest of world

711 millionChinese Internet users in 2020

281 millionUS Internet users in 2020


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INCREASING IMPORTANCE IN BEAUTY RETAILING

26 27 26.9

13.1 13.4 13.4

10.6 9.7 9.5

12.4 12.9 12.8

14 15.3 16.1

0

10

20

30

40

50

60

70

80

2005 2006 2007 2008 2009 2010

% v

alu

e s

hare

Global Beauty Channel Breakdown

Non-Store Retailing Drugstores Department Stores

Beauty Specialists Super/Hypermarkets



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VARIED PENETRATION ACROSS KEY MARKETS

0

1

2

3

4

5

6

7

8

9

S.Korea France USA UK Japan

% s

hare

of

to

tal

reta

il s

ale

s

Beauty Internet Retailing – Top Five Markets



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NEW WAYS OF ENGAGING WITH BEAUTY CONSUMERS

Social Media

New In-store

Experience

Mobile Technology



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• Facebook users500 million

• Pieces of content per month30 billion

• Minutes of log-in time per month 700 billion

• Average friends per user 130

• Of users between the age of 18-3462%

• Users of Facebookare female50%

• Registered tweets per day55 million



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ONLINE PRESENCE AND SOCIAL MEDIA NOT TO BE IGNORED

Key players increasing online presence

Opportunities for smaller brands

Social commerce still limited

Blogging/’vlogging’ offer new experience

1,614,613

people like this



27


THE POWER OF THE SMARTPHONE APP

Key success factors:

Personalised

Added value

Interactive experience

Real-time updates



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WHERE NEXT FOR VIRTUAL CONNECTIVITY?



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IN-STORE BEAUTY EXPERIENCE VITAL FOR THE INDUSTRY

Beauty services challenged by at-home beauty

Creating value is key

Retailers enriching the in-store experience

Nail Polish (+17%)

Men’s skin care (+12%)

Mass fragrances (+9%)

Sun protection (8.5%)

Anti-agers (7.6%)

Colourants (+7%)

Eye liner/pencil (+7%)

Blusher/bronzer (+7%)

Fastest Growing Beauty Sectors

2009-10 (value)


http://www.google.co.uk/imgres?imgurl=http://www.gcymca.com/wp-content/uploads/2009/12/Tesco-Logo-Colour.jpg&imgrefurl=http://www.gcymca.com/?tag=tesco&usg=__TuGk4WoLck5ngQpinPEyFrJMnw8=&h=272&w=827&sz=67&hl=en&start=1&zoom=1&um=1&itbs=1&tbnid=_idszP3jqpzElM:&tbnh=47&tbnw=144&prev=/images?q=tesco+logo&um=1&hl=en&safe=vss&sa=N&rls=com.microsoft:en-US&rlz=1I7DMUK_en&tbs=isch:1&ei=RquCTfKREsqHhQeDlezDBA


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RE-CREATING THE SPA EXPERIENCE

Innovative retail concepts

Mobile beauty becomes prominent

Health and wellness factor to driveinterest in spas

New consumer targets

Key Spa Tourism Markets,

absolute growth 2010-15 (million)

USA US$ 1,660

Japan US$ 1,350

China US$ 1,030

France US$ 856

Israel US$ 362

India US$ 363

Austria US$ 266

Vietnam US$ 221


http://www.google.co.uk/imgres?imgurl=http://www.321books.co.uk/catalog/johnlewis/john.lewis.logo.jpg&imgrefurl=http://www.321books.co.uk/catalog/johnlewis/uk.htm&usg=__wPf_O7d9ISFIrGplb_L-d5-4a1Y=&h=300&w=300&sz=13&hl=en&start=1&zoom=1&um=1&itbs=1&tbnid=XQ-bfHx0gpM5lM:&tbnh=116&tbnw=116&prev=/images?q=john+lewis+logo&um=1&hl=en&safe=vss&sa=N&rls=com.microsoft:en-US&rlz=1I7DMUK_en&tbs=isch:1&ei=-QiCTZnuBc6IhQfOyOGvBA


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Industry dynamics



The Outlook


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GROWTH TO CATCH UP WITH PRE-RECESSION LEVELS

THE OUTLOOK


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Value Efficacy

Personal touch

Experience

CONSUMER NEEDS BECOMING MORE DIVERSE

THE OUTLOOK


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BEAUTY INTERNET SALES TO BECOME MORE COMPETITIVE

0

5

10

15

20

25

30

35

40

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

US

$ m

illi

on

Beauty Internet Sales 2010-15

2010 2015 2010-15 CAGR

THE OUTLOOK


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GLOBAL GROWTH TO BE DRIVEN BY MASS BEAUTY

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5

Premium Colour Cosmetics

Premium Fragrances

Premium Skin Care

Mass Hair Care

Premium Hair Care

Mass Skin Care

Mass Colour Cosmetics

Mass Fragrances

% value growth (real terms)

THE OUTLOOK


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MORE OPPORTUNITIES TO BE HAD IN PREMIUM SKIN CARE

-2

0

2

4

6

8

10

12

14

16

18

20

0

2,000

4,000

6,000

8,000

10,000

12,000

2010 2011 2012 2013 2014 2015

% v

alu

e g

row

th

US

$ m

illio

n (

no

min

al)

China USA Japan China growth USA growth Japan growth

THE OUTLOOK


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2XChina’s premium cosmetics

market will double by 2015,

to reach $7billion

80%of Latin America’s industry

value will be accounted for by

mass products in 2015

$83 Latin America industry value

in 2015, third largest region

globally

BILLION


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THANK YOU FOR LISTENING

Q&A?

Irina Barbalova, Head of Beauty and Personal Care Research [email protected]

mailto:[email protected]

GLOBAL BEAUTY AND PERSONAL CARE: THE YEAR IN …€¦ · · 2011-06-28© Euromonitor...

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Transcript of GLOBAL BEAUTY AND PERSONAL CARE: THE YEAR IN …€¦ · · 2011-06-28© Euromonitor...