Beauty Retail: The Buying Preferences of In-Store vs...

Beauty Retail:

The Buying Preferences of

In-Store vs. Online Consumers

September 2014 Insight Report

About this Insight Report

• CivicScience developed this report using our InsightStore™ solution – an online research

platform that mines real-time consumer opinions and custom research responses from over

27 million+ anonymous respondent profiles (and growing daily).

• This report highlights what people care most about when shopping for beauty products in

stores and online. CivicScience’s capabilities allow us to go deeper than just basic

demographics, providing a rich profile of these buyer segments.

• The data for this report was collected August 5 - September 11, 2014.

• An overview of the methodology is available at the end of this report.

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Topline Results

4

Topline Results: In-Store Buyers

9/24/2014 biz.civicscience.com

• A total of 5,151 responses were collected and weighted according to the U.S. Census for gender and age, 13 and older.

• When buying beauty products in a store, people value being able to see or touch the product the most, followed by the act of browsing and taking home the purchase that day.

37%

3%

7%

13%

14%

25%

I don't buy these products in stores

Ease of returns

Help from sales associate/service

Taking home purchase that day

Act of browsing

Seeing/touching the product

When buying beauty products in a store, what matters most (make-up, fragrances, hair and skin care, etc.)?

> All respondents> Weighted according to U.S. Census figures for gender and age, 13 and older

Margin+/- 2 5,151 responses from 8/05/2014 to 9/10/2014Note, the reported percentages do not sum to 100 due to rounding.

Generated by CivicScience®

5

Topline Results: Online Buyers


• A total of 6,068 responses were collected and weighted according to the U.S. Census for gender and age, 13 and older.

• When buying beauty products online, people value the convenience, followed by access to consumer reviews.

• The majority – 68% – of consumers do not buy beauty products online.

68%

1%

3%

3%

3%

4%

5%

6%

7%

I don't buy these products online

Ease of returns

No crowds

No pressure sales

Favorable shipping terms

Ease of price comparisons

Variety/selection

Access to consumer reviews

Convenience

When buying beauty products online, what matters most (make-up, fragrances, hair and skin care, etc.)?

> All respondents> Weighted according to U.S. Census figures for gender and age, 13 and older

Margin+/- 2 6,068 responses from 8/05/2014 to 9/11/2014

Generated by CivicScience®

In-Store Consumers Online Consumers

High-Level Comparison of In-Store and Online Beauty Product Buyers


• 69% women vs. 31% men.

• 61% are 35+ years old.

• 56% are parents or grandparents.

• 28% have a household income of under $35K, 57%

earn $35K-$125K and 15% earn $125K+.

• 18% say they are more spendthrift (difficulty controlling

spending) vs. tightwad.

• 30% say about half their shopping is done online.

• 22% seek out online reviews before purchases.

• 19% try to adjust their lifestyle every chance they get

to help the environment.

• 36% watch local TV news daily.

• 28% say they are taller than others their gender and

age.

• 65% women vs. 35% men.

• 56% are 35+ years old.

• 52% are parents or grandparents.

• 26% have a household income of under $35K, 55%

earn $35K-$125K and 19% earn $125K+.

• 12% say they are more spendthrift (difficulty controlling

spending) vs. tightwad.

• 49% say about half their shopping is done online.

• 33% seek out online reviews before purchases.

• 39% try to adjust their lifestyle every chance they get

to help the environment.

• 27% watch local TV news daily.

• 34% say they are taller than others their gender and

age.

In-Store Beauty Product Buyers

8

Demographics of In-Store Beauty Product Buyers


What matters most when buying beauty products in a store?

Insight

“Seeing/touching the

product”“Act of browsing”

“Taking home

purchase that day”

Gender 73% women vs. 27% men 70% women vs. 30% men 64% women vs. 36% men

Age: 34 and under 41%* 41% 35%

Age: 35+ years old 60%* 59% 65%

Residential Location 43% suburban, 35% urban 42% suburban, 35% urban 46% suburban, 28% urban

Education Level: graduate/PhD 17% 17% 16%

Income: under $35K 28% 28% 27%

Income: $35K-$125K 56% 58% 58%

Income: over $125K 16% 14% 15%

Parental Status: parent or

grandparent52% 53% 62%

*Note: The reported percentages do not sum to 100 due to rounding.

9

Attributes of In-Store Beauty Product Buyers


What matters most when buying beauty products in a store?

Insight

“Seeing/touching the

product”“Act of browsing”

“Taking home

purchase that day”Has had or would like to have

elective surgery for cosmetic or

weight-loss purposes

42% 28% 27%

Very loyal to favorite brands 39% 32% 35%

Regularly watches TV programs

online23% 34% 17%

More of a morning person than a

night owl33% 34% 44%

Price is more important than brand

when shopping34% 43% 37%

Influenced by fashion trends 54% 41% 41%

Tries new products before others 32% 21% 34%

10

Summary of Different In-Store Beauty Product Buyers


• Those who value seeing/touching the product the most (the most popular answer option at 25%) are more likely to be women than the other two groups and are over 35 years old. They live in the suburbs or an urban area and have a middle household income. 52% are parents or grandparents, which is slightly less than the other two groups. They are at least 50% more likely to have had or would like to have elective surgery for cosmetic or weight-loss purposes. People who value seeing/touching the product the most are 32% more likely to be influenced by fashion trends than those who value the act of browsing or taking home their purchase right away.

• People who value the act of browsing are likely to be women and well over half of the group is 35 years old and older. They are also likely to live in the suburbs or an urban area and have a middle household income, and 53% are parents or grandparents. People who value the act of browsing are at least 48% more likely than the other groups to regularly watch TV shows online and are more likely to say price is more important than brand when shopping.

• People who value taking home their purchase right away are likely to be women, and when compared to the other groups, they are the most likely to be over 35 years old and have children or grandchildren. The majority (58%) have a household income of $35K-$125K. They are more likely than the other groups to be morning people (a proxy we typically see among older demographic groups) and try new products before others (a proxy we typically don’t see among older demographic groups!).

Online Beauty Product Buyers

12

Demographics of Online Beauty Product Buyers


What matters most when buying beauty products online?

Insight “Convenience” “Access to consumer reviews”Gender 62% women vs. 38% men 72% women vs. 28% men

Age: 34 and under 36% 63%

Age: 35+ years old 64% 37%

Residential Location 42% suburban, 32% urban 52% suburban, 32% urban

Education Level: graduate/PhD 19% 19%

Income: under $35K 23% 27%

Income: $35K-$125K 57% 52%

Income: over $125K 20% 21%

Parental Status: parent or grandparent 59% 38%

13

Attributes of Online Beauty Product Buyers



Insight “Convenience” “Access to consumer reviews”More of a night owl than a morning person 42% 71%

Owns a smartphone 70% 68%

Owns an e-Reader 38% 32%

Owns a tablet 54% 47%

Shops and makes purchase online every month 46% 66%

Has trouble falling asleep every night or most

nights32% 20%

Uses coupons on non-grocery items every chance

they get or if it is convenient23% 60%

Very loyal to favorite brands 34% 22%

14

Profile of Non-Online Beauty Product Buyers


Insight


“I don’t buy these products online”

Gender 56% men vs. 44% women

Age: 35+ years old 67%

Residential Location 45% suburban, 27% urban

Education Level: Graduate/PhD 16%

Income: under $35K 28%

Income: $35K - $125K 57%

Parental Status: parent or grandparent 60%

Owns a tablet computer 37%

Owns a smartphone 53%

Price is more important than brand when shopping 38%

Very loyal to favorite brands 32%

Almost never makes purchases online 39%

Does not usually try new products before others 79%

68% of people do not buy beauty products online. Due to the large percent, we profiled this segment of individuals:

15

Summary of Online Beauty Product Buyers


• People who value convenience are likely to be women. When compared to those who value consumer reviews, people who value convenience are 73% more likely to be 35+ years old, are more likely to be parents or grandparents and overall have a higher income. They are slightly more likely to own personal technology devices (smartphone, tablet, e-Reader) and are 55% more likely to be very loyal to their favorite brands.

• Those who value access to consumer reviews are 16% more likely to be women, 75% more likely to be 34 and under and 24% more likely to live in the suburbs than those who value convenience. Well over the majority would consider themselves night owls rather than morning people and use coupons when shopping for non-grocery items. They are 43% more likely than the other group to make purchases online every month.

• Those who don’t buy beauty products online are more likely than the other segments to be men 35 and over. 57% have a household income of $35K-$125K. They are more brand loyal than those who value consumer reviews, and they have a lower personal device ownership (smartphone and tablet). 79% say they are not likely to try new products before others.

Methodology

About the CivicScience Methodology:

CivicScience collects real-time consumer research data via polling applications that run

on hundreds of U.S. publisher websites, cycling through thousands of active questions on

any given day. Respondents answer just for fun and are kept anonymous, allowing for

greatly reduced bias and higher levels of engagement. Using technology, CivicScience

builds deep psychographic profiles of these anonymous respondents over time, providing

valuable consumer sentiment data to the decision makers who care. Automated data

science technology allows clients to rapidly gain robust consumer insight and trending

reports. The CivicScience methodology has been validated by a team of academic

leaders and by independent consulting firms. Responses may be weighted for U.S.

census representativeness for gender and age. CivicScience currently has more than 27

million anonymous consumer profiles and 600 million responses stored, growing daily.


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