Consumer beauty preferences

What Do Consumers Want? What Do Consumers Want?

Consumer beauty preferences

Report for:

Cosmetic Regulatory Forum Newport Beach, California

www.KlineGroup.com

© 2013 Kline & Company

Contents

I t d tiIntroduction

Cosmetics & Toiletries Sales Data

Traditional Consumer Research

Consumer Insights of Innovation

© 2010 Kline & Company 1© 2013 Kline & Company

Contents






Kline is a global management consulting and market research firm

Incorporated in 1959

About 150 professionals worldwide

Over 200 custom consulting engagements completed each year

About 30 in-depth market research studies published each year

Combine business research and strategic consulting skills with significant industry and technical expertisesignificant industry and technical expertise


Kline’s rigorous research methodology results in high quality and insightful reports

Interviews with: Marketers/manufacturers

PRIMARY RESEARCHreports

Retailers Distributors Suppliers

Trade organizations Government agencies g

Trade journals Analysis of public data

SECONDARY RESEARCH

Corporate financial reports and literature Non-confidential data from Kline’s databases

RIGOROUS ANALYSIS/

Insightful and h i

Insightful and h i

CROSS CHECK


comprehensive coverage

comprehensive coverage

Contents






Our Cosmetics & Toiletries USA analysis covers the following categories

Fragrances Skin CareMakeup

y g g

g Fragrances for men Fragrances for women

Baby care products Facial treatments Hand and body lotions Skin care products for men Sun care products

Eye makeup Face makeup Lipsticks and lip glosses Nail polishes

Hair Care Conditioners

Other Toiletries Deodorants and

Oral Care Denture productsConditioners

Ethnic hair care products

Hair coloring products Hair styling products

and sprays Shampoos

antiperspirants Depilatories, waxes, and

bleaches Personal cleansing products Shaving products

p Lip balms, jellies, and

treatments Mouthwashes Toothbrushes Toothpastes Tooth whitenersShampoos


The industry shows a growth of 4.2% in 2011, and is expected to show slightly less than that in 2012slightly less than that in 2012

5

3

4

1

2

Cha

nge,

%

0

1

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

C

‐2

‐1


All trade classes post growth, luxury class inches close to a double-digit th d f i l t d l i t th l t thgrowth and professional trade class registers the lowest growth

Luxury

Specialty

Mass

Direct

0 2 4 6 8 10

Professional


0 2 4 6 8 10

Change, %, 2010-2011

Makeup product class posted the highest growth, followed by fragrancesp p p g g , y gfr.

$ M

illio

n m

f

Fragrances Hair care Make Up Oral care Other Toiletries

Skin Care


2010 2011

Facial treatments remains the largest product category in sales whereas sun care products posted the highest growthwhereas sun care products posted the highest growth

r.$

Mill

ion

mfr

Baby care products

Facial treatments Hand and body lotions

Skin care products for men

Sun care products

© 2010 Kline & Company 10© 2013 Kline & Company 10

2010 2011

Women’s fragrances account for almost 3/4 of fragrance sales

on m

fr.$

Milli

o

Fragrances for men Fragrances for women

2010 2011


Eye and face makeup drove dollar value in the makeup segment, nail polishes registered the steepest growth

Mill

ion

mfr.

$

Eye makeup Face makeup Lipsticks and lip glosses

Nail polishes

2010 2011


Sales increase across all the hair care market product categories, with shampoos leading the packshampoos leading the pack

$ M

illio

n m

fr.

Conditioners Ethnic hair care products

Hair coloring products

Hair styling products and

sprays

Shampoos

2010 2011


2010 2011

Personal cleansing products drive growth in the other toiletries segmentfr.

$ M

illio

n m

f

Deodorants and antiperspirants

Depilatories, waxes, and bleaches

Personal cleansing products

Shaving products

2010 2011


Contents






Use of Hair Conditioners by Hispanics vs. Non-Hispanics,Men and Women in the United States

6470

% Of total

64

49

40

50

60

14 13

2116 14

20

30

40

913

0

10

Every time I shampoo Sometimes No I use a combination shampoo andshampoo and

conditioner productHispanics Non‐hispanics


Types of Hair Styling Products Used by Men and Womenin the United Statesin the United States

Gloss 3% Oth 5%

I don't use any h i t li

Styling cream, 7%

Gloss, 3% Other, 5%

hair styling products

regularly, 39%

Styling mousse, 9%

Gel, 16%

Hair spray, 21%


Usage of Toiletries Products by Men, Comparison Across Countries

Usage Other Toiletries Products by Men, Comparison Across Countries

%

Country Bar soap

Body wash or shower

Deodorant antiperspirant stick/ roll-on/ underarm

Deodorant -body spray or

fragrance

Shaving cream Other

toiletries Talcsoap gel roll on/ underarm spray

fragrance spray or gel toiletries

Brazil 90 33 83 61 83 71 NA

China 81 89 34 41 58 30 NA

Germany 57 96 74 57 73 42 NA

India 82 48 38 74 82 33 64United Kingdom 70 86 63 54 70 52 NAgUnited States 77 67 90 32 70 48 NA

Average 76 70 64 53 73 46 NA


Face Moisturizer Usage, Shopping and Brands, by Men and Women in the United Statesthe United States

Use of Face Moisturizing Cream by Race

%

Regularly Sometimes No Total Preferred Retail Channels for Face Moisturizingg y

White/Caucasian 39 22 39 100

African American 44 28 28 100

Asian 64 21 16 100

Native American 27 9 64 100

Pacific Islander 25 50 25 100

Preferred Retail Channels for Face Moisturizing Products

Retail channels Preferred, %

Mass merchandiser 54

Drug store 43Pacific Islander 25 50 25 100

Other 52 13 35 100

Face Moisturizing Brands Used by All Respondents

Food/grocery store 19

Online 16

Department store 15

Beauty store 14

Use of face moisturizing brands %

Olay 34

Aveeno 14

Neutrogena 9

Dollar store 8

Shopping mall 6

Warehouse club 6

Salon or spa 2Nivea 9

Vaseline 8

Avon 7

Dove 5

Clinique 5

Flea market 1

TV shopping network 1

Other 7


Clinique 5

Jergens 3

All other 8

Use of Perfume or Cologne by Hispanics vs. Non-Hispanics, Men and Women in the United StatesMen and Women in the United States


Online Shopping for Cosmetics and Toiletries Productsin the United Statesin the United States

Cosmetics and Toiletries Products Shopping by All Respondents Online

%

Cosmetics and toiletries

I have never shopped for

this item online

I have shopped for this item online, but made no purchase

I have shopped for this item online and I purchased itpurchase

Perfume or cologne 61 13 26

Face makeup (foundation, blush, powder or concealer) 69 9 21

Eye makeup (eye shadow, eye liner or mascara) 72 9 19mascara)

Face cream 71 11 18

Face wash or cleanser 71 11 18

Soap (bar soap, liquid soap, body wash, etc.) 74 9 17

Lip stick or lip gloss 75 8 17

Lip balm 78 8 14

Nail polish 81 10 10


Contents






Consumer Insights of Personal Care Innovation

Unique and powerful emergent research methodologymethodology While consumer research can be usually

classified as either qualitative (e.g. focus groups) or quantitative (e.g. surveys), this methodology is truly both: quantitative results backed by narrative material.

Indirect, open-ended questions, with the material analyzed by proprietary software.

Weak signal detection is possible (i.e. g (pre-trend), and results are more truthful than with traditional consumer research.

Kline is partnering with a third party that is formerly the knowledge management di i i f IBM Gl b l S i (thdivision of IBM Global Services (then spun off).


Objective: Capturing deeper insights into personal care experiences

Identifies the patterns of consumer perceptions and beliefs related to personalperceptions and beliefs related to personal care products

Analyzes how consumers define i ti d h i t t it i t thinnovation, and how important it is to them

Explores what consumers wish they could have in the personal care arena, identifying emerging trends


A comparison of approaches

Approach We Use Traditional Survey Methods

Numbers come with context of stories theNumbers come with context of stories, the latter which can be accessed directly when

neededNumbers that do not inform of the context

Seeks narratives (experiences) from people, as humans convey complex knowledge Seeks opinions of peopleas humans convey complex knowledge

through storiesSeeks opinions of people

Use of indirect prompting questions to elicit answers that tend to be more honest and

revealing

Use of direct questions which people usually expect revealing

Understanding the world as it currently is, knowing we lack complete data

Groupthink occurs when a traditional decision space is dominated by powerful individuals

and their agendas

Methods and tools ascertain patterns in these stories to obtain insights - visualisations in SenseMaker® software present alternative

and diverse points of view

Reliance on traditional statistical analysis which “drowns out” weak signals until they

become significant, at which point it may be difficult and expensive to intervene


p p

Research ParametersResearch Parameters

Consumers’ Perceptions of InnovationConsumers Perceptions of Innovation

Importance of Innovation

Purchase DriversPurchase Drivers

Innovation as related to other factors

Aspects of innovation that are importantp p

What consumers say they want

Aspects of products enjoyed most by consumers

Comparing investments in R&D and marketing


What Consumers Say they Wanty y

Lessons

Skin care product ideas were volunteered by almost a quarter of the respondents.

Acne treatments (or positioning of such) need to be extended to treat all age groups and to treat other parts of the body besides the face In fact other facialgroups, and to treat other parts of the body besides the face. In fact, other facial treatments for common problems should be extended to treat the whole body.

Hair care product inventions were requested second most (at 15%) by all consumers in the sample, and hair removal products third at 11% of all ideas.

Consumers over age 55 especially wish for more accurate marketing of products. With the U.S. population of the over-55 people increasing to never-before levels, companies should consider more often the perspectives of these people in d i i k ti idesigning marketing campaigns.

Multi-functional products are often requested.


Themes Multi-functionalityMulti-functionality

I wish you could invent a body wash that not only washes and moisturizes without

Wash and Remove

I wish you could invent a body wash that not only washes and moisturizes without damaging or irritating your skin but it would also remove hair (without damaging or irritating your skin). It could come with a body scrubber or sponge that cleans your skin and remove hair from whatever part of your body you use it to wash without any damaging or irritation.damaging or irritation.

Please come up with a single application face makeup that does ALL of the following:

Your One-Step Face

p g pp p gMoisturizes - prepares skin for the day; Conceals - minimizes flaws, blends and covers skin pigment variations and softens indentations; Covers - the face, jaw and neck with consistent, suitable foundation that totally complements the skin color and leaves no demarcation; and Finishes - with a topcoat that eliminates shine and "sets" the face for ; pthe rest of the day.

Good for Eyes


A mascara that helps eye health.

Aspects of Products Enjoyed Most by Consumers


Of the people that listed fragrance as a factor enjoyed most, 38% of thoseOf the people that listed fragrance as a factor enjoyed most, 38% of those are related to skin care products

Lotion: PS I Love You Lotion by Bath and Body Works Smells great and leaves Lotion: PS I Love You Lotion by Bath and Body Works. Smells great and leaves skin smooth. Excellent: I'm currently using Vaseline intensive care lotion for men. It dries very

quickly and works very well on dry skin. It also has a very good smell. Burt’s Bees Solution: Recently I purchased Burt’s Bees acne solution. It's different

because instead of being cream it's more of a liquid consistency to penetrate in pores better. Mineral sunscreen and after-sun lotion: To soothe my burned skin I turned to AlbaMineral sunscreen and after sun lotion: To soothe my burned skin, I turned to Alba

Botanica’s Kona Coffee After-Sun Lotion. Words cannot describe how heavenly this product is. The coffee oils are hydrating while the caffeine helps to release the heat in the skin and soothe the burn. It is deliciously aromatic – for coffee lovers, imagine smelling like a café latte – but the fragrance isn’t overwhelming Theimagine smelling like a café latte but the fragrance isn t overwhelming. The texture of the lotion is creamy and luxurious rather than watery, which is my main complaint about Burt’s Bee’s after-sun product. It also felt like it lasted a long time, whereas with some other products you have to reapply often.


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sciences, and consumer products industries for over 50 years. For more information, visit www.KlineGroup.com.

Kristy AltenburgRegional Sales Manager, Consumer ProductsPhone: +1-973-435-3367E-mail: [email protected]

Kline & Company, Inc.35 Waterview Blvd.Suite 305Parsippany, NJ 07054Phone: +1-973-435-6262Fax: +1-973-435-6291

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Consumer beauty preferences

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