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Global Beauty Trends:Consumer & Product Perspectives
Daniel Bone – PresenterConsumer Insights Director
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Datamonitor
Grooming for success
Grooming for less
Grooming for the planet
Grooming for results
AgendaQuick introduction to us and then four core themes
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About usUnderstanding consumers, providing answers
Multiple waves of primary consumer research spanning 20 countries across six continents
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Grooming and wellbeing continues to matter despite financial pressures
Majorities are preoccupied with looking good
The trend is inclusive of Asia. More about the Japanese nuances tomorrow
Grooming for success
Source: Datamonitor Consumer Survey, 2011
Think it is important to look their best in day‐to‐day life
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Grooming for successAttitude behavior‐gaps are apparent. But less so in Asia
Nearly half of consumers are highly attentive to looking their best
Belief in the need for personal care is evidently very high within Asia = potential
73%
67%
62%
55%
31%
Source: Datamonitor Consumer Survey, 2010
Highly attentive to looking their best in day‐to‐day life (select countries)
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Beauty products are often integral to personal/self‐identity
Majorities globally associate physical attractiveness with enhanced life success
Developing Asian economies place high emphasis on self‐expressive beauty
Grooming for success
Believe that physically attractive people have more opportunities in life
Women: 68% Men: 60%
Source: Datamonitor Consumer Survey, 2010, Brand Management, 2010
"Indian, Chinese and Philippine females…perceived beauty care
products as more important for self‐expression than consumers in the
other countries [Malaysia, Japan and Australia]”
In a finding that reinforce the previously presented survey data…
More likely to pay a premium for beauty brands re‐enforcing their self‐identify
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Do not discount (Asian) men from the strong emphasis on ‘appearance management’
Sentiment in select Asian countries about male grooming is consistent
Grooming for success
Datamonitor Consumer Survey, 2010
Agree that men should feel comfortable spending time and money on enhancing their appearance…
56% 62%
55% 63%
53% 63%
51% 58%
47% 63%
53% 64%
And elsewhere too…
MALE FEMALE MALE FEMALE
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Grooming for successVisual culture also creates anxiety or ‘beauty stress’
For some, personal care is a compulsion rather than pleasure
More than a quarter of emerging market consumers show interest in cosmetic surgery
7%
Source: Datamonitor Consumer Surveys, 2010 and 2011
41%
30%
19%
28%
Would consider cosmetic surgery at some point (select countries)
23%
10%
41%admit to feeling under pressure to look good in day‐
to‐day life
are ‘very satisfied’ with their physical attractiveness
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Grooming for successCampaigns to bring in lapsed and disengaged users have their place BUT…
Featured a clean‐shaven black man getting ready to discard his scraggly, unshaven head fronted with the words "Re‐Civilize Yourself”
A campaign that was arguably trying to be ethnically diverse backfired, with widespread and rapid criticism emerging to denounce the campaign as racist
The example serves to highlight the ease at which marketing intentions differ markedly from stakeholder perception
Nivea's “Give a Damn Campaign”
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‘Beauty stress’ is a constant source of negativity for the
industry to address through CSR. Sometimes the industry creates
its own PR problems!
‘Beauty stress’ is a constant source of negativity for the
industry to address through CSR. Sometimes the industry creates
its own PR problems!
Men are embracing ‘Visual Culture’: ignore the male market opportunity – both in Asia and
beyond – at your peril
Men are embracing ‘Visual Culture’: ignore the male market opportunity – both in Asia and
beyond – at your peril
Still a notable segment seemingly disengaged. These represent lost
occasions and revenues
Still a notable segment seemingly disengaged. These represent lost
occasions and revenues
Grooming for successIn summary
Majorities are preoccupied with looking good. It is associated with success and feeling
confident. Even more so in Asia
Majorities are preoccupied with looking good. It is associated with success and feeling
confident. Even more so in Asia
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For many consumers globally, it still feels like a recession
An uncertain economic outlook continues to dampen consumer confidence
Contrasting economic scenarios are reflected in personal care markets
Grooming for less
Source: Pew Research Center – Global Attitudes Project, 2011; Datamonitor’s Market Data Analytics
The economic situation‐ is ‘somewhat bad’ or‘very bad’ (select countries)
80%
85%
85%
45%
8%
83%
Personal care market value (US$), CAGR 2005‐2010
8.9% 8.4% 3.8% 2.9% 1.9% 1.4%
Personal care market value (US$), CAGR 2010‐2015 (forecast)
7.9% 7.3% 3.1% 2.8% 1.9% 1.6%
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‘Recessionary consumers’ are shopping around for the best deals across categories
Companies and consumers feel the pinch from higher costs. More money is buying less
Concerted attempts made to save money and maximize value are ongoing
Grooming for less
Source: Pew Research Center – Global Attitudes Project, 2011; Datamonitor Consumer Survey, 2011
Rising prices is a ‘very big problem’ in our country (select countries)
57%
55%
70%
79%
85%
49%
66%
67%now wonder more if
they are getting value‐for‐money
are making an effort to save money more now
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Grooming for lessThe foundations are in place for own label growth as cautionary behavior persists
Some consumers are retrenching to core criteria such as price
48%
are buying more private label
(across categories) when grocery shopping in order to save
money
Private labels gain as they are synonymous with lower prices/superior value
Agree53%
Disagree 16%
Finding a lower price is more important to me than buying brand names
Source: Datamonitor Consumer Survey, 2011
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Grooming for lessEconomic troubles have meant the steady migration to private label has accelerated
37%agree that that private label beauty products are a good alternative
to famous name brands. Most other
respondents are unsure
Improving perceptions of private label personal care products are apparent
Influenced by widening exposure to such products
1. Private Label2. Natural3. Upscale4. Long‐Lasting5. No Paraben6. Organic7. Anti‐Aging8. High Vitamins9. No Alcohol10. Whitening11. Sensitive Skin12. Kids13. No Artificial Color14. No Animal15. No Allergy
Top 15 claims/ tags of all personal care product launches captured (Dec 2010‐
2011)
Source: Datamonitor Consumer Survey, 2011; Datamonitor’s Product Launch Analytics
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Grooming for lessConsumers’ first experiences with private labels are typically in the food sector
FOOD &
DRINKS
PERS
ONAL
CARE
ALCOHOLIC
DRINKS
Meat, fish, and poultry
Dairy food
Spirits
Infant formula
Fragrances
Make‐up
Pasta & noodles
Haircare
Coffee
Oral hygiene
Beer, cider, and FABs
Tea
Wine
Skincare
Baby personal care
Product adoption pathway for private label grocery products
Bakery & cereals
Confectionery
Functional drinks
HOUSEHOLD
CA
RE
Spirits
Dishwashing products
Wine
Frozen food
Toilet care
Textile washing products
Air fresheners
Insecticides
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Grooming for lessThe internet and pricing transparency has empowered bargain hunting consumers
More time55%Less time 5%
Researching or comparing prices of goods‐services in the last year
Shoppers have begun spending more time “shopping outside the aisles”
The range of influences is proliferating amid fragmenting media
Around 1‐in‐5 ROUTINELY USE:
•Social media (e.g. Twitter, Facebook)•Online communities (e.g. forums) •Expert blogs
To help guide their personal care product choices…
Source: Datamonitor Consumer Survey, 2011
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Grooming for less‘On‐trend’ products
Blemish Balms profiting from time and money being the great scarcities of life
Multi‐market marketing
A chance to simplify skincare routines. Garnier Miracle Skin Protector BB Cream became Australia’s No. 1 product in facial skincare in the first week of TV
Watch for these offering more benefits and going after the male market. Also expect range assortments to be cleaned up
Source: Retail World, December 2011
New budget skincare lines by Sheseido and Kanebo are positioned are positioned as ‘masstige’ brands elsewhere in Asia
Senka and Ururi are ‘flanker brands’ in Japan – countering a rising private label threat
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Grooming for less‘On‐trend’ products
Walmart shows that private labels can lead the way in technical innovation
Superdrug has used rare and exotic ingredients for added allure
A no‐drip hair colorant called Fat Foam
Launched more than six months ahead of its national competitors
First to market drip free technology enhanced the perceived exclusivity and value of Walmart’s private label range
Optimum anti‐aging serum uses extracts from a rare Swiss apple plant renowned for its anti‐aging benefits
Apple extract provides the same anti‐aging technology as premium brands like Lancôme
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Consumers are more scrupulous about researching their everyday products, benefitting from access
to information online about where to find lower prices
Consumers are more scrupulous about researching their everyday products, benefitting from access
to information online about where to find lower prices
Private labels compete more intensively with national brands. Just one of many options for
shoppers to get what they want
Private labels compete more intensively with national brands. Just one of many options for
shoppers to get what they want
Exercising restraint and savvy shopping represent the 'new normal‘. No where is this more
evident than Japan
Exercising restraint and savvy shopping represent the 'new normal‘. No where is this more
evident than Japan
Grooming for less In summary
Beauty consumers globally are price‐led, but also value‐driven. Making trade‐offs and brand switching is necessary to save
Beauty consumers globally are price‐led, but also value‐driven. Making trade‐offs and brand switching is necessary to save
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Widespread environmental and social concerns drive the sustainability/ethics agenda
Skeptics are outnumbered by those buying into the supporting science
More people are showing a desire to reduce their environmental impact
Grooming for the planet
Datamonitor Consumer Surveys, 2011
Disagree
49%Agree 23%
The scientific and academic community exaggerates the importance of environmental issues
77%deem protecting the environment to be important
55%
63%
of consumers say environmental/ ethical considerations are
important’ in deciding which products or
services are purchased
say a fair trade/socially responsible claim would exert a more favorable perception of a grocery
product
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Consumers are assertively seeking out more virtuous, greener personal care products
Grooming for the planet
Datamonitor Consumer Survey, 2011
Natural: 53%Fresh: 52%
No chemicals: 52%
Pure: 50%No animal testing: 48%Organic: 42%
Contains botanicals: 40%No parabens: 40%
Fairtrade: 35%
Natural credentials provide additional emotional benefits for the user: good for me, better for the environment. There is a growing importance attached to the “back story”
‘High’ or ‘very high’ amount of influence on personal care choices
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Luxury is increasingly about being 'ethically virtuous' and 'personally pleasurable'
Ethicality enhances the ‘permissibility’ of premium/luxury purchases
But there is not an overwhelming willingness to pay for ethical benefits
Grooming for the planet
Datamonitor Consumer Survey, 2011
High quality ingredients 72%
Authenticity/genuineness 65%
After‐sales service 65%
Environmentally friendly 58%
Company's social responsibility 53%
Origin 51%
Exclusivity/uniqueness 48%
Long heritage/tradition 47%
Customization/personalization 46%
Famous brand 45%
TOP 10 (from a list of 17) factors cited as being important in a luxury brand Willing to pay extra for: Fairtrade beauty
products
33%
36%
Willing to pay extra for: organic beauty products
…and even then there is likely to be some idealism conveyed in the responses
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Grooming for the planetScience vs. Nature: an industry defining conumdrum
57%feel that beauty
products formulated with natural
ingredients are better for them
37%
agree that beauty products formulated with
natural ingredients are equally
effective as non‐natural
alternatives
Overcoming the perceived efficacy barrier is core to the long‐term impact of naturals
Natural Science‐led
ORIGINSEnter “naturally derived technologies”. Anti‐aging serum (launched in February 2011) uses botanical active ingredients
HEALTHIER EFFICACIOUS
Beauty at a crossroads…a convergence and a polarization of science and nature
Datamonitor Consumer Survey, 2010
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Grooming for the planetEnvironmental consciousness has implications for FMCG consumption volumes
Shifting from buying lots with money that they did not have, to buying less
As a society, we will need to consume a lot less to improve the environment for future
generations
62%
60%
59%
57%
56%
48%
77%
Feel well informed about environmental issues such as global warming/'carbon footprint
Willingness to embrace more responsible lifestyles reaches a critical
Datamonitor Consumer Survey, 2010; National Geographic/Globescan ‘Greendex’, 2010
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Grooming for the planetSustainable packaging is going to exert more influence on your categories of interest
Sustainability is emerging as an industry defining issue for packagers and their customers
Packaging is inherently
environmentally harming
Sustainability emphasis among packagers and
retailers
Escalating consumer concerns: it
influences choices
Governments and legislation changes
are driving industry change
Agreement that the following contain too much packaging
Grocery products
Food and beverages
Beauty products
Household & laundry
Alcoholic drinks
60% 48% 46% 32% 18%Datamonitor Consumer Survey, 2010
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Grooming for the planet‘On‐trend’ products
Sanex communicates a “win‐win”scenario for LOHAS
A comprehensive solution to personal care packaging waste
Targets new consumers “looking for a healthy choice for their skin that is also kinder to the environment”
Name is synonymous with the consumer and environmental benefits : 0% parabens, artificial ingredients, and biodegradable
Source: Retail World, December 2011
Exclusive partnership with TerraCycle
Garnier packaging is collected and shipped to a TerraCycle facility where it will be reused to build eco‐friendly playgrounds across the US
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Expect intensifying focus on ethical and sustainable processes rather than just final products
and services
Expect intensifying focus on ethical and sustainable processes rather than just final products
and services
Consumers want to buy natural, but are not spending that way as
they want highly efficacious products at the same time
Consumers want to buy natural, but are not spending that way as
they want highly efficacious products at the same time
Consumers are making it a point to buy brands from companies whose values are similar to their own. It facilitates feeling good
about choices
Consumers are making it a point to buy brands from companies whose values are similar to their own. It facilitates feeling good
about choices
Grooming for the planet In summary
Resource scarcity, climate change and loss of biodiversity are defining societal challenges serving as a wake‐up 'call to
action‘ for consumers
Resource scarcity, climate change and loss of biodiversity are defining societal challenges serving as a wake‐up 'call to
action‘ for consumers
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This is driving the personalization trend, as well as entrenched brand loyalties
Consumers want products that ‘work for me’ and are in line with their values
The focus on efficacy has an impact on brand loyalty
Grooming for results
Datamonitor Consumer Survey, 2010, 2011
65%Promise lives up to the claimed benefits:
Concerned by the following factors relating to beauty products and appearance
60%Formulated specifically to match needs:
57%Knowing the ingredients used:
55%Tested on animals:
Parabens/petrochemicals used: 51%
Would rather stick with a health & beauty brand that I know works for me, than try out a new one
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Consumers all too often see new products as additional noise
Is it any wonder that successful innovations are the exception?
Putting it into perspective in the context of the full responses
Grooming for results
Datamonitor Consumer Survey, 2011
Product type %
Suncare 54%
Make‐up/cosmetics 51%
Oral hygiene 44%
Facial skin creams 49%
Shampoo/conditioner 41%
Bath & shower gels 43%
Deodorants 45%
Fragrances 46%
I don't seem to notice new products…
Across personal care products %
I don't seem to notice new products 49%I keep an eye out for new products 42%I actively monitor new products 10%
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Highly distrusting of personal care companies and doubt claim credibility
Highly distrusting of personal care companies in general
Doubt claim credibility. Credibility issues plague the industry.
Grooming for results
Source: Datamonitor Consumer Survey, 2010
33%
37%
36%
28%
20%
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It is telling that few consumers are willing‐to‐pay for product features/attributes heralded as important for the industry’s future
The aspirational nature of emerging market consumers shines through
A note of caution to you all as you scale the exhibition floor…
Grooming for results
Datamonitor Consumer Survey, 2011
Beauty products backed by scientific claims are worth paying a bit extra for (FEMALES ONLY)
Beauty products made with rare‐exotic ingredients are worth paying a bit extra for (FEMALES ONLY)
21%
29%
40%
50%
11%
12%
21%
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Grooming for results‘On‐trend’ products
Personalized blending: link personalized/ customized features with performance
The “Olay UV Monitor” iPhone app offers personalized advice
Consumers choose the color, pigments, additives and flavors to customize their own product formulas
Elsewhere, Skin ID has a has an online skin consultation tool
Source: Retail World, December 2011
Provides location based UV ratings, weather information, and sun care tips
Provided personalized consultations to determine which of Olay’s SPF moisturizers is best suited to them
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Grooming for results‘On‐trend’ products: it’s apt to end with an Asian example….
Dove leveraged a familiar reference point to garner Chinese consumer trust
Recent campaign purposefully steered focus away from science‐based claims
Chose to compare and contrast the product with milk, which historically is perceived to be a highly effective skincare ingredient
Source: Retail World, December 2011
Market share: Up from 2.1%
to 7.6%
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Launching ‘meaningful innovations’ is an important innovation imperative (rather
than launching a lot of products)
Launching ‘meaningful innovations’ is an important innovation imperative (rather
than launching a lot of products)
Lack of trust = lapsed users, lost occasions, lost revenues
Lack of trust = lapsed users, lost occasions, lost revenues
A legacy impact: because the industry has been over‐
promising, the (legitimate) claims made by brands fail to resonate. Contrast to other industries
A legacy impact: because the industry has been over‐
promising, the (legitimate) claims made by brands fail to resonate. Contrast to other industries
Grooming for results In summary
Beauty consumers are somewhat anchored by brands that work for them. Switching is even riskier in uncertain times
Beauty consumers are somewhat anchored by brands that work for them. Switching is even riskier in uncertain times
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Thank You
Contact detailsQueries regarding this presentation should be addressed to:
Contact: Daniel Bone
Email: [email protected]
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Date/Time: 14 Dec 201111:45‐12:30
Location:Marketing Trends Theatre
Mr Daniel Bone, Consumer Insights Director, Datamonitor
Seminar DetailsBeauty brands are competing in an ‘Era of Consequences’. A more careful consideration of the risks and consequences associated with consumption characterizes buying behavior. The industry must cater towards a more assured, claim savvy and ultimately demanding shopper who expresses more acute, need‐specific beauty demands. Personal values are also being more forcefully expressed through their product preferences. This creates opportunities for premiumization and more progressive product and marketing innovation.In this presentation, Daniel will reveal some key findings from some of Datamonitor’s most recent proprietary consumer research, including insight into the claims that hold greatest resonance with today’s health and beauty shoppers across 20 countries. It will also explore a basic fundamental outlook driving personal care demand: to what extent do consumers actually care about looking good on a day‐to‐day basis?
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Grooming for lessValue isn't defined simply as a low priced product
In deciding what grocery products and brands offer good value for money, how much influence do the following have? (share of global respondents who answered ‘high’ or ‘very high’ amount of influence)
18-24 25-34 35-44 45-54 55-64 65+ Total
F M F M F M F M F M F M
The product features best address your needs 76 67 77 69 77 71 76 68 76 69 75 68 72
The product is of superior quality compared to other brands 70 65 72 68 69 68 69 66 70 69 73 64 69
The product lasts longer than comparable products 64 60 66 62 62 57 62 54 59 56 63 51 60
The product is often on promotion or discounted 68 63 67 63 59 55 59 51 54 45 53 44 58
The product is the cheapest option available 57 52 56 52 49 48 49 47 42 41 38 41 49
The product is recommended by others 61 55 59 58 50 49 44 40 35 37 33 28 48
The product is offered in bulk/multi-packs 46 47 46 48 42 42 38 34 30 30 23 27 39
Most influential Second most influential
In deciding what grocery products and brands offer good value for money, how much influence do the following have? (share of global respondents who answered ‘high’ or ‘very high’ amount of influence)
18-24 25-34 35-44 45-54 55-64 65+ Total
F M F M F M F M F M F M
The product features best address your needs 76 67 77 69 77 71 76 68 76 69 75 68 72
The product is of superior quality compared to other brands 70 65 72 68 69 68 69 66 70 69 73 64 69
The product lasts longer than comparable products 64 60 66 62 62 57 62 54 59 56 63 51 60
The product is often on promotion or discounted 68 63 67 63 59 55 59 51 54 45 53 44 58
The product is the cheapest option available 57 52 56 52 49 48 49 47 42 41 38 41 49
The product is recommended by others 61 55 59 58 50 49 44 40 35 37 33 28 48
The product is offered in bulk/multi-packs 46 47 46 48 42 42 38 34 30 30 23 27 39
Most influential Second most influential
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