Global Beauty and Personal Care Euro Monitor 2011

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
Euromonitor International
Beauty beyond the crisis

Industry dynamics New positioning and value perceptions The beauty brand as an experience The Outlook

BEAUTY BEYOND THE CRISIS
MOVING OUT OF THE RECESSION

Real GDP: % growth over previous period, annualised
10
% growth
0
-5 -10 2008 2009 2010 2011 Q1 2006 Q4 Q1 2007 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q2 Q3 Q2 Q3 World Advanced economies Developing economies
Retailing Growth
10
% value growth
8 6 4 2 0 -2 Retailing 2005 2006 2007 2008 2009 2010

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

WESTERN EUROPE CONSUMER EXPENDITURE SLOWEST TO RECOVER

15
10 % growth (US$)
5
0
-5
2006-07
2007-08
2008-09
2009-10
-10
-15
Health Goods and Medical Services Alcoholic Beverages and Tobacco Clothing and Footwear Personal Care Food and Non-Alcoholic Beverages

MORE HURDLES TO BE OVERCOME
Number of countries with an unemployment rate above 10% in 2007
14
Number of countries with an unemployment rate above 10% in 2010
25
Source: Euromonitor International from national statistics Data refer to 80 major economies

THE CONSUMER IN 2011 AND BEYOND
Nuanced luxury
Valueseeking
The postrecession consumer

Experiencefocused Staying ahead and well
Digital and connected


INDUSTRY DYNAMICS
GLOBAL INDUSTRY RECOVERS FROM THE SLUMP

400,000 350,000 300,000 US$ million 250,000 200,000 3 150,000 100,000 50,000 0 2005 Total BPC
8
8 7 6 5 4
2 1 0 -1 2006 2007 2008 2009 2010 % Mass growth
% Total growth
% Prem growth
% Value growth

INDUSTRY DYNAMICS
2010 COUNTRY PERFORMANCE

2010 Country performance

INDUSTRY DYNAMICS
PREMIUM COSMETICS ON THE REBOUND
10
9% 1%
1%
2%
12%
11%
1%

INDUSTRY DYNAMICS
PREMIUM MARKET SHARE STILL LOW IN LATIN AMERICA
11
Mass Cosmetics Premium Cosmetics

INDUSTRY DYNAMICS
MASS COSMETICS TO DRIVE FUTURE GROWTH

100 90 80
12
76%
72%
% value (US$)
70 60 50 40 30 20 10 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
28%
24%
Global Premium Cosmetics
Global Mass Cosmetics

INDUSTRY DYNAMICS
TOP CATEGORY BY REGION
13

INDUSTRY DYNAMICS
DISCRETIONARY CATEGORIES PICK UP

2010 US$mn 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 08-09 % growth 09-10% growth 9 8 7 5 4 3 2 1 0 % value growth 6
14
US$ million
15


NEW POSITIONING AND VALUE PERCEPTIONS
PRIVATE LABEL PICKS UP MARGINALLY

Private label share 14
Germany
16
12
% value share
10 8 6 4 2 0 2006 2007
France United Kingdom
Spain
Global PL growth by category
Colour Cosmetics (+10%) Mens grooming (+10%) Skin Care (+8.5%) Oral Care (+5.6%) Hair Care (+4.4%) Bath & Shower (+0.5%)
2008
2009
USA
2010
Euromonitor International World
Germany Spain

PRIVATE LABEL KEEPS UP THE PACE IN INNOVATION

Tapping into budget and high end lines
Focus on product efficacy and ingredients Increasingly green savvy Diversifying existing lines
17

INNOVATION IN BRANDS STILL A PRIME FOCUS

Scientifically-advanced innovation New concepts and professional status Time-saving vs long-lasting beauty
18
Building on successful brands

NEW POSITIONING IN SKIN CARE
19
Category cross- over

New consumer targets
Holistic skin care
Increased polarisation
20


THE BEAUTY BRAND AS AN EXPERIENCE
INTERNET CONTINUES TO RESHAPE THE WORLD

More than 40% of the worlds population will be on the Internet in 2020 % of world population 50 40 % of worlds Internet users 30 20 10 0 Half of all Internet users will be in Asia Asia 100% 90% Rest of world
21
80% 70%
60% 50% 40% 30% 20% 10% 0%
2000
2010
2020
711 million
Chinese Internet users in 2020
281 million
US Internet users in 2020
2000
2010
2020

INCREASING IMPORTANCE IN BEAUTY RETAILING

Global Beauty Channel Breakdown 80 70 60 % value share
12.4 14 15.3 16.1
22
12.9 9.7 13.4
12.8 9.5 13.4
50
10.6
40 30 20 10 0 2005 2006 2007 Drugstores Super/Hypermarkets 2008 2009 2010

26 27 26.9 13.1
Non-Store Retailing Beauty Specialists
Department Stores

VARIED PENETRATION ACROSS KEY MARKETS

Beauty Internet Retailing Top Five Markets 9 8 % share of total retail sales 7 6
23
5
4 3 2 1 0 S.Korea France USA UK Japan

NEW WAYS OF ENGAGING WITH BEAUTY CONSUMERS
24
Social Media
Mobile Technology
New In-store Experience

25
500 million 30 billion
Facebook users Pieces of content per month
700 billion
130 62% 50%
Minutes of log-in time per month

Average friends per user Of users between the age of 18-34 Users of Facebook are female Registered tweets per day
55 million

ONLINE PRESENCE AND SOCIAL MEDIA NOT TO BE IGNORED 26

Key players increasing online presence Opportunities for smaller brands Social commerce still limited
Blogging/vlogging offer new experience
1,614,613 people like this

THE POWER OF THE SMARTPHONE APP

Key success factors: Personalised Added value Interactive experience Real-time updates
27

WHERE NEXT FOR VIRTUAL CONNECTIVITY?
28

IN-STORE BEAUTY EXPERIENCE VITAL FOR THE INDUSTRY

Beauty services challenged by at-home beauty Creating value is key
29
Retailers enriching the in-store experience

Fastest Growing Beauty Sectors 2009-10 (value) Nail Polish Mens skin care Mass fragrances Sun protection Anti-agers Colourants Eye liner/pencil Blusher/bronzer
(+17%) (+12%) (+9%) (8.5%) (7.6%) (+7%) (+7%) (+7%)

RE-CREATING THE SPA EXPERIENCE

Innovative retail concepts Mobile beauty becomes prominent Health and wellness factor to drive interest in spas New consumer targets
Key Spa Tourism Markets, absolute growth 2010-15 (million) USA Japan China France Israel India Austria Euromonitor International Vietnam US$ 1,660 US$ 1,350 US$ 1,030 US$ 856 US$ 362 US$ 363 US$ 266 US$ 221
30
31


THE OUTLOOK
GROWTH TO CATCH UP WITH PRE-RECESSION LEVELS
32

THE OUTLOOK
CONSUMER NEEDS BECOMING MORE DIVERSE
33
Value
Efficacy
Personal touch
Experience

THE OUTLOOK
BEAUTY INTERNET SALES TO BECOME MORE COMPETITIVE 34

Beauty Internet Sales 2010-15 16,000 14,000 12,000 US$ million 10,000 8,000 6,000 40 35 30 25 20 15
4,000
2,000 0
10
5 0
2010
2015
2010-15 CAGR

THE OUTLOOK
GLOBAL GROWTH TO BE DRIVEN BY MASS BEAUTY
35
Mass Fragrances Mass Colour Cosmetics Mass Skin Care Premium Hair Care Mass Hair Care Premium Skin Care
Premium Fragrances
Premium Colour Cosmetics
0.5
1.5
2.5
3.5
4.5
5.5
% value growth (real terms)

THE OUTLOOK
MORE OPPORTUNITIES TO BE HAD IN PREMIUM SKIN CARE

12,000 20
36
18 10,000
US$ million (nominal) 8,000 6,000 4,000 2,000 0
16
14
12 10 8 6 4 2 0 -2 % value growth
2010
USA
2011
Japan
2012
2013
2014
2015
Japan growth
China
China growth
USA growth
2X
80%
BILLION
37
Chinas premium cosmetics market will double by 2015, to reach $7billion
of Latin Americas industry value will be accounted for by mass products in 2015
$83
Latin America industry value in 2015, third largest region globally
38
THANK YOU FOR LISTENING

Irina Barbalova, Head of Beauty and Personal Care Research Irina.barbalova@euromonitor.com
Q&A?

Global Beauty and Personal Care Euro Monitor 2011

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Global Beauty and Personal Care Euro Monitor 2011

Uploaded by

Copyright:

Available Formats

The year in review and winning strategies for the future

The year in review and winning strategies for the future

Beauty beyond the crisis

The year in review and winning strategies for the future

MOVING OUT OF THE RECESSION

8 6 4 2 0 -2 Retailing 2005 2006 2007 2008 2009 2010

BPC Non-store sales

The year in review and winning strategies for the future

WESTERN EUROPE CONSUMER EXPENDITURE SLOWEST TO RECOVER

The year in review and winning strategies for the future

MORE HURDLES TO BE OVERCOME

Number of countries with an unemployment rate above 10% in 2007

Number of countries with an unemployment rate above 10% in 2010

The year in review and winning strategies for the future

THE CONSUMER IN 2011 AND BEYOND

The postrecession consumer

Digital and connected

The year in review and winning strategies for the future

Beauty beyond the crisis

The year in review and winning strategies for the future

GLOBAL INDUSTRY RECOVERS FROM THE SLUMP

2 1 0 -1 2006 2007 2008 2009 2010 % Mass growth

The year in review and winning strategies for the future

2010 COUNTRY PERFORMANCE

The year in review and winning strategies for the future

PREMIUM COSMETICS ON THE REBOUND

The year in review and winning strategies for the future

PREMIUM MARKET SHARE STILL LOW IN LATIN AMERICA

Mass Cosmetics Premium Cosmetics

The year in review and winning strategies for the future

MASS COSMETICS TO DRIVE FUTURE GROWTH

Global Premium Cosmetics

Global Mass Cosmetics

The year in review and winning strategies for the future

TOP CATEGORY BY REGION

The year in review and winning strategies for the future

DISCRETIONARY CATEGORIES PICK UP

The year in review and winning strategies for the future

Beauty beyond the crisis

The year in review and winning strategies for the future

PRIVATE LABEL PICKS UP MARGINALLY

Global PL growth by category

Euromonitor International World

The year in review and winning strategies for the future

PRIVATE LABEL KEEPS UP THE PACE IN INNOVATION

The year in review and winning strategies for the future

INNOVATION IN BRANDS STILL A PRIME FOCUS

Building on successful brands

The year in review and winning strategies for the future

NEW POSITIONING IN SKIN CARE

Category cross- over

New consumer targets

Holistic skin care

The year in review and winning strategies for the future

Beauty beyond the crisis

The year in review and winning strategies for the future

INTERNET CONTINUES TO RESHAPE THE WORLD

The year in review and winning strategies for the future

INCREASING IMPORTANCE IN BEAUTY RETAILING

12.9 9.7 13.4

12.8 9.5 13.4

40 30 20 10 0 2005 2006 2007 Drugstores Super/Hypermarkets 2008 2009 2010

Non-Store Retailing Beauty Specialists

The year in review and winning strategies for the future