EVOLVING HABITS IN GLOBAL BEAUTY

Transcription

EVOLVING HABITS IN GLOBAL BEAUTY
IN-COSMETICS 2015, BARCELONA
ILDIKO SZALAI – SENIOR ANALYST - BEAUTY AND PERSONAL CARE
PRIVATE LABEL AND CONSUMER TRENDS IN EUROPE
Euromonitor International: Strategic Global Market Research
© Euromonitor International
2
GLOBAL INDUSTRY HIGHLIGHTS
NEW FRONTIERS IN EMERGING MARKETS
KEY INDUSTRY THEMES
CONCLUSIONS
4
Beauty Industry Growth Sustained
Premium vs Mass Proportion
Historic vs Forecast
Total / Premium / Mass Growth
Global Beauty
US$465bn in 2014,
up by US$23bn
7
6
% Value Growth
5
4
3
2
1
0
Note: Inner circle 2009-14, outer circle 2014-19
2008
2009
Total Beauty
2010
2011
2012
Premium Beauty
2013
2014
Mass Beauty
Premium Beauty
Mass Beauty
5
Power Shift to Emerging Markets Continues Despite Slowdown
Developed vs. Emerging Markets in Total Beauty
600,000
7
500,000
6
5
51%
41%
4
300,000
3
200,000
2
100,000
1
0
0
-100,000
-1
2009
2010
Developed
2011
Emerging
2012
2013
2014
2015
% Growth Developed markets
2016
2017
2018
2019
% Growth Emerging Markets
% Growth
US$ million
400,000
6
New Prospective Markets Beyond China and Brazil
Beauty Forecast Growth by Country
7
Top 4 Beauty Categories Maintain Growth Momentum in 2014
Beauty Category Growth Performance 2013 vs 2014
120,000
9%
8%
7%
80,000
6%
5%
60,000
4%
40,000
3%
2%
20,000
1%
0
0%
Retail Value Sales 2014 US$ mn
% Growth 2013
% Growth 2014
% value growth
US$ million rsp
100,000
8
Skin Care and Hair Care Largely Dominate Future Potential
Top Category by Country
9
Top Growth Segments Bring New Lucrative Opportunities
Top Growth Beauty Categories
KEY INDUSTRY THEMES
CONCLUSIONS
11
New Emerging Frontier Markets
Emerging Markets’ Growth Prospects 2014-2019
10
Indonesia
% CAGR 2014-2019
9
8
Pakistan
Morocco
7
Vietnam
Saudi Arabia
United Arab Emirates
6
China
India
Iran
5
Argentina
Brazil
Peru
Turkey
Chile
Thailand
South Africa
Malaysia Colombia
Mexico
Philippines
Nigeria Poland
Venezuela
4
3
2
1
0
100
1,000
10,000
Absolute Market Value Growth 2014-2019 – US$ mn rsp
100,000
12
Common Growth Driving Factors in Emerging Markets
Intense
expansion of
multinationals
Young
populations
base
Expanding
middle class
Urbanization
Emerging
markets
growth
Beauty habits
sophistication
13
Average Daily Grooming Routine Exceeds Half an Hour
Daily Grooming Time
Mexico
India
Brazil
Spain
China
Turkey
Japan
Colombia
US
Russia
UK
Middle East
Germany
France
Australia
Indonesia
0
10
More than 1 hour
20
30
40
50
60
70
Minutes Spent Daily on Grooming
31-60 minutes
16-30 minutes
80
90
Less than 15 minutes
100
14
Staples in Developing Markets Set for Higher Absolute Growth
Absolute Market Value Growth – 2014-2019
(US$ million)
Middle East and Africa
Asia Pacific
450
2,500
400
2,000
300
US$ mn rsp
US$ mn rsp
350
250
200
150
100
1,500
1,000
500
50
0
Staples
0
Non-essentials
15
Export of Beauty Routines
Ratio of Consumers
Using Face Masks at
Least Weekly
Ratio of Consumers
Apply Hair Oil Daily
Middle East
France
UAE: 13% CAGR
2014-2019
Brazil
UK
US
33% y-o-y 2014
China
Spain
Brazil
Turkey
Indonesia
Colombia
Russia
India
Indonesia
China
Japan
Mexico
0
20 40 60 80
% of respondents
15% y-o-y 2014
Germany
US
Japan
Turkey
China
Mexico
Mexico
Ratio of Consumers
Using Body
Moisturizer Daily
0
20
40
% of respondents
0 20 40 60 80
% of respondents
16
Mass vs Premium Opportunities in Emerging Markets
86%
Of Face Masks in China is Mass
96%
Of Hair Care in India is Mass
99%
Of General Purpose Body
Moisturisers in Brazil is Mass
Premium
Beauty
Mass Beauty
Premium Skin Care and Fragrance Potential
17
KEY INDUSTRY THEMES
CONCLUSIONS
19
KEY INDUSTRY THEMES
Key Drivers to Define the Industry in 2015 and Beyond
Customisation
‘Asianification’
Niche
Digital
Product
experience
Asia inspired
concepts
Developed
markets
Consumer
engagement
Tailored
solutions
International
expansion
Intensifying
acquisition
Diversifying
retail
20
KEY INDUSTRY THEMES
The Evolving Trend of Customisation
Gender
Ethnicity
Format
Texture
Function
Tailored
Solution
CUSTOMISATION
Age
Format: Miracle
Cushion
Foundation
Texture: Rodin
Olio Russo
Function: Clear
Scalp & Hair
Tailored:
Clinique Smart
Custom Serum
21
KEY INDUSTRY THEMES
CUSTOMISATION
Product Customization Themes – Global Versus Regional Focus
Multiple
benefits add
value
Niche
category
focus
Raising the
bar on
ingredients
Growing
premium
potential
Niche
category
focus
Brightening
Whitening
Antipollution
Growing
sophistication
in grooming
regimes
Product
safety
initiatives
Scented
products
22
KEY INDUSTRY THEMES
ASIANIFICATION
Asian Concepts Expanding into International Markets
Formats
Benefit
Textures
23
KEY INDUSTRY THEMES
Further Potential Asian Waves Heading to International Stage
Product
safety
initiatives
Scented
products
•Mise En Scene hair
care range
Halal
beauty
• Wardah product
range - Indonesia
ASIANIFICATION
Antipollution
•Clarins ExtraComfort AntiPollution Cleansing
Cream
• Hwa-Hae mobile
app provides
information on
beauty product
ingredients South Korea
24
KEY INDUSTRY THEMES
Growing International Demand for ‘Brand Korea’
Sulwhasoo on Amazon.co.uk
% market value share
ASIANIFICATION
Best selling AmorePacific brands in the
US
AmorePacific Corp: Korean
Brands’ Performance in China
BPC 2009-2014
0.8
0.6
0.4
Mamonde
0.2
Laneíge
0.0
Innisfree
The FaceShop
2003: Establsihed
2014: 2,300 stores in 29 countries
25
KEY INDUSTRY THEMES
Asian Players Intensify Competition
ASIANIFICATION
China: Share Growth in Selected BPC Companies 2009-2014
L'Oréal
Proya Cosmetics
AmorePacific
Estée Lauder
Mary Kay
Yunnan Baiyao
Nu Skin
Shanghai Inoherb
Henkel
Jala (Group)
Johnson & Johnson
Unilever
Shiseido
Kao
Beiersdorf
Amway
Avon
P&G
Internationals ‘ eroding
market value share
-3
-2.5
-2
-1.5
-1
-0.5
0
0.5
1
1.5
Market value share growth (percentage points)
2
2.5
26
KEY INDUSTRY THEMES
Regional Players Shake Up the Rankings
Global Ranking - Regional Players
50
Top Beauty Players Market Share
Henkel AG & Co
KGaA
45
Shiseido Co Ltd
ASIANIFICATION
40
Avon Products Inc
% value share
35
Johnson & Johnson
Inc
30
Estée Lauder Cos
Inc
25
Beiersdorf AG
20
Colgate-Palmolive
Co
15
Unilever Group
10
L'Oréal Groupe
5
0
2005
2014
Procter & Gamble
Co
27
KEY INDUSTRY THEMES
NICHE GROWTH DRIVERS
Wide Range of Niche Growth Drivers
Dry Shampoo: Herbal
Essence
MEA: Gliss for covered
hair
Multi-Cultural: Carol’s
Daughter
Exclusive: Le Labo
28
KEY INDUSTRY THEMES
Intensifying Acquisition Activities for Niche Brands – 2014-2015
X
x
Xx
REN
Rochas
Parfume
La Labo
NYX
Cosmetics
Penhaligon’s
Rodin Olio
Lusso
Niely
L’Artisan
Parfumeur
Parfums
Frédéric
Malle
Carol’s
Daughter
Glamglow
Magic
Holdings
29
NOVEL GROWTH CONCEPTS
Fastest Brands Globally – Where is the Next Acquisition?
Fastest growing brands 2013-14 %
(17-90% growth)
Fastest growing brands 2013-14 %
(10-17% growth)
Innisfree
Rodan + Fields
Nip + Fab
Bulldog
Ciaté
Glamglow
Black Up
Al Qurashi
Beauty Diary
Byredo
Baylis & Harding
Inglot
Aesop
Kiko Milano
Catrice
Mud
Bioderma
The Face Shop
Coreana
Herborist
Rodial
Urban Decay
Jurlique
Proya
Make Up For Ever
Black Opal
Marubi
Perfect
Dabur
Iman
Iope
Jo Malone
Godrej
MG
0
20
40
60
80
100
0
5
10
15
20
30
KEY INDUSTRY THEMES
From Niche Categories to Diversifying Niche Platforms
Multichannel
retailers
Pure etailers
DIGITAL
Beauty
boxes
In-store
digital
Digital
Social media
sites
Direct
sellers
Mobile
applications
Company
websites
31
KEY INDUSTRY THEMES
Internet Retailing Still a Relative Small Channel in Beauty
180,000
40
160,000
35
140,000
30
120,000
25
100,000
20
80,000
15
60,000
40,000
10
20,000
5
0
0
2009
2014
% CAGR 2009-2014
% CAGR 2009-2014
US$ million
DIGITAL
Internet Retailing Growth by Industry 2009-2014
32
KEY INDUSTRY THEMES
Building Blocks of Digital Beauty Strategies
Brand Engagement
Brand Building
Consumer Analysis
DIGITAL
Personalization
Virtual ‘Try –On’
Customized Solutions
Retail Curation
Self-service Retail
Focus on Target Audience
‘Best price’
Purchase Motivation
Comparability
33
KEY INDUSTRY THEMES
Selling to More Informed and More Engaged Consumer
Frequency of Online Activities 2011/2013
Visit online news sites
Visit social networking sites
Stream or download audiovisual content
online
DIGITAL
Use an internet banking service
Participate in microblogging
Upload/share photos or videos
Read reviews of products and services
Visit price comparison websites
Buy something online
0
10
20
30
40
50
60
70
% consumers with online activity once a week
2011
2013
KEY INDUSTRY THEMES
CONCLUSION
35
CONCLUSION
Future Growth Highlights
Absolute Beauty Market Value Growth by Country and
Category – 2014-2019
3,457
3,675
20,097
21,052
4,001
20,115
5,212
5,780
2,112
2,228
3,711
4,052
10,144
China
Brazil
USA
India
Saudi Arabia
Indonesia
Others
7,568
5,820
7,317
Skin Care
Hair Care
Oral Care
Baby BPC
Bath and Shower
Colour Cosmetics
Fragrances
Men's Grooming
Deodorants
Categories marked with orange forecast to exceed global
beauty growth of 2.6% CAGR 2014-2019
36
CONCLUSION
Reinvention in Global Beauty Required to Sustain Growth
personalisation
reinvention
reinvention
multi-cultural
reinvention
reinvention
customisation
reinvention
reinvention
Niche
segments
Cross-category
reinvention
reinvention
reinvention
asianification
reinvention
Exclusive
reinvention
premium
reinvention
reinvention
reinvention
Multi-benefit
reinvention
reinvention
Digital
THANK YOU FOR LISTENING
Ildiko Szalai
Senior Beauty and Personal Care Analyst
[email protected]

EVOLVING HABITS IN GLOBAL BEAUTY

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