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KARL AUSSIA INSIGHT. STRATEGY. COMMUNICATIONS.
karl@aussia.com +44 (0) 7712 191 902
UK BEAUTY SECTOR
RESEARCH 2017
Connecting
people, places
& ideas
I’m a brand strategist and qualitative research
specialist who crafts culturally attuned and
emotionally impactful brand platforms with the
power to catalyse behaviour change and drive
business growth.
Integrated by approach, I’ve broad experience of
working across multiple channels for world-
leading agencies, brands, creative industry and
cultural organisations.
Beyond brand proposition, positioning and
narratives, I help galvanise loyal fandom by
helping to define brand purpose - clarifying what
companies and audiences care about, how they
can jointly make impact in the world, and how to
make this compelling across touchpoints. I believe
the most powerfully effective ideas are founded
on the seamless application of insight-lead
strategy wed to outstanding creative content.
ABOUT KARL AUSSIA
PHOTO Ian Dooley for Unsplash
INSIGHT RESEARCH
Customer
Audience definition incl
buyers, users consumers,
influencers), needs analysis,
experience etc.
Competitor
& category
Brand competitors and
category trends and issues,
cross category erosion,
activations, mind share, etc.
Context
Wider influencing factors
including socio-cultural, political
and economic, also macro/ micro
trends.
Company
Internal views: business profile,
operational capabilities,
ambitions, issues,
opportunities etc.
Informs
hypothesis
and areas of
strategic
decision
making.
3
4
Market,
competitors
& category
UK cosmetics manufacturing including skincare is
forecast to reach a value of £2.32b worldwide by
2019.
Branded products account for approx 90% of the
market across all categories. In 2016, Lancôme,
Garnier, L'Oréal Men Expert, Kiehl's or Vichy from
L’Oréal group, dominate the UK skin care with
L’Oréal maintaining lead with a 13% value share.
Increasingly sophisticated customer
understanding, tastes and desire for ethical
consumption means that while technological
advances remain a driving force, also eco-ethical,
natural, organic, multi-functional and ‘British
made’ products - seen as quality and style - are all
growing trends.
MARKET LANDSCAPE
SOURCES: Euromonitor. Skincare in the UK. May 2016
Think with Google. Beauty Trends 2017. 2017
Inside Online. The Beauty Market Digital Insights Report .2016
Cosmetics Business. UK skin and body care market analysis. June 2015
MARKET REPORTS SIGNAL GROWTH
6
In Great Britain, the value of the market rose year on year (2015-216) 0.1% to £9.38 billion whilst the actual
number of packs purchased dropped 1.2% to 2.6 billion.
Kantar report that that while shoppers sought out bargains, they didn’t buy more volume but used money
wisely, shopping around between stores and the internet. Also, that while toiletries, haircare and skincare
started to reduce recent share shrinkage caused by deflation, the outlook is for growth, which is already
occurring in men’s facial care.
SOURCES: CTPA, Kantar Worldpanel and IRI Worldwide. Cosmetic Industry in Figures. CPTA Annual Report. 2016
Skin care is the largest UK beauty
category. K beauty, prevention of skin
problems and male grooming are all
major growth driver.
The Korean beauty trend is moving from
fad to fixture as Chinese beauty takes
hold in western markets.
Growing awareness of external factors,
such as stress and pollution, and sensitivity
to artificial substances such as parabens
are leading consumer to focus on a
holistic approach to prevention and
maintaining healthy skin - most notably
face masks, cleansers and moisturisers.
Consumer now seek natural products free
from artificial additives that are kind to
both the skin and the environment and
society.
CATEGORY TRENDS
7
SOURCES: Euromonitor. Beauty and Personal Care in the UK. May 2016
Beauty of Fashion. K-Beauty: From Fad to Fixture. April 2017
Natural men
Brands, such as Bull Dog,
Aesop and Nu Skin are rapidly
gaining consumers targeting
men who are looking for
natural ingredients attuned to
grooming and lifestyle trends
K Beauty
The Korean beauty boom shows
no signs of waning and is
transcending its cult of cute by
continuing to ride wave after
wave of innovation
TRENDS: SKINCARE CATEGORY
8
Wear what you eat
Plant/ vegetable based
ingredients as the ultimate in
natural skincare and as an
outward rejection of
petrochemicals for the eco
conscious. Deliciously Ella,
known health food has
collaborated with Neal’s Yard
Remedies and Kheil's now
widely use nature based
products and styling to
captivate unisex appeal.
Uber-Beauty
New US beauty apps and
concierge services such as
Glamsquad, Priv, Vênsette
and Soothe, and Blow,
Prettly, Uspaah and Ruuby in
the UK, challenge salon
models by delivering
everything from pedicures
to bikini waxes to your home.
Transformative textures
As consumer increasingly,
enjoy skincare that surprises
the senses, products are
emerging that change colour,
texture or sensation as you use
them n such as Peter Thomas
Roth’s Brightening Bubbling
Mask and Sunday Riley’s
Martian Mattifying Melting
Water-Gel Toner.
Probiotic skincare
Counter anti-bacterials,
research that suggests that
bacterias like lactobacillus and
bifidobacterium are beneficial
to the skin and conditions
such as eczema and acne, is
fuelling the new probiotic-
based skincare ranges.
SOURCES: FT. The beauty industry gets the Uber treatment. Feb 2017
Live Science. Probiotics Hold Promise for 4 Skin Conditions. June 2014
The Guardian. How probiotics are fuelling a toxin-free skincare revolution. Oct 2016
Bulldog was launched in 2005 after
founder Simon Duffy identified there
were no straightforward or natural
skincare products specifically for men.
Prior to Bulldog, most male skincare
ranges where sub-labels of female brands,
such as Nivea or L’Oréal or elated directly
to shaving. So, Bulldog was ‘purpose-built’
for men, using ‘natural ingredients that
really work.’
By 2015 it had become the UK’s third-
largest national skincare brand for men
also available in a 13 countries, including
the USA, Germany, Australia, Sweden,
Norway, Austria, South Korea, Thailand,
Ireland and Spain.
MEN’S STUDY: BULLDOG
9
SOURCES: Raconteur. Beauty is big business for Britain. Sept 2015
Bulldog website. About Us. July 2017
Bulldog: Man’s best friend
Since 2005, award winning,
‘Straightforward skincare’ for
men.
A ‘British made’, Boy’s Own
type identity on products
‘purpose built for men’
reminiscent of the factory line
Bulldog doesn’t use images of
men; it focuses on ’man’s best
friend and mentions cruelty
free.
Like many brands it blends
‘nature and science’ , playing
up the natural while carefully
positioning the use of ‘man
made’ ingredients.
SPOTLIGHT: BRANDS RESPONDING TO NEW MASCULINITY
10
Gillette: Go Ask Dad campaign
Recognising that fathers feel
estranged from their sons by
technology, the campaign
suggests young men go to their
fathers for advice instead of the
Internet.
The Real Shaving Co.
Founded 1953, British made,
Somerset based, RSC offers men
a simple step-by-step guide to
cruelty free grooming
AXE: Find your Magic
Positioning itself at the at the
forefront of Millennial culture,
AXE’s latest campaign rejects rigid
male stereotypes and embraces an
individual sense of how it is to be a
man today.
KEY THEMES: Humanising brands by placing them centre to emotional , emotional masculinity, redefining
and accepting the range of acceptable maledom, cruelty free, natural, confidence building, purpose built
CALM: Mental health
campaign
Responding to the fact that 1
in 13 men take their lives in the
UK, the Campaign Against
Living Miserably (CALM)
produced a high profile
campaign that debunk
stereotyped behaviour and
invited men to talk.
White Ribbon
Launched in 1991 White Ribbon
is the world’s largest
movement of men and boys
working to end violence
against women and girls,
promote gender equity,
healthy relationships and a
new vision of masculinity.
11
Customer &
audiences
7 POTENTIAL SKINCARE CONSUMER SEGMENTS
12
Driven to seek out
nature based / natural
alternatives kind to the
skin and the earth.
Inspired by new
independent brands and
cause related branding.
Product transparency
and comparison is
important- they are
research oriented and
will find/ and or buy
online.
PLEASURE SEEKERS
Discerning, high spend/
premium consumers
that buy feel good
products for personal
pleasure, recreation and
‘me time’.
Beauty shopping
experience is part of the
pleasure. Spa orientated
and increasingly
influenced by nature &
wellness
ECO ADVOCATESWARY EXPERIMENTERS
Cynical about brand
product claims and
drawn to the idea of
independent, good
quality and the natural.
Semi-brand loyal but
price sensitive, they’ll
spend on favourite
products but impulsively
hunt for ‘quality
bargains’ that they
advocate.
NO FRILLS VALUE
Value driven, they buy
the cheapest brands and
basic ranges but are
becoming concerned
about petrochems.
They tend towards
generic /supermarket
ranges that offer
simplicity and low price
while reflecting no
nonsense, benefits
similar to mid-range
brands.
7 POTENTIAL SKICARE CONSUMER SEGMENTS
13
ANTI AGERS
From the elegant elder
to the vain - the age
fearful who will spend
on latest crazes and new
‘scientific’ /advanced
therapies and product
to repair damage, fill the
cracks and maintain
youthfulness
Also those into holistic
health and wellbeing
with a focus on
maintenance.
EXPERIENCE SEEKERS
Young, active and fickle
novelty seekers who like
to experiment with new
ideas especially with
social/ experiential
dimensions where they
can capture and share
selfie moments.
Value led, mass-
premium buyers who
are motivated by low
cost treats and gifting
to friends.
BRAND LOYALISTS
Aspirational and often
seeking a taste of
perfection, they trust
the claims of the well
known, big name and
upmarket brands.
Most influenced by
premium lifestyle
associations and the
technological advance,
they love to try out new
ideas presented by their
most trusted labels.
MALE SKINCARE [STEREO-]TYPES
14
NEW MASCULINE LABEL KINGSHIP GROOMERSURBAN MACHOSSPORTIFS
SensitiveTough
GEN Z & MILLENIALS
Millennials and their ‘Z’ cohort’, the world’s
largest consumer group, are driven by social
causes while paradoxically obsessed by
presenting themselves online like the global
brands they love to consume.
However, those in the UK will be the first
generation since the 1950s to fail to do better
than their parents
Globally outward looking and motivated by
innovation, they believe technology can make a
better world. As part of their online identity, they
leverage social media to expose wrongdoing and
to draw attention to social issues, and align with
brands that enable them to express opinions and
become active advocates of the causes they
believe in.
15
Living and giving
Millennials	prefer	crowd	funding	
to	direct	donations	where	they	
can	see	and	promote	tangible	
results		
SOURCES: Business Insider. British millennials are £2.7 trillion poorer. Jan 2017
Achieve. The Millennial Impact Report. 2015
Giving time & money
84%	of	employed	Millennials	
made	a	charitable	donation	in	
2015	and	are	most	likely	to	get	
involved	with	causes	when	
offered	a	range	of	volunteer	
opportunities
Green paradox
Primark	announces	it’s	‘green	
bag’	credentials	while	selling	
masses	of	low-cost,	landfill	
fashion
ECONOMIC OUTLOOK: GEN Z & MILLENIALS
16
A report from the Resolution Foundation dovetails with a Bank of England study that identifies people
under age 45 are already 10% poorer today than they were in 2007.
Millennials have been robbed of the ability to do better than their parents because of a couple of key
decisions taken by their parents' generation. Those decisions were:
- To keep interest rates near zero after the great financial crisis of 2008.
- To abolish defined benefit pension plans in favour of defined contribution plans.
MARKET PERSPECTIVES: GEN Z & MILLENIALS
17
POLITICAL
People aged 18-24 are more likely to consider
social problems the responsibility of individuals
rather than government.
SOURCE: Economist. Politics and the Young. Jun 2013
COMMENT
‘Millennials tend to be very socially aware, prone to be more public about it and thoughtful about, ‘Why am
I here? What am I going to leave behind? How am I going to change the world?’ Identity Theorist,
Professor Americus Reed. Wharton University
SOURCE: Wharton University. How Millennials Think Differently about Brands. 2014
ECONOMIC
Millennials who prefer experiences to things are
driving the ‘sharing economy’, by choosing to
borrow or rent rather than own goods.
SOURCE: Daily Mail online. Buying things? That’s so wasteful. 2015.
SOCIO-CULTURAL
Social media outlets allow us to share a message that we find important, then step away from it, as we
continue to scan our friends’ feeds. For a lot of people, the lazy web eco-system makes it easy to support
a cause without being productive.
SOURCES: Forbes. Are millennials lazy or avante-garde socialists. Oct 2012
Charlotte Robertson, Buzz Blog. Slacktivism. Why this Generation Sucks. Oct 2014
GEN X & BOOMERS
The over 50’s now account for a third of the
global, population, own 80% of global wealth
(69.7% of UK household wealth, equivalent to
£6.2 trillion) with women now the biggest
buyers of beauty products in Britain yet their
needs and desires remain largely overlooked.
The now ‘mature urban urbane’ who invented
youth culture spanning Rock Roll, Hippy, Disco,
Punk, New Wave and Rave are now taboo-
busting what it means to age.
Retiring no longer means winding down,
increasingly wealthy, active and mobile, older
people now bring huge cultural and economic
benefits, presenting previously unseen role
models to society.
18
Golden age of beauty
Older women	are	shaking	up	
fashion.	Charlotte	Rampling 68,	
Helen	Mirren	69	and	Tilda	
Swinton,	53	are	all	retained	as	
house	models	to	beauty	brands
96	year	old	interior	designer	Iris	
Apfel,	has	become	a	
phenomenal	global	fashion	icon
SOURCES The Telegraph. Over 50s women spent most on make-up. April 2015
Saga. Over 50s contribute more than 6 trillion to the UK economy. Jan 2016
Cosmetics Business. Men’s Market: Overview and Future Predictions. June 2015
Advance Style in the UK
In	2015,	British	women	spent	
£2,190.45	on	beauty,	a	rise	of	
4.9%		- the	biggest	growth	area	
in	the	UK	while	UK	Men’s	
skincare	increased	to	an	
estimated	£911	million	pa.
ECONOMIC OUTLOOK: REBEL SILVERS 45+
19
The growing 50+ demographic desire to look good is forcing the beauty industry to listen and rethink
their tone.
While an increase focus on mature faces is applauded, there’s still frustration at the way mature people
are reflected A Mintel survey found 37% of the 50-68 age group felt excluded in advertising, with 46
% saying their age group was stereotyped as old at 50.
Seeking ‘enhancement’ over anti-aging, Euromonitor found 55% of 60+ used moisturisers without
anti-ageing claims, compared with 35% who used specific anti-agers.
SOURCE Raconteur. Over 50s market prefers ‘enhancement’ to anti-ageing. Sept 2015
MARKET PERSPECTIVES: REBEL SILVERS 45+
20
ECONOMIC
Year ending April 2016, The older people spent more than under-50s for the first time, with a total £376
billion of discretionary spending with this silver pound’ boosting to UK GDP by £119 billion (6% UK GDP),
supporting an estimated 1.9 million jobs. Crucially, spending by over-50s has grown 3x faster since 2003
(4.6% pa) than the under 50’s (1.4% pa)
SOURCE: Hitachi Capital. Over 50s: a boost to UK economy, not a burden. May 2017
COMMENT
“It’s time we stopped being negative about the older
generation and instead of writing them off, we need to
become more effective at realising the economic ambitions
of this growing section of the population, instead of stifling
them.” Robert Gordon. CEO, Hitachi Capital UK
ECONOMIC
Pension wealth has risen by 15%, from £2.2 trillion in 2011 to £2.52 trillion in the same period and the over
50s hold more than £3 in every £4 of financial wealth, in stocks, bonds and other investments - equivalent
to 76.2%, approx. worth£800 billion.
SOURCE: The Telegraph. Over 50s are worth billions, according to new report. Feb 2016
SOCIO-CULTURAL
UK self-employed went up from 3.8m in
2008 to4.6m in 2015, with 50+ accounting
for 43% that started their own businesses.
SOURCES: FT. Over-50s are the new business start-up
generation. Feb 2017
TABOO-BUSTING REBEL SILVERS ARE REDEFINING AGING BEAUTY
21
While some brands are beginning to reflect a new positive image of mature women, Male oriented beauty
brands remain risk adverse, ignoring the ‘Clooney effect’ utilised by other FMCG categories such as
Nespresso.
Maturing idols like David Beckham and ethnic fashion models are leading the charge on mature style and
visibility of this in racial diversity.
22
Context
trends &
influences
In a ‘post-Bling’ world following global
recession, corporate scandal, and where 1%
of the world’s population hold 80% of its
wealth, polarised public opinion is opening
debate, challenging us all to reassess our
ethical values and expectations.
Increasing public awareness of nuanced
debate around issues of gender, truth,
sustainability, race bias, BREXIT, data use and
privacy are all themes making impact across
sectors and culture at large today.
Social purpose, use of big data, holistic
wellness, and above all environmental
sustainability, are all big issues driving brand
behaviour today.
MACRO TRENDS
23
“Our research shows that
54% of consumers are on
the tipping point of
purchasing sustainably.
There is a huge economic
opportunity for businesses
that are able to build brands
with real purpose which
consumers care about”
Keith Weed.
Chief Marketing & Communications Officer, Unilever.
TREND: ETHICAL CONCERNS
Researched published by the UK Government identified that the ethical standards of retail companies
and the products they sell is a issue that increasingly influences consumer choice.
Ethics matter to at least ‘a little’ to more than four in five adults (83%) and ‘a great deal/ fair amount’ to
half (49%) clearly outweighing the indifferent. Barriers to to ethical purchase are prices and accessible,
reliable information.
SOURCES: UK Government, Dept for Business Innovation and Skills. Views on ethical retail. June 2014
24
MACRO TRENDS
25
Social / Brand purpose
Youthful brands targeting
Millennial mindsets are
engaging in weighty topics
and partnerships that
champion causes and drive
social change– from
sustainability, gender to
body image and beyond
Gender Neutral
Growing understanding around
sex, gender, identity, role and
self expression; progressive
brands are challenging norms
in products and packaging
while others have success with
neutral products that tap into
design aesthetics usually
associated with masculinity.
A very British Beauty
Beyond Rimmel’s London
Look, BREXIT is galvanising
the trend for ‘British made’
as a sign of quality and style.
Both domestic and
international sales, bolstered
by falling value of GPB and
shrinking UK confidence, is is
inspiring a new generation of
home grown products.
Collaborative sustainability
A shift in the collaborative
relationship between
customers and retail brands is
occurring, especially the
removal of single use plastics
that are polluting the world
with efforts seeing reusable
packaging, through selling out
of date and disfigured foods,
to product personalisation.
TREND: GENDER NEAUTRALITY
While gender-targeted packaging is preferred by most personal care shoppers, over a third prefer
neutral packaging, with Millennials and Gen-Xers driving the trend
SOURCES: Iconoculture. Sex and the Soap Aisle. July 2016
26
BREXIT
In 2017, UK beauty sales topped £4billion for the
first time but BREXIT concerns over issues such as
compliance, export tariffs and exchange rates is
set to disrupt the market.
Booming global cosmetic sales are set to reach
$675 billion by 2020. And while the UK outlook is
positive especially for skincare, higher operational
costs and lower consumer spending is likely to
limit UK growth and may result in areas of
premium segment erosion as consumers trade
down. This scenario may see the previous trend
for range ‘premiumisation’ scaled back aside from
within super resilient luxe categories.
27
SOURCES:
Euromonitor. How Will Brexit Impact the Beauty Industry? July 2016
Raconteur. The Beauty Economy. Nov 2016
The Guardian. Brexit leads cosmetics firm Lush to look for expansion outside UK. March 2017
Prospects
Skin care is set to increase
by 2% overall in value terms
at constant 2016 prices
reaching GBP2.9 billion in
2021, driven by independent
skin care labels pushing
prices down, while the
corporates capitalise on
established premium ranges.
Lush go west
Lack of UK Government
clarity over Brexit plans has
caused ethical, UK company
Lush to offer staff to move
to new German factory.
No_UK ctizen comprise 20%
of staff. The brand’s turnover
rose 26% in 2016 with higher
import cost of raw materials
due to weak GBP offset by
the cheaper cost of exports.
TREND: BEAUTY THROUGH WELLNESS
The new face of beauty is taking a holistic approach to feeling beautiful by achieving overall wellness.
Superficial beauty is being replaced by holistic ‘wellness as beauty’ as a cross sector trend that also
encompasses ideas around mindfulness, diet and exercise.
SOURCES: Raconteur. How to Look Good and Feel Great. Nov 2016
28
29
Context
sales, marketing
& activation
MULTI-CHANNEL Vs. OMNICHANNEL
30
Multi-channel
marketing
✗
Refers to the ability to interact with potential customers, and apply sales
information and/or promotions to various channels platforms.
In this way, a set of assets or content might be specifically formatted for roll
out across separate channels so the same or similar information is available
or each channel might serve a distinct purpose as a stand alone platform
Omnichannel
experiences
✓
Refers to a joined-up channel approach that provides the customer with an
integrated shopping and brand experience whereby content and channels are
specifically designed to enhance, interact and work with each other.
Each channel might have different content or provide various experiences or
be designed to remove friction e.g. digital self pay instore or click & collect.
The customer can be shopping online from a desktop or mobile device, via
phone, or in a brick-and-mortar store, and the experience will be seamless.
DIGITAL INTEGRATION
31
Technology is increasingly a ubiquitous
presence which continues to fundamentally
alter people’s attitudes and behaviour. People
are demanding more from both
brands/retailers in terms of experience,
immersion and collaboration.
Digital platforms are used both as an
independent channels and increasingly
integrated in-store.
Multi-channel promotion is giving way to
dynamically integrated (omnichannel) brand
experiences, eCommerce is becoming
editorialised and reinvented through the
advent of sCommerce (sales within social
media)
Capitalising on digitalism
Smart beauty brands are
developing comprehensive
content-lead customer
engagement and distribution
strategies, from Avon’s
personalised sellers’ online
stores to subscription
services, to shoppable film
and blog content.
SOURCES: Cosmetics Business. UK skin and body care market analysis. June 2015
The Telegraph. Debenhams boosted by beauty sales. Jan 2017
FT. Debenhams revenues gets lift from beauty sales. Jan 2017
High Street Search
Emerging as a beauty player,
Debenhams has offset the
decline within the clothing
market by installing
integrated beauty
experiences. SEO metrics
show it’s leading the UK high
street on skincare trends
most noticeably ‘organic’.
Editorialised and social eCommerce
The websites consumers visit most are
the ones they find most enjoyable and
more widely informative and valuable.
As editorial content is freer to explore
visitor’s interest and tap into emotions
that drive purchase, smart brands are
blurring the line between browsing
content and online shopping experiences
by developing content-to-commerce
platforms both within their own sites but
also posted across social media.
This brings opportunities dynamic brand
storytelling and implications for SEO.
SOCIAL-COMMERCE
32
More than a store
Premium	and	luxe	labels	like	
Gucci	eCommerce	site’s	
features	shoppable	editorial	
sections	and	eCRM	
newsletters
Nike	#PHOTOiD campaign
a	microsite	that	lets	customers	
customise	their	trainers	by	
using	their	Instagram	images	
to	create	a	colour	scheme	for	
their	trainers
The	shoe	design	can	be	shared	
and	bought	directly	from	
Instagram.
SOURCES: Marketing Week. Social commerce: How willing are consumers to buy
through social media. March 2016
While the most common reason to use social media in the UK is to find out what’s a happening, global
surveys also suggest many would like to shop via social media channels:
41% follow brands on social media to look at new ranges.
35% do so to get ideas about what to buy when they next go shopping.
These reasons rank slightly higher for 18- to 24-year-olds at 47% and 40%, respectively.
SOCIAL-COMMERCE
33
SOURCES: Marketing Week. Social commerce: How willing are consumers to buy through social media. March 2016
Office of National Statistics (ONS). Social Media Stats & Data sets. August 2016
SOCIAL MEDIA DEMOGRAPHIC STATISTICS
34
Strength: Conversations.
Sharing values. Social
Marketing
56% male: 44% female
Largest user groups span 18-
34 year olds
72% of all internet users are
on/ visit Facebook
50% of users check it on
waking. Engagement is
highest Thursdays and Fridays
Strength: Community/
audience building. Brand
content promotions. ToV.
User distribution
55% male: 45% female
Primarily 18-49 year old users
35.6 million monthly users in
UK
Extremely cluttered with 300
hours of videos are uploaded
every minute
Strength: brand amplification,
customer experience and
service
50/50 male/female user split
Highest users are aged 18-29
years old
Users who watch a branded
video have 28 percent higher
purchase intention than the
online norm
Facebook, YouTube and Twitter remain the most used platforms, although Twitter is
struggling to maintain relevance
SOURCES: Office of National Statistics (ONS). Social Media Stats & Data sets. August 2016
Global Yogi. All you need to know about [social media] users and statistics. October 2016
SOCIAL MEDIA DEMOGRAPHIC STATISTICS
35
SOURCES: Hootsuite & We Are Social. Digital in 2017 Global Overview. January 2017
Hootsuite. Top Snapchat Demographics That Matter to Social Media Marketers. August 2016
Office of National Statistics (ONS). Social Media Stats & Data sets. August 2016
Altimeter. The 2016 State of Social Business. November 2016
LinkedIn. 2016 LinkedIn Stats You Should Know . August 2016
Strength: B2B content
and peer-to-peer
influence. Networking.
Recruitment.
62% male: 38% female
Has most older users:
61% are 30-64 years
old although 25% are
18-29. (N.B. the
average age of a
Fortune 500 CEO is 58
years old)
41% of millionaires use
LinkedIn.
Strength: Content
distribution. FOMO
promotions. Playful
audience engagement
55% female UK user:
45% male
59% of users 12-17 year
old - the most popular
messaging apps for
teens
Although 65% of users
are under 25; new users
25+ is increasing twice
as fast as under 25s
Strength: Awareness,
Visual tonality.
Community. Discovery
56% female: 44% male
Most popular app for
young with 90% under
35 years old and most
users under 25.
Dubbed the “Happiest
Place in the (Internet)
World,” with users liking
4.2 billion posts daily.
Strength: Product and
trends discovery. Social
marketing
85% (greatest) female
gender bias: 15% male
Most evenly distributed
between 18-64 year
olds.
96% use the site to
research a purchase.
Users 10% more likely
to purchase online than
those on other
networks.
Selfie marketing
Brands pander to the selfie generation
using apps like use Snapchat lenses to
cultivate user-generated advertising
Messenger marketing
Brands are using messenger apps to
interact with consumers in ways that
consumers sees as exceeding their
customer service expectation rather than
an intrusion of privacy.
MOBILE
36
Makeup lenses
L'Oréal sponsored Snapchat
lens applies eyeliner to
photos
Multi-Character	lenses
The	20th	Century	Fox	
Snapchat	ads	let	users	try	on	9	
X-Men	characters.
Messenger	food	chatbot
Food	Bots	used	by	brands	like	
Burger	King	help	customers	
order	from	their	favourite	
menus	directly	via	messenger	
apps.
Beauty vending for cashless sales
In 2009 Sephora debuted self-service kiosks at
airports and J.C. Penney stores without sales
counters.
Benefit followed, installing vending in 20 hubs.
In addition to selling products, the machine
displays travel tips and tricks.
Chanel unveiled the ’Le Volume de Chanel’
Mascara vending machine in the U.K. as a
vehicle to launch new products.
L'Oréal debuted a beauty kiosk at the 42nd
Street-Bryant Park subway stop in New York
City which sells mascara, nail polish, eye
shadow, and lipstick, complete with a built-in
camera that analyses your skin tone to find the
right colour match.
PHYGITAL SALES TREND
37
L'Oréal: skin analysis Sephora: cashless
Chanel: mascara promotion Benefit: travel tips
Cause marketing
As consumers increasingly seek out brands with
purpose aligned to their own values, brands are
investing in local and national initiatives.
Edutainment
Responding to consumer desire for richer 360
experiences, brands are delivering a more
humanized integrated approach by producing
documentaries, tutorials, workshops and tours
surrounding an area of their own expertise.
COMMUNITY DEVELOPMENT
38
Waitrose localised CSR
Shoppers receive tokens to
place in a box relating to 3
local causes. The more
tokens a cause gets, the
bigger the donation.
Pampers	partner	UNICEF
Since	2006,	the	partnership	has	
helped	eliminate	Maternal	and	
Neonatal	Tetanus	in	15	
countries.
AirBNB Experiences
Live	like	a	local,	uncover	hidden	
spots	also	learn	and	participate	
in	local	culture	through	classes	
and	workshops.
Self-directed live and online
Integration of live with online makes it even
easier for their representatives to be their
own boss, update their online 'shopfront' at a
time that suits them rather than having to
trudge from house to house looking for sales.
Customer who don't know or want to meet
their local representative van still order a
specific product online with commission
automatically going to the seller in their local
area.
Customers get the choice of free delivery
delivered to their door by their rep or via
direct delivery or parcel shop.
CASE STUDY: AVON
39
SOURCES: This is Money The Avon lady goes digital. August 2016
creative.union
KARL AUSSIA INSIGHT. STRATEGY. COMMUNICATIONS.
karl@aussia.com +44 (0) 7712 191 902
LET’S CONNECT!

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Karl aussia uk_beautysector2017

  • 1. creative.union KARL AUSSIA INSIGHT. STRATEGY. COMMUNICATIONS. karl@aussia.com +44 (0) 7712 191 902 UK BEAUTY SECTOR RESEARCH 2017
  • 2. Connecting people, places & ideas I’m a brand strategist and qualitative research specialist who crafts culturally attuned and emotionally impactful brand platforms with the power to catalyse behaviour change and drive business growth. Integrated by approach, I’ve broad experience of working across multiple channels for world- leading agencies, brands, creative industry and cultural organisations. Beyond brand proposition, positioning and narratives, I help galvanise loyal fandom by helping to define brand purpose - clarifying what companies and audiences care about, how they can jointly make impact in the world, and how to make this compelling across touchpoints. I believe the most powerfully effective ideas are founded on the seamless application of insight-lead strategy wed to outstanding creative content. ABOUT KARL AUSSIA PHOTO Ian Dooley for Unsplash
  • 3. INSIGHT RESEARCH Customer Audience definition incl buyers, users consumers, influencers), needs analysis, experience etc. Competitor & category Brand competitors and category trends and issues, cross category erosion, activations, mind share, etc. Context Wider influencing factors including socio-cultural, political and economic, also macro/ micro trends. Company Internal views: business profile, operational capabilities, ambitions, issues, opportunities etc. Informs hypothesis and areas of strategic decision making. 3
  • 5. UK cosmetics manufacturing including skincare is forecast to reach a value of £2.32b worldwide by 2019. Branded products account for approx 90% of the market across all categories. In 2016, Lancôme, Garnier, L'Oréal Men Expert, Kiehl's or Vichy from L’Oréal group, dominate the UK skin care with L’Oréal maintaining lead with a 13% value share. Increasingly sophisticated customer understanding, tastes and desire for ethical consumption means that while technological advances remain a driving force, also eco-ethical, natural, organic, multi-functional and ‘British made’ products - seen as quality and style - are all growing trends. MARKET LANDSCAPE SOURCES: Euromonitor. Skincare in the UK. May 2016 Think with Google. Beauty Trends 2017. 2017 Inside Online. The Beauty Market Digital Insights Report .2016 Cosmetics Business. UK skin and body care market analysis. June 2015
  • 6. MARKET REPORTS SIGNAL GROWTH 6 In Great Britain, the value of the market rose year on year (2015-216) 0.1% to £9.38 billion whilst the actual number of packs purchased dropped 1.2% to 2.6 billion. Kantar report that that while shoppers sought out bargains, they didn’t buy more volume but used money wisely, shopping around between stores and the internet. Also, that while toiletries, haircare and skincare started to reduce recent share shrinkage caused by deflation, the outlook is for growth, which is already occurring in men’s facial care. SOURCES: CTPA, Kantar Worldpanel and IRI Worldwide. Cosmetic Industry in Figures. CPTA Annual Report. 2016
  • 7. Skin care is the largest UK beauty category. K beauty, prevention of skin problems and male grooming are all major growth driver. The Korean beauty trend is moving from fad to fixture as Chinese beauty takes hold in western markets. Growing awareness of external factors, such as stress and pollution, and sensitivity to artificial substances such as parabens are leading consumer to focus on a holistic approach to prevention and maintaining healthy skin - most notably face masks, cleansers and moisturisers. Consumer now seek natural products free from artificial additives that are kind to both the skin and the environment and society. CATEGORY TRENDS 7 SOURCES: Euromonitor. Beauty and Personal Care in the UK. May 2016 Beauty of Fashion. K-Beauty: From Fad to Fixture. April 2017 Natural men Brands, such as Bull Dog, Aesop and Nu Skin are rapidly gaining consumers targeting men who are looking for natural ingredients attuned to grooming and lifestyle trends K Beauty The Korean beauty boom shows no signs of waning and is transcending its cult of cute by continuing to ride wave after wave of innovation
  • 8. TRENDS: SKINCARE CATEGORY 8 Wear what you eat Plant/ vegetable based ingredients as the ultimate in natural skincare and as an outward rejection of petrochemicals for the eco conscious. Deliciously Ella, known health food has collaborated with Neal’s Yard Remedies and Kheil's now widely use nature based products and styling to captivate unisex appeal. Uber-Beauty New US beauty apps and concierge services such as Glamsquad, Priv, Vênsette and Soothe, and Blow, Prettly, Uspaah and Ruuby in the UK, challenge salon models by delivering everything from pedicures to bikini waxes to your home. Transformative textures As consumer increasingly, enjoy skincare that surprises the senses, products are emerging that change colour, texture or sensation as you use them n such as Peter Thomas Roth’s Brightening Bubbling Mask and Sunday Riley’s Martian Mattifying Melting Water-Gel Toner. Probiotic skincare Counter anti-bacterials, research that suggests that bacterias like lactobacillus and bifidobacterium are beneficial to the skin and conditions such as eczema and acne, is fuelling the new probiotic- based skincare ranges. SOURCES: FT. The beauty industry gets the Uber treatment. Feb 2017 Live Science. Probiotics Hold Promise for 4 Skin Conditions. June 2014 The Guardian. How probiotics are fuelling a toxin-free skincare revolution. Oct 2016
  • 9. Bulldog was launched in 2005 after founder Simon Duffy identified there were no straightforward or natural skincare products specifically for men. Prior to Bulldog, most male skincare ranges where sub-labels of female brands, such as Nivea or L’Oréal or elated directly to shaving. So, Bulldog was ‘purpose-built’ for men, using ‘natural ingredients that really work.’ By 2015 it had become the UK’s third- largest national skincare brand for men also available in a 13 countries, including the USA, Germany, Australia, Sweden, Norway, Austria, South Korea, Thailand, Ireland and Spain. MEN’S STUDY: BULLDOG 9 SOURCES: Raconteur. Beauty is big business for Britain. Sept 2015 Bulldog website. About Us. July 2017 Bulldog: Man’s best friend Since 2005, award winning, ‘Straightforward skincare’ for men. A ‘British made’, Boy’s Own type identity on products ‘purpose built for men’ reminiscent of the factory line Bulldog doesn’t use images of men; it focuses on ’man’s best friend and mentions cruelty free. Like many brands it blends ‘nature and science’ , playing up the natural while carefully positioning the use of ‘man made’ ingredients.
  • 10. SPOTLIGHT: BRANDS RESPONDING TO NEW MASCULINITY 10 Gillette: Go Ask Dad campaign Recognising that fathers feel estranged from their sons by technology, the campaign suggests young men go to their fathers for advice instead of the Internet. The Real Shaving Co. Founded 1953, British made, Somerset based, RSC offers men a simple step-by-step guide to cruelty free grooming AXE: Find your Magic Positioning itself at the at the forefront of Millennial culture, AXE’s latest campaign rejects rigid male stereotypes and embraces an individual sense of how it is to be a man today. KEY THEMES: Humanising brands by placing them centre to emotional , emotional masculinity, redefining and accepting the range of acceptable maledom, cruelty free, natural, confidence building, purpose built CALM: Mental health campaign Responding to the fact that 1 in 13 men take their lives in the UK, the Campaign Against Living Miserably (CALM) produced a high profile campaign that debunk stereotyped behaviour and invited men to talk. White Ribbon Launched in 1991 White Ribbon is the world’s largest movement of men and boys working to end violence against women and girls, promote gender equity, healthy relationships and a new vision of masculinity.
  • 12. 7 POTENTIAL SKINCARE CONSUMER SEGMENTS 12 Driven to seek out nature based / natural alternatives kind to the skin and the earth. Inspired by new independent brands and cause related branding. Product transparency and comparison is important- they are research oriented and will find/ and or buy online. PLEASURE SEEKERS Discerning, high spend/ premium consumers that buy feel good products for personal pleasure, recreation and ‘me time’. Beauty shopping experience is part of the pleasure. Spa orientated and increasingly influenced by nature & wellness ECO ADVOCATESWARY EXPERIMENTERS Cynical about brand product claims and drawn to the idea of independent, good quality and the natural. Semi-brand loyal but price sensitive, they’ll spend on favourite products but impulsively hunt for ‘quality bargains’ that they advocate. NO FRILLS VALUE Value driven, they buy the cheapest brands and basic ranges but are becoming concerned about petrochems. They tend towards generic /supermarket ranges that offer simplicity and low price while reflecting no nonsense, benefits similar to mid-range brands.
  • 13. 7 POTENTIAL SKICARE CONSUMER SEGMENTS 13 ANTI AGERS From the elegant elder to the vain - the age fearful who will spend on latest crazes and new ‘scientific’ /advanced therapies and product to repair damage, fill the cracks and maintain youthfulness Also those into holistic health and wellbeing with a focus on maintenance. EXPERIENCE SEEKERS Young, active and fickle novelty seekers who like to experiment with new ideas especially with social/ experiential dimensions where they can capture and share selfie moments. Value led, mass- premium buyers who are motivated by low cost treats and gifting to friends. BRAND LOYALISTS Aspirational and often seeking a taste of perfection, they trust the claims of the well known, big name and upmarket brands. Most influenced by premium lifestyle associations and the technological advance, they love to try out new ideas presented by their most trusted labels.
  • 14. MALE SKINCARE [STEREO-]TYPES 14 NEW MASCULINE LABEL KINGSHIP GROOMERSURBAN MACHOSSPORTIFS SensitiveTough
  • 15. GEN Z & MILLENIALS Millennials and their ‘Z’ cohort’, the world’s largest consumer group, are driven by social causes while paradoxically obsessed by presenting themselves online like the global brands they love to consume. However, those in the UK will be the first generation since the 1950s to fail to do better than their parents Globally outward looking and motivated by innovation, they believe technology can make a better world. As part of their online identity, they leverage social media to expose wrongdoing and to draw attention to social issues, and align with brands that enable them to express opinions and become active advocates of the causes they believe in. 15 Living and giving Millennials prefer crowd funding to direct donations where they can see and promote tangible results SOURCES: Business Insider. British millennials are £2.7 trillion poorer. Jan 2017 Achieve. The Millennial Impact Report. 2015 Giving time & money 84% of employed Millennials made a charitable donation in 2015 and are most likely to get involved with causes when offered a range of volunteer opportunities Green paradox Primark announces it’s ‘green bag’ credentials while selling masses of low-cost, landfill fashion
  • 16. ECONOMIC OUTLOOK: GEN Z & MILLENIALS 16 A report from the Resolution Foundation dovetails with a Bank of England study that identifies people under age 45 are already 10% poorer today than they were in 2007. Millennials have been robbed of the ability to do better than their parents because of a couple of key decisions taken by their parents' generation. Those decisions were: - To keep interest rates near zero after the great financial crisis of 2008. - To abolish defined benefit pension plans in favour of defined contribution plans.
  • 17. MARKET PERSPECTIVES: GEN Z & MILLENIALS 17 POLITICAL People aged 18-24 are more likely to consider social problems the responsibility of individuals rather than government. SOURCE: Economist. Politics and the Young. Jun 2013 COMMENT ‘Millennials tend to be very socially aware, prone to be more public about it and thoughtful about, ‘Why am I here? What am I going to leave behind? How am I going to change the world?’ Identity Theorist, Professor Americus Reed. Wharton University SOURCE: Wharton University. How Millennials Think Differently about Brands. 2014 ECONOMIC Millennials who prefer experiences to things are driving the ‘sharing economy’, by choosing to borrow or rent rather than own goods. SOURCE: Daily Mail online. Buying things? That’s so wasteful. 2015. SOCIO-CULTURAL Social media outlets allow us to share a message that we find important, then step away from it, as we continue to scan our friends’ feeds. For a lot of people, the lazy web eco-system makes it easy to support a cause without being productive. SOURCES: Forbes. Are millennials lazy or avante-garde socialists. Oct 2012 Charlotte Robertson, Buzz Blog. Slacktivism. Why this Generation Sucks. Oct 2014
  • 18. GEN X & BOOMERS The over 50’s now account for a third of the global, population, own 80% of global wealth (69.7% of UK household wealth, equivalent to £6.2 trillion) with women now the biggest buyers of beauty products in Britain yet their needs and desires remain largely overlooked. The now ‘mature urban urbane’ who invented youth culture spanning Rock Roll, Hippy, Disco, Punk, New Wave and Rave are now taboo- busting what it means to age. Retiring no longer means winding down, increasingly wealthy, active and mobile, older people now bring huge cultural and economic benefits, presenting previously unseen role models to society. 18 Golden age of beauty Older women are shaking up fashion. Charlotte Rampling 68, Helen Mirren 69 and Tilda Swinton, 53 are all retained as house models to beauty brands 96 year old interior designer Iris Apfel, has become a phenomenal global fashion icon SOURCES The Telegraph. Over 50s women spent most on make-up. April 2015 Saga. Over 50s contribute more than 6 trillion to the UK economy. Jan 2016 Cosmetics Business. Men’s Market: Overview and Future Predictions. June 2015 Advance Style in the UK In 2015, British women spent £2,190.45 on beauty, a rise of 4.9% - the biggest growth area in the UK while UK Men’s skincare increased to an estimated £911 million pa.
  • 19. ECONOMIC OUTLOOK: REBEL SILVERS 45+ 19 The growing 50+ demographic desire to look good is forcing the beauty industry to listen and rethink their tone. While an increase focus on mature faces is applauded, there’s still frustration at the way mature people are reflected A Mintel survey found 37% of the 50-68 age group felt excluded in advertising, with 46 % saying their age group was stereotyped as old at 50. Seeking ‘enhancement’ over anti-aging, Euromonitor found 55% of 60+ used moisturisers without anti-ageing claims, compared with 35% who used specific anti-agers. SOURCE Raconteur. Over 50s market prefers ‘enhancement’ to anti-ageing. Sept 2015
  • 20. MARKET PERSPECTIVES: REBEL SILVERS 45+ 20 ECONOMIC Year ending April 2016, The older people spent more than under-50s for the first time, with a total £376 billion of discretionary spending with this silver pound’ boosting to UK GDP by £119 billion (6% UK GDP), supporting an estimated 1.9 million jobs. Crucially, spending by over-50s has grown 3x faster since 2003 (4.6% pa) than the under 50’s (1.4% pa) SOURCE: Hitachi Capital. Over 50s: a boost to UK economy, not a burden. May 2017 COMMENT “It’s time we stopped being negative about the older generation and instead of writing them off, we need to become more effective at realising the economic ambitions of this growing section of the population, instead of stifling them.” Robert Gordon. CEO, Hitachi Capital UK ECONOMIC Pension wealth has risen by 15%, from £2.2 trillion in 2011 to £2.52 trillion in the same period and the over 50s hold more than £3 in every £4 of financial wealth, in stocks, bonds and other investments - equivalent to 76.2%, approx. worth£800 billion. SOURCE: The Telegraph. Over 50s are worth billions, according to new report. Feb 2016 SOCIO-CULTURAL UK self-employed went up from 3.8m in 2008 to4.6m in 2015, with 50+ accounting for 43% that started their own businesses. SOURCES: FT. Over-50s are the new business start-up generation. Feb 2017
  • 21. TABOO-BUSTING REBEL SILVERS ARE REDEFINING AGING BEAUTY 21 While some brands are beginning to reflect a new positive image of mature women, Male oriented beauty brands remain risk adverse, ignoring the ‘Clooney effect’ utilised by other FMCG categories such as Nespresso. Maturing idols like David Beckham and ethnic fashion models are leading the charge on mature style and visibility of this in racial diversity.
  • 23. In a ‘post-Bling’ world following global recession, corporate scandal, and where 1% of the world’s population hold 80% of its wealth, polarised public opinion is opening debate, challenging us all to reassess our ethical values and expectations. Increasing public awareness of nuanced debate around issues of gender, truth, sustainability, race bias, BREXIT, data use and privacy are all themes making impact across sectors and culture at large today. Social purpose, use of big data, holistic wellness, and above all environmental sustainability, are all big issues driving brand behaviour today. MACRO TRENDS 23 “Our research shows that 54% of consumers are on the tipping point of purchasing sustainably. There is a huge economic opportunity for businesses that are able to build brands with real purpose which consumers care about” Keith Weed. Chief Marketing & Communications Officer, Unilever.
  • 24. TREND: ETHICAL CONCERNS Researched published by the UK Government identified that the ethical standards of retail companies and the products they sell is a issue that increasingly influences consumer choice. Ethics matter to at least ‘a little’ to more than four in five adults (83%) and ‘a great deal/ fair amount’ to half (49%) clearly outweighing the indifferent. Barriers to to ethical purchase are prices and accessible, reliable information. SOURCES: UK Government, Dept for Business Innovation and Skills. Views on ethical retail. June 2014 24
  • 25. MACRO TRENDS 25 Social / Brand purpose Youthful brands targeting Millennial mindsets are engaging in weighty topics and partnerships that champion causes and drive social change– from sustainability, gender to body image and beyond Gender Neutral Growing understanding around sex, gender, identity, role and self expression; progressive brands are challenging norms in products and packaging while others have success with neutral products that tap into design aesthetics usually associated with masculinity. A very British Beauty Beyond Rimmel’s London Look, BREXIT is galvanising the trend for ‘British made’ as a sign of quality and style. Both domestic and international sales, bolstered by falling value of GPB and shrinking UK confidence, is is inspiring a new generation of home grown products. Collaborative sustainability A shift in the collaborative relationship between customers and retail brands is occurring, especially the removal of single use plastics that are polluting the world with efforts seeing reusable packaging, through selling out of date and disfigured foods, to product personalisation.
  • 26. TREND: GENDER NEAUTRALITY While gender-targeted packaging is preferred by most personal care shoppers, over a third prefer neutral packaging, with Millennials and Gen-Xers driving the trend SOURCES: Iconoculture. Sex and the Soap Aisle. July 2016 26
  • 27. BREXIT In 2017, UK beauty sales topped £4billion for the first time but BREXIT concerns over issues such as compliance, export tariffs and exchange rates is set to disrupt the market. Booming global cosmetic sales are set to reach $675 billion by 2020. And while the UK outlook is positive especially for skincare, higher operational costs and lower consumer spending is likely to limit UK growth and may result in areas of premium segment erosion as consumers trade down. This scenario may see the previous trend for range ‘premiumisation’ scaled back aside from within super resilient luxe categories. 27 SOURCES: Euromonitor. How Will Brexit Impact the Beauty Industry? July 2016 Raconteur. The Beauty Economy. Nov 2016 The Guardian. Brexit leads cosmetics firm Lush to look for expansion outside UK. March 2017 Prospects Skin care is set to increase by 2% overall in value terms at constant 2016 prices reaching GBP2.9 billion in 2021, driven by independent skin care labels pushing prices down, while the corporates capitalise on established premium ranges. Lush go west Lack of UK Government clarity over Brexit plans has caused ethical, UK company Lush to offer staff to move to new German factory. No_UK ctizen comprise 20% of staff. The brand’s turnover rose 26% in 2016 with higher import cost of raw materials due to weak GBP offset by the cheaper cost of exports.
  • 28. TREND: BEAUTY THROUGH WELLNESS The new face of beauty is taking a holistic approach to feeling beautiful by achieving overall wellness. Superficial beauty is being replaced by holistic ‘wellness as beauty’ as a cross sector trend that also encompasses ideas around mindfulness, diet and exercise. SOURCES: Raconteur. How to Look Good and Feel Great. Nov 2016 28
  • 30. MULTI-CHANNEL Vs. OMNICHANNEL 30 Multi-channel marketing ✗ Refers to the ability to interact with potential customers, and apply sales information and/or promotions to various channels platforms. In this way, a set of assets or content might be specifically formatted for roll out across separate channels so the same or similar information is available or each channel might serve a distinct purpose as a stand alone platform Omnichannel experiences ✓ Refers to a joined-up channel approach that provides the customer with an integrated shopping and brand experience whereby content and channels are specifically designed to enhance, interact and work with each other. Each channel might have different content or provide various experiences or be designed to remove friction e.g. digital self pay instore or click & collect. The customer can be shopping online from a desktop or mobile device, via phone, or in a brick-and-mortar store, and the experience will be seamless.
  • 31. DIGITAL INTEGRATION 31 Technology is increasingly a ubiquitous presence which continues to fundamentally alter people’s attitudes and behaviour. People are demanding more from both brands/retailers in terms of experience, immersion and collaboration. Digital platforms are used both as an independent channels and increasingly integrated in-store. Multi-channel promotion is giving way to dynamically integrated (omnichannel) brand experiences, eCommerce is becoming editorialised and reinvented through the advent of sCommerce (sales within social media) Capitalising on digitalism Smart beauty brands are developing comprehensive content-lead customer engagement and distribution strategies, from Avon’s personalised sellers’ online stores to subscription services, to shoppable film and blog content. SOURCES: Cosmetics Business. UK skin and body care market analysis. June 2015 The Telegraph. Debenhams boosted by beauty sales. Jan 2017 FT. Debenhams revenues gets lift from beauty sales. Jan 2017 High Street Search Emerging as a beauty player, Debenhams has offset the decline within the clothing market by installing integrated beauty experiences. SEO metrics show it’s leading the UK high street on skincare trends most noticeably ‘organic’.
  • 32. Editorialised and social eCommerce The websites consumers visit most are the ones they find most enjoyable and more widely informative and valuable. As editorial content is freer to explore visitor’s interest and tap into emotions that drive purchase, smart brands are blurring the line between browsing content and online shopping experiences by developing content-to-commerce platforms both within their own sites but also posted across social media. This brings opportunities dynamic brand storytelling and implications for SEO. SOCIAL-COMMERCE 32 More than a store Premium and luxe labels like Gucci eCommerce site’s features shoppable editorial sections and eCRM newsletters Nike #PHOTOiD campaign a microsite that lets customers customise their trainers by using their Instagram images to create a colour scheme for their trainers The shoe design can be shared and bought directly from Instagram. SOURCES: Marketing Week. Social commerce: How willing are consumers to buy through social media. March 2016
  • 33. While the most common reason to use social media in the UK is to find out what’s a happening, global surveys also suggest many would like to shop via social media channels: 41% follow brands on social media to look at new ranges. 35% do so to get ideas about what to buy when they next go shopping. These reasons rank slightly higher for 18- to 24-year-olds at 47% and 40%, respectively. SOCIAL-COMMERCE 33 SOURCES: Marketing Week. Social commerce: How willing are consumers to buy through social media. March 2016 Office of National Statistics (ONS). Social Media Stats & Data sets. August 2016
  • 34. SOCIAL MEDIA DEMOGRAPHIC STATISTICS 34 Strength: Conversations. Sharing values. Social Marketing 56% male: 44% female Largest user groups span 18- 34 year olds 72% of all internet users are on/ visit Facebook 50% of users check it on waking. Engagement is highest Thursdays and Fridays Strength: Community/ audience building. Brand content promotions. ToV. User distribution 55% male: 45% female Primarily 18-49 year old users 35.6 million monthly users in UK Extremely cluttered with 300 hours of videos are uploaded every minute Strength: brand amplification, customer experience and service 50/50 male/female user split Highest users are aged 18-29 years old Users who watch a branded video have 28 percent higher purchase intention than the online norm Facebook, YouTube and Twitter remain the most used platforms, although Twitter is struggling to maintain relevance SOURCES: Office of National Statistics (ONS). Social Media Stats & Data sets. August 2016 Global Yogi. All you need to know about [social media] users and statistics. October 2016
  • 35. SOCIAL MEDIA DEMOGRAPHIC STATISTICS 35 SOURCES: Hootsuite & We Are Social. Digital in 2017 Global Overview. January 2017 Hootsuite. Top Snapchat Demographics That Matter to Social Media Marketers. August 2016 Office of National Statistics (ONS). Social Media Stats & Data sets. August 2016 Altimeter. The 2016 State of Social Business. November 2016 LinkedIn. 2016 LinkedIn Stats You Should Know . August 2016 Strength: B2B content and peer-to-peer influence. Networking. Recruitment. 62% male: 38% female Has most older users: 61% are 30-64 years old although 25% are 18-29. (N.B. the average age of a Fortune 500 CEO is 58 years old) 41% of millionaires use LinkedIn. Strength: Content distribution. FOMO promotions. Playful audience engagement 55% female UK user: 45% male 59% of users 12-17 year old - the most popular messaging apps for teens Although 65% of users are under 25; new users 25+ is increasing twice as fast as under 25s Strength: Awareness, Visual tonality. Community. Discovery 56% female: 44% male Most popular app for young with 90% under 35 years old and most users under 25. Dubbed the “Happiest Place in the (Internet) World,” with users liking 4.2 billion posts daily. Strength: Product and trends discovery. Social marketing 85% (greatest) female gender bias: 15% male Most evenly distributed between 18-64 year olds. 96% use the site to research a purchase. Users 10% more likely to purchase online than those on other networks.
  • 36. Selfie marketing Brands pander to the selfie generation using apps like use Snapchat lenses to cultivate user-generated advertising Messenger marketing Brands are using messenger apps to interact with consumers in ways that consumers sees as exceeding their customer service expectation rather than an intrusion of privacy. MOBILE 36 Makeup lenses L'Oréal sponsored Snapchat lens applies eyeliner to photos Multi-Character lenses The 20th Century Fox Snapchat ads let users try on 9 X-Men characters. Messenger food chatbot Food Bots used by brands like Burger King help customers order from their favourite menus directly via messenger apps.
  • 37. Beauty vending for cashless sales In 2009 Sephora debuted self-service kiosks at airports and J.C. Penney stores without sales counters. Benefit followed, installing vending in 20 hubs. In addition to selling products, the machine displays travel tips and tricks. Chanel unveiled the ’Le Volume de Chanel’ Mascara vending machine in the U.K. as a vehicle to launch new products. L'Oréal debuted a beauty kiosk at the 42nd Street-Bryant Park subway stop in New York City which sells mascara, nail polish, eye shadow, and lipstick, complete with a built-in camera that analyses your skin tone to find the right colour match. PHYGITAL SALES TREND 37 L'Oréal: skin analysis Sephora: cashless Chanel: mascara promotion Benefit: travel tips
  • 38. Cause marketing As consumers increasingly seek out brands with purpose aligned to their own values, brands are investing in local and national initiatives. Edutainment Responding to consumer desire for richer 360 experiences, brands are delivering a more humanized integrated approach by producing documentaries, tutorials, workshops and tours surrounding an area of their own expertise. COMMUNITY DEVELOPMENT 38 Waitrose localised CSR Shoppers receive tokens to place in a box relating to 3 local causes. The more tokens a cause gets, the bigger the donation. Pampers partner UNICEF Since 2006, the partnership has helped eliminate Maternal and Neonatal Tetanus in 15 countries. AirBNB Experiences Live like a local, uncover hidden spots also learn and participate in local culture through classes and workshops.
  • 39. Self-directed live and online Integration of live with online makes it even easier for their representatives to be their own boss, update their online 'shopfront' at a time that suits them rather than having to trudge from house to house looking for sales. Customer who don't know or want to meet their local representative van still order a specific product online with commission automatically going to the seller in their local area. Customers get the choice of free delivery delivered to their door by their rep or via direct delivery or parcel shop. CASE STUDY: AVON 39 SOURCES: This is Money The Avon lady goes digital. August 2016
  • 40. creative.union KARL AUSSIA INSIGHT. STRATEGY. COMMUNICATIONS. karl@aussia.com +44 (0) 7712 191 902 LET’S CONNECT!