The document discusses 10 trends and disruptors in the digital beauty industry organized under 3 themes.
1) Online: Smartphone browsing has lower conversion rates, driving demand for information-rich apps and social media recommendations.
2) Stores: In-store retail focuses on enhanced experiences through digital tools, magic mirrors, wearables and 3D printing, and on-demand beauty services.
3) E-Commerce: Subscription models are growing for habitual purchases. Luxury beauty is thriving online. Grocery sales and CPG brands are increasingly moving to online channels.
Trends + Trendsetters: The Best in Beauty Content Marketing NewsCred
Our Industry Landscape guides aim to educate marketers on trends, opportunities, and content strategies that best-in-class brands are utilizing to engage their audiences.
In this guide, we’ll take a look at content marketing in the beauty industry. We'll also walk through the content hubs for Bobbi Brown, Chanel, Birchbox, L'Oreal, Maybelline, and Aesop and share key learnings from each.
Interested in learning more? We’d love to hear from you! Feel free to reach out at strategy@newscred.com.
Digital Beauty Retail: Top players and strategiesMihai Dragan
The Beauty and Cosmetics category is
one of the fastest moving digital commerce
areas. It is a highly competitive and
innovative market with large brands
quickly adopting digital models and challengers
innovating their way to the top.
In this study you’ll find the top players in
the market, a brief overview of their evolution
and an outline of the strategies they
use to address their customers.
Mirror Mirror - How Beauty / Skincare segment is Taming the Digital BeastRanajoy Roy
Reflections on digital influence in beauty & skincare category by Ranajoy Roy, Managing Partner, Newton Digital
Beauty / skincare category is an actively marketed segment on the internet, with countless searches, “how-to” videos and a growing number of peer reviews informing and influencing consumer purchase decisions. Beauty brands have adopted, scaled and evolved by leveraging digital, social and mobile together. Brands are inventing newer ways to engage the consumer in micro pockets of her time and gain share of their limited attention span. Communication is taking place in short bursts over mobile, web and social.
But how are they preparing themselves to win over the digital beast? Explore this full deck and the case studies and recommendations within.
Welcome to the latest edition of our Snapshot. In this edition, we will demonstrate how technological innovations both shape the beauty industry and individualize and increase the effectiveness of beauty items.
The report is divided into four parts:
- Digital Beauty - Digitalization is changing customer journeys and stimulating “try & buy” experiences.
- Tech Boosters - Technology is increasingly used to boost the performance and effectiveness of existing products.
- Beauty Wearables - Smart items offer individuality by measuring bio data and giving customized recommendations.
- Ingestible Beauty - Research is working on ingestible products that make keeping up with beauty routines easier and faster.
Beauty brands are increasingly turning to digital media for a more integrated, robust program to generate ROI. This trend report highlights some of beauty’s top trends in social media over the past few months and explains why these particular campaigns worked and what could have been better
Trends + Trendsetters: The Best in Beauty Content Marketing NewsCred
Our Industry Landscape guides aim to educate marketers on trends, opportunities, and content strategies that best-in-class brands are utilizing to engage their audiences.
In this guide, we’ll take a look at content marketing in the beauty industry. We'll also walk through the content hubs for Bobbi Brown, Chanel, Birchbox, L'Oreal, Maybelline, and Aesop and share key learnings from each.
Interested in learning more? We’d love to hear from you! Feel free to reach out at strategy@newscred.com.
Digital Beauty Retail: Top players and strategiesMihai Dragan
The Beauty and Cosmetics category is
one of the fastest moving digital commerce
areas. It is a highly competitive and
innovative market with large brands
quickly adopting digital models and challengers
innovating their way to the top.
In this study you’ll find the top players in
the market, a brief overview of their evolution
and an outline of the strategies they
use to address their customers.
Mirror Mirror - How Beauty / Skincare segment is Taming the Digital BeastRanajoy Roy
Reflections on digital influence in beauty & skincare category by Ranajoy Roy, Managing Partner, Newton Digital
Beauty / skincare category is an actively marketed segment on the internet, with countless searches, “how-to” videos and a growing number of peer reviews informing and influencing consumer purchase decisions. Beauty brands have adopted, scaled and evolved by leveraging digital, social and mobile together. Brands are inventing newer ways to engage the consumer in micro pockets of her time and gain share of their limited attention span. Communication is taking place in short bursts over mobile, web and social.
But how are they preparing themselves to win over the digital beast? Explore this full deck and the case studies and recommendations within.
Welcome to the latest edition of our Snapshot. In this edition, we will demonstrate how technological innovations both shape the beauty industry and individualize and increase the effectiveness of beauty items.
The report is divided into four parts:
- Digital Beauty - Digitalization is changing customer journeys and stimulating “try & buy” experiences.
- Tech Boosters - Technology is increasingly used to boost the performance and effectiveness of existing products.
- Beauty Wearables - Smart items offer individuality by measuring bio data and giving customized recommendations.
- Ingestible Beauty - Research is working on ingestible products that make keeping up with beauty routines easier and faster.
Beauty brands are increasingly turning to digital media for a more integrated, robust program to generate ROI. This trend report highlights some of beauty’s top trends in social media over the past few months and explains why these particular campaigns worked and what could have been better
Estée Lauder - Social and luxury: Challenges and opportunities for high-end b...Branded Ltd
High-end, luxury brands like Estée Lauder are some of the most innovative users of social media for marketing and consumer outreach. See how Estée Lauder is using Social to address challenges and create opportunities, as presented at Branded's 2013 Conference, Social Matters
This is an academic project for Sephora. This project examines the cosmetics category and the existing consumer. In-depth interviews, shop-a-longs, and other primary researches were conducted to explore more first-hand consumer insights. Based on all the primary and secondary research, new positioning and brand vision were suggested as a conclusion.
The content includes the following:
1. Introduction
2. Research methodology
3. The consumer and the cosmetics category
4. The context – trends affecting the category
5. The consumer and Sephora
a. Key findings about Sephora
b. Key findings about Sephora's major competitors
c. Perceptual map and new positioning
6. Opportunities/issues for Sephora
7. New brand vision statement and rationale
8. New creative brief
Big Digital Umbrella's 12 do's and don'ts of luxury digital marketingJerome Pineau
Marketing and digital strategy for luxury brands has little in common with traditional marketing. Learn some of the key points to remembers with 12 do and don't tips of luxury digital marketing from your friends at Big Digital Umbrella, a marketing and digital strategy consulting firm focused on high-tech and luxury brand clients.
The goal of the survey was to establish an industry benchmark for digital marketers
at luxury companies. Results to this study, revealed in this report, determine
spending trends and marketing successes, as well as areas in need of further
development and investigation in the luxury market.
EARNED MEDIA SUCCESS FOR BEAUTY BRANDS ON YOUTUBEOctoly
At Octoly, we believe in the power of passion. Passion is what drives us as human beings. Passion gives us the inner strength to push ourselves beyond expected limits. It’s what drives creativity, defines our belief system, makes crowds gather and cheer, and gives birth to society’s great cultural icons - everything from media stars to superstar brands. Thousands of Youtubers reach this level of passion, by reviewing products and featuring brands on YouTube and their other socials channels.
How luxury brands are embracing Digital Transformation - ArabNet Riyadh 2015ArabNet ME
Speaker: Christian Nucibella, Founder & CEO, FiloBlu
كلمة: كيف تتعامل العلامات التجارية الفاخرة مع التحول الرقمي
كريستيان نوسيبلا، المؤسس والمدير التنفيذي، فيلو بلو
The digital economy is entering a new era that presents unprecedented challenges for all CEOs. This has given rise to new opportunities for luxury brands that request a new approach to e-Retail management.
Through a selection of meaningful case studies, the presentation will explain how fashion brands of the calibre of Santoni, Maliparmi and Philipp Plein are embracing digital transformation.
Digital audit of Sephora's current website, and social media platforms. All aspects have been benchmarked against current competitors digital presence. Recommendations available on how to close the gap between current state and desired state.
Retail, luxury and fashion affiliate marketing7thingsmedia
Luxury Marketing is often seen as behind the times within digital and affiliate marketing specifically, but now with an influx of bloggers and content sites being thrown into the marketing mix, alongside increasing confidence in the channel means that luxury businesses are not only embracing affiliates but potentially leading the way.
The American Society of Plastic Surgeons reports cosmetic procedures increased three percent in 2014, according to new plastic surgery .Visit www.aestheticlavc.com
Beauty brands “spend obscene amounts on content marketing to stand out.” Which brands spend most wisely? sQills’ CONTENT SELLS BEAUTY is featuring 5 Out of the Box Content Marketing Cases in the Beauty Industry with Outstanding ‘On Budget Effectiveness’.
Estée Lauder - Social and luxury: Challenges and opportunities for high-end b...Branded Ltd
High-end, luxury brands like Estée Lauder are some of the most innovative users of social media for marketing and consumer outreach. See how Estée Lauder is using Social to address challenges and create opportunities, as presented at Branded's 2013 Conference, Social Matters
This is an academic project for Sephora. This project examines the cosmetics category and the existing consumer. In-depth interviews, shop-a-longs, and other primary researches were conducted to explore more first-hand consumer insights. Based on all the primary and secondary research, new positioning and brand vision were suggested as a conclusion.
The content includes the following:
1. Introduction
2. Research methodology
3. The consumer and the cosmetics category
4. The context – trends affecting the category
5. The consumer and Sephora
a. Key findings about Sephora
b. Key findings about Sephora's major competitors
c. Perceptual map and new positioning
6. Opportunities/issues for Sephora
7. New brand vision statement and rationale
8. New creative brief
Big Digital Umbrella's 12 do's and don'ts of luxury digital marketingJerome Pineau
Marketing and digital strategy for luxury brands has little in common with traditional marketing. Learn some of the key points to remembers with 12 do and don't tips of luxury digital marketing from your friends at Big Digital Umbrella, a marketing and digital strategy consulting firm focused on high-tech and luxury brand clients.
The goal of the survey was to establish an industry benchmark for digital marketers
at luxury companies. Results to this study, revealed in this report, determine
spending trends and marketing successes, as well as areas in need of further
development and investigation in the luxury market.
EARNED MEDIA SUCCESS FOR BEAUTY BRANDS ON YOUTUBEOctoly
At Octoly, we believe in the power of passion. Passion is what drives us as human beings. Passion gives us the inner strength to push ourselves beyond expected limits. It’s what drives creativity, defines our belief system, makes crowds gather and cheer, and gives birth to society’s great cultural icons - everything from media stars to superstar brands. Thousands of Youtubers reach this level of passion, by reviewing products and featuring brands on YouTube and their other socials channels.
How luxury brands are embracing Digital Transformation - ArabNet Riyadh 2015ArabNet ME
Speaker: Christian Nucibella, Founder & CEO, FiloBlu
كلمة: كيف تتعامل العلامات التجارية الفاخرة مع التحول الرقمي
كريستيان نوسيبلا، المؤسس والمدير التنفيذي، فيلو بلو
The digital economy is entering a new era that presents unprecedented challenges for all CEOs. This has given rise to new opportunities for luxury brands that request a new approach to e-Retail management.
Through a selection of meaningful case studies, the presentation will explain how fashion brands of the calibre of Santoni, Maliparmi and Philipp Plein are embracing digital transformation.
Digital audit of Sephora's current website, and social media platforms. All aspects have been benchmarked against current competitors digital presence. Recommendations available on how to close the gap between current state and desired state.
Retail, luxury and fashion affiliate marketing7thingsmedia
Luxury Marketing is often seen as behind the times within digital and affiliate marketing specifically, but now with an influx of bloggers and content sites being thrown into the marketing mix, alongside increasing confidence in the channel means that luxury businesses are not only embracing affiliates but potentially leading the way.
The American Society of Plastic Surgeons reports cosmetic procedures increased three percent in 2014, according to new plastic surgery .Visit www.aestheticlavc.com
Beauty brands “spend obscene amounts on content marketing to stand out.” Which brands spend most wisely? sQills’ CONTENT SELLS BEAUTY is featuring 5 Out of the Box Content Marketing Cases in the Beauty Industry with Outstanding ‘On Budget Effectiveness’.
2011's vision for clients that we work for and the way we see the different role of digital plays out for them but one that will never go away is that if your consumers can't find you, they wont't buy you. Happy to get comments:)
The primary goal of any company is to be successful and grow, and that means facing and overcoming problems along the way. Expansion can bring its own challenges and one of the most critical areas to manage is IT infrastructure.
This infographic will guide you through the often complex process with 5 easy tips to keep in mind:
• Assembling the right team
• Selecting open source or licensed software
• Considering the cloud • Optimising mobile
• Successful integration
マルチプラットフォーム開発に乗り出したいけど、FireMonkeyがよくわからない…その問題の根底にあるのは「VCL」。Windows向けのコンポーネントVCLの知識と経験が邪魔をして、マルチデバイス向けコンポーネントFireMonkeyの学習を妨げているのです!そこでこのセッションではそれを逆手にとってVCLで作ったプログラムとFireMonkeyで作ったプログラムで同じ動作をさせる方法を例を交えて解説し、FireMonkeyについて理解を深めます。Windows / OS X のマルチデバイスデスクトップアプリの作成からトライしてみましょう!
株式会社シリアルゲームズ
取締役 細川 淳
From Zero to Beauty 3.0: The 5 Eras of Beauty Retail, by ELSE Corp for Cosmot...ELSE CORP
ELSE Corp Unveils the 5 Eras of Beauty Retail Industry Transformation at Cosmoprof 2019
ELSE Corp- a Virtual Retail Company, an Italian start-up working on the development of the Virtual Retail platform, E.L.S.E. (an acronym for Exclusive Luxury Shopping Experience) that proposes a new Virtual Shopping experience in 3D, was one of the main Technological Partners also for this year’s edition of the Cosmoprof and Cosmopack Awards. The event, which took place in Bologna from Thursday, March 14 to Monday, March 18, was organized by Cosmoprof Worldwide Bologna and dedicated to the entire beauty production chain.
more info: https://www.else-corp.com/cosmoprof-awards-2019
Accenture - The Role of Packaging for the Evolving ConsumerAccenture Italia
What is the role of Packaging for the Evolving Consumer?
Find out more on this presentation by Francesca Romana Saule, CRM Senior Manager at Accenture, shared at the Luxury Packaging Summit 2015.
Creating loyal omnichannel customers is critical. Retailers who embrace the customer-centric trend and build better shopping experiences will leap ahead of the competition.
Building a blended customer experience isn't easy. Need some help getting started? Check out our latest in retail trend research.
We are thrilled to release our new presentation: « Retail, Fashion & Beauty: how companies drive innovation».
Based on our experience and our research, this analysis highlights the different ways companies drive innovation in the US and in Europe, illustrated through 80 best practices.
Presentation: Understanding Customer Centricity
Have you ever wondered why some organizations fail while some achieve stunning success? What is the secret behind successful organizations? To survive and thrive in this competitive world organizations are moving from product first approach to something else.
Presented to: Women in Agile Houston Group
Presented on: 7/15/2020
Overview – Retail Sales Looking Brighter for Back-to-School
2Q Update – Earnings Scorecards; Consumer Discretionary Leads Growth
July Same-Stores Sales Somewhat Mixed
Back-to-School Drives July Traffic to Best Month of Calendar Year
Back-to-School Outlook; Solid Forecast, Room for Upside
Category Spend; School Supplies and Clothing Highest Growth
Finding Dollars in New Places
Where Consumers Plan to Shop – Discount Stores & Online
Shopping and Advertising Starting Earlier
Fashion Trends
Calendar Impact
2016 Second Half Predictions
Macro Outlook
ICSC—Texas New Techies: A Retail Startup Pitch CompetitionDeborah Weinswig
- A startup pitch competition is a session where entrepreneurs with innovative business ideas can boost awareness of their products and ideas and convince potential investors to invest in their company.
- Each company will have five minutes to present, followed by a 75-second Q&A session today.
1. Favorable Macro Backdrop
2. Overview: Optimistic About Holiday 2016
3. E-Commerce Driving Holiday Growth
4. A Very Mobile Holiday Season
5. E-Commerce: What Do Consumers Respond To?
6. Holiday Hiring Projected to Be Up Slightly; Clear Shift Toward E-Commerce
7. Thanksgiving Day Shopping Will Remain Popular
8. Black Friday: Could It Be Dethroned?
9. Singles’ Day Will Capture More Early-Bird Online Shoppers in the US
10. More Favorable Holiday Calendar
11. Presidential Election Impact
12. Holiday Shopping Themes
13. Holiday Fashion Trends
14. Hot Holiday Tech Giftables
15. Fung Global Retail & Technology’s Hot Toys for 2016
US 2016 Holiday Homestretch: Performance to Date Bodes Well for HolidayDeborah Weinswig
1. Holiday Homestretch: Performance to Date Bodes Well for Holiday
2. Holiday Shopping Season Lengthened
3. Some Retailers Shut their Doors on Thanksgiving
4. Thanksgiving/Black Friday Store Traffic Declined Modestly, but Showed Improvement over Recent Years
5. Black Friday Online Sales Hit Record, Mobile Drove Growth
6. Comments from Retailers on Black Friday Results
7. Cyber Monday Set Online Sales Record
8. Amazon Won Cyber Weekend Again
9. Thanksgiving Weekend: E-Commerce’s Share of Holiday Spending Increased
10. Cyber Monday Becomes Cyber Week
11. Sales by Region: Thanksgiving Day Through Cyber Monday
12. With the Bulk of Major Shopping Days Still Ahead, Expect a Last-Minute Rush of Holiday Shoppers
13. Post–Black Friday Drop-Off in Traffic Seen in Last Few Weeks Is Normal
14. Online Traffic Remained Strong in Early December Despite Expected Post–Black Friday Drop-Off
15. Holiday Promotions Generally Consistent with Last Year, Not as Deep as Black Friday’s
16. Retailers Should Take a Holistic View of Consumers to Be Successful
17. Holiday Themes: Fashion Trends
18. Positive Holiday Calendar
19. Favorable Macro Backdrop
US 2016 Holiday Wrap-Up: Successful Season Driven by a Late-December SurgeDeborah Weinswig
1. Holiday Wrap-Up: Season Was a Success, Driven by a Last-Minute Surge of Shoppers
2. Consumers Were Willing to Wait for the Best Deals, Which Resulted in a Last-Minute Rush in Sales
3. Favorable Holiday Calendar; Day Before Christmas Was a Saturday
4. Cold Weather Caused an Uptick in Outerwear Sales
5. Holiday Online Sales Growth Outpaced In-Store Sales Growth
6. Retailers Managed Online/Offline Balance Better than in Years Past
7. Amazon Won with Its “Best Ever” Holiday Season
8. In-Store Traffic Increased When Online Delivery Window Closed
9. Not Everybody Won—Department Store Sales Growth Was Less Robust and Apparel Struggled amid Discounting
10. This Season’s Best-Sellers: Tech-Related Products
11. Traffic Momentum Continued After Christmas
12. National Returns Day, January 5, Expected to Draw 1.3 Million Package Returns
13. Brick-and-Mortar Stores See Returns as an Opportunity to Drive Sales
14. Favorable Macro Backdrop
It’s no secret that the marketing landscape is growing increasingly complex, with numerous channels, privacy regulations, signal loss, and more. One of the biggest problems facing marketers today is that they’re experiencing data deluge and data drought simultaneously.
Bliss Point by Tinuti addresses these challenges by providing a single, user-friendly platform for measuring what marketers previously struggled to measure. With Bliss Point, you can move beyond simply validating past actions and instead use measurement to guide real-time decision-making on what should happen next.
Join our product experts for a live demonstration of Bliss Point. Discover how it can empower your brand with the tools and insights needed to optimize each channel, across your entire media mix, and your overall brand performance.
The Future of E-commerce: first-hands insights.Solvd, Inc.
According to Statista, revenue in the e-commerce market is projected to reach US$4,117.00bn in 2024. New technologies and methodologies constantly influence how the e-commerce market develops and shapes itsthe future of e-commerce. The main questions are in the air: How can we stay aligned with e-commerce business owners and ensure our engineering services meet their evolving needs?
At Solvd, this question prompted a deep dive into the current e-commerce landscape. Our goal was to get information about the future of e-commerce directly from first-hand sources. In the course of our research, we explored:
- Portrait of respondents.
- Current challenges and pain points of the e-commerce industry.
- Emerging trends and upcoming opportunities.
- Human resource allocation for e-commerce projects.
- Solutions and actionable advice for business owners.
- The role of a reliable partner in problem-solving.
Explore, download, and share invaluable insights made by Solvd!
1. TOP TEN TRENDS AND
DISRUPTORS IN DIGITAL
BEAUTY
Make Up in Paris
June 10, 2016
2. The knowledge bank for the Fung Group
Consultancy for clients within and outside of the Fung
Group
Focuses on emerging retail and tech trends
Established in 2014. London office established in 2015
Based in New York, London and Hong Kong
20+ analysts specializing in retail and technology
Publishes thematic and global market research on topics
such as the Internet of Things, digital payments,
omnichannel retail, luxury and fashion trends and
disruptive technologies.
ABOUT FUNG GLOBAL RETAIL & TECHNOLOGY
FUNG
THINK
TANK
RETAIL
TECH
MICRO
MACRO
RETAIL
REAL
ESTATE
THEMATIC
RESEARCH
VR
AI
IOT
DIGITAL
DIGITAL
DIGITAL
DIGITAL
HONG KONG NEW YORK LONDON
3. 3
Fung Global Retail & Technology publishes research, freely available on www.fbicgroup.com, and soon on www.fgrt.com
We advise retailers, real estate developers and tech companies on projects situated at the intersection of retail, tech and/or
fashion.
Our team offers a robust knowledge bank and significant experience in the retail, fashion and tech fields.
A UNIQUE COMBINATION OF RETAIL, FASHION
AND TECH
OUR EXPERTISE
FASHION TECHRETAIL
4. 10 DISRUPTORS, THREE THEMES
1. Online:
• Primarily about research.
2. Stores:
• Experience is all.
3. E-Commerce opportunities:
• Subscription, luxury and grocery.
5. THEME 1: ONLINE
• Online is disproportionately about research
and browsing.
• Smartphones have made it more than ever
about browsing: lower conversion rates,
because of “downtime browsing” with little or
no intention to buy.
7. Demand for an information-rich
experience fulfilled by apps offering
“scientific” advice and social media
offering human recommendations.
8. INFORMATION-RICH ONLINE EXPERIENCE
1. The App as a Beauty Tool:
Facial Mapping
• Virtual makeovers and try-ons
• Factual, scientific, algorithm-driven advice
• ModiFace, a Toronto-based company with a background in building 2-D
and 3-D facial simulations, offers multiple apps
• Sephora Pocket Contour: facial contour analysis
• L’Oréal Makeup Genius: magic mirror-type experience
1
9. INFORMATION-RICH ONLINE EXPERIENCE
1. The App as a Beauty Tool:
Color Matching Goes High-Tech
• Sephora + Pantone = Color IQ
• IMAN Cosmetics determines a user’s
“color signature” after taking a headshot
• ShadeScout matches the Pantone shade
of colors from photos
1
10. INFORMATION-RICH ONLINE EXPERIENCE
1. The App as a Beauty Tool:
Smartphones as Personal Beauty Consultants
• Smartphone apps are capable of:
– conducting skin analysis
– making product recommendations
– performing virtual cosmetic testing
• Allure SkinBetter applies
dermatologist-grade scanning
technology to identify skin issues
• Visada analyzes skin lines and spots
from a selfie, to provide makeup
recommendations
• Plum Perfect determines skin tone,
hair type and eye color to make
recommendations
1
11. INFORMATION-RICH ONLINE EXPERIENCE
2. Social Selling for Beauty Products:
The Human Element in Digital
• 50% of beauty shoppers rely on
beauty videos on YouTube when
making a purchase (source:
Google).
• With YouTube’s help, beauty
brands provide beauty products
for product placement/trial.
• Regular shoppers sharing their
finds through “beauty hauls.”
Zoella
2
12. INFORMATION-RICH ONLINE EXPERIENCE
2. Social Selling for Beauty Products:
The Human Element in Digital
Beauty on
Source: Pixability, 2015
2
45.3 bil.
Total beauty video
views to April 2015
123 mil.
Total beauty
subscriberships
1.8 mil.
Total beauty videos
Mature and male
beauty are high-
growth areas
13. INFORMATION-RICH ONLINE EXPERIENCE
2. Social Selling for Beauty Products:
The Human Element in Digital
Beauty brands on YouTube:
• 215 beauty brands present on YouTube.
• 2.1 billion brand-owned beauty video views…out of 45.3 billion total beauty video
views.
• So brand-owned videos have <5% share of beauty video views.
• Top-viewed branded beauty channels range from Chanel to Dove to Dior to
Sephora: massmarket and luxury.
• 2016: L’Oreal launches “authentic” unbranded content-sharing site, Fab Beauty.
• 2016: L’Oreal and YouTube launching an online vlogging school.
Source: Pixability/Company reports
2
14. THEME 2: STORES
• In-store retail is more than ever about experience.
• Particularly essential for beauty categories, where
tangibility can be essential.
• But shoppers want experience on their terms: some
16% of US consumers decide to shop where sales
associates will leave them alone until sought out for
help (Mintel, 2015).
15. 85%
• Of US shoppers
prefer to shop
in stores
because they
like to touch
and feel
products
90%
• Are likely to
make a
purchase when
they receive
assistance
from a
knowledgeable
store associate
63%
• Say if an item
is the same
price at
different
retailers, they
choose where
to shop based
on overall
experience
DIGITIZATION CAN HELP DELIVER THE
EXPERIENCE SHOPPERS EXPECT
Source: Timetrade, 2015
16. In-store tech can play a role in
enhancing the experience, offering
service, and bringing the
information consumers are used to
getting online, into stores.
17. EXPERIENCE IS EVERYTHING
3. Digital Stores
• Sephora Flash ultra-connected boutiques. First is at 66, Rue de Rivoli in Paris.
• An edited selection of products, alongside a digital catalog of more than 14,000
products from 150 brands.
• Perfume testers with an NFC (Near Field Communication) tag provide shoppers with a
multitude of information on the fragrance by simply placing the tester on the connected
screen.
• NFC-reactive screens can bring some of the information consumers are used to getting
online into the store.
3
18. EXPERIENCE IS EVERYTHING
4. Magic Mirrors
• In-store experience through technology.
• Samsung OLED magic mirror: multiple use cases including virtual beauty try-ons.
• May 2016: First commercial use, in a hair salon.
• Panasonic’s Interactive Mirror: “After analysing your skin condition and pointing
out fine lines, age spots and other issues it recommends cosmetics and
treatments.”
4
19. EXPERIENCE IS EVERYTHING
5. Wearable Tech and 3D Printing
• In future, products made or personalized before your eyes.
• Early areas of wearable-tech in beauty include:
– nail decoration
– tattoos and conductive makeup
– combining beauty and technology to empower the disabled
5
20. EXPERIENCE IS EVERYTHING
5. Wearable Tech and 3D Printing
• Open-source desktop 3D printer with a sub-$200 price tag that can
print makeup such as lipstick, lip gloss, eye shadow, blush, nail polish
and brow powder
5
21. EXPERIENCE IS EVERYTHING
6. On-demand Beauty Services
• Apps such as Beautified, BeautyNow and Glamsquad allow users to
search for nearby salons and book last-minute appointments using
geolocation-based technology.
• Sits within a landscape of service-focused apps and intermediaries,
from Just Eat to Deliveroo to Uber.
• Beauty services is a fragmented market—many small, independent
players.
• Platforms such as this consolidate the sector at the front end.
6
22. EXPERIENCE IS EVERYTHING
7. Shoppers are Digitizing Stores
More Than Retailers Are
• Shoppers are turning stores digital with their smartphones.
• 45% of beauty consumers prefer to search for product
information in-store on their mobile device rather than ask for
assistance from a sales associate (Mintel, 2015).
• And 90% of US smartphone users use their smartphone in stores
while shopping.
7
42
48
54
90
0 10 20 30 40 50 60 70 80 90 100
Checking Reviews
Looking Up Product Information
Price Comparison
Any Smartphone Use
%
Percent of US Smartphone
Owners Using Their
Smartphone In Store, 2015
Source: SessionM
23. THEME 3: E-COMMERCE
OPPORTUNITIES
• Growth and opportunities in three distinct
segments.
o Subscription—for habitual purchases and
trialing.
o Luxury—a strong channel in a struggling
market.
o Grocery—set for strong growth.
24. E-COMMERCE IS A DIVERSE CHANNEL
Internet’s Share of Color Cosmetics Sales, 2010-15
8.2
10.0
5.0
5.5
6.0
6.5
7.0
7.5
8.0
8.5
9.0
9.5
10.0
2010 2011 2012 2013 2014 2015
%
Western Europe US
Source: Euromonitor International
26. E-COM OPPORTUNITIES
8. Subscription Models
• Consumers find value in avoiding the drudgery of shopping for
everyday commodity items
• They appreciate the benefits of curation
• Many consumers use subscriptions to treat themselves to a monthly
gift
• Consumers love the convenience and dependability of the services
• Retailers love subscription models as a source of recurring revenue
8
1 Mil.
Subscribers
2.2 Mil.
Subscribers ?
Source: Company reports
27. E-COM OPPORTUNITIES
9. Luxury E-Commerce
E-commerce is a bright spot in a weaker luxury market:
• Total luxury CAGR to 2020: 2-3%.
• Luxury e-commerce CAGR to 2020: 15%.
• Beauty offers a better fit to e-commerce than other luxury
goods: no concerns about fit, habitual purchases, and small
size.
9
E-Commerce Share of Global Luxury
Goods Sales (Percent) and YoY % Change
Source: Bain & Co.
1.3 1.7 2.2 2.6 2.9
3.5
4.5
5.8
7.7
9.8
12.0
16.8
0
5
10
15
20
25
30
35
40
45
0
2
4
6
8
10
12
14
16
18
04 05 06 07 08 09 10 11 12 13 14 15E
% Share of Market (Left Axis) YoY % Change (Right Axis)
28. US: % of Grocery Shoppers Who Bought
Groceries Online in the Past Year
US: Online’s Estimated
Share of CPG Sales
19
31
0
5
10
15
20
25
30
35
2014 2015
%
+63%
0.8
2
3
4
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2014 2015 2016E 2017E
%
Source: IRI/Fung Global Retail & TechnologySource: Mintel
E-COM OPPORTUNITIES
10. Online Grocery
10
29. E-COM OPPORTUNITIES
10. Online Grocery
• In developed markets, up to 39% of
BPC products are sold through
grocery stores.
• Online is the fastest-growing
channel in grocery: it will be a
principal growth channel for
massmarket BPC brands.
• In the US, online CPG sales will make
up more than half of total CPG sales
growth to 2018 (source: IRI).
Indirect disruption for beauty brands:
• Brands need to consider how they
are going to continue putting their
products in front of shoppers.
• And they will find pure plays such as
AmazonFresh a source of growth.
10
Grocery Retailers’ Share of
Sales, 2015 (Percent)
16.0
27.1
38.5
12.2 12.5
29.5
0
5
10
15
20
25
30
35
40
Color Cosmetics Skin Care Men's Grooming
%
Western Europe US
Source: Euromonitor International
30. 10 DISRUPTORS, THREE TAKEAWAYS
1. Information-rich online and app tools to help
customers research and decide.
2. Experience-rich stores, leveraging technology
to bring information into the store.
3. E-commerce is a diverse channel with discrete
opportunities.