Brandstorm 2012

8/2/2019 Brandstorm 2012

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201015 CAGR 2%

2010/15 TOTAL 10.3%

Current:

An improved overall operang environment and consumer spending were reflected

in an improved but sll fairly slow pace of growth demonstrated by the Canadianbeauty and personal care market. In 2010 sales grew by a lile over 3% in current

value terms to reach C$8.4 billion. Although focus on mass market products

remained strong, reflected in product development, adversing and consumer

purchases. However, premium segment did see some recovery in sales, contribung

to increase in value of sales. Improved performance of premium products was seen in

products such as skin care and colour cosmecs, although not all brands were

benefing equally.

Outlook:

The economic outlook in Canada for the forecast period is posive. Industry sources

indicate that the Canadian economy is expected to register real GDP growth of 23%

annually over the forecast period. Addionally, the sll relavely high unemployment

rate is expected to fall closer to prerecessionary levels, which is in turn expected to

help support consumer spending in retail

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Consumers place @ght controls of their spending on beauty and personal care

products

Growth will not be driven by expanded usage by consumers but by an emphasis on

marke@ng and product development. However, notable innova@on is deteriora@ng

causing many manufacturers to resort to crea@ve marke@ng to coax consumerstowards highmargin products.

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Colour cosmecs sales are forecast to grow by a total of 1% over the 20092014 period inconstant value terms, aer having declined by 3% between 2009 and 2014

The growing trend towards simplicity may also prompt consumers to pare down theirroune and reduce colour cosmecs purchases, or turn to other products, such as nted

moisturisers

Eye makeup is expected to be the best performing subsector in the forecast period. Valuesales of eye makeup are forecast to grow by 8% in constant value terms between 2009and 2014.

Manufacturers are expected to retain consumer interest through technologicalinnovaons, especially in mascara. As a result, value sales of mascara are expected to

grow by 12% over the forecast period.

Sales of facial makeup are forecast to grow by 3% in value terms between 2009 and 2014.Facial makeup sales grew by a higher 5% rate over the review period, as consumer

demand for mineral makeup helped drive sales.

In the absence of strong innovaon, lipscks will connue to suffer, despite the efforts ofbeauty editors to bring back lipsck. Nevertheless, the 11% projected decline for lipscks

is an improvement from the 19% decline in the 20042009 period.

Potenal company acvity is likely to revolve around product development, such as moreskin care benefits, improved product delivery systems and more natural products. The

ageing of baby boomers is expected to boost the development of products with an

ageing benefits. Companies are likely to introduce more sophiscated product applicators,

such as LOrals True Match Roller

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Other includes:

Coty Inc, 3.3 % ColgatePalmolive Co 3.3 % Avon Products Inc, 2.0 % AlbertoCulver Co 1.8% Kao Corp 1.6% GlaxoSmithKline Plc 1.5% Clarins SA 1.3% Energizer Holdings Inc 1.1% Henkel AG & Co KGaA 1.0% Beiersdorf AG 1.0% Yves Rocher SA 0.9%

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Olay 2.6% market share

Pantene 1.5%

Covergirl 1.4%

Clairol 1%

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Clinique 1.9%

Estee Lauder 1.0%

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Dove 2% market share

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Surveyed 50 women between the ages of 1840 as body shops main consumer is

female

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Beauty products include

Skin care Colour Cosmecs Bath and Shower Haircare

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Source: Mintel reports for 2009 and 2010

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Values 10 million use discounts to buy products, 28% cung back on treats

DIY + Social Media = learn your own beauty applicaon on websites like YouTube

over 2 million views

Ethical 50% deems ethical issues important

Easy to make comparisons among brands using social media

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LUSH "Shower Jellies", gelanlike semisolid shampoo and body wash; "Toothy

Tabs", solid toothpaste tablets; and "Bath Bombs," solid balls made of sodium

bicarbonate that fizz with different scent, previous supplier to THE BODY SHOP

Body Works Signature home fragrance scents, including plugin Wallflowers,Scentports, candles, room sprays and fragrance oils

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Ethical Stance Partnership with developing naons

All Brands compete in ethical products category offering similar value proposion, i.e.

100% Vegetarian, No animal Tesng, Natural Based ingredients, Ethical sourcing

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Women do appreciate acons of Body Shop, know its environmental consciousness is

part of ethos and not token appearance but need greater innovaon

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Introducing the Chameleon

Combines cosmecs + technology

Belief that consumers are constrained by the colour opons available in market, they

arent allowed to customize colours they want that they see occurring in naturalenvironment

The technology would mix natural dye pigments (offered by body shop) with white

natural base (i.e. mineral powder, lipgloss, eyeshadows)

Face recognion screen and soware and camera will provide soluons of how to

achieve certain looks for specific skin tone and will allow easy sharing across social

media plaorms

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Brandstorm 2012

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Transcript of Brandstorm 2012