![Digital
French e-commerce sales were up by 10% last year,with the
beauty channel alone seeing consistent growth,according to
L2 DigitalThinkTank’s 2014 Digital IQ Index:Beauty France.The
report,which ranks the digital competence of 58 international and
local beauty brands in the French market,states that an estimated
8-12% of fragrance,skincare and color cosmetics sales in France
now occur online.Euromonitor figures confirm that in 2013,beauty
and personal care e-commerce sales in France totalled €470.5m,an
increase of 5.8% compared to 2012.
L2’s report notes that mobile ad spending in the market is
projected to grow by 80% in 2014,a result of the widespread
adoption of new technology (some 64% of the French population is
expected to use smartphones by 2017;43% will be using tablets).
L2 also found that French beauty brands have been neglecting
their home territory in favor of emerging markets,to the detriment
of their digital properties:
• 56% of brands reviewed fell into the“Challenged”and the
“Feeble”categories;
• Just half of websites included video;only 21% supplied them all
in French;
• Only 56% of prestige and 46% of mass brands are purchasing
Google.fr ads for brand terms,with brands losing paid search share
to online retailers;
• Only 48% of brands are optimized for mobile,as opposed to
75% in the US;
• Brands in France trail behind markets such as the UK and
Germany for email communication,at an average of 0.5 emails
per week;
• Brand activity on social media is sparse,averaging 3.8 Facebook
posts,0.5YouTube videos and 6.3 tweets per week;fewer than half
of brands maintain a French-targetedTwitter presence
In terms of the digital performance ranking,Clarins and L’Occitane
en Provence top the list,accorded“Genius”status.“Gifted”brands
Nuxe,Caudalie,L’Oréal Paris and Lancôme round out the top six.
2014 Digital IQ Index: Beauty France Top 10 Ranking
Rank Brand Class
1 Clarins Genius
1 L’Occitane en Provence Genius
3 Nuxe Gifted
4 Caudalie Gifted
4 L’Oréal Paris (L’Oréal) Gifted
6 Lancôme (L’Oréal) Gifted
7 Bourjois (Chanel) Gifted
8 Estée Lauder
(Estée Lauder Companies)
Gifted
9 Nivea (Beiersdorf) Gifted
9 Yves Rocher Gifted
Source: L2 Think Tank
Big data is set to change how luxury brands communicate with
consumers and sell their products in retail,according to speakers at
the Luxury 2025 conference held in Paris in March,organized by the
International Luxury BusinessAssociation.
Intel chief futurist Steve Brown called data the“new oil”,and said
that all industries will be transformed by data.“The people who
make money with oil are those who refine it,and it is the same
thing with data,which needs to be refined and analyzed to be
used to deliver a personalized experience.”He added:“Today
[brick-and-mortar] stores don’t know who the people coming into
their stores are;they need to gather data about them and offer a
customized experience.”
As a result of better data use,stores of the future are forecast to
offer a changing assortment of products,based on a customer’s
profile and what that customer wants at a particular time.This could
overcome the problem of under- or overstock (estimated to be a
$900bn problem in retail),as companies will manufacture certain
products on demand.
In terms of communication,Fullsix Group president MarcoTinelli
predicts that media in the future will not just be about content,
but about data,and with a better use of data,brands will be able to
choose what type of content they distribute to different consumers.
“Data will help brands interact on a one-to-one basis,and if you
want to speak to a consumer,you will have to ask to speak to them.
[This means] that advertising will be more relevant;it will be about
speaking to fewer people,but the relevant people in the right way.”
BW Confidential was a Luxury 2025 conference press partner.
May-June 2014 - N°18 - BW Confidential 19
The bold color make-up
trend is set to dominate
in 2014,says research firm
Mintel,noting its popularity
at this year’s London Fashion
Week.Younger women are
more likely to adopt this
year’s bright colors for lips and eyes—in the UK,20% of women
aged 16-24 are comfortable experimenting with new colors and
styles,compared to an overall average of 16%,according to the
research company.
Bold color cosmetics was one of three key trends singled out for
2014 by Mintel,following this year’s FashionWeeks in London,
Milan,NewYork and Paris.(The bare-faced“less-is-more”make-up
look and bold double-decker lashes were two other trends that
took the spotlight.)
The nails category is well-positioned to benefit from this move
towards bright colors,as those reluctant to be too daring on lips or
eyes may feel comfortable experimenting with nail color.In 2013,
sales of nail color cosmetics in the UK bypassed lip product sales
for the first time,registering £233m ($391m) compared to £232m
($389.4m) for lips.Nail art continues to drive sales,with new
textures and application methods emerging to allow young women,
in particular,to easily personalize their nail look and stay on-trend.
Market trends
n](https://image.slidesharecdn.com/6b029759-527a-476f-95bc-2bd16f5230d3-160919152133/85/BWC-18-Take-Note-2-320.jpg)
BWC 18 Take Note
- 1. Market trends & indicators A snapshot of the latest market facts, figures and trends Country data The US cosmetics and toiletries market reported its fourth consecutive year of growth in 2013,according to market researcher Kline & Company.Manufacturers’ sales reached more than $41bn,an increase of 2.4% over 2012. Make-up and skincare were the highest-performing categories, while haircare also contributed strongly to growth. Within the color cosmetics segment,facial make-up,eyeliner, lipstick and glosses performed particularly well,as did multi- functional stain items for cheeks,lips and eyes. The nail polish category,however,suffered a“huge setback” last year,says Kline,with flat sales,following several years of double-digit growth.The company says that the segment is now nearing maturity. Facial skincare sales were boosted by sub-segments such as oils,serums and eye-contour creams. Private-label cosmetics and toiletry items,meanwhile,have been identified as becoming a stronger in the market. Prestige skincare sales in the US were up 3% in the 12 months ending January 2014 to reach $3.6bn,according to market-research group NPD.Facial products,representing 78% of the business,saw sales of $2.8bn. Age specialist products grew by 4% in the period,while sales of eye treatment items were also up 4%. NPD says that in addition to firming and anti-wrinkle products, consumers are showing more interest in items that claim to improve radiance,resiliency,texture,evenness,and clarity. Takenote More UK consumers are waiting for discounts before purchasing beauty products,according to the Premium Market Report 2014,published by UK- based Imogen MatthewsAssociates (IMA),in association withYouGov.Women who say they will only buy when there is a discount increased from around a fifth in 2013 to over a quarter in 2014.IMA md Imogen Matthews says an over- reliance on discounting has backfired.“Not only are more women waiting for discounts to buy,but brands that resisted discounts are now in a stronger position than those that didn’t,”she comments. In addition,14% of women in 2014,compared to 8% in 2013, said they had traded down to cheaper skincare products.Some 44% of women now believe that cheaper brands are just as effective as more expensive products,compared with 37% in 2013. May-June 2014 - N°18 - BW Confidential18 Almost eight in ten (77%) facial skincare users in Brazil feel it is better to stick to products they know,rather than try out new items,says Mintel.Of these,women in the 25-34 age bracket are more open to experimentation,with 71% of them less likely to agree that familiar products are better.Some 85% of users in this age bracket say they seek recommendations before purchasing. Chinese travelers spent 20% more on tax-free shopping in 2013 than in 2012,while Russian spend rose 13%,says tax refund group Global Blue.Chinese and Russian travelers combined made up more than 40% of Global Blue’s tax-free shopping transactions.Chinese shoppers are the biggest-spending nationality for the sixth consecutive year,spending an average of €815 per transaction,but Russian travelers clock more transactions than other nationalities.Russian travelers’ average spend is €356.
- 2. Digital French e-commerce sales were up by 10% last year,with the beauty channel alone seeing consistent growth,according to L2 DigitalThinkTank’s 2014 Digital IQ Index:Beauty France.The report,which ranks the digital competence of 58 international and local beauty brands in the French market,states that an estimated 8-12% of fragrance,skincare and color cosmetics sales in France now occur online.Euromonitor figures confirm that in 2013,beauty and personal care e-commerce sales in France totalled €470.5m,an increase of 5.8% compared to 2012. L2’s report notes that mobile ad spending in the market is projected to grow by 80% in 2014,a result of the widespread adoption of new technology (some 64% of the French population is expected to use smartphones by 2017;43% will be using tablets). L2 also found that French beauty brands have been neglecting their home territory in favor of emerging markets,to the detriment of their digital properties: • 56% of brands reviewed fell into the“Challenged”and the “Feeble”categories; • Just half of websites included video;only 21% supplied them all in French; • Only 56% of prestige and 46% of mass brands are purchasing Google.fr ads for brand terms,with brands losing paid search share to online retailers; • Only 48% of brands are optimized for mobile,as opposed to 75% in the US; • Brands in France trail behind markets such as the UK and Germany for email communication,at an average of 0.5 emails per week; • Brand activity on social media is sparse,averaging 3.8 Facebook posts,0.5YouTube videos and 6.3 tweets per week;fewer than half of brands maintain a French-targetedTwitter presence In terms of the digital performance ranking,Clarins and L’Occitane en Provence top the list,accorded“Genius”status.“Gifted”brands Nuxe,Caudalie,L’Oréal Paris and Lancôme round out the top six. 2014 Digital IQ Index: Beauty France Top 10 Ranking Rank Brand Class 1 Clarins Genius 1 L’Occitane en Provence Genius 3 Nuxe Gifted 4 Caudalie Gifted 4 L’Oréal Paris (L’Oréal) Gifted 6 Lancôme (L’Oréal) Gifted 7 Bourjois (Chanel) Gifted 8 Estée Lauder (Estée Lauder Companies) Gifted 9 Nivea (Beiersdorf) Gifted 9 Yves Rocher Gifted Source: L2 Think Tank Big data is set to change how luxury brands communicate with consumers and sell their products in retail,according to speakers at the Luxury 2025 conference held in Paris in March,organized by the International Luxury BusinessAssociation. Intel chief futurist Steve Brown called data the“new oil”,and said that all industries will be transformed by data.“The people who make money with oil are those who refine it,and it is the same thing with data,which needs to be refined and analyzed to be used to deliver a personalized experience.”He added:“Today [brick-and-mortar] stores don’t know who the people coming into their stores are;they need to gather data about them and offer a customized experience.” As a result of better data use,stores of the future are forecast to offer a changing assortment of products,based on a customer’s profile and what that customer wants at a particular time.This could overcome the problem of under- or overstock (estimated to be a $900bn problem in retail),as companies will manufacture certain products on demand. In terms of communication,Fullsix Group president MarcoTinelli predicts that media in the future will not just be about content, but about data,and with a better use of data,brands will be able to choose what type of content they distribute to different consumers. “Data will help brands interact on a one-to-one basis,and if you want to speak to a consumer,you will have to ask to speak to them. [This means] that advertising will be more relevant;it will be about speaking to fewer people,but the relevant people in the right way.” BW Confidential was a Luxury 2025 conference press partner. May-June 2014 - N°18 - BW Confidential 19 The bold color make-up trend is set to dominate in 2014,says research firm Mintel,noting its popularity at this year’s London Fashion Week.Younger women are more likely to adopt this year’s bright colors for lips and eyes—in the UK,20% of women aged 16-24 are comfortable experimenting with new colors and styles,compared to an overall average of 16%,according to the research company. Bold color cosmetics was one of three key trends singled out for 2014 by Mintel,following this year’s FashionWeeks in London, Milan,NewYork and Paris.(The bare-faced“less-is-more”make-up look and bold double-decker lashes were two other trends that took the spotlight.) The nails category is well-positioned to benefit from this move towards bright colors,as those reluctant to be too daring on lips or eyes may feel comfortable experimenting with nail color.In 2013, sales of nail color cosmetics in the UK bypassed lip product sales for the first time,registering £233m ($391m) compared to £232m ($389.4m) for lips.Nail art continues to drive sales,with new textures and application methods emerging to allow young women, in particular,to easily personalize their nail look and stay on-trend. Market trends n