Consumer and Market Insights: Skincare Market in Germany

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Sample Pages

November 2014

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Example Table of Contents

• Introduction

• Market overview

• Retailer and packaging

• Demographic cohort consumption patterns

• Consumer trend analysis

• Innovation examples

• Actions

• Appendix

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Reasons to buy this report

This report brings together consumer analysis and market data to provide actionable insight into the behavior of consumers.

This is based on Canadean’s unique consumer data – developed from extensive consumption surveys and consumer group

tracking – which quantifies the influence of 20 consumption motivations within your industry.

Consumer trends analysis An overview of the key demographic groups driving

consumption in your industry, and what their motivations are

for doing so. This enables the reader to identify the most

important trends within the market and also determine

whether beliefs over what influences consumer behavior

within the category are accurate.

Future outlook The report provides insight to highlight the "so what?"

implications behind the data, and analysis of how the

need states of consumers within your industry will evolve

in the short-to-medium term future.

Recommended actions Strategic recommendations of how to capitalize on the

evolving consumer landscape are offered at a sector and

category level, allowing product and marketing strategies

to be better aligned with the leading trends in the market.

Product innovation examples Examples are provided of innovative international and

country-specific product development within your

industry, with analysis of how these products effectively

target the most pertinent consumer need states.

Demographic analysis Key demographic groups driving consumption within the

Indian market are identified. The figures showcase the

number of Skincare occasions attributed to specific age

groups and genders, as well as identifying whether these

demographic groups "over" consume in the category.

Market sizing Market value and volumes are given over 2008–2018 for

every category in the sector. In addition, distribution and

packaging dynamics are studied to provide a complete

review of current and future market dynamics.

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Canadean has identified nine mega-trends that drive consumer choice and these can be broken down into 20 sub-trends

Aspiration

Beauty

Better Value

Busy Lives

Changing Age Structures

Changing Life Stages

Connection

Experience Seeking

Fun & Enjoyment

Individualism

Indulgence

Media

Technology

Trust

Urbanization &

Migration

New Gender

Behaviors

Personal Space & Time

Quality Seeking

Health

Ethics

MEGA-TRENDS:

CHANGING

LIFESTAGES

CONNECTIVITY

CONVENIENCE

ETHICS

EXPERIENCE &

ENJOYMENT

HEALTH &

WELLNESS

INDIVIDUALITY

TRUST

VALUE

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0%

1%

2%

3%

4%

5%

6%

7%

0% 1% 2% 3% 4% 5% 6% 7%

2010-2

013 P

rivate

Label

Valu

e in E

UR

C

AG

R (%

)

2010-2013 Brand value in EUR CAGR (%)

Facial Care

Body Care

Make-Up Remover

Hand Care

Depilatories

Demand for private label Skincare products is growing faster in comparison to branded products

Private label value performance compared to brand value performance, by categories, in the German

Skincare market, 2010-2013

In the German Skincare market private label products are gaining market share from branded products across all

categories, with growth highest in Hand Care, Depilatories, and Make-up Removers. They recorded a higher CAGR

of X.X%, X.X%, and X.X% respectively for private label products compared to that of branded products, which were

at CAGRs of X.X%, X.X%, and X.X% respectively during 2010-2013.

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German women consume Skincare at a 'heavy frequency'

Canadean has also broken down Skincare consumption in Germany by type of consumer:

Light consumer

X.X consumption occasions

per week

Medium consumer

X.X consumption occasions

per week

Heavy consumer

X.X consumption occasions

per week

Breakdown of consumption by whether it is the

result of heavy, medium, or light consumption, by

gender, 2012 ‘Heavy user’ consumption frequency is valued at

XX times per week for Body Care, XX times for

Depilatories, XX times for Facial Care, XX times

for Hand Care, and XX times per week for Make-

up Remover.

German women have a higher ‘heavy frequency’

consumption pattern, with nearly two-thirds of

consumption accounted from ‘heavy’ users.

Furthermore, a significantly higher proportion of

‘heavy frequency’ and large proportion of ‘medium

frequency’ consumption among Males indicates

the growing importance of grooming among men. X% X%

XX% XX%

XX% XX%

Female Male

Light Medium Heavy

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How the Better Value for Money trend influences Skincare consumption habits in Germany

German consumers are seeking Better Value from their

Skincare products

Despite its relative stability in the recent economic crisis,

German consumers have become more price-conscious, and

seek Skincare products offering Value. Manufacturers have

responded to this growing demand by introducing a larger

number of multifunctional products such as moisturizers with

added SPF protection and anti-wrinkle agents. Promoting the

value associated with ‘2 in 1’ offerings will encourage consumers

to spend more for the added convenience of having a product

which meets more than one of their Skincare needs.

Manufacturers should also focus on providing lower-cost

alternative products, as although indulgence has a large

influence on consumer behaviour, Value needs are more

important, particularly in ‘everyday’ products.

In more premium products, manufacturers can encourage

consumers to trade-up for a superior experience, and by offering

products made from the finest quality ingredients, charge higher

prices. Marketers should highlight the science behind any claims

these products make to sceptical consumers.

Larger brands should also be aware of the necessity of

defending their market share from private label options, as more

value-conscious German consumers are becoming more

confident in the quality of private label offerings, which held a

previously poor reputation.

Lacura private label

Q10 Night Cream from

Aldi, offers consumers

a quality product at a

lower price than

branded, more

recognisable

competitors.

Crevil Facewash Gel

also acts as a

moisturiser, with added

Aloe Vera to meet the

needs of consumers

with sensitive skin,

offering a range of uses,

promoting value.

Demand for private label products is

increasing

Multifunctional products will appeal to

value-conscious consumers

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Manufacturers can capitalise on the New Gender Behavior trend to drive consumption of Skincare

Formulation

Positioning

Packaging

Occasions

Formulations must reflect the differing

needs between the genders. Women for

instance will need a facial moisturizer to

wear under make-up, while men will need

one to soothe their skin post-shave. Women

are also more likely to seek an indulgent

product that takes time to apply whilst men

opt for fast, functional formulations.

Skincare products for men can be

positioned alongside essential toiletries

items such as shaving equipment. This will

encourage men to incorporate Skincare into

their daily grooming routines and therefore

become more frequent users. Women are

more likely to shop around and choose the

product best suited to their needs and

desires.

Packaging targeting men should be bold

and masculine in order to appeal to men.

With women, marketers should be aware

that modern women will not purchase a

product simply because it is in pink

packaging, rather they will opt for similarly

bold packs with a feminine touch.

Consumers will display their evolving gender

behaviors each time they use Skincare.

Women are more likely to choose a

specifically feminine and indulgent product for

treating themselves or for gifting purposes, as

such more luxurious Skincare can be targeted

towards special occasion use. With men,

companies need to work on Skincare

becoming a daily occasion for them.

Targeting the New Gender Behavior trend in the right way is crucial for success

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Innovative new product launches in the global Skincare market

Brand: Ultimate Care Body Lotion

Manufacturer: Burt’s Bees

Launched: 2013, UK

Trend: Individualism, Health

Burt’s Bees positions its products as

being more natural and less chemically

formulated. The company claims their

new Ultimate Care Body Lotion provides

an ideal moisturizer for dry and cracking

skin by combining a variety of baobab oil,

pumpkin seed oil, and green tea extracts.

Brand: MDNA Skin

Manufacturer: MTG Co., Ltd.

Launched: 2014, Japan

Trend: Aspirations, Beauty, Experience

Pop star Madonna had launched her own

celebrity Skincare line in collaboration

with Japanese cosmetics major MTG Co.

Ltd. The product range includes: chrome

clay masks, skin rejuvenator, and a skin

serum to appeal to consumers seeking

aspirational Skincare and new, innovative

and exciting experiences.

Brand: ANEW

Manufacturer: Avon Products, Inc.

Launched: 2014, US

Trend: Experience, Beauty, Value

Avon launched its ANEW Vitale

collection, which includes a Day Cream,

Night Cream, Eye Gel Cream, and

Cleanser. The range also includes

‘ANEW Vitale which offers SPF 25 and

gives consumers a vibrant look

throughout the day, while offering the

added function of sun protection.

Brand: Bi-Facial Waterproof Eye

Makeup Remover

Manufacturer: Lancome

Launched: 2014, Australia

Trend: Experience Seeking, Indulgence

Lancome’s new Eye Make-up Remover

consists of a new ‘bi-phase’ formula.

Formulated for use by even the most

sensitive of consumers, the product

offers a new, convenient way to cleanse

the eyes of even hard to remove

waterproof mascaras.

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How to successfully target the Individualism trend

Body Care Facial Care Hand Care Depilatories Make-Up Remover

Pro

du

ct

Formulation • Scented products add a further element of personalisation

• Meeting the needs of different skin types is important in allowing consumers to choose a product personal to their needs

• Specific ingredients such as those for anti-aging or those that create a protective barrier allow consumers to choose a product best suited to them

• Depilatories suited to different skin types such as dry or oily skin, mean consumers have a choice personal to them

• Adding anti-aging, refreshing or moisturizing benefits allows the product to become more customizable

Positioning

• Body Care can take a premium positioning through pairing with a popular brand

• Ranges need to be positioned where consumers feel they can choose the one tailored to their needs

• Taking a regular use, on-the-go position can increase consumption frequency in the Hand Care category

• Although functional, the positioning of depilatories should still include variations between skin types

• Make-up Remover positioned towards different skin types is important, such as being suitable for sensitive skin

Packaging

• The packaging needs to immediately communicate the uniqueness of a product so consumers feel it is tailored to their needs

• Emphasizing the skin type a product is intended for use on is important to ensuring that consumers select the correct product with ease

• Ranges of Hand Care products must include different size packs to allow consumers to choose if they want a product for home use or for on-the-go use

• Consumers may have differing preferences for application types, therefore variation within the range is key

• Packaging needs to be robust such that consumers can take the product on-the-go

Occasion

• Consumers individual needs and preferences need to be targeted at every Body Care occasion

• Facial care is important to women on a daily basis as it serves as a conditioner prior to Make-up application so those suited to skin types are essential

• Hand Care can be targeted towards all occasions but targeting is particularly important in the winter when dry hands are more common

• Depilatories can be marketed more effectively by emphasizing seasonal use such as summer wear or Christmas parties

• Consumers preferences could change by occasion, for instance, night time Make-up removal can be targeted with lavender infused items

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Summary Methodology

MARKET DATA

• Method: Analyst triangulation of

consensus numbers based upon

comprehensive primary and desk

research as part of an international

research programme.

• Coverage:

• 50 Countries fully researched

• Category and segment breakdown

• Eight channels

• Value and Volume data

• Internationally comparable data

• 100% standardized definitions

CONSUMER DATA

• Method: Extensive consumption surveys

and consumer group tracking with strict

age and gender quotas to ensure

nationally-representative results.

• Coverage:

• 10 Countries

• 20 Consumer Trends

• 26 Consumer Groups

• Category breakdown

• Integrated market sizing at the

country and category level

• Interim 2013 Consumer data

generated by mapping 2013 Market

size data onto 2012 Consumer data

consumption values

Details on the methodology for both of these research programs can be found in the Appendix.

This report is comprised of two data research programs

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