consumer beauty preferences
TRANSCRIPT
What Do Consumers Want? What Do Consumers Want?
Consumer beauty preferences
Report for:
Cosmetic Regulatory Forum Newport Beach, California
www.KlineGroup.com
© 2013 Kline & Company
Contents
I t d tiIntroduction
Cosmetics & Toiletries Sales Data
Traditional Consumer Research
Consumer Insights of Innovation
© 2010 Kline & Company 1© 2013 Kline & Company
Contents
I t d tiIntroduction
Cosmetics & Toiletries Sales Data
Traditional Consumer Research
Consumer Insights of Innovation
© 2010 Kline & Company 2© 2013 Kline & Company
Kline is a global management consulting and market research firm
Incorporated in 1959
About 150 professionals worldwide
Over 200 custom consulting engagements completed each year
About 30 in-depth market research studies published each year
Combine business research and strategic consulting skills with significant industry and technical expertisesignificant industry and technical expertise
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Kline’s rigorous research methodology results in high quality and insightful reports
Interviews with: Marketers/manufacturers
PRIMARY RESEARCHreports
Retailers Distributors Suppliers
Trade organizations Government agencies g
Trade journals Analysis of public data
SECONDARY RESEARCH
Corporate financial reports and literature Non-confidential data from Kline’s databases
RIGOROUS ANALYSIS/
Insightful and h i
Insightful and h i
CROSS CHECK
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comprehensive coverage
comprehensive coverage
Contents
I t d tiIntroduction
Cosmetics & Toiletries Sales Data
Traditional Consumer Research
Consumer Insights of Innovation
© 2010 Kline & Company 5© 2013 Kline & Company
Our Cosmetics & Toiletries USA analysis covers the following categories
Fragrances Skin CareMakeup
y g g
g Fragrances for men Fragrances for women
Baby care products Facial treatments Hand and body lotions Skin care products for men Sun care products
Eye makeup Face makeup Lipsticks and lip glosses Nail polishes
Hair Care Conditioners
Other Toiletries Deodorants and
Oral Care Denture productsConditioners
Ethnic hair care products
Hair coloring products Hair styling products
and sprays Shampoos
antiperspirants Depilatories, waxes, and
bleaches Personal cleansing products Shaving products
p Lip balms, jellies, and
treatments Mouthwashes Toothbrushes Toothpastes Tooth whitenersShampoos
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The industry shows a growth of 4.2% in 2011, and is expected to show slightly less than that in 2012slightly less than that in 2012
5
3
4
1
2
Cha
nge,
%
0
1
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
C
‐2
‐1
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All trade classes post growth, luxury class inches close to a double-digit th d f i l t d l i t th l t thgrowth and professional trade class registers the lowest growth
Luxury
Specialty
Mass
Direct
0 2 4 6 8 10
Professional
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0 2 4 6 8 10
Change, %, 2010-2011
Makeup product class posted the highest growth, followed by fragrancesp p p g g , y gfr.
$ M
illio
n m
f
Fragrances Hair care Make Up Oral care Other Toiletries
Skin Care
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2010 2011
Facial treatments remains the largest product category in sales whereas sun care products posted the highest growthwhereas sun care products posted the highest growth
r.$
Mill
ion
mfr
Baby care products
Facial treatments Hand and body lotions
Skin care products for men
Sun care products
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2010 2011
Women’s fragrances account for almost 3/4 of fragrance sales
on m
fr.$
Milli
o
Fragrances for men Fragrances for women
2010 2011
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Eye and face makeup drove dollar value in the makeup segment, nail polishes registered the steepest growth
Mill
ion
mfr.
$
Eye makeup Face makeup Lipsticks and lip glosses
Nail polishes
2010 2011
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Sales increase across all the hair care market product categories, with shampoos leading the packshampoos leading the pack
$ M
illio
n m
fr.
Conditioners Ethnic hair care products
Hair coloring products
Hair styling products and
sprays
Shampoos
2010 2011
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2010 2011
Personal cleansing products drive growth in the other toiletries segmentfr.
$ M
illio
n m
f
Deodorants and antiperspirants
Depilatories, waxes, and bleaches
Personal cleansing products
Shaving products
2010 2011
© 2010 Kline & Company 14© 2013 Kline & Company 14
Contents
I t d tiIntroduction
Cosmetics & Toiletries Sales Data
Traditional Consumer Research
Consumer Insights of Innovation
© 2010 Kline & Company 15© 2013 Kline & Company
Use of Hair Conditioners by Hispanics vs. Non-Hispanics,Men and Women in the United States
6470
% Of total
64
49
40
50
60
14 13
2116 14
20
30
40
913
0
10
Every time I shampoo Sometimes No I use a combination shampoo andshampoo and
conditioner productHispanics Non‐hispanics
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Types of Hair Styling Products Used by Men and Womenin the United Statesin the United States
Gloss 3% Oth 5%
I don't use any h i t li
Styling cream, 7%
Gloss, 3% Other, 5%
hair styling products
regularly, 39%
Styling mousse, 9%
Gel, 16%
Hair spray, 21%
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Usage of Toiletries Products by Men, Comparison Across Countries
Usage Other Toiletries Products by Men, Comparison Across Countries
%
Country Bar soap
Body wash or shower
Deodorant antiperspirant stick/ roll-on/ underarm
Deodorant -body spray or
fragrance
Shaving cream Other
toiletries Talcsoap gel roll on/ underarm spray
fragrance spray or gel toiletries
Brazil 90 33 83 61 83 71 NA
China 81 89 34 41 58 30 NA
Germany 57 96 74 57 73 42 NA
India 82 48 38 74 82 33 64United Kingdom 70 86 63 54 70 52 NAgUnited States 77 67 90 32 70 48 NA
Average 76 70 64 53 73 46 NA
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Face Moisturizer Usage, Shopping and Brands, by Men and Women in the United Statesthe United States
Use of Face Moisturizing Cream by Race
%
Regularly Sometimes No Total Preferred Retail Channels for Face Moisturizingg y
White/Caucasian 39 22 39 100
African American 44 28 28 100
Asian 64 21 16 100
Native American 27 9 64 100
Pacific Islander 25 50 25 100
Preferred Retail Channels for Face Moisturizing Products
Retail channels Preferred, %
Mass merchandiser 54
Drug store 43Pacific Islander 25 50 25 100
Other 52 13 35 100
Face Moisturizing Brands Used by All Respondents
Food/grocery store 19
Online 16
Department store 15
Beauty store 14
Use of face moisturizing brands %
Olay 34
Aveeno 14
Neutrogena 9
Dollar store 8
Shopping mall 6
Warehouse club 6
Salon or spa 2Nivea 9
Vaseline 8
Avon 7
Dove 5
Clinique 5
Flea market 1
TV shopping network 1
Other 7
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Clinique 5
Jergens 3
All other 8
Use of Perfume or Cologne by Hispanics vs. Non-Hispanics, Men and Women in the United StatesMen and Women in the United States
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Online Shopping for Cosmetics and Toiletries Productsin the United Statesin the United States
Cosmetics and Toiletries Products Shopping by All Respondents Online
%
Cosmetics and toiletries
I have never shopped for
this item online
I have shopped for this item online, but made no purchase
I have shopped for this item online and I purchased itpurchase
Perfume or cologne 61 13 26
Face makeup (foundation, blush, powder or concealer) 69 9 21
Eye makeup (eye shadow, eye liner or mascara) 72 9 19mascara)
Face cream 71 11 18
Face wash or cleanser 71 11 18
Soap (bar soap, liquid soap, body wash, etc.) 74 9 17
Lip stick or lip gloss 75 8 17
Lip balm 78 8 14
Nail polish 81 10 10
© 2010 Kline & Company 21© 2013 Kline & Company
Contents
I t d tiIntroduction
Cosmetics & Toiletries Sales Data
Traditional Consumer Research
Consumer Insights of Innovation
© 2010 Kline & Company 22© 2013 Kline & Company
Consumer Insights of Personal Care Innovation
Unique and powerful emergent research methodologymethodology While consumer research can be usually
classified as either qualitative (e.g. focus groups) or quantitative (e.g. surveys), this methodology is truly both: quantitative results backed by narrative material.
Indirect, open-ended questions, with the material analyzed by proprietary software.
Weak signal detection is possible (i.e. g (pre-trend), and results are more truthful than with traditional consumer research.
Kline is partnering with a third party that is formerly the knowledge management di i i f IBM Gl b l S i (thdivision of IBM Global Services (then spun off).
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Objective: Capturing deeper insights into personal care experiences
Identifies the patterns of consumer perceptions and beliefs related to personalperceptions and beliefs related to personal care products
Analyzes how consumers define i ti d h i t t it i t thinnovation, and how important it is to them
Explores what consumers wish they could have in the personal care arena, identifying emerging trends
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A comparison of approaches
Approach We Use Traditional Survey Methods
Numbers come with context of stories theNumbers come with context of stories, the latter which can be accessed directly when
neededNumbers that do not inform of the context
Seeks narratives (experiences) from people, as humans convey complex knowledge Seeks opinions of peopleas humans convey complex knowledge
through storiesSeeks opinions of people
Use of indirect prompting questions to elicit answers that tend to be more honest and
revealing
Use of direct questions which people usually expect revealing
Understanding the world as it currently is, knowing we lack complete data
Groupthink occurs when a traditional decision space is dominated by powerful individuals
and their agendas
Methods and tools ascertain patterns in these stories to obtain insights - visualisations in SenseMaker® software present alternative
and diverse points of view
Reliance on traditional statistical analysis which “drowns out” weak signals until they
become significant, at which point it may be difficult and expensive to intervene
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p p
Research ParametersResearch Parameters
Consumers’ Perceptions of InnovationConsumers Perceptions of Innovation
Importance of Innovation
Purchase DriversPurchase Drivers
Innovation as related to other factors
Aspects of innovation that are importantp p
What consumers say they want
Aspects of products enjoyed most by consumers
Comparing investments in R&D and marketing
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What Consumers Say they Wanty y
Lessons
Skin care product ideas were volunteered by almost a quarter of the respondents.
Acne treatments (or positioning of such) need to be extended to treat all age groups and to treat other parts of the body besides the face In fact other facialgroups, and to treat other parts of the body besides the face. In fact, other facial treatments for common problems should be extended to treat the whole body.
Hair care product inventions were requested second most (at 15%) by all consumers in the sample, and hair removal products third at 11% of all ideas.
Consumers over age 55 especially wish for more accurate marketing of products. With the U.S. population of the over-55 people increasing to never-before levels, companies should consider more often the perspectives of these people in d i i k ti idesigning marketing campaigns.
Multi-functional products are often requested.
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Themes Multi-functionalityMulti-functionality
I wish you could invent a body wash that not only washes and moisturizes without
Wash and Remove
I wish you could invent a body wash that not only washes and moisturizes without damaging or irritating your skin but it would also remove hair (without damaging or irritating your skin). It could come with a body scrubber or sponge that cleans your skin and remove hair from whatever part of your body you use it to wash without any damaging or irritation.damaging or irritation.
Please come up with a single application face makeup that does ALL of the following:
Your One-Step Face
p g pp p gMoisturizes - prepares skin for the day; Conceals - minimizes flaws, blends and covers skin pigment variations and softens indentations; Covers - the face, jaw and neck with consistent, suitable foundation that totally complements the skin color and leaves no demarcation; and Finishes - with a topcoat that eliminates shine and "sets" the face for ; pthe rest of the day.
Good for Eyes
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A mascara that helps eye health.
Aspects of Products Enjoyed Most by Consumers
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Of the people that listed fragrance as a factor enjoyed most, 38% of thoseOf the people that listed fragrance as a factor enjoyed most, 38% of those are related to skin care products
Lotion: PS I Love You Lotion by Bath and Body Works Smells great and leaves Lotion: PS I Love You Lotion by Bath and Body Works. Smells great and leaves skin smooth. Excellent: I'm currently using Vaseline intensive care lotion for men. It dries very
quickly and works very well on dry skin. It also has a very good smell. Burt’s Bees Solution: Recently I purchased Burt’s Bees acne solution. It's different
because instead of being cream it's more of a liquid consistency to penetrate in pores better. Mineral sunscreen and after-sun lotion: To soothe my burned skin I turned to AlbaMineral sunscreen and after sun lotion: To soothe my burned skin, I turned to Alba
Botanica’s Kona Coffee After-Sun Lotion. Words cannot describe how heavenly this product is. The coffee oils are hydrating while the caffeine helps to release the heat in the skin and soothe the burn. It is deliciously aromatic – for coffee lovers, imagine smelling like a café latte – but the fragrance isn’t overwhelming Theimagine smelling like a café latte but the fragrance isn t overwhelming. The texture of the lotion is creamy and luxurious rather than watery, which is my main complaint about Burt’s Bee’s after-sun product. It also felt like it lasted a long time, whereas with some other products you have to reapply often.
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