Euromonitor has released research that points to three recent perceptions of how companies can determine their strategies for natural products or products that involve beauty routines. According to the international market research agency, the target are global premium buyers.
“High intensity of innovations and new product developments characterise a constantly evolving industry and a growing need for gap assessment and consumer profiling ,” the firm explains and assesses: “Consumer preferences are changing on multiple levels: as people age, their hair and skin changes, their spending power changes, and as they become aware of new trends and products their beauty routines and attitudes evolve.”

1. Targeting Premium Buyers

Premium beauty is an area of strong growth, reaching historic highs of 6% in 2015. In response, beauty companies are offering a widening set of higher-quality and more personalised solutions. At the same time, consumers in most markets still need to justify spending on premium, so their expectations are shifting from status-driven purchases to those that are more result-driven and individualised, especially those in some shade of natural or green. For instance, in China and South Korea over 50% of premium buyers have ‘extensive’ beauty routines, while in countries such as France, Germany and the UK, premium buyers tend to be ‘moderate’ users; products should be tailored to their respective routines. Beyond quality and efficacy, premium buyers’ values are shifting towards ethical credentials and authenticity, as shown by the higher preference for natural or organic formulations, as well as connection with a brand’s story. Looking ahead, premium beauty brands’ most promising new consumers are Generations Y and X, with over half of these consumers expressing premium preferences across all three categories tested (hair, skin, cosmetics).

BREAKDOWN OF BEAUTY BUYERS BY TYPE OF HAIR/SKIN/MAKE-UP ROUTINE 2016

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Source: Euromonitor International Beauty Survey 2016

2. Refining Naturals’ Beauty Strategies

The beauty space is turning green, and smart companies are greening right along with it. Green features are secondary only to efficacy, suitability, and a quality-price balance in consumers’ decision-making for beauty products, and are actually more salient in purchasing deliberations than low prices and strong brand names, according to the 2016 Beauty Survey results. So what are the best shades of green and which products should be greened first? In particular, “all natural” product claims matter to 50% or more of green-minded buyers in all markets, while other green features, like water efficiency, 100% organic, or botanically-derived ingredients, exhibit regional appeal even to buyers who prioritize green product features. When developing new products, it also becomes more important to go green the more the product is associated with concentrated chemicals that are perceived to penetrate and/or permanently change the composition of skin or hair, such as face masks and hair relaxant treatments. Then, to help assess ROI on any future green investments, Beauty Survey explores consumers’ willingness to pay more for green. The results are promising: nearly six in 10 green buyers definitely prefer natural or botanical ingredients, even when it means forgoing lower prices.

DESIRED GREEN PRODUCT FEATURES 2016

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Source: Euromonitor International Beauty Survey 2016

 

3. Beauty Routines by Generations

Consumer demand is moving from ‘suitable for me’ towards a ‘made for me’ level of customisation. This is achieved through individual product formulations, digital consultation on brands’ and retailers’ websites to find the most suitable product options, and smart devices and applications that provide near constant feedback on efficacy. At the same time, consumers’ expectations for a healthy and extended youthful appearance continue to hold strong across many age groups. The Beauty Survey provides insight into how concerns with ageing and customization are impacting consumers’ purchase decisions, including how users’ beauty routines change over time – from life stage to life stage as well as from the pre-digital to the digital beauty era. Within hair care, for instance, damage repair and anti-dandruff solutions, among the top features sought by younger consumers, stop being the most desired feature for the over 35s, and overall scalp health takes relative priority, including concerns about hair loss among both genders. In skin care, facial cleansers and hand care are amongst the top five most frequently used products by all ages, despite the fact that innovation is not that intense in these spaces. If a health tracker can remind a user to stand up and move or to drink a glass of water, could it also remind a user to reapply hand lotion?

DESIRED HAIR CARE PRODUCT FEATURES BY GENERATION 2016

 

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Source: Euromonitor International Beauty Survey 2016

Senior Survey Analyst at Euromonitor, Lisa Holmes
Eileen Bevis – Survey Manager at Euromonitor International
• The complete material of this study brings results on consumer habits and preferences related to use, purchase pattern and brands and can be accessed on the Euromonitor website.
• Euromonitor International’s Beauty Survey data comes from consumers aged from 15 to 69+. Results from 2015 and 2016 include 1,000 online survey responses in each of the following markets: Australia, Brazil, China, Colombia, France, Germany, India, Indonesia, Italy, Japan, Mexico, Middle East (includes Egypt, Qatar, Lebanon, Saudi Arabia, United Arab Emirates), Poland, Russia, South Africa, South Korea, Thailand, Turkey, United Kingdom, and the USA.