BW Confidential - Issue #1 - April 2010 - (Page 10)

Take note Market trends & indicators A snapshot of the latest market facts, figures and trends credit: stock.xchng Market segments Anti-aging continues to the key reason for buying skincare, according to NPD. Some 53% of American women said that anti-aging benefits, such as wrinkle or line reduction and firming were extremely important to them. The study also found that 21% of women that use facial skincare do not use anti-aging products or serums, and those who do buy antiaging, use the products less than once a day. Consumers in North America are willing to sacrifice fragrance before other parts of their personalcare regime, according to a study by Datamonitor. When asked how important smelling good was, 56% of Americans said it was important or very important, while 70% stated that looking their best was important or very important. Direct sales emerged as the fastest-growing retail channel worldwide for beauty products, with a 8.6% increase in sales in 2010, according to Kline & Company. The growth was driven by strong sales in emerging markets and employment opportunities for door-to-door sales. The internet also contributed to the channel’s growth, with online sales having doubled over the past five years. Kline also reported that the drugstore channel saw a 5.4% increase last year. This growth was due to drugstores increasing space devoted to beauty, as well as more upscale merchandising and service offer. Consumers New consumption habits ushered in by the recession mean that brands need to rethink their marketing strategies, says a study by Euro RSCG C&O and Harris Interactive, which polled 2,400 consumers in France, the UK and the US. The study found that shoppers no longer buy spontaneously, are putting off spending, favoring non-branded items and questioning the value of brands. Euro RSCG C&O president and managing director of Havas France Laurent Habib comments: “There needs to be a shift from marketing based on impulse [buying] to marketing based on justification [buying].” The study found that: • 36% of consumers are putting off purchases until later • 33% are turning away from brands in favor of cheaper, non-branded items • 23% said that they would not give up beauty and clothing despite the crisis • 64% said that since the recession they ask themselves more often whether they need the item; 60% ask themselves if they can find a cheaper equivalent • Only 1 out of 10 consumers trusts brands • 68% of French, 50% of British and 47% of American shoppers believe brands offer increasingly sophisticated products that do not respond to needs • Quality remains the number-one factor in consumer’s decision to buy (before price), followed by how a company treats its staff. Innovation ranks eighth. 10 April 2010 - N°1 - BW Confidential

Table of Contents for the Digital Edition of BW Confidential - Issue #1 - April 2010

Update - Brand and retail recap
Take note - Market facts, figures and trends
Launches - The latest fragrance, skincare and make-up launches
Best of BW - Market highlights
Interview - Sephora international & development md Olivier Schaeffer
Insight: make-up - Category overview
 - Industry viewpoint
 - Trends
Wellness report - Overview
 - Industry roundtable
 - Spa case studies
Travel retail - Europe: little chance of a rebound
Market watch: Western Europe - Regional analysis
 - Germany
 - France
 - UK
 - Spain
 - Italy
Radar - Six up-and-coming beauty brands
Packaging special -  Industry analysis
 - Innovation
Last word - UBS analyst Nik Modi's outlook for 2010

BW Confidential - Issue #1 - April 2010