BW Confidential - Issue #5 - March/April 2011 - (Page 18)

Take note credit: stock.xchng Market trends & indicators A snapshot of the latest market facts, figures and trends Indicators The NPD Group reported that prestige beauty in the US saw dollar sales increase by 4% in 2010 to $8.5bn compared with the previous year, and said the category was well positioned for a positive 2011. All prestige categories experienced growth during the year, with skincare showing the greatest increase. The food/drug/mass channels also saw gains, with sales up by 3% compared with a flat market in 2009. Make-up saw the biggest increase in mass, followed by skincare, while fragrance sales in the channel were down by 1%. NPD also reported a solid performance in Europe’s main markets, with the exception of Spain, where prestige sales fell by 3%. The UK saw growth in prestige of 8%, while sales in France were up 3%. Emerging markets, such as China and Argentina saw double-digit growth last year (see table). Prestige beauty growth by country 2010 vs 2009 Country US France UK Italy Spain China* Mexico Argentina* Dollar % change 2010/2009 +4% +3% +8% +2% -3% +26% +8% +33% Beauty sales in Italy reached €9.3bn at retail in 2010, up 1.3% from last year, says cosmetics association Unipro. Sales through pharmacies (+2.9% to €1.5bn) and herborist shops (+5% to €350m) saw the strongest growth, while the perfumery channel was almost flat (+0.5%) with sales of €2.3bn. Export sales grew by 8.5% to €2.2bn. Europe’s organic beauty market is expected to have grown by 12% in 2010, says Organic Monitor, well below the 20% growth rates of recent years. Lowerpriced brands are seeing the best results, especially private-label lines, as are companies taking a multichannel approach through pharmacies and supermarkets. Shoppers continue to find deciding which products to buy difficult because of too much choice, according to a study by US-based consultancy WSL Strategic Retail. The company said that shopping has not become any easier than five years ago when it last conducted the survey. Beauty is still high on the list of categories where too much choice is problematic, with 29-30% of women reporting confusion. Most shoppers go into ‘autopilot’ when faced with hard decisions, and narrow their choices according to price, buying what they always buy or what’s on sale. Some 7% of shoppers walk away, 11% consult their cell phone and13% look for sales staff. More millennials look for advice either from staff (16%), texting a friend for advice (17%) or using their phone to look up product reviews (11%). March-April 2011 - N°5 - BW Confidential Sources: The NPD Group, Mexico: Segmenta Sell out Mexico, Argentina: Segmenta Sell out Argentina, China: Based on Leader Panels in 10 Cities *Dec 09 - Nov 10 18

Table of Contents for the Digital Edition of BW Confidential - Issue #5 - March/April 2011

Cover
Comment
Contents
Update
- Brand & retail news recap
- Digital digest
- Companies on the move
Take note
- Market facts, figures & trends
Best of BW
- Highlights from our e-publication
Launches
- The latest in fragrance, skincare & make-up
Interview
- Marionnaud CEO William Koeberlé
Insight: Make-up
- Category overview
- The latest trends
- Retailing strategy
Wellness
- Retail Sales
- Spa case studies
Retail
- New store concepts
Travel retail
- Market analysis: Americas
- Interview: Dufry's José Carlos Rosa
Radar
- Six up-and-coming beauty brands
Market watch: Brazil
- Country overview
- Industry roundtable
- Prestige retailing
Packaging
- Trends in secondary pack
Last word
- The Doneger's Group's Jamie Ross

BW Confidential - Issue #5 - March/April 2011