BW Confidential - Issue #8 - October/December 2011 - (Page 16)

Take note credit: stock.xchng Market trends & indicators A snapshot of the latest market facts, figures and trends Market segments & consumer habits The at-home skincare device market is forecast to grow by 45% this year to reach sales of more than $500m, according to a new study to be released by Kline & Co. Over the past five years in the US the category has seen a CAGR of 70%. The market is driven by consumers leaving more time between salon visits and a growing demand for DIY items and more PR and buzz in social media. Cleansing devices lead the category, with a 40% market share, followed by laser hair removal with a 30% share. However, anti-aging devices have the highest growth prospects and registered a 75% sales increase in 2010. In terms of distribution, some 50% of sales are done in the direct-sales channel, which includes home shopping, infomericals and the internet. The top brands in the market are Clarisonic (pictured), which takes the number-one slot, followed by No!No! and Tria. P&G’s Olay Pro X ranks number-four. South American countries took the top-three positions in consulting firm AT Kearney’s 2011 index of developing markets for global retail expansion. Brazil took the top spot, up from numberfive last year, followed by Uruguay and Chile. The company said that Brazil is an attractive market given expected GDP growth of 5% per year over the next five years, a large urban population and investment in infrastructure by the Brazilian government. The Middle East also ranked highly, with Kuwait, Saudi Arabia and the UAE making the top-10. The study stated that China had slipped to sixth place from a number-one ranking in 2010, while India came in fourth. 16 Luxury brands are capitalizing on the web to make their products more accessible to generation Y consumers, according to a recent study by Paris-based International Luxury Business Association and market research company Ipsos Public Affairs. Luxury-goods companies are doing this by: allowing consumers to “look” (through classic websites and mobile apps); “play, touch and pretend” (through interactive apps that can be linked to point-of-sale animations and apps that allow consumers to customize items) and “access” through rental sites, private sale or flash-sale sites. The study also found that: • Interactive online relationships with luxury brands have made generation Y consumers more demanding when it comes to brick-and-mortar stores. The majority of consumers in China, Brazil, the US, Italy and the UK now ask that physical stores move beyond just selling product and offer animations and events. • In developed markets, nearly 50% of consumers polled had purchased a luxury item online. Some 12% had rented luxury goods and 38% had made a second-hand purchase. • Generation Y consumers see luxury brands as a way to seduce: some 67% of those aged 15-24 believe a luxury brand can make them more seductive. In China, 91% of consumers polled said that owning luxury items gave them the confidence they lacked. October-December 2011 - N°8 - BW Confidential

Table of Contents for the Digital Edition of BW Confidential - Issue #8 - October/December 2011

Cover
Comment
Contents
Update
- Brand & retail news recap
- 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
- Estée Lauder Companies group president international Cédric Prouvé
Insight: Fragrance
- Category overview
- Retailer roundtable
- Retailing strategies
- Rare fragrance brands
- Launch roundup
Wellness
- Spa chains
- Spa case studies
Retail
- E-commerce
- Store concepts
Travel retail
- Sector analysis
- Hainan & China Duty Free Group
- Retail concepts
- Passenger habits
Digital
- Industry experts on harnassing the power of social networks
Radar
- Six up-and-coming beauty brands
Market watch: Russia
- Country overview
- Prestige retailing
- Industry viewpoint
Packaging
- Market outlook
- Sustainabilty
- Trends
Last word
- Buyology Inc president & co-founder Donna Sturgess

BW Confidential - Issue #8 - October/December 2011