BW Confidential - Issue #17 - March/April 2014 - (Page 18)

Best of BW highlights BW Confidential delivers an electronic publication by email to subscribers every two weeks, with a focus on analysis of major issues facing the international industry, interviews with key players and insight into new trends. Here we bring you excerpts of some of our reports. To see the articles in full, log on to our website www.bwconfidential.com Beauty insight Indonesia Indonesia has been highlighted as a growth engine for beauty in Asia, and as part of the new block of emerging markets, the CIVETs (Colombia, Indonesia, Vietnam, Egypt and Turkey), is a country to watch. Its beauty market saw a 15% sales increase in 2012 to $1.9bn, according to Euromonitor, and is projected to grow by at least 10% for the next four years. Skincare remains the largest and fastest-growing category, with sales up 18.3% in 2012 to $1.21bn. The market's growth is fueled by a rising middle class, urbanization, greater investment from foreign brands and more retail options. Still, the market has its challenges. In September 2013, the rupiah hit its lowest level in four years. The weakened currency means prices are likely to rise and foreign companies may take a momentary break from investing in the country. US drugstores The drugstore channel accounts for 18% of total beauty sales in the US, according to Kline & Company's Beauty Retailing USA 2012 report. The top-three drugstore chains account for 16% of beauty sales in the channel, and their share is set to grow, as they continue to acquire smaller regional chains in the country. Beauty has become more of a priority for these retailers, due to both the adverse effect of generic drugs on their bottom line and the need to attract younger consumers. "Drug chains are looking to cosmetics and toiletries as a key area for expansion," comments Kline & Company industry manager consumer products Nancy Mills. This focus on beauty has led to a range of new concepts and attempts to upgrade their offer. C Poland Poland has been singled out as one of Eastern Europe's most promising emerging markets, but in the past two years, the beauty category has had a tough time. Beauty and personal care sales were down 1.6% to $4.08bn in 2012, with most product categories reporting declines, according to Euromonitor. These were largely due to rising living costs and consumers looking for more value for money. "We've seen consistent double-digit growth in Poland up to now, but as of June this year, we started seeing a significant slowdown in sales and in-store traffic due to decreasing purchasing power," Yves Rocher zone director Eastern Europe/CIS and French overseas territories Henri-Bernard Bedoin commented. This may put a brake on what was a relatively high beauty spend from Polish consumers. 18 M Online sales Online beauty sales continue to climb. Industry sources say that in 2012, e-commerce accounted for around 7% of global beauty sales. In the US-one of the most developed markets for online beauty-sales accounted for 4.5% of the market last year. Beauty sales done over the internet are growing by double digits, and faster than in other industries, as beauty was a late starter compared to categories such as fashion and electronics. Market-research agency L2's latest Digital IQ Beauty Index Online reports that global beauty sales are projected to grow by more than 29% in 2013. L2 attributes much of this growth to beauty players' increased investment in the web. Skincare still takes the lion's share of online sales, with make-up a close runner-up. March-April 2014 - N°17 - BW Confidential Y CM MY CY CMY K http://www.bwconfidential.com

Table of Contents for the Digital Edition of BW Confidential - Issue #17 - March/April 2014

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 Guerlain ceo Laurent Boillot
Insight: Make-up
Category overview
Budget brands
The latest trends
Retail
Innovative strategies
Retail
Vending machines
Store concepts
Digital Social media content
Market watch: Latin America
Regional overview
Mexico: country analysis
Mexico: prestige retailing
Colombia: country analysis
Colombia: prestige retailing
Argentina: country analysis
Argentina: prestige retailing
Radar A profile of six up-and-coming beauty brands
Emerging markets Company profile: Mahogany
Travel retail: Brazilian travelers
Analysis
Industry viewpoint
Packaging: Decoration techniques
Trends analysis
Innovations
Last word Diagonal Reports analyst Jacqueline Clarke

BW Confidential - Issue #17 - March/April 2014