BW Confidential - Issue #17 - March/April 2014 - (Page 90)

Last word Guest column The future of skin In our guest column, marketresearch company Diagonal Reports analyst Jacqueline Clarke examines the changes to come in consumer behavior and product demand Anti-aging for ever-younger women A new anti-aging skincare market will transform global skincare and have ramifications for the entire beauty industry. Diagonal Reports predicts the new anti-aging skincare sector will be 80% bigger than the current market. This is because people live longer, expect to look younger for longer, and start their anti-aging regimes earlier than ever. Millions will be investing in anti-aging skincare for almost all of their adult life. Longer life expectancy will exponentially increase demand for anti-aging skincare, if only because people will live with (and in) their aging skin for longer than in the past. These people will expect to delay the signs of skin aging well beyond what their parents thought possible. Many will begin their anti-aging regime early. Preventing signs of aging is why younger women are a key segment in anti-aging skincare in developed and newer beauty markets. One size no longer fits all Skin aging is of such profound concern that demand has remained resilient despite the recession. This contrasts with how shoppers have cut back on other beauty spending. But skincare formulators should beware: the larger skincare market does not spell more of the same for individuals or the beauty industry. Competition is multiplying and a wide range of portfolios of solutions and delivery methods now vie for a share of anti-aging spend. The most sophisticated and best-informed generation of beauty buyers is arriving on the scene. They will demand immediate and sustainable outcomes and rationalize their beauty spend accordingly. Online & discursive groups The number of online communities that are dedicated to discussing beauty is exploding. These online groups are discursive; that is, their purpose is to share information and self help 90 credit: stock.xchng " These digital communities are as much stakeholders in the new beauty discourse as the incumbents-the product formulators, marketers and retailers. Indeed, we argue that these new communities are creating new worldaltering cultural formations (in beauty)-much in the same way women's self-help groups did in previous decades. The industry, despite the number of sites and the volume of talk they generate, knows remarkably little about these groups, their opinions or influence. However, these insights are necessary to understand how this digital platform is changing the established discourse. Digital communities are creating new cultural formations (in beauty)-much in the same way women's self-help groups did in previous decades " Diagonal Reports analyst Jacqueline Clarke about beauty and appearance problems and solutions, exchange information on products, and discuss how to get value for money. These communities are quite different from e-commerce sites and individual beauty blogs. The commerce sites are functional-they exist only to sell products. But although beauty communities are not transactional, they contribute to shaping beauty transactions. Their major attraction is their trustworthiness. They are trusted because they are populated by people 'just like me.' Information that was once provided by 'word of mouth' and from the 'lived' experience has moved online. Technology, devices and tools A new generation of home-use skincare tools is the first opportunity for most consumers to access major beauty innovations made during past 10 years. These devices remove blemishes, tone or lift skin. Tools that deliver medicalized skincare solutions sell due to a pent-up demand, which has been created by media reports on beauty miracles for the rich and famous. Devices transform skincare routines when they are incorporated into daily beauty regimes. The results delivered by these devices will reverberate throughout the beauty world and impact the product formulator and the retailer. They are set to take market share from skincare products-a category that now accounts for one fifth of all beauty product sales Skincare formulators that work with technology partners can benefit from new consumer beauty routines. For example, products can be customized for use with devices. Beauty retailers must learn how to sell devices along with traditional cosmetic products. n Jacqueline Clarke is an analyst with research company Diagonal Reports, which has been tracking the global skin and haircare market and consumer behavior since the late 1990s. Clarke is responsible for the company's beauty research reports and presents findings at beauty industry events in New York, Paris and Hong Kong. March-April 2014 - N°17 - BW Confidential

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