Beauty Online - US - December 2012
SCOPE AND THEMES
What you need to know
Definition
Data sources
Consumer survey data
Advertising creative
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
Purchasing of beauty products
Most beauty product purchases are made in-store
Figure 1: Beauty product purchasing by channel, August 2012
Market factors
Income impacts accessibility
Figure 2: Broadband, smartphone and tablet access, by household income, December 2011
Consumers looking for beauty deals online
Figure 3: Attitudes toward the internet, August 2011-March 2012
Consumers buying gifts online
Figure 4: Any online purchase, by category, December 2011
Consumers interacting with brands through social media
Figure 5: Top 5 activities conducted in past month on social networks, by gender, January 2012
The consumer
Friends and family are the preferred source of beauty product information
Figure 6: Top 10 sources of information about beauty products, August 2012
General merchandise websites lead online beauty purchases
Figure 7: Top five online retailers where beauty products are purchased, August 2012
Online shopping gives consumers access to hard to find products
Figure 8: Top five attitudes toward shopping for beauty products online, August 2012
More than half of respondents that don’t buy beauty products online prefer to shop in-store
Figure 9: Top five reasons for not buying beauty products online, August 2012
What we think
ISSUES IN THE MARKET
How can beauty retailers address the entertainment value provided by shopping in-store?
How can beauty retailers convert online researchers into online buyers?
In an age of product counterfeiting, how can online beauty retailers ensure consumer trust?
INSIGHTS AND OPPORTUNITIES
Samples delivered to your door
We ship everywhere… for free!
Men.com
Digital scent technology
TREND APPLICATIONS
Trend: Objectify
Trend: Guiding Choice
2015 trend: Access Anything, Anywhere
BEAUTY PRODUCT PURCHASES
Key points
Majority of beauty product purchases are being made in-store
Figure 10: Beauty product purchasing, by outlet, August 2012
In-store shopping popular, particularly for frequently used products
Figure 11: Beauty product purchasing in-store, by gender and age, August 2012
Most purchased beauty products online varies from in-store purchases
Figure 12: Beauty product purchasing online, by gender and age, August 2012
Income drives online beauty purchases
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Figure 13: Beauty product purchasing online, by household income, August 2012
Households with children more likely to purchase some beauty products online
Figure 14: Beauty product purchasing online, by presence of children in household, August 2012
MARKET DRIVERS
Key points
Income impacts accessibility to internet and mobile device ownership
Figure 15: Broadband access in online sample by household income, December 2011
Figure 16: Smartphone, tablet, and PC penetration in online sample by household income, December 2011
Online shopping provides access to hard to find and specialty products
Figure 17: Shopped online, by gender, April 2011-June 2012
Consumers shop online to find deals
Figure 18: Searching for a better deal online, by household income August 2011-March 2012
Online shopping makes gift giving easy
Figure 19: Any online purchase, by category, December 2011
Social media
Figure 20: Activities conducted in past month on social networks, by gender, January 2012
Mobile shopping
Figure 21: Smartphone owners’ online behavior, by gender, April 2012
COMPETITIVE CONTEXT
Shopping in-store
Figure 22: Attitudes to shopping, by gender, December 2011
Opportunities for shopping online
RETAILER OVERVIEW
Figure 23: Top five online beauty retailers, 2010
Online only retailers
Amazon
Figure 24: Amazon, television ad, 2012
Drugstore.com
Brand websites
Brick/click mass merchandisers
Target
Walmart
Brick/click drug stores
CVS
Walgreens
Brick/click specialty beauty
Sephora
Ulta
Brick/click department stores
Macy’s
Nordstrom
Direct sell
Amway
Avon
Mary Kay
Direct marketing
Guthy|Renker
INNOVATIONS AND INNOVATORS
Pick your own samples
Reward/loyalty programs
Specialty beauty
Drug stores
Online exclusives
Free shipping/free returns
Gift with purchase
Buy online/pick up in-store
MARKETING STRATEGIES
Overview of online beauty retailers
Brand analysis: Sephora
Figure 25: Brand analysis of Sephora, 2012
Online initiatives
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Print advertising
Social media
Mobile apps
Brand analysis: Ulta
Figure 26: Brand analysis of Ulta, 2012
Online initiatives
Social media
Brand analysis: Wen
Figure 27: Brand analysis of Wen, 2012
Online initiatives
TV presence
Figure 28: Wen cleansing conditioner, television ad, 2012
PRODUCT INFORMATION – ANY PURCHASE
Key points
Friends and family are the preferred source of beauty product information
Figure 29: Information about beauty products, by gender and age, August 2012
Higher-income groups more likely to research beauty products, particularly in-store
Figure 30: Information about beauty products, by household income, August 2012
Households with children more likely to rely on peers for beauty product information
Figure 31: Information about beauty products, by presence of children in household, August 2012
Consumers who research beauty products, also more likely to purchase them
Figure 32: Beauty product purchasing – Any purchase, by top five beauty product information sources, August 2012
Figure 33: Beauty product purchasing – Any purchase, by next five beauty product information sources, August 2012
Figure 34: Beauty product purchasing – Any purchase, by those that visit social media sites and look for celebrity
endorsements to get beauty product information, August 2012
PRODUCT INFORMATION – ONLINE PURCHASE
Key points
Online information sources drive online beauty sales, particularly facial skincare
Figure 35: Online beauty product purchasing by online information sources for beauty products, August 2012
ONLINE RETAILERS PURCHASED
Key points
General merchandise websites lead online beauty purchases
Figure 36: Online retailers where purchased, by gender and age, August 2012
Facial skincare, fragrance, and makeup are most frequently purchased products regardless of
retailer
Figure 37: Products purchased online, by top four online retailer types, August 2012
Figure 38: Products purchased online, by next four online retailer types, August 2012
ONLINE SHOPPING ATTITUDES
Key points
Online shopping saves time and provides access to hard to find products
Technology features appeal to younger consumers
Figure 39: Attitudes toward shopping for beauty products online, by gender and age, August 2012
Households with children more engaged in online beauty shopping
Figure 40: Attitudes toward shopping for beauty products online, by presence of children in household, August 2012
IMPACT OF PRODUCT PURCHASES ON ONLINE SHOPPING
ATTITUDES
Key points
Consumers that purchase beauty products online like access, convenience
Technology features appeal to online beauty shoppers
Figure 41: Attitudes toward online shopping, by top six beauty products purchased online, August 2012
REASONS FOR NOT BUYING BEAUTY PRODUCTS ONLINE
Key points
More than half of consumers prefer to shop in-store, particularly women
Figure 42: Reasons for not purchasing beauty products online, by gender and age, August 2012
RACE AND HISPANIC ORIGIN
Key points
Asians highly involved in the beauty category, particularly skincare
Blacks, Hispanics interested in technology features
Figure 43: Beauty product purchasing online, by race/Hispanic origin, August 2012
Figure 44: Information about beauty products, by race/Hispanic origin, August 2012
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Figure 45: Attitudes toward shopping for beauty products online, by race/Hispanic origin, August 2012
CLUSTER ANALYSIS
Figure 46: Target clusters, August 2012
Cluster 1: Involved
Opportunities
Cluster 2: Basics
Opportunities
Cluster 3: Confident
Opportunities
Cluster characteristic tables
Figure
Figure
Figure
Figure
Figure
47:
48:
49:
50:
51:
Beauty product purchasing, by target clusters, August 2012
Information about beauty products, by target clusters, August 2012
Online retailers where purchased, by target clusters, August 2012
Attitudes toward shopping for beauty products online, by target clusters, August 2012
Reasons for not buying beauty products online, by target clusters, August 2012
Cluster demographics
Figure 52: Target clusters, by demographic, August 2012
Cluster methodology
CUSTOM CONSUMER GROUPS – IMPACT OF REGION/AREA
Key points
Urban shoppers buy more beauty products online compared to suburban, rural groups
Urban shoppers looking for convenience
Figure
Figure
Figure
Figure
53:
54:
55:
56:
Beauty product purchasing, by urban area, August 2012
Information about beauty products, by urban area, August 2012
Attitudes toward shopping for beauty products online, by urban area, August 2012
Reasons for not buying beauty products online, by urban area, August 2012
APPENDIX – OTHER USEFUL CONSUMER TABLES
Beauty product purchases
Figure 57: Beauty product purchasing, by gender and age, August 2012
Figure 58: Beauty product purchasing in-store, by urban area, August 2012
Product information
Figure 59: Online beauty product purchasing by offline beauty product information, August 2012
Figure 60: Online beauty product purchasing by those who look for celebrity endorsements for beauty product
information, August 2012
Online shopping attitudes
Figure 61: Attitudes toward shopping for beauty products online, by household income, August 2012
Figure 62: Attitudes toward online shopping, by products purchased online, August 2012
APPENDIX – TRADE ASSOCIATIONS
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Beauty Online - US - December 2012
Scope and Themes
What you need to know
E-commerce is the fastest growing segment of the U.S. retail market, with the beauty
category being no exception. As consumers are becoming more connected, the convenience
and time-saving aspects of internet shopping combined with the increased access to hard to
find beauty products, makes online shopping a real competitor to brick and mortar retailers.
Beauty product shoppers aren’t just turning to the internet to shop; they are seeking
information by reading consumer reviews, engaging with brands and retailers via social
media and viewing how-to tutorials. Additionally, consumers are using mobile devices to
shop on the go, giving retailers another opportunity to engage with the shopper. Mobile
shopping is expected to play a major role in holiday shopping behavior in 2012.
Key consumer drivers for shopping online include accessing hard to find products,
convenience, time-saving, and price. Consumers also are demanding interactive features
such as live chat, mobile apps, and customized product recommendations to help replicate
customer service features that used to be relegated to the in-store shopping experience.
Communicating consistent brand or retailer imagery and messaging across multiple
channels, and offering customers customized solutions to meet their beauty needs will likely
be the keys to success in this continually evolving retail space.
Definition
This report builds on the analysis presented in Mintel’s Beauty Online—U.S., December
2010.
This report focuses on how consumers navigate the online beauty space as well as the key
retailers and marketing strategies currently employed in this fragmented category. Sales
data/market size information is not included.
For the purposes of this report, Mintel defines the beauty category to include the following:
color cosmetics, facial skincare, bodycare, haircare, nail care, women’s fragrances, men’s
fragrances, hair accessories, and beauty appliances (hair and skin).
For detailed category information, included sales data and manufacturer/brand activity,
consult Mintel’s full library of CPG titles.
Data sources
Consumer survey data
For the purposes of this report, Mintel commissioned exclusive consumer research through
GMI to explore consumer consumption of/attitudes and behaviors toward online beauty.
Mintel was responsible for the survey design, data analysis, and reporting. Fieldwork was
conducted in August 2012 among a sample of 2,000 adults aged 18+ with access to the
internet.
Mintel selects survey respondents so that they are proportionally balanced to the entire U.S.
adult population based on the key demographics of gender, age, household income, and
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region. Mintel also slightly oversamples, relative to the population, respondents that are
Hispanic or black to ensure an adequate representation of these groups in the survey
results. Please note that Mintel surveys are conducted online and in English only. Hispanics
who are not online and/or do not speak English are not included in the survey results.
Mintel also has analyzed data from Experian Consumer Research, using the Experian
Simmons National Consumer Study (NCS) and the Experian Simmons National Hispanic
Consumer Study (NHCS). The NCS/NHCS was carried out during April 2011-June 2012 (full
year) and August 2011-March 2012 (six months) and the results are based on the sample of
20,295 adults aged 18+, with results weighted to represent the U.S. adult population.
While race and Hispanic origin are separate demographic characteristics, Mintel often
compares them to each other. Please note that the responses for race (white, black, Asian,
Native American, or other race) will overlap those that also are Hispanic, because Hispanics
can be of any race.
Advertising creative
Television advertising provided by Competitrack, the leading U.S. competitive ad tracking
provider. For Mintel reports, Competitrack monitors network, cable, spot, syndicated, public
and local television advertising.
For further information, or to order television, magazine, newspaper, online display, online
video, radio, outdoor, viral, or cinema advertising, or alternative media, inserts and
circulars, please contact Competitrack at websales@competitrack.com, or call
718.482.4200.
Abbreviations and terms
Abbreviations
The following is a list of abbreviations used in this report:
NCS/NHCS
NYU
P&G
PC
SKU
WiFi
National Consumer Study/National Hispanic
Consumer Study (Experian Simmons)
New York University
Procter & Gamble
Personal computer
Stock keeping unit
Wireless local access network, based on the Institute
of Electrical and Electronics Engineers’ 902.11
standards
Terms
App
BB cream
Brick and click
Short for application, typically used when discussing small,
limited-function, third-party cell phone applications or
social networking applications.
Traditionally defined as Blemish Balms in the European and
Asian markets but are being marketed as Beauty Balms in
the U.S. market.
Retailers that have both an online and brick and mortar
presence.
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Generations, if discussed within this report, are defined as:
World War II
Swing Generation
Baby Boomers
Generation X
Millennials*
Matrix Generation**
The generation born in 1932 or before. In 2012,
members of this generation are aged 80 or older.
The generation born between 1933 and 1945. In 2012,
members of the Swing Generation are between the ages
of 67 and 79.
The generation born between 1946 and 1964. In 2012,
Baby Boomers are between the ages of 48 and 66.
The generation born between 1965 and 1976. In 2012,
Generation Xers are between the ages of 36 and 47.
The generation born between 1977 and 1994. In 2012,
Millennials are between the ages of 18 and 35.
The generation born from 1995 to present. In 2012,
Matrices are aged 17 or younger.
* also known as Generation Y or Echo Boomers
** previously known as Post-Millennials
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Beauty Online - US - December 2012
Executive Summary
“The online retail space is growing, with the beauty category being no exception. Consumers are
becoming increasingly connected, particularly through the use of mobile devices, allowing them to
not only purchase beauty products, but research them and engage with brands, retailers and even
other beauty product users. As beauty consumers become more tech savvy, interactive features
that are entertaining and informative will be essential to competing in this continually evolving
retail space.”
-Shannon Romanowski, Beauty and Personal Care Analyst
Purchasing of beauty products
Most beauty product purchases are made in-store
Consumers are making the majority of their beauty purchases in-store, particularly for
frequently used products like shampoo and conditioner, body lotion, and body wash. Since
these products have frequent usage and high household penetration, consumers may not be
willing to wait for these products to ship, particularly when they are readily available at
numerous retailers.
Online beauty product purchases are led by facial skincare, fragrance, and makeup, which is
a departure from the most purchased beauty products in-store. These products tend to be
higher priced, making them more of an investment, potentially resulting in more upfront
research like reading online reviews, searching product ingredients, and visiting beauty
blogs or forums. These information sources are advantageous to online shopping, and are
often not available to in-store shoppers. Additionally, the convenience factor of shopping
online is certainly appealing to time-crunched consumers. Online shopping also provides
consumers with access to more premium and specialty items that were once only available
to those who lived near urban areas or high-end shopping outlets.
FIGURE 1: Beauty product purchasing by channel, August 2012
“Which of the following beauty products, if any, have you bought over the past 12 months?”
Base: 2,000 adult internet users aged
18+
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Source: Mintel
Market factors
Income impacts accessibility
Internet access and ownership of computers and mobile devices clearly impacts whether
consumers are able shop for beauty products online. Access to broadband internet becomes
significantly higher as income rises with only 53% of consumers from households earning
<$25K having broadband internet access compared to 77% from households earning
$150K+. Additionally, roughly one half of respondents report owning a smartphone with
that number increasing to two thirds of respondents in the highest income groups. Similarly,
21% of respondents report owning a tablet while roughly one third of higher-income
consumers reports tablet ownership. These findings are consistent with online beauty
product purchase rates, which also increase with income.
Online beauty retailers may have difficulty targeting lower-income groups, particularly when
they have limited access to internet. However, shopping online can help consumers easily
compare deals, redeem coupons and save money, which would likely be appealing to priceconscious consumers. Reinforcing some of the cost cutting benefits of online shopping to
lower-income groups could be an opportunity to further engage this consumer in the beauty
category.
FIGURE 2: Broadband, smartphone and tablet access, by household income, December 2011
“Which of the following do you own or have access to?”
Base: 2,000 adult internet users aged
18+
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Source: Mintel
Consumers looking for beauty deals online
Among consumers who buy cosmetics online, more than half agree that if they find
something they want in-store, they look on the internet to try and find a better deal. Online
shopping allows consumers to easily check multiple websites in order to find the best price.
Online only beauty retailers stand to benefit the most from shoppers looking in-store and
then purchasing online, particularly if they are able to compete on price or offer some sort
of promotion that engages the consumers. However, retailers that sell online as well as
have brick and mortar stores will need to find other ways to keep consumers shopping with
them, as opposed to purchasing strictly based on price. Price is certainly a motivator in the
online shopping category, it isn’t the only motivator. Retailers that can successfully leverage
their “brand” across all forms of commerce, and stay ahead of the curve when it comes to
innovation, will likely see the most success.
FIGURE 3: Attitudes toward the internet, August 2011-March 2012
“Please tell us the extent to which you agree or disagree with the statement: If I find
something I want in-store, I look on the internet for a better deal.”
Base: 660 internet users aged 18+ who buy cosmetics
online
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Source: Mintel/Experian Simmons NCS/NHCS Spring 2012 Adult 6 months—POP
Consumers buying gifts online
More than half of consumers who shop online report buying presents for others online.
Online shopping is a great channel for gift giving as it allows consumers to easily ship to the
recipient, particularly with the plethora of free shipping offers that tend to increase around
the holiday season. Beauty retailers are capitalizing on this trend by offering limited-edition
gift sets, exclusive stocking stuffers, and even offering free shipping on gifts.
FIGURE 4: Any online purchase, by category, December 2011
“Following is a list of product categories. In the past year, have you used any of the
following methods of making a purchase (on a computer, on a cellphone, or on a tablet)?”
Base: 1,638 internet users aged 18+ who shop
online
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Source: Mintel
Consumers interacting with brands through social media
Interacting with consumers via social networks isn’t a new trend, but retailers are going
beyond simply having a Facebook page or Twitter account and luring followers with offers
and promotions offered exclusively through social networks. Women in particular are
connecting with brands and requesting samples through social networks, which is good
news for the beauty industry since women are more likely to be involved in the category.
Still, popular men’s brands like Axe and Old Spice have been particularly successful with
social media campaigns as these campaigns capture the essence of the brand and
encourage users to interact with the brand as well as “share” offers and promotions with
their peer network.
FIGURE 5: Top 5 activities conducted in past month on social networks, by gender, January
2012
“Which of the following have you done in the past month at all on a social network?”
Base: 1,486 internet users aged 18+ with at least five friends on a social
network
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Source: Mintel
The consumer
Friends and family are the preferred source of beauty product information
Consistent with many beauty and personal care categories, consumers who purchase beauty
products rely on their friends and family for product information. The unbiased nature of
these opinions and recommendations, combined with the trust factor, certainly makes this
an appealing source. Nevertheless, consumers are having increased opportunities to voice
their opinion online as beauty retailers, social media sites, and beauty blogs encourage
consumers to review products and share their opinions. As consumer reviews continue to
proliferate online, no doubt this will become an increasingly popular information source.
FIGURE 6: Top 10 sources of information about beauty products, August 2012
“Where do you get information about beauty products?”
Base: 1,928 internet users 18+ who bought beauty products
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Source: Mintel
General merchandise websites lead online beauty purchases
General merchandise websites, led by Amazon, dominate online sales, with beauty products
being no exception. The large variety of products offered combined with quick delivery
times, one-click purchasing and free shipping offers make Amazon a force to be reckoned
with in the online shopping category. Mass merchandisers are often cited as the most
visited retailer when purchasing beauty and personal care products in-store so it stands to
reason that a similar pattern of behavior would exist among online beauty purchases. Mass
merchandisers are beginning to offer more reward and loyalty programs, encouraging
consumer loyalty as shoppers can earn “points” redeemable for rewards, money off future
purchases, and even free shipping. However, consumers that are looking for beauty
expertise are likely turning to specialty beauty retailers like Sephora and Ulta. These
retailers only sell beauty products and offer apps and online features like live chat, beauty
blogs, tips from beauty experts, and online tutorials that general websites like Amazon and
even mass merchandiser websites typically don’t offer.
FIGURE 7: Top five online retailers where beauty products are purchased, August 2012
“Which types of online retailers have you purchased beauty products from in the past 12
months?”
Base: 520 internet users 18+ who bought beauty products
online
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Source: Mintel
Online shopping gives consumers access to hard to find products
The majority of respondents who buy beauty products agree that buying online gives them
access to hard to find products and saves them time. While specialty and niche beauty
products were once only available to consumers who lived in urban areas or near shopping
malls, the internet has become a bit of an equalizer, giving anyone (who has internet
access) the opportunity to research and purchase specialty beauty products. Additionally,
the internet allows for a level of anonymity when shopping for products that may be a bit
embarrassing to shop for in person like anti-aging or hair-thinning products, particularly for
men. The time-saving factor is also a key driver for shopping online. The internet allows
consumers to shop 24/7 from the comfort of their own home or even when waiting in line at
the grocery store. Time-saving and convenience are big advantages over shopping in-store,
and retailers should consider these features as important as price promotions and product
information features when selling online.
FIGURE 8: Top five attitudes toward shopping for beauty products online, August 2012
“Please indicate whether you agree or disagree with the following statements about
shopping for beauty products online.”
Base: 1,928 internet users 18+ who bought beauty products
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Source: Mintel
More than half of respondents that don’t buy beauty products online prefer to shop in-store
Roughly half of respondents that don’t purchase beauty products online report that they
prefer to shop for products in-store, with that number being higher among females aged
55+. Retailers are encouraging consumers to sample and test beauty products in-store, as
well as providing beauty experts and in some cases, beauty services. Online retailers can’t
necessarily compete with these in-store services, but promoting exclusive online offers as
well as interactive online features could help encourage some of these in-store shoppers to
consider online shopping. On the other hand, some consumers are simply not interested in
shopping online. Retailers are more likely to have success by increasing purchases among
consumers who are already shopping online.
FIGURE 9: Top five reasons for not buying beauty products online, August 2012
“Which of the following statements describe why you did not make any beauty product
purchases online in the past 12 months?”
Base: 1,408 internet users 18+ who did not buy beauty products
online
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Source: Mintel
What we think
Ownership of smartphones and tablets is increasing, particularly among higher-income
consumers. As consumers are becoming increasingly connected, online shopping is gaining
in popularity, particularly as consumers are using their computers or mobile devices to get
informed, engage with retailers and brands via social networks, and of course purchase
products. The online beauty space is highly fragmented, with general merchandise websites
being the most purchased for beauty products. However, retailers that specialize in beauty
and offer a level of expertise, combined with reward or loyalty programs, are also popular,
especially with younger females who are more engaged in the category overall.
Key consumer drivers for shopping online include accessing hard to find products,
convenience, time-savings, and price. Nevertheless, consumers also are demanding
interactive features like live chat, mobile apps, and customized product recommendations to
help replicate customer service features that used to be relegated to the in-store shopping
experience. Some consumers simply prefer to shop in-store, regardless of the benefits or
advantages offered by online shopping. As the online beauty space continues to evolve,
online retailers need to be consistent with their marketing communications as well as offer
customers unique and interactive features to engage and entertain them, all while meeting
their beauty needs.
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Beauty Online - US - December 2012
Issues in the Market
“Interactive shopping features allow consumers to have a more personal and custom interaction
with the retailer, with the hopes of replicating personal customer service previously exclusive to instore shopping.”
-Shannon Romanowski, Beauty and Personal Care Analyst
How can beauty retailers address the entertainment value provided by shopping
in-store?
Shopping for beauty products in-store has become more experiential as consumers can now
test and sample products, interact with beauty experts and even get in-store beauty
services. Sampling beauty products used to fall strictly under the realm of department
stores, but beauty specialists like Sephora and Ulta have “removed the beauty counter”
allowing consumers to play and experiment with beauty products. Retailers like Bath & Body
Works have sinks in their stores, so consumers can experience how the product works and
smells during use. In addition, drug stores and mass merchandisers are also expanding
their beauty departments by increasing beauty offerings as well as having in-store beauty
advisors to help consumers find products that meet their needs. For example, Duane
Reade’s Look Boutique in New York City has a fragrance tester that allows consumers to
sample fragrances by placing their wrist beneath the nozzle for a spritz of the fragrance
they want to test. All of these efforts have elevated the entertainment value of shopping for
beauty products in-store.
Also, many beauty retailers are located in malls or shopping centers, which have also
become entertainment destinations in their own right. Shopping centers have expanded to
include more dining options, nightlife, theaters, and even amusement parks!
While online shopping can’t necessarily replicate the entertainment value of shopping instore, the convenience and time-saving aspects are certainly advantageous. Additionally,
more retailers are offering interactive features both online and via mobile apps. Mary Kay
recently introduced a mobile app version of its successful virtual makeover tool that is
available on the company’s website. This feature allows consumers to “try on” color
cosmetics and even experiment with different hair styles and accessories. According to
Mintel’s custom consumer research, 33% of respondents who purchase beauty products
would be interested in an app that helps consumers pick products customized for their
needs, and 28% of respondents would be more interested in shopping online if websites had
interactive features like live chat. Interactive shopping features allow consumers to have a
more personal interaction with the retailer, with the intent of duplicating personal customer
service previously exclusive to in-store shopping.
Finally, online only retailers like Amazon are collaborating with companies like Procter &
Gamble (P&G) to build customized brand pages for popular consumer brands (like Olay)
within their website to drive brand awareness. These brand pages also utilize “automated
personalization technology” that generates customized product recommendations based on
consumers searching and buying habits (gcimagazine.com, Nov. 2, 2012). This is similar to
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the suggested book purchase feature that Amazon employs based on users previous book
purchases of similar or related content. Interactive and customized online and mobile
features certainly add to the entertainment value of online shopping as well as offer the
personalized aspect many consumers are looking for and feel is missing from web-based
shopping. Still, retailers should try and avoid getting too “gimmicky” with these features
and make sure that they align with the image of the retailer and/or brand and try to
connect with the consumer on a more emotional level. According to GCI magazine (Aug. 27,
2012), beauty consumers, primarily women, view shopping for beauty products differently
than shopping for other items such as food or household products. Women use beauty
products as an escape and view them as a little treat so retailers should consider connecting
with women on a more personal level, reinforcing the emotional benefits of shopping for and
ultimately finding the right beauty product.
Source: amazon.com
How can beauty retailers convert online researchers into online buyers?
According to Mintel’s custom consumer research, nearly one half of respondents who
purchase beauty products prefer to research products online and then purchase in-store.
This behavior is more likely to be exhibited by women, particularly since women are more
engaged in the beauty category overall. With the rapid expansion of beauty blogs and
review sites, women have more access to information, allowing them to educate themselves
about products and brands, ultimately taking some of the guesswork out of shopping for
beauty products. However, women still want to try products before they buy and online
shopping can’t quite replicate that physical interaction with the product.
Interactive customer service features have helped to elevate the customer service element
of online shopping, but experimenting with beauty products in-store is hard to duplicate. As
mobile and tablet shopping expands, interacting with consumers as they research products
or even shop in-store could translate to more online sales. Retailers may want to consider
offering more online only deals promoted through the brand website or social media
networks. Additionally, product giveaways such as “pin it to win it” promotions on Pinterest
could engage these beauty researchers in a new way, ultimately turning them into online
shoppers.
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19
Retailers may also want to consider bringing back discontinued products by offering them
exclusively online through their own website or partner with a trusted retailer. Consumers
have developed loyal followings to certain beauty products, and online exclusivity allows
these consumers to get their favorite products as well as create buzz for the brand. Brands
could even take this idea a step further and offer these discontinued favorite products for a
limited time, creating a stronger sense of urgency to buy before the product is no longer
available.
In an age of product counterfeiting, how can online beauty retailers ensure
consumer trust?
According to Mintel’s custom consumer research, 15% of consumers that purchase beauty
products but do not purchase them online report wanting to buy products from a retailer
they trust, with that number increasing to 23% among females aged 55+. While not a huge
percentage of respondents, retailer trust is an issue in the online shopping category.
The primary issue in the category is not that retailers can’t be trusted, it’s that product
divergence and distribution isn’t always easily tracked. In the e-commerce environment,
many third-party players sell brands that used to only be available through a store or a
brand website. Increased distribution is certainly beneficial for brands, but it also creates
some issues. At the most basic level, third-party players may price, promote, and display
products in a way that is not consistent with the image or values that the brands wants to
convey.
However, a bigger issue in the e-commerce market is product counterfeiting. While this
issue used to be exclusive to high-end beauty products like fragrance and skincare, it has
filtered into everyday personal care products like shampoo and even oral care. These
counterfeit products are usually manufactured outside of the U.S. and often look identical to
the original product on the outside, but what’s inside often is vastly different. These
products usually live on internet auction and trading websites and are sold by dubious
sellers. Unfortunately, the actual manufacturer of the product usually has no idea that
“fake” versions of their products are being sold on these sites. While auction and trading
sites certainly try to monitor sellers and make sure what is being sold is legitimate, with the
enormous amount of products being sold online, it’s nearly impossible for retailers and
websites to track all products.
While there is no easy solution to this problem, as retailers continue to expand into more ecommerce channels they may want to consider online quality control measures to assure
that their products are being properly priced and promoted. Also, while expanded product
distribution could increase sales and awareness, brands may want to consider only using
preferred vendors or offer guarantees (like money-back offers, etc.) to ensure product
quality and ultimately build consumer confidence.
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20
Beauty Online - US - December 2012
Insights and Opportunities
Samples delivered to your door
Beauty box subscriptions are the latest trend in sampling and offer customized boxes of
product samples for a small price, allowing consumers to try before they buy without having
to leave their home. If consumers love a sample, they can buy the full-size product from the
subscription box website. Birchbox, which focuses on higher-end and niche brands from a
variety of categories including skincare, makeup, nails, fragrances and lifestyle products,
was one of the first to launch a subscription box and has since expanded to offer a variety
of women’s boxes, as well as ones for men, and even a special holiday box. Birchbox
recently acquired JolieBox, which is based in Paris and expands the Birchbox business into
Europe (GCI magazine, Sept. 14, 2012). Other beauty boxes have since launched with some
being very similar to the Birchbox concept, offering high-end and niche beauty products.
Some boxes have become more specialized like My Shade of Brown, which offers beauty
samples tailored for women of color, and CurlBox, which contains haircare samples
specifically for curly hair. One familiar theme among these boxes is they primarily focus on
high-end and specialty beauty products.
Target has since joined the beauty box buzz and is offering free beauty boxes to consumers
who “like” the retailer on Facebook. These boxes are available in limited supply but certainly
created a buzz on beauty blogs and social media. The boxes offer mass brands more typical
of what is found in Target stores, as well as coupons and special offers good for future
purchases.
Beauty boxes do run the risk of encouraging constant sampling, without consumers ever
purchasing a full-size product. However, getting samples into the hands of consumers,
particularly when the boxes are free (like Target), will certainly increase brand awareness
and get people talking. Subscription boxes are a great opportunity for retailers to allow
consumers to sample at home and purchase online, particularly as sampling is often cited as
the top reason for learning about a new beauty product. There are numerous opportunities
to expand this concept by brand, product type or even retailer. For instance, retailers could
have subscription fragrance boxes, haircare boxes, makeup boxes, etc. to promote topselling products as well as feature new launches. Additionally, retailers that operate “brick
and mortar” stores may want to offer coupons that are only redeemable in-store for free
services or discounts on products. This will keep consumers engaged with the retail space
while still providing them the convenience aspects of online shopping.
We ship everywhere… for free!
Consumers are becoming more connected globally, and therefore have increased access to
beauty trends and products from other parts of the world. Additionally, the U.S. population
continues to become more diverse, as growth within the Hispanic and Asian populations
outpaces total population growth. Different ethnicities have different beauty regimens and
are likely seeking different products, ingredients, and benefits. One of the hottest makeup
products to hit the U.S. in 2012 was the introduction of BB creams. While new to the U.S.
market, these multifunctional products have been popular in Asia for years. As consumers
are sharing beauty advice and trends via blogs, forums and review sites, the desire for
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21
beauty products from other parts of the globe is undoubtedly on the rise. BeautyBay.com is
a UK-based website that sells products ranging from haircare, skincare, makeup, and nail—
and offers free worldwide delivery. Free worldwide delivery certainly expands the site’s
audience, particularly as international shipping can often be cost prohibitive for shoppers. It
is also reflective of the changing face of beauty, as consumers are looking to other parts of
the world for the newest big trend. BeautyBay.com also has a blog and “get the look”
section on its website that helps users achieve iconic looks from celebrities, most notably
British royalty, Kate Middleton. Free worldwide delivery may not be feasible for all beauty
brands, but as many brands and retailers are expanding into global markets, the
opportunity to expand product distribution and appeal to consumer’s desire for international
beauty products could be an opportunity.
Source: beautybay.com
Men.com
As would be expected, men are less engaged in the beauty category when compared to
women. Online shopping is particularly appealing to men, as the convenience and timesaving aspects are more likely to resonate with them. According to Online and Mobile
Shopper—U.S., March 2012, 62% of men report that they love to shop in person compared
to 75% of women. However, men and women report equal agreement that shopping online
from home is their favorite way to shop. Men, 18-34, who buy beauty products, are
significantly more likely to agree that shopping online saves them time, is more convenient
than shopping in-store, and allows them to be the first to try new products when compared
to total respondents and in some cases, women in the same age group. Additionally, and
probably most compelling, is that these men also report being more likely to make impulse
purchases when shopping online compared to shopping in-store (see Online Shopping
Attitudes).
Somewhat understandably, most beauty retailing (both in-store and online) is focused on
women. While women are the primary target for the beauty industry, particularly for
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22
categories like makeup and nail care, men are using skincare and haircare products, and are
even turning to some higher-end products and brands. Women are more likely to report
researching beauty products prior to purchasing, while men are more likely to buy what
they need and buy on impulse if something appeals to them. Younger men also report a
high level of interest in interactive customer service features like live chat. Online beauty
retailers have a golden opportunity to target men, particularly with easy to use interactive
features and via mobile apps. Retailers like Walmart and drug stores are men’s most
frequented retailers for purchasing men’s grooming products (Men’s Grooming and
Toiletries—U.S., October 2012). These retailers in particular may want to consider a virtual
man boutique that guides men to frequently used personal care products (like shaving
products, deodorant, and shower gel). Additionally, since younger men are more likely to
report making impulse purchases online, automatically generated product recommendations
(similar to the Amazon strategy detailed in Issues in the Market), may be particularly
effective with this consumer. Taking this idea one step further, automatically filling men’s
shopping baskets with products they have previously searched for or purchased could
further simplify the shopping process. While men are less likely than women to be engaged
in the beauty category, online shopping may be way to increase their participation in the
category as well as introduce them to products and brands that were previously unfamiliar
to them.
Digital scent technology
Imagine watching a television ad for a new perfume and being able to smell it too. This
technology may seem like science fiction, but it’s actually not that far-fetched. Numerous
technology companies are working on scent applications that can be released through
consumers’ televisions or computers. The idea is that a USB cartridge would be attached to
your device and then can transmit smells based on what the consumer is viewing. While
these devices can’t replicate all scents, it certainly adds another layer of consumer
interaction and resolves some of the “try before you buy issues” associated with buying
fragrance online. Going beyond just buying perfume, these devices could give consumers
the opportunity to smell shampoo or body care fragrances and experience ads in a
revolutionary way. Several prototypes have been created, making digital scent technology a
real possibility for the future of online beauty retailing.
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23
Beauty Online - US - December 2012
Trend Applications
Mintel’s approach in this section goes beyond merely identifying trends. Trends from Mintel
Inspire are applied to understand the wider implications of cultural changes, gaining insight
into how companies and brands can translate these into on-the-ground opportunities
relevant for the online beauty market.
Trend: Objectify
The internet may have promoted the virtual over the tangible, but its role as an overarching
democratic platform has conversely promoted niche interests and the concept of
individuality.
Here is how the trend Objectify can be used in the online beauty market.
Online shopping can’t necessarily replicate the entertainment value of shopping in-store, but
online retailers can engage consumers differently than brick-and-mortar merchants by
taking advantage of the experience of receiving the product. Women frequently view beauty
products as a gift to themselves, so retailers should consider connecting with them on a
more personal and emotional level. Consumers crave opportunities to be different and
artistic and reusable product packaging presents an opportunity to leverage this concept.
Product packaging certainly plays a role in the purchasing decision, particularly in categories
like fragrance and high-end skincare, which often come in packages that consumers want to
display in their homes. However, online retailers have the opportunity to use the shipping
package as another vehicle for connecting with the consumer. Although the primary function
of the packaging is to minimize product damage, visual appeal attracts consumer attention
and potentially keeps them coming back. Consumers are attracted to products with unique,
displayable packaging that they would want to leave out and even repurpose. Reusable
decorative tins and gift-wrap can individualize products, letting consumers feel like they are
receiving a special gift, even when it is something they purchased for themselves.
Packaging with multiple applications and innovative extras can help products stand out,
particularly against in-store offerings. Brands have the opportunity to invest some
permanence into packaging so product vessels or holders can live on as objects in their own
right and potentially appeal to consumers looking for green or sustainable packaging.
Additionally, if a consumer is proud to display a product or has repurposed a product’s
packaging, it can take on another form of product advertising.
Additionally, the form of delivery can be used to further define the online experience and
instill something extra special for recipients. Instead of a brown truck bringing a brown
package, branded delivery services can make consumers feel engaged and attracted to the
brand by feeling like a truly valued customer, as well as provide an additional vehicle for the
retailer to advertise and promote their brand. Adding value to the delivery and receipt of
beauty products gives online retailers the opportunity to connect with the consumer in a
different way than in-store retailers and ultimately make a lasting impression.
Trend: Guiding Choice
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24
Consumers want it both ways: plenty to choose from, and shortcuts that make the choosing
process faster, more relevant and more personal.
Here is how the trend Guiding Choice can be used in the online beauty market.
When it comes to consumer products, sometimes the pure number of options can be
overwhelming. Many brands and retailers have expanded product offerings and developed
tools that aim to educate consumers by providing them with more information. However,
this additional information can lead to more choice, ultimately adding to the confusion.
Some consumers rely on retailers to act as filters and choose for them, while others will
limit themselves to familiar retailers as a means of simplifying their choices. Visiting a store
may simply appeal as a guided restriction that shoppers voluntarily impose on themselves.
With tools and apps aimed at helping consumers make more educated, individual decisions
can act as an engaging and experiential response to the over stimulation sometimes
associated with online shopping. Apps with the ability to customize product
recommendations and virtually “dig” through the clutter by telling consumers exactly what
they need, has growing interest. An ideal tool would have an input for consumers to easily
communicate their needs/concerns, be easy to use, easy to order from, and have the ability
to allow research on the product, if the user so desired. This more personalized approach
can appeal to the consumer’s sense of individuality and bring a more “human” touch to
technological choice guidance.
Mintel’s proprietary data finds that 32% of consumers would be interested in an app
that helped pick products customized for their personal needs.
●
Mobile marketing allows retailers and brands to interact with consumers instantaneously,
potentially resulting in more impulse purchases. When confronted with a problem or
concern, apps that provide consumers with instant responses can reach these impulse
shoppers as well as those who may be frustrated with their in-store experience and
otherwise leave empty handed. Online merchants can take advantage of the limitations of
in-store information and ready product answers that can be provided easily by the internet.
2015 trend: Access Anything, Anywhere
Mintel has identified four meta trends that are gaining significance and will have the
greatest impact on consumers worldwide between now and 2015. Because these trends are
affecting both domestic and international markets and industry sectors, they also present
the greatest areas of opportunity for companies and brands. The four trends are as follows:
●
●
●
●
Old Gold
East Meets West
Access Anything, Anywhere
Brand Intervention
As with Mintel Inspire trends, any one of the four 2015 trends can be applied to identify
opportunities for companies operating within the beauty industry. For the purposes of this
report, Mintel explores how Access Anything, Anywhere can be used in the beauty online
market.
Devices are becoming remote controls for our lives, helping us access things we want to
buy, control things we already own and analyze things we want to better understand. By
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25
2015 consumers will be relying on their mobile devices in just about every capacity of their
lives.
Smart phones and mobile devices continue to become an integral part of how consumers
get information, shop, and communicate. Users have more access to information, allowing
them to educate themselves about products and brands, and eliminate some of the
guesswork when it comes to shopping for beauty products. Research suggests that
consumers are using their mobile devices prior to purchasing as well as to compare prices
and access coupons or promotional codes. Additionally, mobile shoppers were nearly twice
as likely to report looking for last minute deals when compared to those who shop online
using a traditional computer.
Mintel’s proprietary data finds that 49% of smartphone users said they keep their
smartphone with them at all times so that they can search for information whenever they
need it, and 38% like the idea of receiving coupons immediately on their smartphone if they
are close or in a store. However, women still want to try products before they buy and
online shopping can’t quite replicate that physical interaction with the product. Mobile phone
applications that help consumers navigate the saturated beauty category and can create a
unique experience could address some of the issues in the category and compete with instore entertainment. Try before you buy features like interactive apps can help consumers
virtually interact with products in a way that used to be only available in-stores. As
illustrated in Competitive Context, nail brands OPI and Maybelline both recently launched
interactive applications to showcase their nail polish colors. Consumers can take a picture of
their hand and then select colors to “try on.” Mary Kay and Beautylish.com have also
introduced mobile apps that let users virtually try on color cosmetics and even experiment
with hair styles and accessories. Although there are still issues to work out, the consumer
interest is there, desiring more realistic technology and application options mimicking reallife use.
Additionally, if users are avoiding online shopping, online retail options may infiltrate instore merchants. Kiosks with the ability to scan a product in-store and have automatic pulls
online for similar colors/products not available at the retailer could expand product
awareness, and help segue shoppers to an online state-of-mind. Retailers can seek to
profile customers and target them with promotional alerts as they pass by or encourage
them to use private kiosks in-store. The kiosk technology can also allow transactions to be
made with a swipe of a card, offering an alternative to consumers who fear putting their
financial information online. Bringing online shopping to in-store retailers can introduce the
experience to inexpert consumers while they are in a more comfortable retail environment.
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26
Beauty Online - US - December 2012
Beauty Product Purchases
Key points
●
According to Mintel’s custom consumer research, the majority of
respondents are purchasing beauty products in-store, with shampoo or
conditioner, lotion, and body wash being the most purchased products.
●
The number of respondents reporting online beauty purchases is much
smaller than those reporting in-store purchases with facial skincare, makeup, and
women’s fragrances being the most purchased products online.
●
Consumers are more likely to report purchasing beauty products online as
income increases. This is likely driven by higher levels of disposable income, which
allows for increased accessibility to the internet, computers, and mobile devices.
●
Households with children are more likely to report buying fragrances (both
men’s and women’s) and makeup online. These items are frequently purchased as
gifts, and busy parents may be more likely to turn to online shopping due to its
ease and convenience.
Majority of beauty product purchases are being made in-store
Consumers are making the majority of their beauty purchases in-store, particularly for
frequently used products like shampoo and conditioner, body lotion, and body wash. Since
these products have frequent usage and high household penetration, consumers may not be
willing to wait for these products to ship, particularly when they are readily available at
numerous retailers.
However, online shopping has advantages like offering detailed product information,
including reviews, ingredient information, tutorials, etc. that is often not available in-store.
Additionally, the convenience factor of shopping online is certainly appealing to timecrunched consumers. Facial skincare, fragrance, and makeup are the most purchased
beauty products online, which is a departure from the most purchased beauty products instore. These products tend to be higher priced, making them more of an investment, and
also have longer purchase cycles so consumers may not mind waiting a little longer for
shipping. Online shopping also provides consumers with access to more premium and
specialty items that were once only available to those who lived near urban areas or highend shopping outlets.
FIGURE 10: Beauty product purchasing, by outlet, August 2012
“Which of the following beauty products, if any, have you bought over the past 12 months?”
Base: internet users aged 18+
Shampoo or conditioner
Hand or body lotion
Body wash or shower gel
In-store
2,000
%
87
70
69
Online
2,000
%
6
7
6
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Facial skincare products
Hair styling products (such as mousse, gel,
pomade)
Brushes, combs, barrettes or other hair
accessories
Makeup (i.e. – Eye shadow, lipstick,
foundation, etc.)
Nail products (i.e. – Nail polish, nail care like
strengtheners)
Men’s fragrances
Women’s fragrances
Blow dryer, flat iron, curling iron or other hair
appliances
Skin electrical devices (i.e. Clarisonic)
50
53
10
4
45
3
42
8
39
4
36
30
23
7
8
5
7
3
Source: Mintel
In-store shopping popular, particularly for frequently used products
In-store shopping still remains the most common method of purchasing beauty products.
Some 87% of consumers report purchasing shampoo or conditioner in-store, followed by
roughly seven out of 10 consumers reporting purchasing lotion and body wash. Purchase
rates are even higher among women, with 96% of females aged 18-34 reporting purchasing
shampoo or conditioner in-store followed by response rates of more than 80% for both
lotion and body wash. While response rates are higher for all products being purchased instore as opposed to online, products that are used frequently and have high household
penetration are the most likely to be purchased in-store. Products like shampoo and lotion
are used by the majority of consumers, and are potentially shared by several members of
the same household. Since these products are used frequently (compared to makeup or
fragrances which have longer purchase cycles), they are likely part of the “grocery list” for
the household and picked up when shopping for food or other household items. Consumers
may not want to wait for these products to ship, particularly when these types of products
are readily available at numerous retailers.
FIGURE 11: Beauty product purchasing in-store, by gender and age, August 2012
“Which of the following beauty products, if any, have you bought over the past 12 months?”
All
Base: internet users aged 18+
In-store:
Shampoo or conditioner
Hand or body lotion
Body wash or shower gel
Facial skincare products
Male, Male, Male, Fema Fema
183555+ le,
le,
34
54
183534
54
2,000 316
357
307
316
367
%
%
%
%
%
%
Fema
le,
55+
87
70
69
50
90
83
74
65
80
57
71
36
85
55
60
30
79
53
48
16
96
84
81
74
93
84
80
74
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337
%
28
Hair styling products (such as
mousse, gel, pomade)
Brushes, combs, barrettes or
other hair accessories
Makeup (i.e. – Eye shadow,
lipstick, foundation, etc.)
Nail products (i.e. – Nail polish,
nail care like strengtheners)
Men’s fragrances
Women’s fragrances
Blow dryer, flat iron, curling
iron or other hair appliances
Skin electrical devices (i.e.
Clarisonic)
53
43
36
22
72
75
63
45
32
30
24
73
67
44
42
14
10
7
80
72
67
39
12
11
8
77
65
58
36
30
23
57
17
15
50
16
12
43
14
8
24
51
39
25
44
36
19
38
24
7
12
7
1
9
9
5
Source: Mintel
Most purchased beauty products online varies from in-store purchases
Although the majority of consumers purchase beauty products in-store, online shopping
provides product information, including reviews, ingredient information, tutorials, etc. that
is often not available in-store and helps to aid in consumers purchase decisions. Facial
skincare, fragrance, and makeup top the list of the most purchased beauty products online.
These products tend to be higher priced, making them more of an investment. When
consumers want to invest money in a higher-priced product like a fragrance, they may be
more likely to research and ultimately purchase online. Online shopping also provides
consumers with access to more premium and specialty items that were once only available
to those who lived near urban areas or high-end shopping outlets. Finally, the appeal of
purchasing higher-end beauty products as gifts is certainly driving some online purchases;
particularly with the proliferation of free shipping/free return offers being made by online
retailers, as well as the abundance of exclusive gift packs, stocking stuffers, and other
limited time offers.
FIGURE 12: Beauty product purchasing online, by gender and age, August 2012
“Which of the following beauty products, if any, have you bought over the past 12 months?”
All
Base: internet users aged 18+
Online:
Shampoo or conditioner
Hand or body lotion
Body wash or shower gel
Facial skincare products
Hair styling products (such as
mousse, gel, pomade)
Male, Male, Male, Fema Fema
183555+ le,
le,
34
54
183534
54
2,000 316
357
307
316
367
%
%
%
%
%
%
Fema
le,
55+
6
7
6
10
4
7
9
5
17
3
6
7
6
9
4
4
5
4
5
3
3
3
1
1
-
5
9
7
11
5
9
9
9
14
5
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337
%
29
Brushes, combs, barrettes or
other hair accessories
Makeup (i.e. – Eye shadow,
lipstick, foundation, etc.)
Nail products (i.e. – Nail polish,
nail care like strengtheners)
Men’s fragrances
Women’s fragrances
Blow dryer, flat iron, curling iron
or other hair appliances
Skin electrical devices (i.e.
Clarisonic)
3
6
3
-
4
2
1
8
4
2
-
14
13
12
4
5
3
-
7
6
3
7
8
5
11
4
4
8
6
4
5
2
1
7
13
7
6
11
7
2
12
4
3
6
3
-
6
4
1
Source: Mintel
Income drives online beauty purchases
Not surprisingly, higher income groups are more likely than lower income groups to report
purchasing beauty products online. For example, only 5% of consumers in the <$25K group
report purchasing makeup online as opposed to 13% of those in the $150K+ group. Lower
income groups tend to report lower usage of many beauty products in general, which is
certainly a factor to consider. However, lower income groups are also less likely to have
internet access as well as own mobile devices and/or computers. According to Online and
Mobile Shopper—U.S., March 2012, only 37% of consumers in the <$25K group own a
smartphone compared to more than 50% ownership in households with incomes greater
than $50K. Additionally, only 48% of consumers in the <$25K group have broadband
internet access at home compared to 74% of total respondents and more than 90% of
consumers in the highest income group. Marketing efforts to encourage online and mobile
shopping, particularly of beauty products, will best be suited to higher income groups. At
the same time, the ability to easily bargain shop and compare prices may drive growth of
online shopping among lower-income groups in the future.
FIGURE 13: Beauty product purchasing online, by household income, August 2012
“Which of the following beauty products, if any, have you bought over the past 12 months?”
All
Base: internet users aged 18+
Online:
Shampoo or conditioner
Hand or body lotion
Body wash or shower gel
Facial skincare products
Hair styling products (such as
mousse, gel, pomade)
<$25 $25K $50K
K
49.9 74.9
K
K
2,000 388
442
395
%
%
%
%
$75K $100 $150
KK+
99.9K 149.9
K
250
351
174
%
%
%
6
7
6
10
4
8
10
6
10
3
3
4
2
7
2
5
6
6
8
3
6
8
6
10
4
7
7
7
13
5
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8
12
7
15
4
30
Brushes, combs, barrettes or
other hair accessories
Makeup (i.e. – Eye shadow,
lipstick, foundation, etc.)
Nail products (i.e. – Nail polish,
nail care like strengtheners)
Men’s fragrances
Women’s fragrances
Blow dryer, flat iron, curling iron
or other hair appliances
Skin electrical devices (i.e.
Clarisonic)
3
2
2
4
3
3
4
8
5
5
8
10
9
13
4
2
4
6
3
5
5
7
8
5
3
5
3
5
8
5
9
9
4
8
8
6
7
10
6
10
10
5
3
2
4
4
4
3
4
Source: Mintel
Households with children more likely to purchase some beauty products online
Households with children are more likely than households without children to report
purchasing fragrances and makeup online. For example, 12% of those with children in the
household report purchasing women’s fragrances online as opposed to 7% of those without
children in the household. The 24/7 access provided by the internet certainly is appealing
for busy parents, especially since they may not also have time to shop at brick and mortar
stores in the constraints of normal business hours. Also, fragrances tend to be popular gift
items, and online shopping is likely a draw for busy households, especially since items can
be shipped anywhere easily (for low or no cost). Popular beauty retailers or websites may
want to consider targeting parents with marketing efforts on popular mommy blogs or
parent networking sites.
FIGURE 14: Beauty product purchasing online, by presence of children in household, August
2012
“Which of the following beauty products, if any, have you bought over the past 12 months?”
All
Base: internet users aged 18+
Online:
Shampoo or conditioner
Hand or body lotion
Body wash or shower gel
Facial skincare products
Hair styling products (such as mousse,
gel, pomade)
Brushes, combs, barrettes or other hair
accessories
Makeup (i.e. – Eye shadow, lipstick,
foundation, etc.)
Nail products (i.e. – Nail polish, nail
care like strengtheners)
2,000
%
No children
under 18
1,458
%
Children
under 18
542
%
6
7
6
10
4
6
7
5
10
3
5
8
7
10
4
3
2
5
8
7
10
4
3
7
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31
Men’s fragrances
Women’s fragrances
Blow dryer, flat iron, curling iron or
other hair appliances
Skin electrical devices (i.e. Clarisonic)
7
8
5
5
7
3
11
12
8
3
3
5
Source: Mintel
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32
Beauty Online - US - December 2012
Market Drivers
Key points
●
Internet access and ownership of mobile devices clearly impact whether
consumers are able to shop online. As income rises, consumers are more likely to
be connected and own a smartphone or tablet and are also more likely to report
purchasing beauty products online. While this consumer group is an important
target for online beauty retailers, lower-income groups could be an opportunity.
One of the motivators for shopping online is looking for discounts, and priceconscious consumers may be motivated by the bargain shopping appeal of online
shopping if WiFi access was more readily available.
●
Online shopping allows consumers to easily access hard to find beauty
products, regardless of where they live. Specialty beauty products may have once
only been available to those who live in urban areas or near high-end shopping.
However, the increased reach of the internet has broadened the beauty product
audience. Additionally, online shopping allows consumers to be savvier, by giving
them the opportunity to compare prices, and search for promotions and other
online deals.
●
Online shopping is no longer strictly limited to PCs; consumers are using
mobile devices and social media networks to engage with beauty brands, retailers,
and other beauty product users.
Income impacts accessibility to internet and mobile device ownership
Internet access and ownership of computers and mobile devices clearly impacts whether
consumers are able shop online. While some consumers may be accessing the internet by
visiting places that offer free WiFi, most consumers with irregular internet access are
probably not regular online shoppers. As reported in Online and Mobile Shopping—U.S.,
March 2012, 68% of consumers report having broadband internet access. Access to
broadband internet becomes significantly higher as income rises with only 53% of
consumers in the <$25K group having internet access compared to 77% in the $150K
group. This finding is consistent with online beauty product purchases, which also increase
with income (see Beauty Products Purchased).
Online beauty retailers may have difficulty targeting lower-income groups, particularly when
they have limited access to internet. However, shopping online can help consumers easily
compare deals, redeem coupons and save money, which would likely be appealing to priceconscious consumers. Reinforcing some of the cost cutting benefits of online shopping to
lower-income groups could be an opportunity to further engage this consumer in the beauty
category. This could be particularly effective for products like sunscreen that have health
benefits but low penetration among low-income groups.
Additionally, while smartphone and tablet ownership also increases with income, PC/laptop
ownership is quite high across all income groups. For example, 87% of total respondents
reporting owning or having access to a computer, with that number only dipping to 82% of
those in the lowest income group. So while these consumers have access to a computer,
only about half of them have access to the internet. Increasing free WiFi access to lowerThis report is supplied in accordance with Mintel's terms and conditions. Supplied to Conde Nast.
© Mintel Group Ltd.
33
income neighborhoods, could give these consumers more access to online shopping and
money saving opportunities.
While lower-income groups remain an opportunity, retailers will likely see the most success
by targeting higher-income consumers who are already engaged in the beauty category and
online shopping, particularly since higher-income consumers are more likely to own mobile
devices. Roughly one half of respondents report owning a smartphone and that number
increases to two thirds of respondents in the highest income groups. Similarly, 21% of
respondents report owning a tablet while roughly one third of higher-income consumers
reports tablet ownership. As mobile device penetration increases, consumers have the
ability to access the internet throughout their day, including commuting, traveling or even
standing in line at the store. This constant access could lead to more impulse shopping, as
consumers may just be logging on when they are bored or need a distraction during the
day. According to Living Online—U.S., July 2012, tablet and smartphone owners are more
likely than desktop and laptop owners to surf online when they’re bored—and are also more
likely to make an impulse purchase. Mobile shopping apps that are easy to use and make
browsing and purchasing quick, convenient, and entertaining could drive online sales.
FIGURE 15: Broadband access in online sample by household income, December 2011
“Which of the following do you own or have access to?”
All
Base: internet users
aged 18+
Any broadband
access (net)
Broadband access at
home
Broadband access at
work
2,000
<$25 $25KK
49.9K
408
427
$50K74.9K
354
$75K99.9K
298
$100K- $150K
149.9K +
363
150
%
68
%
53
%
64
%
76
%
69
%
79
%
77
68
53
63
74
68
78
75
27
7
15
31
33
48
49
Source: Mintel
FIGURE 16: Smartphone, tablet, and PC penetration in online sample by household income,
December 2011
“Which of the following do you own or have access to?”
Base: internet users
aged 18+
A laptop or desktop
computer
All
<$25 $25KK
49.9K
$50K74.9K
$75K99.9K
2,000
408
427
354
298
$100K $150
K+
149.9K
363
150
%
87
%
82
%
89
%
90
%
86
%
88
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© Mintel Group Ltd.
%
87
34
Any smartphone
ownership (net)
Any tablet ownership
(net)
None of the above
51
37
41
55
54
67
67
21
10
13
25
27
31
34
4
8
5
2
4
3
2
Source: Mintel
Online shopping provides access to hard to find and specialty products
More than six out of 10 consumers report purchasing merchandise or services online over
the past year. While this number includes all products (not just beauty), it is reflective of
the power the internet holds in terms of shopping and retailing. The internet allows
consumers access to products and services that they may not have always had access to.
This is particularly true of consumers who live in more rural parts of the U.S. With the
proliferation of specialty beauty brands and products over the years, consumers can not
only research and purchase beauty products but interact with other online users who may
share similar beauty needs/wants. Nearly 63% of respondents who purchase beauty
products agree that shopping online gives them access to hard to find products, with that
number being even higher among younger respondents (see Online Shopping Attitudes).
Additionally, 26% of respondents who purchase beauty products online agree that shopping
online allows them to be the first to try the newest products.
Online shopping gives consumers the ability to have beauty products that others in their
peer network may have never seen or heard of, potentially making them ambassadors of
the brand. Retailers have the opportunity to essentially use the internet as a virtual “test”
market for new products/brands. Shipping, distribution, and traditional advertising are
expensive and time consuming, making it difficult to launch new products without some
guarantee of success. Targeted online efforts like giving samples to popular beauty bloggers
or partnering with popular review sites like totalbeauty.com can give manufacturers a gauge
of how appealing and ultimately successful products will be, all with a relatively small
investment. Additionally, consumers that want the “latest and greatest” beauty product may
potentially start a word of mouth campaign that could lead to online demand.
FIGURE 17: Shopped online, by gender, April 2011-June 2012
“Have you ordered any merchandise or services through internet in the last 12 months?”
Base: adults aged
18+
Yes
No
All
20,295
Male
9,020
Female
11,275
%
63
37
%
58
42
%
67
33
Source: Mintel/Experian Simmons NCS/NHCS Spring 2012 Adult Full Year—POP
Consumers shop online to find deals
Among consumers who buy cosmetics online, 58% agree that if they find something they
want in-store, they look on the internet to try and find a better deal. Online shopping allows
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35
consumers to easily check multiple websites in order to find the best price. Price comparison
websites like bizrate.com and pricegrabber.com allow consumers to search beauty products
to see what sites are offering the best prices, shipping offers, and product promotions.
Auction sites like eBay allow consumers to bid on health and beauty products and
potentially score a deal. These sites are particularly popular for higher-end items like
fragrance and makeup. Additionally, retailers are offering deals like coupons or promotional
codes that can only be redeemed online and therefore encourage online “deal hunting.”
Interestingly, income isn’t much of a factor when it comes to consumers agreeing that they
look online for a better deal. This could be driven by that fact that consumers may only be
more likely to do price comparison shopping on discretionary or higher-end products like
fragrance or skin devices, in contrast to more functional products like shampoo or body
lotion.
Online only beauty retailers stand to benefit the most from shoppers looking in-store and
then purchasing online, particularly if they are able to compete on price or offer some sort
of promotion that engages the consumers. On the other hand, retailers that sell online as
well as have brick and mortar stores will need to find other ways to keep consumers
shopping with them, as opposed to purchasing strictly based on price. Macy’s, Sephora,
Nordstrom, and Victoria’s Secret, all of which have a significant presence in the beauty
category, were recently ranked four of the top 10 digital brands by L2 Think Tank.
L2 Think Tank ranks brands based on their digital competence across four dimensions
including website, digital marketing, social media, and mobile and found for the first time
that bigger retailers were more successful online (mediapost.com, Sept. 10, 2012).
Additionally, more consumers are shopping online with spending up 17% from the same
period a year ago. Finally, the rapid adoption of mobile commerce is impacting how
consumers shop online. According to the L2 Think Tank report, mobile commerce is the
fastest growing channel in the history of commerce and plays an important role in the
digital ranking of a brand (mediapost.com, Sept. 10, 2012). The previously mentioned
retailers have strong brand awareness and are aligning their brand imagery successfully
across multiple channels including websites, social media, and mobile applications. Price is
certainly a motivator in the online shopping category, however, it isn’t the only motivator.
Retailers that can successfully leverage their “brand” across all forms of commerce, and
stay ahead of the curve when it comes to innovation, will likely see the most success.
FIGURE 18: Searching for a better deal online, by household income August 2011-March
2012
“Please tell us the extent to which you agree or disagree with each statement by marking
one box opposite each statement.”
Base: adults aged 18+ who
buy cosmetics online
All
< $50K
660
%
If I find something I want
in-store, I look on the
internet for a better deal:
Any agree
58
Agree a lot
27
$100K+
132
$50K99.9K
197
%
%
%
57
25
62
28
55
28
331
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© Mintel Group Ltd.
36
Agree a little
Neither agree nor disagree
Any disagree
Disagree a little
Disagree a lot
31
20
23
13
10
32
22
21
13
8
34
16
22
15
7
27
20
25
11
14
Source: Mintel/Experian Simmons NCS/NHCS Spring 2012 Adult 6 months—POP
Online shopping makes gift giving easy
According to Online and Mobile Shopper—U.S., March 2012, more than half of consumers
who shop online report buying presents. Online shopping is a great channel for gift giving as
it allows consumers to easily ship to the recipient, particularly with the plethora of free
shipping offers that tend to increase around the holiday season. Gift giving online also
allows shoppers to avoid crowded malls, save on gas, and shop 24/7, without the
constraints of normal shopping hours. Beauty retailers are capitalizing on this trend by
offering limited-edition gift sets, exclusive stocking stuffers, and free shipping on gifts.
Fragrance and high-end skincare and makeup are particularly popular gifts, and specialty
retailers such as Sephora and Ulta often create special gift packs just for the holidays that
include these items. However, high-end retailers aren’t the only ones to encourage gift
giving of beauty products. Mass merchandisers such as Walmart and Target also offer gift
packs from leading beauty brands including Axe, Old Spice, and Olay.
FIGURE 19: Any online purchase, by category, December 2011
““Following is a list of product categories. In the past year, have you used any of the
following methods of making a purchase (on a computer, on a cellphone, or on a tablet)?”
Base: internet users aged 18+ who shop online
Presents
Clothing/footwear/accessories
Household electronics
Toys/games/entertainment for kids
OTC health
Furniture/home décor
Personal care
Hardware/tools
Household care
Packaged foods/drinks
All
1,638
%
55
48
37
34
17
16
15
13
11
9
Source: Mintel
Social media
Interacting with consumers via social networks isn’t a new trend, but retailers are going
beyond simply having a Facebook page or Twitter account and luring followers with offers
and promotions often offered exclusively through social networks. According to Social
Networking—U.S., May 2012, 28% of social network users use this medium to visit the
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© Mintel Group Ltd.
37
profile of a company or brand and 25% sign up to receive a free sample. Women in
particular are even more likely to exhibit this behavior, which is encouraging for the beauty
industry as women are more likely to be engaged in the category overall.
This behavior is translating to sales according to a recent study by LoyaltyOne, which
suggests that consumers who engage with a brand through social media drive immediate
and long-term sales (drugstorenews.com, Oct. 25, 2012). While women are more likely to
engage with brands via social networks, powerhouse men’s brands such as Axe and Old
Spice have been particularly successful with social media campaigns as these campaigns
capture the essence of the brand and encourage users to interact with the brand as well as
“share” offers and promotions with their peer network. Social media is an effective tool for
promoting a brand and engaging its users, but social media campaigns can’t strictly operate
in a silo. Brands still need to leverage their message across a variety of channels, including
more traditional forms like print and TV, to increase brand awareness and send a consistent
message.
FIGURE 20: Activities conducted in past month on social networks, by gender, January 2012
“Which of the following have you done in the past month at all on a social network?”
Base: internet users aged 18+ with at
least five friends on a social network
Used an app or game
Entered a sweepstakes
Read the tweets, shares, or statuscasts
of others
Visited the profile of a company or brand
Signed up to receive a free sample
Acquired a coupon
Clicked on an ad
Tweeted, shared, or statuscast
Visited the official website of a company
or brand after learning about it on a
social network
Uploaded a link
Read a sponsored story on Facebook or
other social network
Gave or received a virtual gift
Bought a product for the first time after
learning about it on a social network
All
1,486
Male
671
Female
815
%
34
31
29
%
33
26
27
%
35
35
30
28
25
24
23
23
18
24
18
21
24
23
18
31
31
27
23
23
19
18
17
18
14
18
19
15
7
15
5
15
8
Source: Mintel
Mobile shopping
Smartphone ownership continues to increase in the U.S., making shopping online via mobile
devices a more commonplace activity. According to Pew Research Center, 45% of
Americans and nearly two thirds of young adults, 18-29, now own a smartphone
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38
(pewinternet.org, Sept. 11, 2012). Mobile shopping is predicted to be one of the hottest
trends over the 2012 holiday season, with nearly one third of consumers reporting that they
plan to use a smartphone for holiday shopping according to research from Burst media
(mediapost.com, Oct. 31, 2012).
“The big story for marketers is they have a new way to reach their consumers. Mobile
certainly affords them yet another way to connect with their end user, and it’s another
way to communicate deals and offers and promotions.”
-Jessica Chaset, Senior VP for mobile solutions at Burst (mediapost.com, Oct.
31, 2012)
The research from Burst media also suggests that consumers are using their mobile devices
to research products prior to purchasing, compare prices and access coupons or promotional
codes, and search for last minute deals. Mobile shoppers are using their smartphones to
make decisions in-store, which makes them a captive audience. According to the results of
Deloitte’s recently published survey regarding consumer spending intentions over the
holidays, it is anticipated that in-store sales influenced by a smartphone (via branded apps,
location-based promotions, cost comparison tools, and product information sources) will
account for nearly $36 billion in retail holiday sales (drugstorenews.com, Nov. 13, 2012).
Mobile shopping not only contributes to online shopping sales, it can aid in in-store
purchasing decisions, making these shoppers a strong target for both online and brick and
mortar beauty retailers. Personalized, in-store promotions that are communicated via a
mobile app and are only available for a limited time could potentially turn consumers who
are just browsing into buyers. Some 38% of consumers are interested in receiving
promotions through their smartphone with that number increasing to nearly half of females.
This is good news for the beauty industry as women comprise the majority of the category
and are more likely to be engaged in shopping for beauty products.
FIGURE 21: Smartphone owners’ online behavior, by gender, April 2012
“Please indicate which, if any, of the following statements describe you.”
Base: internet users aged 18+ who have
visited any websites in the past 30 days
and are smartphone owners
All
823
Male
382
Female
441
%
49
%
44
%
54
28
47
23
28
18
14
I keep my smartphone with me at all
times so that I can search for information
whenever I need it
I like the idea of receiving coupons
38
immediately on my smartphone if I’m
close to or in a store
I keep my smartphone with me at all
26
times so that I can check in to a social
networking site
When shopping in-stores, I’ve used a
16
smartphone to go online to ask for friends’
advice on an item I’m considering for
purchase
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© Mintel Group Ltd.
39
Source: Mintel
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© Mintel Group Ltd.
40
Beauty Online - US - December 2012
Competitive Context
Shopping in-store
Among consumers who don’t buy beauty products online, slightly more than half report that
they simply prefer to shop in-store, with that number being even higher among women (see
Did Not Buy Online). Additionally, according to Mintel’s Online and Mobile Shopper—U.S.,
March 2012, three quarters of women report that they love to shop in person, while only
half of women report that shopping online from home was their favorite way to shop. It may
be that shopping in-store offers a fun, interactive, social, and even entertaining
environment that women don’t find in online shopping.
As illustrated in Issues in the Market, shopping for beauty products in-store allows
consumers to test and sample products as well as interact with beauty advisors/experts. In
addition, retailers are ramping up efforts to make in-store beauty departments more of a
destination. Mass merchandisers and drug stores are taking a page from specialty beauty
retailers by adding beauty advisors to their departments and giving consumers more
opportunities to sample products. Drug store chain CVS just announced the launch of instore nail kiosks that will roll out to more than 2,000 stores and feature the latest trends in
nail care (drugstorenews.com, Nov. 8, 2012). Sephora is also embracing the nail trend by
partnering with XpresSpa and offering manicure services in-store. This service initially
debuted in the San Francisco and New York City (Times Square) stores.
FIGURE 22: Attitudes to shopping, by gender, December 2011
“How much do you agree or disagree with the following statements?”
Base: internet users aged 18+
All
2,000
%
Any agree:
I love shopping in person
69
I love shopping in general
63
Shopping online from home is my 49
favorite way to shop
Male
980
%
Female
1,020
%
62
55
49
75
70
50
Source: Mintel
Opportunities for shopping online
Try before you buy features like interactive apps can help consumers virtually interact with
products in a way that used to be only available in-stores. For example, nail brands OPI and
Maybelline both recently launched apps to showcase their nail polish colors. Consumers can
take a picture of their hand and then select colors to “try on.” Maybelline is promoting its
app through print advertising and social media. The Maybelline print ad allows users to scan
the ad with their smartphone, which then takes them directly to the nail color app
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© Mintel Group Ltd.
41
(mobilemarketer.com, June 22, 2012). Mary Kay and Beautylish.com have also extended
their popular websites into apps that let users virtually try on color cosmetics and even
experiment with hair styles and accessories. These apps have received some mixed
consumer reviews, but they have also generated a fair amount of excitement and buzz on
social networks and beauty blogs. The consumer interest is definitely there, the technology
just needs to improve to provide consumers with a more realistic portrayal of how the
makeup will actually look in person.
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42
Beauty Online - US - December 2012
Retailer Overview
A wide range of retailers participate in the online beauty category, therefore making it very
fragmented. Sales data presented below isn’t broken out by brand or category and therefore
may include nonbeauty sales. However, the list of key beauty retailers below helps gauge
the breadth and scope of the online beauty category.
According to Internet Retailer (2011 edition), the online health and beauty category grew
11.7% over the period 2009-10, with total sales reaching more than $4 billion. Additionally,
sales data compiled by Internet Retailer lists the following as the top online beauty retailers
in terms of sales and market share. It is important to note that some of these retailers sell
products that Mintel does not define as beauty such as baby durables, vitamins, and
supplements. Additionally, general merchandisers that sell beauty products in addition to
other product categories (like Amazon and Target.com) are not included in this list.
FIGURE 23: Top five online beauty retailers, 2010
Amway Global
Avon Products Inc.
drugstore.com Inc.
Diapers.com
Vitacost.com Inc.
Sum of top five
2010 web sales $
million
912.5*
768.3*
456.5
292.0
218.7
967.2
% market share
22.0
18.5
11.0
7.0
5.3
63.8
* Internet Retailer estimate
Source: Mintel/Internet Retailer Top 500 Guide, 2011 edition
Online only retailers
Amazon
Amazon is the clear leader in the online category, including beauty, with total sales
exceeding $34 billion in 2010. According to Mintel’s custom consumer research, 33% of
consumers who buy beauty products online report purchasing them through a general
merchandise website (most likely Amazon) (see Online Retailers Purchased). This retailer
sells virtually every type of beauty product, ranging from mass to prestige brands.
According to Online and Mobile Shopper—U.S., March 2012, Amazon benefits from years of
efforts applied to efficiencies in stocking and delivery, economies of scale, and lower costs
related to being strictly online in order to maintain low margins. The brand also benefits
from its one-click purchasing and the free two-day shipping club, Amazon Prime. Also,
Amazon is one of the few online only retailers that expanded to television advertising as
another way to increase awareness. Amazon doesn’t specialize in beauty, but its strong
brand awareness combined with ease of shopping and strong customer service makes it a
force to be reckoned with.
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43
FIGURE 24: Amazon, television ad, 2012
"AMAZON"
Source: Competitrack
Drugstore.com
Drugstore.com, which also owns and operates beauty.com, offers both mass and luxury
beauty brands across multiple categories including skincare, makeup, fragrance, bath and
body, and haircare with reported sales of more than $456 million in 2010. Shoppers can
visit both sites and add items to one shopping basket and pay for items in one transaction.
The company was founded in 1998, and was purchased by drug store giant, Walgreen Co.,
in 2011 for a reported $409 million.
“Our acquisition of Drugstore.com today significantly accelerates our online strategy to
leverage the best community store network in America by becoming the most
convenient choice for health and daily living needs whether customers shop online or in
our stores,”
-Walgreen’s chief executive, Greg Wasson (The New York Times, March 24,
2011)
Drugstore.com offers free shipping and free returns on orders exceeding $25. In addition,
the company offers free samples with every order and allows users to earn 5% back in
drugstore.com dollars, which can be redeemed on future drugstore.com purchase. Finally,
drugstore.com has a strong social media presence including Facebook, Twitter, Pinterest,
and YouTube.
Brand websites
Many brands are offered through a variety of online retailers, and some beauty brands also
sell direct to consumers through their own websites. Brands like Estée Lauder and
Neutrogena appear to have had some success with this strategy. While these brands don’t
often operate their own stores, selling directly to consumers allows them the opportunity to
interact and engage with the consumer in ways that were not available prior to online
shopping. Neutrogena.com allows users to review products easily online, and responds to
consumers’ concerns and complaints as well. While consumers can find these products on
other sites, they may be turning to a brand they trust without having to sift through
hundreds or even thousands of beauty products sold on other websites. Estée Lauder also
has a significant online presence with more than $107 million in sales as of 2010.
Brick/click mass merchandisers
After general merchandise websites, mass merchandisers are cited as the second leading
retailer among those that purchase beauty products online (see Online Retailers Purchased).
Mass merchandisers are usually the most cited retailer for in-store beauty and personal care
product purchases, so it stands to reason that they would be popular for online shopping as
well.
Target
According to the brand website, Target.com is the fourth most visited retail website in the
U.S. and has 26 million unique visitors each month with reported web sales of $1.3 billion in
2010. Target sells many of its beauty offerings online, including popular mass brands like
Aveeno, Pantene, and Neutrogena, as well as Target’s own private label brand Up & Up.
Target has also partnered with some famous makeup artists who have launched their lines
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exclusively at Target including Sonia Kashuk and Jemma Kidd. Target has had success with
exclusive partnerships in many product categories including apparel and home goods. The
retailer has a strong online presence and offers free shipping on orders more than $50 or if
consumers have the Target RedCard. Target is emphasizing its commitment to beauty by
test marketing an in-store beauty concierge program in the Chicago market, which is aimed
at staffing stores with beauty experts to help consumers choose beauty products. The
beauty experts will be carrying an iPad that will be equipped with the Target app as well as
links to the manufacturers’ websites to help consumers interact with products online. Target
plans on testing the program through mid-2013 with a potential rollout to 300-400 stores
following the test (target.com).
Walmart
Walmart is the largest mass merchandiser in the U.S. with reported web sales of more than
$4 billion in 2010. Walmart offers an extensive selection of online beauty products, mostly
from well-known and trusted mass brands. The retailer promotes its popular “rollbacks” on
a handful of products and also offers a low-price guarantee by matching competitors pricing
if they offer a lower price than Walmart.
Brick/click drug stores
CVS
CVS currently operates more than 7,200 stores in the U.S. and in 2007, CVS Corporation
merged with Caremark Inc. to create CVS Caremark, an integrated pharmacy services
company. Through its merger with Caremark, the company operates as a pharmacy benefit
management company providing services to employers and insurers and reported web sales
of nearly $233 million in 2010.
One of the company’s core departments is the beauty department, and the company has
innovated in this area. CVS offers membership to its beauty club as part of its ExtraCare
loyalty card program. This program allows consumers to earn money back for every $50
spend on qualifying beauty purchases, earn a 10% beauty shopping pass for initial
enrollment, and receive special promotional coupons, e-mails, and beauty tips.
Walgreens
Walgreens is one of the largest drugstore chains in the U.S. operating 7,562 stores at the
end of 2010 and reported web sales of more than $278 million in the same year. According
to Walgreen Co., the company strives to provide the most convenient access to consumer
goods and services, and pharmacy, health and wellness services.
Recent initiatives include the expansion of fresh food and text alerts for prescription refills.
The text messages are sent when a customer’s existing prescriptions are due for a refill,
users simply reply with “refill” and the prescription will be filled. Consumers with
smartphones can also scan barcodes on prescription bottles to be refilled through the
Walgreens app on their mobile devices. Walgreens has also implemented electronic vehicle
charging stations at stores and is expected to have them installed at approximately 800
stores by the end of 2011.
Walgreens acquired Duane Reade in 2010 for more than $1 billion, and in 2011, acquired
online drug retailer Drugstore.com. The acquisition of Drugstore.com significantly boosts the
company’s online presence as well as elevating its expertise in the beauty category. The
acquisition also gives Walgreens access to a new audience of online shoppers, and allows
the company to offer current customers access to new brands and products. The company’s
website, www.walgreens.com, is a fully functioning ecommerce site with products for sale,
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prescription refills, photo services and more. The company also has a mobile app for
smartphones allowing users to refill prescriptions, locate stores, and browse weekly ads.
Brick/click specialty beauty
Sephora
Sephora is owned and operated by the French-based LVMH Group and has become an
entertaining shopping destination offering specialty and premium beauty products with
reported web sales of more than $155 million in 2010. The retail stores allow consumers to
sample and experiment with a variety of beauty products including makeup, fragrance,
skincare, and haircare. Sephora has successfully leveraged its interactive shopping
experience across a variety of channels including the brand website and social media.
Additionally, Sephora has a smartphone app (launched in 2010) that allows users to scan
bar codes, watch videos, check out the latest beauty trends, access their Beauty Insider
accounts, and create personal wish lists.
Ulta
Ulta is a beauty retailer that provides “one-stop” shopping for prestige, mass and salon
beauty products with reported web sales of more than $26 million in 2010. According to the
brand website, Ulta carries more than 20,000 beauty products across multiple categories
including skincare, haircare, makeup, and fragrance and operates 489 stores in the U.S. (as
of July 2012). Ulta’s website displays a variety of promotions including a free beauty bag
with any $35 online purchase, a one-day only 20% off coupon as well as free shipping on
orders more than $25. It also has a beauty destination link allowing consumers to get the
latest beauty trends, top product picks, and even a Beauty Match link that has a variety of
quizzes to help consumers identify the perfect beauty products to meet their needs. The
retailer has a smartphone app as well as a moderate presence across a variety of social
media sites.
Brick/click department stores
Macy’s
Macy’s Inc. is a leading department store company in the U.S. operating both Macy’s and
Bloomingdale’s and has web sales exceeding $1.6 billion as of 2010. Bloomingdale’s is the
more upscale of the two, offering prestige brands and higher price points than Macy’s, which
is more moderately priced. Both brands have a strong national presence through the
extensive network of stores. Macy’s offers a wide range of beauty products with a focus on
fragrance and color cosmetics. The brand website is currently featuring a variety of gift
packs as well as gift with purchase promotions. The retailer also launched a QR code feature
on its smartphone app that allows users to scan codes in-store in order to access videos
about certain designers and brands, including the Bobbi Brown beauty brand. Macy’s says
the goal is to provide consumers with tips on the latest trends from celebrity style icons via
30-second video clips. Macy’s has also invested heavily in strengthening Bloomingdale’s ecommerce strategy. Bloomingdale’s specializes in luxury brands that have been more
resistant to online retailing efforts. However, e-commerce is becoming critical in order to
grow sales as well as expand consumer reach, with the luxury market being no exception
(luxurydaily.com, Jan. 5, 2011). Bloomingdale’s is currently promoting special holiday offers
like free shipping, free gifts with beauty purchases, and exclusive fragrance and makeup gift
sets.
Nordstrom
Founded in 1901, Nordstrom remains a family-run business with 225 stores in the U.S. and
web sales of $705 million in 2010. Nordstrom prides itself on superior customer service, and
employs a no-questions-asked return policy. The retailer is a destination for fashionable
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apparel, footwear, accessories, and beauty products and strives to provide the best possible
customer service as well as selection, quality, and value. Nordstrom’s website,
nordstrom.com, allows consumers to shop and purchase directly from the site and offers
free shipping and free returns, as well as a buy online and pick up in-store function, which
allows shoppers to avoid waiting for delivery. In 2010, Nordstrom acquired private sale
website HauteLook.com in order to increase its online presence and help stay current with
high-end fashion and beauty trends. According to Internet Retailer and Nordstrom CEO
Blake Nordstrom, the brand’s online segment is the fastest growing part of its business and
is at the heart of its growth strategy.
Direct sell
Amway
According to Internet Retailer, Amway is the number one online health and beauty retailer
in North America in overall web sales, which exceeded $912 million in 2010. Amway is one
of the world’s largest direct-sell businesses and uses independent business owners that
operate by selling “door to door” as well as online. Amway’s Artistry skincare and color
cosmetic line is a significant contributor to the brand’s beauty sales, as is the Nutrilite line
which is a vitamin and supplements line. As was previously mentioned, nutritional
supplements are not included in the scope of this report but are included in the Internet
Retailer sales data which is not broken out by brand.
Avon
Avon, founded in 1886 as a direct-selling beauty company meant to connect and empower
women, posted web sales that exceeded $768 million in 2010. Avon relies on sales
representatives to not just sell but recruit and train others to sell. The digital age changed
the way consumers interacted and Avon met this challenge by providing its representatives
with online tools to help them run their businesses and meet the needs of connected
consumers. Additionally, Avon offers online purchasing directly from its website and even
has an online virtual makeover tool that allows women to upload pictures and “try on”
different products.
Mary Kay
Mary Kay was founded nearly 50 years ago and has developed into one of the largest directsell beauty companies in the world. The company develops women as beauty consultants
that host product parties and use word of mouth referrals to help grow their business. Mary
Kay has also adopted online strategies to expand its business including a very interactive
website as well as mobile apps. Mary Kay has a catalog app which allows beauty consultants
and consumers to easily browse products, view videos, and share information via social
media. Most recently, Mary Kay launched an app that replicates its popular online virtual
makeover tool that allows women to upload a photo and create a customized look using
makeup, hair styles and even accessories.
“The Mary Kay virtual makeover app is just as popular as the online version. Since
launching this spring, the app has been downloaded nearly 500,000 times and
counting. Thanks to the mobile version of the virtual makeover, women can try a new
look while standing in line for their morning coffee or waiting at the doctor’s office -- all
with just a few swipes on their phone.”
-Patricia Wanderley, VP of global digital marketing at Mary Kay (GCI
magazine, July 11, 2012)
Direct marketing
Guthy|Renker
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Guthy|Renker was founded in 1988 and has developed numerous successful hair and
skincare brands such as Proactiv, Wen, and Youthful Essence. Guthy|Renker is a directmarketing company that has successfully leveraged broadcast media such as television and
the internet to reach the consumer directly. Unlike Avon or Mary Kay, which use a
salesperson to reach the consumer, Guthy|Renker uses the power of media, often combined
with strong celebrity endorsements to convey its message. Additionally, many of
Guthy|Renker’s brands use a subscription-based model requiring consumers to purchase a
monthly supply of the product, therefore requiring the consumer to cancel the service if
they no longer wish to receive the product. This company has received several accolades for
transforming the direct-marketing space and using innovative marketing strategies to
generate buzz surrounding its brands.
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Beauty Online - US - December 2012
Innovations and Innovators
Pick your own samples
One of the drawbacks of online shopping is that it inhibits the ability of consumers to
interact and sample beauty products. Sampling is frequently listed as the top way
consumers learn about and try new beauty products. While some retailers have launched
virtual makeover tools (online and mobile apps) to allow consumers to virtually play with
beauty products, the technology doesn’t exactly mimic the actual experience of trying on
the product in-store. Sephora and drugstore.com have tried to address this problem by
allowing consumers to select three free samples from a list of roughly 20-30 options with
purchase, with the hopes of turning that trial into future purchases. While this certainly
doesn’t allow consumers to interact with all beauty products, it does allow them to
physically try products without having to visit the store.
Source: Sephora.com
Reward/loyalty programs
Many beauty retailers encourage consumers to sign up for their reward or loyalty programs
in order to earn points, receive special offers and coupons, hear about offers first, and even
get invited to special events. These programs try to promote and reward brand loyalty.
Specialty beauty
●
Sephora’s Beauty Insider program allows participants to earn points with every
purchase and eventually trade in those points for larger-sized samples. In addition,
members receive a free gift on their birthday.
●
Ulta’s reward program sends users online and in-store coupons and also allows
consumers to earn points that are either redeemable for money off future purchases or a
free salon indulgence.
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Source: Sephora.com
Drug stores
●
Walgreens recently launched its Balance Rewards program that allows members to
save money and earn points on purchases and healthy behaviors like filling prescriptions,
getting immunizations, and participating in the Walk with Walgreens program. Walk with
Walgreens allows users to log walks online, tracks their progress, and rewards them with 10
points for every mile walked. Members can redeem points for money off future purchases,
which can be redeemed instantly in-store or online.
●
CVS has a rewards program specifically for beauty called ExtraCare beauty club,
which is built off of its ExtraCare loyalty card program. Members receive a 10% off beauty
shopping pass once they enroll and earn $5 for every $50 spent as well as $3 on their
birthday, plus coupons, tips and new product information.
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Source: cvs.com
Online exclusives
Online exclusive offers allow retailers to test new products or concepts prior to rolling out
products nationally, saving the retailer time and money as well as getting real consumer
feedback. Additionally, companies like Bath & Body Works bring back popular fragrances
that are no longer available in stores and offer them exclusively online. Since retailers like
Bath & Body Works sell so many SKUs it would be impossible to keep everything available
in-store. Consumers have developed loyal followings to certain fragrances and products, and
online exclusivity allows these consumers to get their favorite products anytime. Consumers
scour auction sites like eBay and even Amazon to find their favorite makeup or fragrances
that have been discontinued by the manufacturer. Opportunities to bring back “cult”
favorites and offer them online helps to create buzz for the brand as well as keep
consumers engaged. Brands could even take this idea a step further and offer these
discontinued favorite products for a limited time online each year or two. Social media
would be a great outlet for this type of promotion by encouraging consumers to follow the
brand in order to be the first to purchase limited-release beauty products. The strategy has
been adopted by brands like Disney and even restaurants that offer limited reservations
based on a virtual “first come, first serve” premise.
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Source: bathandbodyworks.com
Free shipping/free returns
While not a new or novel idea, paying for shipping is one of the biggest barriers to online
shopping. Some 42% of consumers report not shopping for beauty products online because
they don’t want to pay for shipping, with that number being even higher among women.
Sites like Zappos.com and Piperlime.com were some of the first sites to offer free
shipping/free returns on all purchases regardless of amount spent with no questions asked.
More recently, Nordstrom has adopted a free shipping/free returns policy as well. The
majority of online retailers offer free shipping once consumers reach a certain dollar amount
(usually $25 or $50). Additionally, some retailers offer free or reduced shipping if
consumers are members of their reward or loyalty programs or on first-time orders.
Gift with purchase
Macy’s recently promoted an online exclusive beauty week that offered shoppers daily
beauty deals along with free gifts with purchase. Department stores are often associated
with in-store gifts with purchase promotions, particularly for brands like Clinique and Estée
Lauder. These promotions usually offer a free beauty bag with purchase that contains
sample sizes of the top-selling or newly launched products from the brand. Macy’s has taken
that concept online by offering free gift sets and even tote bags with online beauty
purchases.
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Source: macys.com
Buy online/pick up in-store
More than half of consumers report being interested in an option that allows them to
purchase online and pick up in-store (see Online Shopping Attitudes). This option gives
shoppers the convenience of shopping online while not having to wait for delivery. This is a
great option for consumers who work in urban areas and can shop online during the day
and then easily pick up their purchase on their way home from work without having to
spend time searching the store for their desired product.
Nordstrom, which often leads the way with innovative customer service options, offers instore pickup on selected merchandise. Sephora is testing a same-day delivery concept in
New York City, whereby customers who spend $50 and pay an additional $15 delivery fee
can have products delivered same day via a Sephora-branded MINI Cooper.
“Our clients in Manhattan are some of the busiest people in the country, so offering
same-day delivery just makes sense. The entire experience, from order placement to
the cars to the product chauffeur, is an extension of the strong client service we have
become known for.”
-Sharon Rothstein, senior VP of marketing for Sephora (NY Daily News, July
2011)
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Source: Nordstrom.com
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Beauty Online - US - December 2012
Marketing Strategies
Overview of online beauty retailers
Analyzing brand positions of leading companies is important to understanding the
competitive landscape, creating advertising collateral, and launching successful marketing
campaigns. It also allows companies to compare their own brand positions, and see if other,
more compelling positions should be adopted. Following is a discussion of several leading
companies and the brand positioning/approach taken.
Brand analysis: Sephora
As discussed in Retailer Overview, Sephora is owned and operated by the French-based
LVMH Group and has become an entertaining shopping destination offering specialty and
premium beauty products with reported web sales of more than $155 million in 2010. The
retail stores allow consumers to sample and experiment with a variety of beauty products
including makeup, fragrance, skincare, and haircare. Sephora has successfully leveraged its
interactive shopping experience across a variety of channels including the brand website
and social media.
FIGURE 25: Brand analysis of Sephora, 2012
Key brand value
Trend-setting beauty
products combined with
unique customer benefits
Brand
qualities
Young,
innovative
Tagline
Demographic target
Discover the
best in beauty
Beauty-involved
females, 18-34
Source: Mintel
Online initiatives
Brand websites have become more than just a place to purchase products; many websites
include product reviews, beauty blogs, tutorials, exclusive offers, and more. Sephora’s
website attempts to be as interactive and entertaining as its retail space. The website
includes “it lists,” trends, and even
a live chat feature that allows users to get real time answers from beauty experts.
Additionally, users can participate in online forums across numerous topics where they can
get advice not only from experts, but from other participants in the forum.
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Source: Sephora.com
Print advertising
Sephora’s latest holiday catalog (November 2012) is promoting its newest campaign called
“your extraordinary.” The first page of the catalog invites readers to celebrate being
extraordinary and includes a QR code that can be scanned and brings the campaign to life
by taking consumers to a video featuring actresses, models, and stylists that describe what
beauty features make them extraordinary. The campaign features different women ranging
from an actress to a beauty blogger who bring “extraordinary to beauty” by expressing their
individuality as well as their unique and creative approaches to beauty.
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Source: Sephora holiday catalog
Social media
Sephora has a strong presence across a variety of social media platforms including
Facebook, Twitter, YouTube, and Pinterest.
Facebook
With more than four million followers on Facebook, Sephora is one of the most followed and
most loved beauty retailers. Sephora engages its consumers across a variety of channels,
with the goal of recreating the entertaining and interactive space that makes them an instore destination for beauty product lovers. Sephora’sFacebook page offers followers
exclusive coupons and promotions that can only be redeemed online. Additionally, the brand
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Facebook page includes a new feature that allows users to create their own cover story by
using the “Sephora Framework” feature. This feature allows users to upload a photo, choose
from a variety of templates and ultimately create a custom cover photo featuring the user’s
photos along with Sephora products that can be uploaded on the user’s personal Facebook
page. This is a very interactive feature that engages the consumer and also prominently
features the Sephora brand on the personal page of the user.
Twitter
Sephora is also promoting the “your extraordinary” campaign via Twitter, offering tips to
“make it extraordinary” as well as offering exclusive online only promotions and coupons
similar to those found on Facebook.
Pinterest
Sephora was one of the first beauty retailers to launch a brand Pinterest page and currently
has 26 boards that include nail trends, fragrance ideas, video tutorials, and holiday color
previews, among others. Additionally, Sephora is currently promoting a “40 days of wishes”
giveaway that encourages followers to pin products from Sephora.com, which allows them
to sign up to a win a Sephora by OPI gelShine nail kit.
YouTube
Sephora has its own YouTube channel with more than 79,000 subscribers and more than 13
million video views. The channel gives consumers access to numerous tutorials ranging from
how to achieve hair styles, nail art, apply makeup, and achieve special holiday looks.
Mobile apps
Sephora’s mobile app encompasses the interactive nature of the retailer website by
providing the user with trend tips, beauty advice, exclusive mobile offers, a QR code
scanner, a wish list feature, and more.
Brand analysis: Ulta
Ulta is a beauty retailer that provides “one-stop” shopping for prestige, mass, and salon
beauty products with reported web sales of more than $26 million in 2010. According to the
brand website, Ulta carries more than 20,000 beauty products across multiple categories
including skincare, haircare, makeup, and fragrance and operates 489 stores in the U.S. (as
of July 2012). Ulta also features a full-service salon in all of its stores.
FIGURE 26: Brand analysis of Ulta, 2012
Key brand value
One-stop beauty
product shopping
Brand qualities
Value, convenience,
indulgent, unique
Tagline
Welcome
to
fabulous.
Demographic target
Women who love to shop
for beauty products as well
as those that are time
constrained.
Source: Mintel
Online initiatives
The Ulta website heavily promotes a variety of offers including online and in-store coupons,
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gifts with purchase, and free shipping. While the website also features a beauty destination
tab that provides information on the latest beauty trends, product picks, and expert blogs,
the focus of the website is clearly on special promotions, coupons, and exclusive offers.
Price promotion is also the main source of communication through the retailer e-mails and
print campaigns.
Source: Ulta.com (e-mail)
Social media
Ulta has a presence across a variety of social media platforms including Facebook, Twitter,
YouTube, and Pinterest. However, compared to Sephora, the retailer has a relatively small
following on social media, with limited interactive features. This could be due to the
demographic target which is a bit younger and more beauty-involved for Sephora,
compared to more of the more deal-focused Ulta shopper. Still, Ulta has recently expanded
its presence to Pinterest and is showing signs of ramping up efforts as illustrated by
increased product promotion efforts exclusive to Facebook and Twitter users. Leading up to
Thanksgiving, Ulta was encouraging Twitter followers to like the company on Facebook in
order to be the first to hear about exclusive Black Friday offers.
Facebook
Ulta has more than 372,000 likes on Facebook and uses the page to communicate special
offers and product promotions. The page also offers beauty tips with a focus on celebrity
looks and endorsements. On Nov. 19, 2012, the page posted a picture of singer Carrie
Underwood from the recently aired American Music Awards, asking followers to comment on
her choice of makeup for the evening. The website also featured cross-promotions like the
new OPI James Bond color collection and the Twilight Breaking Dawn color cosmetic
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collection—both launching in support of the recent release of new films.
Twitter
Ulta has more than 64,000 followers on Twitter, featuring similar product promotions and
exclusive offers that are found on the brand Facebook page.
Pinterest
As of Nov. 9, 2012, Ulta enabled a “pin it” button on all products listed on its website so
users can easily pin products to their own boards. Additionally, Ulta maintains its own page
on Pinterest featuring 11 boards that display hair styles, nail art, wedding beauty, and
celebrity inspiration.
YouTube
Ulta has a beauty channel on YouTube though its presence is quite small when compared to
that of Sephora. The channel features some how-to videos as well as beauty trends from
beauty experts.
Mobile apps
Ulta has a smartphone app that allows users to shop and research products as well as
receive exclusive mobile offers.
Brand analysis: Wen
As discussed in Retailer Overview, Wen haircare is owned by Guthy|Renker, a directmarketing company. According to the company, Wen started as a cleansing conditioner that
was intended to clean hair without the harsh effects often associated with shampoo. The
Wen cleansing conditioner has since extended into styling and treatment products. Wen
originally became an internet sensation through strong direct-to-consumer marketing via
beauty blogs, social networks, TV infomercials, and its own website. Wen is now available at
high-end retailers like Sephora, but was originally only available through TV infomercials
and the brand website.
FIGURE 27: Brand analysis of Wen, 2012
Key brand value
Revolutionary new concept
in haircare
Brand
Tagline
qualities
Unique, natural No more bad
hair days!
Demographic target
Hair-involved women,
25+
Source: Mintel
Online initiatives
The Wen website provides detailed information about why the Wen haircare system is
unique, as well as information regarding its founder, hair stylist Chaz Dean. Additionally,
customers can purchase either a 30-day or 90-day supply of the products with free shipping
and a 60-day money-back guarantee. The website also features a live chat function and
customer reviews.
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Source: wenhaircare.com
Facebook
Wen has more than 165,000 followers on Facebook, with the tagline being “friends don’t let
friends use shampoo!!” The Facebook page offers healthy living tips along with promoting
new products. Wen offers one line of products that are available in a variety of fragrances,
including seasonally available fragrances like pomegranate or ginger pumpkin. The webpage
also includes a link to the product infomercial.
YouTube
Wen has a channel on YouTube with nearly 500 subscribers and more than 427,000 views.
The videos feature Chaz Dean, founder and hair stylist, showing viewers how to use Wen
Cleansing Conditioner. Other videos feature YouTube personality and beauty blogger Elle, as
well as everyday fans touting the benefits of using the Wen haircare system.
TV presence
The following infomercial features everyday users along with celebrities like actress Ming Na
endorsing the Wen cleansing conditioner. Before and after photos and user testimonials
reinforce the claims that the product takes the place of conditioner and that consumers will
see benefits after just one use. The infomercial also features purchasing information (both
phone number and website), while promoting free shipping as well as the offer of two free
gifts if consumers purchase now.
FIGURE 28: Wen cleansing conditioner, television ad, 2012
"WEN CLEANSING CONDITIONER"
Source: Competitrack
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Beauty Online - US - December 2012
Product Information – Any Purchase
Key points
●
Among respondents who purchase beauty products, recommendations from
friends and family are the preferred source of information. However, women 35+
report visiting stores to view and test products as their most preferred source of
beauty product information. While not a significant difference between the two
sources for this demographic, online retailers will need to keep in mind that these
women view stores as an important information source.
●
The majority of income groups that purchase beauty products also report
friends and family as the preferred source of product information. However,
consumers who fall into the highest income group report visiting stores to view
and test products as their preferred information source.
●
Households with children are more likely than those without children to
seek out beauty product information from a variety of sources, including the
preferred source of friends and family. Households with children appear to be
more engaged in the category overall, as they may be seeking special products for
their babies and children as well as treating themselves with little luxuries like
fragrance and makeup.
●
As would be expected, respondents that seek information about beauty
products are also more likely to report purchasing beauty products. Nonetheless,
depending on the information source, purchasing behaviors differ.
Friends and family are the preferred source of beauty product information
Consistent with many beauty and personal care categories, consumers who purchase beauty
products rely on their friends and family for product information. The unbiased nature of
these opinions and recommendations, combined with the trust factor, certainly makes this
an appealing source. Yet, consumers are having increased opportunities to voice their
opinion online as beauty retailers, social media sites, and beauty blogs encourage
consumers to review products and share their opinions. Sites such as Ulta and Sephora list
consumer reviews right below the product and encourage shoppers to review a product once
they purchase it.
There are also non-retailer specific sites like TotalBeauty.com, which prides itself on
providing unbiased reviews for thousands of beauty products and even offers an app that
allows consumers to research products when shopping for them in-store. As consumer
reviews continue to proliferate, no doubt online reviews will become an increasingly popular
information source. In fact, one third of females aged 18-34 report using online reviews
with that number decreasing as women get older. A similar pattern exists among men,
though at lower rates. As these young women have grown up with technology and instant
access to information, their reliance on technology for product information will likely
continue as they age.
While younger women rely on friends and family and online reviews, females 35+ cite
visiting stores as their preferred source of beauty product information, slightly (though not
significantly) edging out friends and family. Sampling and testing beauty products is
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62
important to consumers, particularly to women who want to test different shades of makeup
or experience how products feel or smell on their skin prior to purchasing. Online shopping
is at a disadvantage because consumers can no longer test or interact with a product,
particularly in a category that relies heavily on sampling as a way to promote products.
Additionally, older consumers may not be as familiar with current technology that helps
consumers to virtually interact with beauty products or read online reviews/information.
Beauty retailers that have brick and mortar stores may want to encourage these older
women to shop online by offering customized in-store samples with coupons or promotions
that can only be redeemed online. This type of offering has the potential to “hook” the
consumer, leading to future online purchases. Online only retailers will struggle a bit at
reaching older consumers, though advertising in traditional media like magazines could
encourage these consumers to try online shopping, particularly if discounts are offered for
first time shoppers.
Men are significantly more likely to report that they don’t look for information regarding
beauty products, and given their lower involvement in the category overall this behavior is
to be expected. However, while men are less likely to do research, they are more likely to
impulse shop or be motivated by the ease of purchasing online or on a mobile device (see
Insights and Opportunities). This may be particularly true of products that could be
embarrassing to purchase in-store like hair regrowth products or even skincare. Advertising
on popular men’s sites (sports sites, fantasy league sites) or in-store promotions that allow
men to easily purchase online a product they see in-store but don’t necessarily want to be
seen buying may be a way to target this user.
FIGURE 29: Information about beauty products, by gender and age, August 2012
“Where do you get information about beauty products?”
All
Male Male Male Fem
, 18- , 35- ,
ale,
34
54
55+ 1834
Base: internet users 18+ who bought 1,92 298 340 279 314
beauty products
8
%
%
%
%
%
I get recommendations from
33
32
26
22
47
friends/family
I visit stores to view/test products
30
22
21
16
42
I read online customer reviews
21
19
13
11
33
I research products in magazines
18
12
11
10
23
and/or newspapers
I get recommendations from a
18
13
11
11
25
trusted professional like a hair stylist
or makeup artist
I visit brands’ websites
17
17
11
9
24
I visit the websites of online retailers 15
12
9
7
24
for styling and/or product advice (i.e.
Sephora.com or Ulta.com)
I get recommendations from my
12
14
10
13
12
doctor/dermatologist
I read beauty blogs
9
9
5
1
20
Fem
ale,
3554
363
Fem
ale,
55+
%
35
%
35
36
25
26
37
21
25
22
24
19
19
20
16
10
12
9
8
This report is supplied in accordance with Mintel's terms and conditions. Supplied to Conde Nast.
© Mintel Group Ltd.
334
63
I look for online tutorial videos (i.e.
youtube.com)
I visit social media sites such as
Facebook or Twitter
I look for products used or endorsed
by celebrities
I don’t look for information about
beauty products
None of the above
8
11
4
1
18
7
3
7
12
4
3
16
5
3
5
9
3
1
10
5
3
25
27
34
39
14
19
20
12
11
15
19
6
9
10
Source: Mintel
Higher-income groups more likely to research beauty products, particularly instore
Friends and family are the preferred information source for most income groups, though
consumers in the highest income group show a slight (though not significant) preference for
visiting stores to view and test beauty products. Consumers in the $150K+ group are also
significantly more likely than all other income groups to report getting recommendations
from a trusted professional. As would be expected, consumers with more disposable income
are more likely to visit salons and spas for beauty services as opposed to doing them at
home. According to Salon Services—U.S., June 2012, 86% of respondents in the $150K+
group report getting a hair treatment at a salon compared to 58% of those in the <$25K
group. Recommendations from industry experts like stylists and aestheticians are
resonating with these consumers, particularly since these experts often recommend
products that they are using on the consumers (and happen to sell in their spa/salon),
which takes some of the guesswork out of the purchase decision for the consumer. Also,
higher-income consumers may be shopping at high-end retailers like Sephora and
department stores, which encourage consumers to sample and play with products prior to
purchasing. These retailers often have employees who are willing to give mini-makeovers
and show consumers how to use the product, again reinforcing their expertise that helps
consumers sift through the multitude of product choices.
While online retailers don’t allow consumers to physically interact with products, they do
have the opportunity to build relationships with consumers, similar to in-store or industry
experts. Live chat features and online tutorials can help consumers get the customer service
they want as well as show them how to use a product. Additionally, relationship marketing
techniques like sending “personalized” e-mails with custom product recommendations can
help develop that important customer relationship. Relationship building with these higherincome consumers is critical because these consumers not only have more income to spend
on beauty products, they are also more likely to own computers and mobile devices as well
as have broadband internet access.
FIGURE 30: Information about beauty products, by household income, August 2012
“Where do you get information about beauty products?”
All
<$2 $25
5K
K49.9
K
$50
K74.9
K
$75
K99.9
K
$100 $15
K0K+
149.
9K
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© Mintel Group Ltd.
64
Base: internet users 18+ who bought 1,92
beauty products
8
%
I get recommendations from
33
friends/family
I visit stores to view/test products
30
I read online customer reviews
21
I research products in magazines
18
and/or newspapers
I get recommendations from a trusted 18
professional like a hair stylist or
makeup artist
I visit brands’ websites
17
I visit the websites of online retailers 15
for styling and/or product advice (i.e.
Sephora.com or Ulta.com)
I get recommendations from my
12
doctor/dermatologist
I read beauty blogs
9
I look for online tutorial videos (i.e.
8
youtube.com)
I visit social media sites such as
7
Facebook or Twitter
I look for products used or endorsed
5
by celebrities
I don’t look for information about
25
beauty products
None of the above
12
369
423
381
243
344
168
%
31
%
31
%
36
%
33
%
32
%
36
25
15
10
31
21
17
30
22
20
28
20
22
29
23
20
38
25
26
12
17
19
19
18
27
14
9
17
13
18
14
17
15
18
20
17
21
9
13
11
12
13
14
8
7
9
6
8
9
7
8
10
7
13
7
7
8
9
6
5
5
5
3
5
6
6
7
29
26
25
21
25
19
14
14
10
12
8
10
Source: Mintel
Households with children more likely to rely on peers for beauty product
information
Some 38% of households with children report relying on friends and family for beauty
product advice compared to 31% of households without children. Overall, households with
children are somewhat more likely to be engaged in the beauty category with only 20% of
respondents reporting that they don’t look for information about beauty products compared
to 27% of households without children. Busy families may be more likely to seek
information regarding beauty products, as they want to be sure they are using the best
products for their households and children. By researching products for their families, these
consumers are becoming more informed, potentially leading to higher quality beauty
product purchases for themselves. Also, they may have less time to go shopping so
researching in advance can help eliminate time spent in-stores. Households with children
are using their peer network for recommendations, making word of mouth campaigns an
important strategy in reaching these consumers.
Moms in particular are online more than ever with the percentage of moms who regularly
accomplish tasks online having steadily increased from 2007-11 (Marketing to Moms—U.S.
February 2012). Moms are also engaged in social media and are using it in a variety of
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© Mintel Group Ltd.
65
ways. According to 2011 Nielsen research, moms are 31% more likely to become a fan or
follow a brand compared to the total population and 24% more likely to become a fan or
follow a celebrity. Finally, Pinterest has seen a lot of momentum among moms based on the
amount of commentary on mom blogs and forums (Marketing to Moms—U.S., February
2012). As women are considerably more involved in the beauty category compared to men,
targeting moms online appears to be a promising strategy for beauty brands. While moms
may be seeking information about products for the whole family or specifically for their
children, ads or e-mails that encourage moms to treat themselves with little luxuries like
lipstick or nail polish could be an opportunity.
FIGURE 31: Information about beauty products, by presence of children in household, August
2012
“Where do you get information about beauty products?”
All
Base: internet users 18+ who bought
beauty products
I get recommendations from friends/family
I visit stores to view/test products
I read online customer reviews
I research products in magazines and/or
newspapers
I get recommendations from a trusted
professional like a hair stylist or makeup
artist
I visit brands’ websites
I visit the websites of online retailers for
styling and/or product advice (i.e.
Sephora.com or Ulta.com)
I get recommendations from my
doctor/dermatologist
I read beauty blogs
I look for online tutorial videos (i.e.
youtube.com)
I visit social media sites such as Facebook
or Twitter
I look for products used or endorsed by
celebrities
I don’t look for information about beauty
products
None of the above
Children
under 18
1,928
No
children
under 18
1,398
%
33
30
21
18
%
31
29
20
18
%
38
32
22
20
18
18
18
17
15
16
14
19
16
12
11
13
9
8
7
6
12
11
7
6
11
5
4
9
25
27
20
12
12
10
530
Source: Mintel
Consumers who research beauty products, also more likely to purchase them
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66
As would stand to reason, consumers that seek information about beauty products are more
likely to report purchasing them, as indicated by the elevated purchase rates for virtually all
products compared to total respondents. Yet, purchasing behaviors differ based on the
information source. Recommendations from friends and family and in-store visits are the
most cited information sources for consumers and show similar purchase rates with the
exception of makeup. Some 65% of consumers that visit stores for information report
purchasing makeup compared to 60% of consumers who get recommendations from
friends/family. This is a significant difference and suggests the importance consumers place
on being able to test makeup prior to purchasing. Online retailers have begun to launch
makeup apps (like the MatchMaker app by L’Oreal True Match to help find the right shade of
foundation) to address the “sampling” issue but they are still relatively new and the
technology has not translated that well to mobile devices. Opportunities to improve the
technology by using better quality photos and color matching could help the apps go beyond
being a bit “gimmicky” to providing a more accurate portrayal of how the makeup or
product would actually look.
Consumers that read online reviews report elevated purchase rates of hand and body lotion
and facial skincare products in particular, especially when compared to those who get
recommendations from friends and family. Since facial skincare products are the most
commonly purchased beauty products online, it is logical that consumers who read online
reviews are looking for skincare product advice. Given the large number of facial products
available and that address a wide variety of skin needs, it stands to reason that consumers
are confused and looking for additional information prior to making purchases (whether instore or online). This is an opportunity for online retailers to highlight facial products on
their websites as well as provide expert advice (perhaps from a dermatologist) or even
video reviews to really help consumers feel educated prior to purchasing.
Consumers that research products in magazines/newspapers report elevated purchase rates
of numerous beauty products including lotion, body wash, facial skincare, hair styling
products, makeup, and women’s fragrances. Nearly one quarter of women rely on
magazines for beauty product information, making them a relevant source, despite the
weak performance of print media overall. Online versions of magazines could make it easy
for consumers to purchase products by simply clicking on a link of a recommended product.
Additionally, beauty retailers should continue to use magazines and newspapers as a vehicle
for product promotion, as they continue to motivate beauty product purchasing.
Consumers that get recommendations from a trusted professional report elevated purchase
rates of hair appliances and hair styling products when compared to other information
sources. These consumers are likely taking advice from their hair stylist and using the
products and tools they recommend in order to achieve their hair style. Beauty retailers
may want to consider partnering with hair stylists, particularly those that have accolades
from celebrities or influential people, in order to give consumers that expert advice they are
seeking, particularly when purchasing more expensive (or investment items) like hair
appliances.
FIGURE 32: Beauty product purchasing – Any purchase, by top five beauty product
information sources, August 2012
“Where do you get information about beauty products?”
“Which of the following beauty products, if any, have you bought over the past 12 months?”
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67
All
Base: internet users 18+ 1,928
who bought beauty
products and turn to
listed source for product
information
%
Shampoo or conditioner 93
Hand or body lotion
76
Body wash or shower gel 75
Facial skincare products 57
Hair styling products
57
Hair accessories
49
Makeup
46
Nail products
42
Men’s fragrances
42
Women’s fragrances
37
Hair appliances
27
Skin electrical devices
11
(i.e. Clarisonic)
I get
recomm
endatio
ns from
friends/
family
I visit
stores
to
view/te
st
product
s
I read
online
custom
er
reviews
I get
recomm
endatio
ns from
a
trusted
professi
onal
396
I
researc
h
product
s in
magazin
es
and/or
newspa
pers
351
639
570
%
95
88
83
73
70
65
60
56
45
48
38
14
%
96
89
84
74
69
63
65
60
45
50
38
15
%
97
92
84
82
74
70
68
64
46
54
44
16
%
97
93
86
86
79
70
74
68
46
58
42
19
%
96
89
84
79
78
69
71
65
44
54
46
18
344
Source: Mintel
Consumers that visit beauty blogs and look for online tutorial videos report significantly
higher purchase rates of nearly all beauty products when compared to total respondents. As
these information sources tend to appeal to highly engaged consumers, it makes sense that
they would be purchasing a variety of beauty products. Consumers that read beauty blogs
are purchasing notably more women’s fragrance, nail products, makeup, and skin devices.
Products like skin devices, and even new fragrance and makeup launches, frequently trend
on beauty blogs before they start to become mainstream. Consumers that follow beauty
blogs are likely interested in having the newest and latest product as well as following the
newest color and style trends. While only 9% of consumers report visiting beauty blogs for
product information, they clearly attract engaged and influential beauty consumers, making
them a strong target for online beauty retailers. Wooing beauty bloggers with sneak peeks
of products before they launch as well as developing relationships with these bloggers is
important in creating buzz and ultimately influencing the influencer.
It is interesting to note that consumers who get recommendations from
doctors/dermatologists actually have a lower reported rate of purchasing facial skincare
compared to some other information sources. Consumers that visit a dermatologist may be
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© Mintel Group Ltd.
68
receiving products/medications to treat specific skincare issues and therefore don’t purchase
general market skincare.
FIGURE 33: Beauty product purchasing – Any purchase, by next five beauty product
information sources, August 2012
“Where do you get information about beauty products?”
“Which of the following beauty products, if any, have you bought over the past 12 months?”
All
Base: internet users 18+ 1,928
who bought beauty
products and turn to
listed source for product
information
%
Shampoo or conditioner 93
Hand or body lotion
76
Body wash or shower gel 75
Facial skincare products 57
Hair styling products
57
Hair accessories
49
Makeup
46
Nail products
42
Men’s fragrances
42
Women’s fragrances
37
Hair appliances
27
Skin electrical devices
11
(i.e. Clarisonic)
I visit
brands’
websit
es
I get
I read
recomm beauty
endatio blogs
ns from
my
doctor/
dermato
logist
I look
for
online
tutorial
videos
(i.e.
youtube
.com)
325
I visit
the
website
s of
online
retailers
for
styling
and/or
product
advice
281
227
170
145
%
95
93
85
83
73
69
69
64
48
56
44
19
%
96
95
84
86
77
72
74
68
48
63
51
21
%
92
90
81
72
70
62
54
52
53
49
41
21
%
96
95
92
90
81
80
85
84
49
74
56
30
%
93
91
88
81
75
80
75
74
49
57
58
32
Source: Mintel
Consumers that look for products used or endorsed by celebrities have elevated purchase
rates of products like facial skincare, nail products, women’s fragrance, and skin devices
compared to other information sources. Women’s fragrance, and to a lesser degree nail
care, has seen an explosion of celebrity partnerships so this behavior stands to reason.
Additionally, facial skincare and skin devices have received celebrity accolades. Proactiv
skincare has featured singer Katy Perry and actress/singer Jessica Simpson among other
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© Mintel Group Ltd.
69
celebrities in its advertising. The Clarisonic Facebook page has endorsements from
celebrities like actress Demi Moore, actress Sarah Jessica Parker, and reality star Lauren
Conrad. While only 5% of respondents cite celebrity endorsements as information source,
this small, but highly engaged consumer represents a strong target and illustrates the
effectiveness of celebrity endorsements. Online beauty retailers may want to partner with
celebrities and have them endorse products on social media sites, helping to create buzz
and promote the retailer. Brands and retailers just need to exercise caution when picking
celebrities to make sure they align with the values and image the retailer wants to project.
FIGURE 34: Beauty product purchasing – Any purchase, by those that visit social media sites
and look for celebrity endorsements to get beauty product information, August 2012
“Where do you get information about beauty products?”
“Which of the following beauty products, if any, have you bought over the past 12 months?”
Base: internet users 18+ who
bought beauty products and
turn to listed source for product
information
Shampoo or conditioner
Hand or body lotion
Body wash or shower gel
Facial skincare products
Hair styling products
Hair accessories
Makeup
Nail products
Men’s fragrances
Women’s fragrances
Hair appliances
Skin electrical devices (i.e.
Clarisonic)
All
I visit social
media sites
1,928
134
I look for
products used
or endorsed by
celebrities
98
%
93
76
75
57
57
49
46
42
42
37
27
11
%
95
90
90
75
73
69
66
62
59
60
53
31
%
91
88
88
82
69
72
68
70
58
67
59
39
Source: Mintel
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© Mintel Group Ltd.
70
Beauty Online - US - December 2012
Product Information – Online Purchase
Key points
●
As would be expected, respondents that seek beauty product information
from online sources such as online reviews and beauty blogs are more likely to
report purchasing virtually all products online as opposed to total respondents.
●
Facial skincare is the most purchased beauty product online, regardless of
the information source. The fact that facial skincare is a popular online purchase
indicates that consumers are confused about the category and turning to online
sources for recommendations and product information in order to make an
informed purchase decision.
Online information sources drive online beauty sales, particularly facial skincare
Facial skincare products are the most purchased beauty product online, regardless of where
consumers are searching for product information. However, consumers who read online
reviews and read beauty blogs are even more likely to purchase facial skincare when
compared to consumers who get information from other sources. This emphasizes previous
analysis suggesting that consumers are either confused about picking the right facial
skincare for their skin or want to research skincare products prior to purchasing.
Considering that high-end facial creams can easily be $100 or more, it makes sense that
consumers want to feel informed about their purchase decision. Apps have recently been
developed that allow users to scan their skin and get a report on the condition of their skin
(dry, oily, etc.). Online beauty retailers may want to consider partnering with one of these
apps and develop customized product recommendations based on the particular needs of
the users’ skin.
FIGURE 35: Online beauty product purchasing by online information sources for beauty
products, August 2012
“Where do you get information about beauty products?”
“Which of the following beauty products, if any, have you bought over the past 12 months?”
All
I read
online
custo
mer
review
s
Base: internet users
2,00 396
18+ who bought beauty 0
products online and turn
to listed source for
product information
I visit
brand
s’
websi
tes
325
I visit
the
websit
es of
online
retailer
s
281
I read
beaut
y
blogs
I look
for
online
tutorial
videos
I visit
social
media
sites
170
145
134
This report is supplied in accordance with Mintel's terms and conditions. Supplied to Conde Nast.
© Mintel Group Ltd.
71
%
Facial skincare products 10
Makeup
8
Women’s fragrances
8
Hand or body lotion
7
Men’s fragrances
7
Shampoo or conditioner 6
Body wash or shower
6
gel
Hair appliances
5
Nail products
4
Hair styling products
4
Skin electrical devices
4
(i.e. Clarisonic)
Hair accessories
3
%
22
17
15
16
9
11
8
%
19
16
15
14
11
13
9
%
26
21
20
15
11
12
9
%
24
24
21
18
14
12
14
%
21
20
19
15
13
10
14
%
14
13
18
13
16
8
12
8
8
7
7
6
7
7
9
11
10
7
10
8
15
8
12
11
16
10
14
10
10
10
14
5
6
7
8
8
8
Source: Mintel
This report is supplied in accordance with Mintel's terms and conditions. Supplied to Conde Nast.
© Mintel Group Ltd.
72
Beauty Online - US - December 2012
Online Retailers Purchased
Key points
●
Among those who purchase beauty products online, general merchandise
websites such as Amazon are the most purchased retailer, followed by mass
merchandisers like Target.com. Amazon dominates the online retailing shopping
market, offering virtually any type of product a person could want, including
beauty and personal care products.
●
Younger females are significantly more likely to report purchasing beauty
products at specialty beauty retailers like Sephora.com while older females are
more likely to purchase beauty products from direct sale websites like Avon.com.
●
Men are significantly more likely to report purchasing beauty products from
an online auction site like eBay. Younger men are also most likely to report
following a link on a beauty blog or social media site when compared to women.
General merchandise websites lead online beauty purchases
General merchandise websites, led by Amazon, dominate online sales, with beauty products
being no exception. The large variety of products offered combined with quick delivery
times, one-click purchasing and free shipping offers makes Amazon a force to be reckoned
with in the online shopping category. However, consumers that are looking for beauty
expertise are likely turning to specialty beauty retailers like Sephora and Ulta. Some 32% of
females aged 18-34 report purchasing beauty products from specialty beauty retailers
compared to 22% of total respondents. These retailers only sell beauty products and offer
apps and online features like live chat, beauty blogs, tips from beauty experts, and online
tutorials that general websites like Amazon and even mass merchandiser websites typically
don’t offer.
Some 24% of online beauty shoppers purchase products at mass merchandisers, with
younger and older men being equally likely to shop this type of retailer. Mass merchandisers
and drug stores are beginning to offer more reward and loyalty programs, encouraging
consumer loyalty as shoppers can earn “points” redeemable for rewards, money off future
purchases, and even free shipping. As mentioned in Insights and Opportunities, Target has
started sending free beauty boxes to consumers who “like” them on Facebook. These
beauty boxes contain samples of popular mass beauty brands and also provide coupons for
future purchases. Mass merchandisers and drug stores are focusing more on their beauty
departments, offering customer service and sampling features typically only found in
department or specialty beauty stores. As beauty retailers continue to vie for consumers’
attention across numerous media channels, it will become more difficult for mass retailers to
stand out from the crowd.
Direct-sell beauty retailers such as Avon.com and Amway.com are more likely to be
shopped by women, particularly those 35+. Some 30% of women 35+ who purchase beauty
products online report shopping at direct-sell websites. Direct sellers usually have a higher
reported purchase rate among this demographic, and the online segment is no exception.
These women may have grown up with Avon or Mary Kay parties and now look to the online
segment to purchase their favorite products. Additionally, the social aspect of working with
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© Mintel Group Ltd.
73
a beauty consultant plus the added convenience of ordering online may be appealing to this
slightly older and more established woman. Also, direct-sell retailers have stepped up their
online presence with interactive features such as virtual makeover tools, online forums, and
apps.
Interestingly, young men 18-34 who purchase beauty products online are more likely than
average to report shopping on auction sites like eBay as well as following a link on a beauty
blog. While this is based on a relatively small sample, and likely includes a more engaged
male user, it does appear that these young men are turning to online sources for advice
about beauty products, as opposed to their peer network or even in-store experts. The
internet provides a level of anonymity that may be appealing for men who don’t necessarily
want their friends or family to know that they are using beauty products. Additionally,
auction sites allow men to get a deal on beauty products, particularly fragrance. As of
November 2012 eBay was offering more than 100,000 men’s fragrances up for bid, at prices
significantly lower than retail. Men are less likely to experiment with new fragrances and
products and therefore may be searching eBay for their favorite discontinued products,
suggesting that beauty retailers may want to consider bringing back discontinued products
exclusively online as a way to engage young men (see Innovations and Innovators).
FIGURE 36: Online retailers where purchased, by gender and age, August 2012
“Which types of online retailers have you purchased beauty products from in the past 12
months?”
Base: internet users 18+ who bought
beauty products online
A general merchandise website such as
Amazon.com
Mass retailers such as Target.com or
Walmart.com
Directly from the brand website (i.e.
neutrogena.com, esteelauder.com)
A direct seller website such as Avon.com
or Amway.com
A specialty beauty retailer such as
Sephora.com or Ulta.com
A drug store website such as CVS.com or
Walgreens.com
A department store website such as
Bloomingdales.com or Macys.com
An auction site like eBay
TV retailers such as QVC.com or
HSN.com
An online only beauty website such as
Beauty.com or Totalbeauty.com
I followed a link on a beauty blog
All
Male
18-34
Male
35+
Femal
e 35+
94
Femal
e 1834
113
520
84
%
33
%
33
%
39
%
35
%
30
24
27
27
28
19
24
21
20
24
27
23
14
14
25
30
22
8
15
32
24
20
24
22
22
17
17
12
15
22
17
15
12
21
8
19
10
15
10
10
14
11
12
10
14
10
8
15
5
12
3
229
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74
I followed a link on a social media
website such as Facebook or Twitter
A beauty box subscription such as
Birchbox or Glossybox
Other
6
14
5
9
2
5
10
3
9
3
8
7
10
4
10
Source: Mintel
Facial skincare, fragrance, and makeup are most frequently purchased products
regardless of retailer
Regardless of where online beauty shoppers are purchasing products, facial skincare,
fragrance and makeup are the most commonly purchased products online. As mentioned in
Beauty Products Purchased, consumers are likely looking for product information including
reviews, ingredients and tips prior to investing in higher-priced items such as facial skincare
and fragrance.
Additionally, due to the enormous amount of products available in these categories,
consumers are likely confused and looking for advice on how to pare down their choices.
Illustrating this point, slightly more than half of respondents who shop at specialty beauty
retailers report purchasing facial skincare products compared to 38% of total respondents.
This reinforces that consumers are turning to beauty experts, like Sephora, in order to guide
them through the sometimes overwhelming task of shopping for facial skincare.
However, there is some variance among these top products depending on the retailer
shopped. Those that shop at direct-seller websites and auction sites are slightly more likely
to purchase makeup than they are to purchase facial skincare products online. Amway is the
number one beauty retailer according to Internet Retailer, driven partially by its Artistry line
which focuses on color cosmetics. As mentioned previously, consumers may be scouring
auction sites for discontinued favorite makeup colors which could be driving sales on those
sites.
FIGURE 37: Products purchased online, by top four online retailer types, August 2012
“Which types of online retailers have you purchased beauty products from in the past 12
months?”
“Which of the following beauty products, if any, have you bought over the past 12 months?”
All
Base: internet users 18+
who bought beauty
products online
Facial skincare products
Women’s fragrances
Makeup
Hand or body lotion
Directly
from the
brand
website
125
Mass
A direct
retailers seller
website
520
A general
merchan
dise
website
174
124
122
%
38
31
29
27
%
41
30
30
27
%
46
27
38
36
%
33
34
27
32
%
39
37
42
34
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75
Men’s fragrances
Shampoo or conditioner
Body wash or shower gel
Hair appliances
Nail products
Hair styling products
Skin electrical devices (i.e.
Clarisonic)
Hair accessories
25
22
21
18
16
13
13
24
22
19
22
17
13
14
18
19
29
15
16
15
15
28
26
26
23
18
14
17
26
22
26
18
18
16
16
11
11
10
13
8
Source: Mintel
FIGURE 38: Products purchased online, by next four online retailer types, August 2012
“Which types of online retailers have you purchased beauty products from in the past 12
months?”
“Which of the following beauty products, if any, have you bought over the past 12 months?”
All
Base: internet users 18+
who bought beauty
products online
Facial skincare products
Women’s fragrances
Makeup
Hand or body lotion
Men’s fragrances
Shampoo or conditioner
Body wash or shower gel
Hair appliances
Nail products
Hair styling products
Skin electrical devices (i.e.
Clarisonic)
Hair accessories
A drug
store
website
520
A
specialty
beauty
retailer
112
106
A
departm
ent store
website
87
An
auction
site like
eBay
76
%
38
31
29
27
25
22
21
18
16
13
13
%
51
38
45
29
21
20
19
23
22
14
17
%
45
34
27
37
25
27
27
25
22
21
19
%
47
47
46
43
32
20
26
22
21
15
22
%
36
41
42
36
29
26
22
26
20
20
17
11
13
10
15
14
Source: Mintel
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© Mintel Group Ltd.
76
Beauty Online - US - December 2012
Online Shopping Attitudes
Key points
●
The majority of respondents who buy beauty products agree that buying
online gives them access to hard to find products and saves them time.
●
Younger consumers are more likely to agree that they would be interested
in technology like an app that helps them pick products or live chat features that
aid in the beauty product purchasing experience.
●
While men are less likely to be engaged in the beauty category when
compared to women, they are more likely to agree about the ease and
convenience features of shopping online, particularly younger men. As men are
becoming more engaged in the beauty category, expanding marketing efforts to
target men and appealing to their desire for speed and convenience could be a
way to drive sales.
●
Mid-tier income groups are more likely to report interest in technologybased features like live chat and apps as opposed to lower- and higher-income
groups.
●
Households with children are more likely to agree with all of the attitudes
regarding online shopping when compared to households without children and are
significantly more likely to report interest in technology-based features like apps
and live chat when shopping online.
Online shopping saves time and provides access to hard to find products
The majority of respondents who buy beauty products agree that buying online gives them
access to hard to find products and saves them time. This sentiment is particularly true
among males, 18-34. While specialty and niche beauty products were once only available to
consumers who lived in urban areas or near shopping malls, the internet has become a bit
of an equalizer, giving anyone (who has internet access) the opportunity to research and
purchase specialty beauty products. Additionally, the internet allows for a level of anonymity
when shopping for products that may be a bit embarrassing to shop for in person like antiaging or hair thinning products, particularly for men. The time-saving factor is also a key
driver for shopping online. The internet allows consumers to shop 24/7 from the comfort of
their own home or even when waiting in line at the grocery store.
While many beauty retailers are expanding the amount of information they provide on their
websites and even mobile apps, they may want to consider highlighting time-saving
features that make shopping quick and convenient. For example, retailers could keep a list
of past purchases so consumers can easily access previous purchases and reorder. One-click
checkout features and product recommendations based on the individual’s online purchasing
habits could potentially translate to more online sales. Retailers may want to “remind”
consumers that they are about to run out of moisturizer or mascara by sending a
personalized e-mail with a one-click link to repurchase. Time-saving and convenience are
big advantages over shopping in-store, and retailers should consider those features as
important as price promotions and product information features.
As men are particularly motivated by time-saving and convenience as reasons for shopping
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© Mintel Group Ltd.
77
online, beauty retailers may want to consider expanding more marketing efforts to this
often untapped consumer in the beauty category. As mentioned in Insights and
Opportunities, men are a prime target for online beauty retailing as they are less likely to
want to spend a lot of time browsing stores and are looking for quick, simple and
convenient ways to get the products they want.
Technology features appeal to younger consumers
Roughly half of beauty product purchasers in the 18-34 groups (both male and female),
report interest in an app that helps them pick products based on their needs. Additionally,
45% of men aged 18-34 report that they would be more willing to shop online if websites
had interactive customer service features like live chat. Finally, nearly one third of
respondents in the 18-34 groups like to use mobile devices to research products once they
learn about them.
Many retailers, such as Sephora, are expanding customer service features like live chat to
their websites as well as launching mobile apps to help consumers research, review and
purchase beauty products. As these features start to become more of the norm in the
space, retailers should consider more customized and personal features to help consumers
better navigate the sometimes overwhelming beauty category. For instance, roughly half of
respondents in the 18-34 age groups report interest in an app that provides customized
product recommendations. There are plenty of beauty apps that help customers research
beauty products, yet very few that help pare down the choices and provide custom
recommendations based on the unique needs of the shopper. Marketing has become more
focused as retailers and brands are monitoring consumers’ online shopping habits, social
media habits, and webpage clicks.
The next step for retailers would be developing more relationship marketing strategies that
interact with consumers on a personal and individual level, offering them customized
recommendations for their individual beauty needs. This idea being similar to automated
product recommendations based on the users purchasing and searching habits currently
being employed by retailers like Amazon.
FIGURE 39: Attitudes toward shopping for beauty products online, by gender and age,
August 2012
“Please indicate whether you agree or disagree with the following statements about
shopping for beauty products online.”
All
Base: internet users 18+ who bought
beauty products
Any agree:
Buying online gives me access to hard
to find products
Buying online saves me time
Male Male Male Fem Fem
, 18- , 35- ,
ale, ale,
34
54
55+ 18- 3534
54
1,92 298 340 279 314 363
8
%
%
%
%
%
%
Fem
ale,
55+
63
73
63
48
69
68
54
62
73
64
53
63
67
53
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© Mintel Group Ltd.
334
%
78
I’d be interested in retailers that allow
me to purchase online and pick up instore
Buying online is more convenient than
shopping in-store
I prefer to research products online
and then purchase in-store
I prefer to visit stores to view products
and then buy online
I’d be interested in an app that helped
me pick products that are customized
for my needs
I’d be more willing to purchase online
if websites had interactive customer
service features like live chat
I’d be interested in websites that
shipped products to my travel
destination
Buying online allows me to be the first
to try the latest products
I’m more likely to make an impulse
purchase online than in-store
I like to use my mobile device to
research beauty products once I learn
about them
53
61
52
45
63
52
44
52
60
54
41
52
59
46
49
55
47
42
61
52
39
42
43
39
35
51
45
38
33
52
29
14
48
31
22
28
45
27
18
32
23
23
27
52
31
15
36
19
12
26
43
25
13
30
27
18
22
37
23
10
26
20
15
16
31
16
3
30
14
4
Source: Mintel
Households with children more engaged in online beauty shopping
Households with children and who buy beauty products are significantly more likely to agree
with the majority of statements regarding online shopping attitudes. They appear to be
overall more engaged in the category as well as express higher interest in features that help
them navigate the online beauty space. Some 44% of households with children express
interest in an app that provides customized product recommendations, compared to only
29% of households without children. Part of this could be driven by age as households
without children tend to be older and overall less interested in online shopping and
technology features. However, households with children may be doing more research online,
looking for products that are safe for the whole family to use, as well as special treats for
themselves. Additionally, young families are busy and looking for features that help make
shopping easy and convenient, while still getting the customer service and product advice
they would get if shopping in-store. Pinterest has become a popular vehicle for parents to
share information, so beauty brands may want to consider partnering with parenting boards
on Pinterest to better target this engaged audience, perhaps with the emphasis being on
quick and easy looks that can be easily achieved while juggling the demands of a busy
family.
FIGURE 40: Attitudes toward shopping for beauty products online, by presence of children in
household, August 2012
“Please indicate whether you agree or disagree with the following statements about
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© Mintel Group Ltd.
79
shopping for beauty products online.”
All
Base: internet users 18+ who bought beauty 1,928
products
%
Any agree:
Buying online gives me access to hard to find 63
products
Buying online saves me time
62
I’d be interested in retailers that allow me to 53
purchase online and pick up in-store
Buying online is more convenient than
52
shopping in-store
I prefer to research products online and then 49
purchase in-store
I prefer to visit stores to view products and
42
then buy online
I’d be interested in an app that helped me
33
pick products that are customized for my
needs
I’d be more willing to purchase online if
28
websites had interactive customer service
features like live chat
I’d be interested in websites that shipped
27
products to my travel destination
Buying online allows me to be the first to try 26
the latest products
I’m more likely to make an impulse purchase 22
online than in-store
I like to use my mobile device to research
16
beauty products once I learn about them
No
children
under 18
1,398
Children
under 18
%
%
61
68
61
50
67
60
51
56
47
55
40
47
29
44
25
35
23
38
23
35
20
28
13
26
530
Source: Mintel
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© Mintel Group Ltd.
80
Beauty Online - US - December 2012
Impact of Product Purchases on Online
Shopping Attitudes
Key points
●
Respondents that purchase beauty products online, regardless of product
type, express higher rates of agreement with all of the online shopping attitude
statements when compared to total beauty product shoppers. This behavior is not
unexpected as those that shop online are already familiar with the benefits of
doing so. However, as these online shoppers are already immersed in the
category, the opportunity to target them with additional time-saving and
convenience features may be more beneficial as opposed to trying to lure new
shoppers, who may have reservations about shopping online.
●
Respondents who make online beauty purchases are more likely to express
interest in technology features like apps and live chat when compared to total
beauty product shoppers.
●
Consumers who purchase men’s fragrance online are more likely to report
using their mobile device to research beauty products. Given that men like the
ease and speed of online shopping, targeting men with beauty apps or men’s
fragrance apps could be an opportunity.
Consumers that purchase beauty products online like access, convenience
Respondents who purchase beauty products online, regardless of product type, are more
likely than beauty product purchasers in general to agree that buying online gives them
access to hard to find products. Additionally, online beauty purchasers are more likely to
agree that buying online saves them time. For instance, 89% of consumers who purchase
shampoo or conditioner online and 85% who purchase facial skincare products online agree
that buying online is more convenient than shopping in-store compared to 52% of total
beauty purchasers. While response rates were elevated for all beauty product categories,
they were particularly high for these two categories.
This could indicate that consumers are particularly interested in the time-saving aspect of
online shopping when it comes to more frequently purchased products like shampoo or
facial skincare, as opposed to fragrances or makeup. Additionally, once consumers shift to
purchasing these regular use products, their attitudes toward the benefits of shopping
online become more pronounced. Retailers that “remember” past purchases or send e-mails
to consumers reminding them that it is time to refill, may be particularly appealing to these
shoppers. Other time-saving features, like one-click checkout or mobile features that easily
allow online shoppers to navigate and purchase beauty products, are good opportunities to
further target this already engaged online shopper.
Technology features appeal to online beauty shoppers
Roughly one third of respondents express interest in an app that helps them pick products
customized for their needs. That number increases to roughly one half of online beauty
shoppers, regardless of product category. Additionally, online beauty shoppers express
higher levels of interest in customer service features such as live chat. Keeping these online
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81
shoppers continually engaged and entertained with more interactive features will be
important in growing the online segment, particularly as these shoppers report being more
likely to make an impulse purchase online than in-store. Features that recommend
additional purchases or offer free gifts once purchasers reach a certain spending level may
help encourage this impulsivity, potentially resulting in increased sales.
Those that purchase men’s fragrance express a particular interest in interactive customer
service features and are more likely than online shoppers of other beauty categories to
agree that they like to use their mobile device to research beauty products. While those that
purchase men’s fragrances online aren’t necessarily just men, presumably it’s more men
than other beauty categories. As illustrated in Insights and Opportunities, men may be
turning to online experts for advice regarding fragrance and other beauty products, as
opposed to in-store experts or even friends and family. The convenience and time-saving
factors certainly resonate with them, as well as the more discreet nature afforded by online
shopping. Beauty retailers may want to consider offering apps or online boutiques
exclusively for their male consumers.
FIGURE 41: Attitudes toward online shopping, by top six beauty products purchased online,
August 2012
“Please indicate whether you agree with the following statements about shopping for beauty
products online.”
“Which of the following beauty products, if any, have you bought over the past 12 months?”
All
Base: internet users 18+ who bought
beauty products (any) or listed
product online
Any agree:
Buying online gives me access to hard
to find products
Buying online saves me time
I’d be interested in retailers that allow
me to purchase online and pick up instore
Buying online is more convenient than
shopping in-store
I prefer to research products online
and then purchase in-store
I prefer to visit stores to view products
and then buy online
I’d be interested in an app that helped
me pick products that are customized
for my needs
Facia
l
skinc
are
prod
ucts
1,92 197
8
Wo Mak Han
men’ eup d or
s
body
fragr
lotio
ance
n
s
162 153 141
Men’
s
frag
ranc
es
130
Sha
mpo
o or
cond
ition
er
116
%
%
%
%
%
%
%
63
88
85
83
84
84
89
62
53
89
59
86
68
85
61
85
57
88
64
92
59
52
85
75
78
74
78
89
49
50
60
56
51
55
47
42
40
43
42
42
47
41
33
47
44
50
52
51
48
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© Mintel Group Ltd.
82
I’d be more willing to purchase online
if websites had interactive customer
service features like live chat
I’d be interested in websites that
shipped products to my travel
destination
Buying online allows me to be the first
to try the latest products
I’m more likely to make an impulse
purchase online than in-store
I like to use my mobile device to
research beauty products once I learn
about them
28
36
38
35
42
45
40
27
34
36
28
44
39
32
26
44
49
40
45
50
51
22
37
36
42
40
40
40
16
23
29
27
26
37
30
Source: Mintel
This report is supplied in accordance with Mintel's terms and conditions. Supplied to Conde Nast.
© Mintel Group Ltd.
83
Beauty Online - US - December 2012
Reasons for Not Buying Beauty Products
Online
Key points
●
More than half of respondents report preferring to shop for beauty products
in-store as their primary reason for not purchasing them online, with this number
being highest among women aged 55+.
●
Women aged 55+ and those from lower income groups report higher than
average levels of discomfort regarding sharing personal information as well as
wanting to buy from a trusted retailer as reasons for not shopping online.
●
Women are more likely than men to cite shipping costs as a deterrent from
online shopping, despite numerous retailers that offer free or discounted shipping.
More than half of consumers prefer to shop in-store, particularly women
Roughly half of respondents that don’t purchase beauty products online report that they
prefer to shop for products in-store, with that number increasing to 70% among women
aged 55+. As mentioned in Issues in the Market, in-store shopping can be fun, interactive,
social, and entertaining. Retailers are encouraging consumers to sample and test beauty
products in-store, as well as providing beauty experts and in some cases, beauty services.
Online retailers can’t necessarily compete with these in-store services, but promoting
exclusive online offers as well as interactive online features could help encourage some of
these in-store shoppers to consider online shopping. However, limited access to internet
and/or a PC or mobile device also impacts who is shopping online. Additionally, some
consumers are simply just not interested in shopping online. Retailers are more likely to
have success with consumers who are already shopping online and engaged in the beauty
category.
Shipping costs are cited as the second biggest deterrent for not shopping online, particularly
among women. The number of consumers citing shipping as a concern has actually
increased since 2010. According to Beauty Online—U.S., December 2010, 27% of
respondents cited not wanting to pay for shipping as a reason for not shopping online,
compared to 42% of respondents in 2012. While online retailers have continually expanded
free shipping offers, shipping costs remain a barrier for online shopping. It may be that
consumers are unaware of free or discounted shipping offers, or they may have additional
reasons for not wanting to shop online. Brick and click retailers may want to offer online
services to in-store shoppers to help ease consumers comfort with the process.
Online only retailers may also want to consider more traditional forms of advertising to
communicate free shipping offers, exemplified by the television ad currently running by
Amazon (see Retailer Overview). While online retailers promote deals heavily online, if
consumers are not actively shopping online, they may not be aware of these offers.
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84
FIGURE 42: Reasons for not purchasing beauty products online, by gender and age, August
2012
“Which of the following statements describe why you did not make any beauty product
purchases online in the past 12 months?”
All
Male Male Male Fem
, 18- , 35- ,
ale,
34
54
55+ 1834
Base: internet users 18+ who did not 1,40 214 279 246 201
buy beauty products online
8
%
%
%
%
%
I prefer to shop for products in-store 52
36
44
52
62
I don’t want to pay for shipping
42
38
32
32
54
I’m afraid I won’t like what I
30
23
19
20
46
purchase
Returning products that are
30
19
23
25
38
purchased online is a hassle
I don’t like waiting for delivery
25
32
23
18
32
I just hadn’t thought about buying
23
27
19
22
24
beauty products online
I’m not comfortable sharing personal 16
12
14
18
17
information (such as a credit card
number)
I want to be sure I buy products
15
12
14
18
14
from a retailer that I trust
I worry that products will get
12
18
10
9
12
damaged in the mail
I don’t get the customer service I
9
7
8
11
8
need online
Other
12
12
15
19
4
Fem
ale,
3554
248
Fem
ale,
55+
%
51
52
36
%
70
50
40
32
43
22
21
22
24
12
27
12
23
9
12
6
17
9
9
220
Source: Mintel
This report is supplied in accordance with Mintel's terms and conditions. Supplied to Conde Nast.
© Mintel Group Ltd.
85
Beauty Online - US - December 2012
Race and Hispanic Origin
Key points
●
Asian beauty shoppers are more likely to report purchasing facial skincare
and makeup online compared to total respondents and other racial groups. Asian
shoppers are also more likely to seek product information, particularly from brand
and retailer websites, online reviews, beauty blogs, and magazines. Asians tend to
be heavily invested in a robust skincare routine, and are likely seeking sources to
keep them abreast of the latest skincare trends, ingredients, and products.
●
Hispanic and Black consumers are more likely to report interest in
technology features that help them shop online like apps that provide customized
product recommendations along with customer service features like live chat.
These groups may be seeking more specialized products for their unique hair and
skincare needs and therefore seeking personalized online customer service
options.
●
Hispanics are more likely to purchase fragrances online when compared to
total respondents and are also more likely to agree that shopping online saves
them time and gives them access to the latest beauty products.
Asians highly involved in the beauty category, particularly skincare
Facial skincare and makeup are the most frequent online beauty purchases overall, but
Asian consumers are even more likely to be purchasing these products online. Some 14% of
Asians report purchasing facial skincare online, closely followed by 13% who purchase
makeup, compared to 10% and 8% of total respondents, respectively. Asians often report
above average use of facial skincare products and tend to have robust skincare regimens.
They are seeking information on beauty products from numerous online sources including
websites, beauty blogs, and online customer reviews.
At the same time, as Asian respondents are using the internet to find product information
and are clearly engaged in the category, they are also more likely than respondents overall
to report researching online and then purchasing in-store. This highlights the importance of
the Asian consumer to the beauty market, both in-store and online. The in-store shopping
tendency may be a reflection of wanting to test products in-store to make sure they work
prior to purchasing, as Asians are more likely to seek functional skin benefits like
lightening/brightening and age spot removal when compared to other racial groups (Facial
Skincare—U.S., May 2012).
The Asian population is one of the fastest-growing groups in the U.S., so online beauty
retailers may want to consider offering more personalized skincare expertise based on racial
groups, particularly considering how involved the Asian consumer is in the beauty category
and facial skincare in particular.
Blacks, Hispanics interested in technology features
Black and Hispanic beauty product shoppers are more likely to express interest in online and
mobile features that help them navigate the beauty category. Roughly one third of total
respondents report being interested in an app that provides customized product
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86
recommendations, and this increases to 43% among Blacks and 42% among Hispanics.
Additionally 34% of both groups report being interested in customer service features like
live chat. Hispanics are also more likely to use mobile devices to research beauty products
(27% vs. 16% of total respondents). According to Hispanics and Personal Care—U.S.,
January 2011, more than a quarter of Hispanics think there should be more haircare
products designed specifically for Latin hair, and 20% think there should be more personal
care products specifically for Latinos. Additionally, 69% of Blacks use haircare specifically
for African Americans and more than one third use skincare specifically for African
Americans (Blacks and Personal Care—U.S., March 2011).
Online beauty retailers may want to consider expanding ethnic haircare and skincare
offerings as well as having more online experts that can help these shoppers find products
that meet their beauty needs. Additionally, as mobile shopping is becoming the next “big
thing” in online retailing and with Hispanics being more likely to be using their mobile device
to research beauty products, mobile beauty apps that have features specifically for
Hispanics are certainly an opportunity. For example, having an option to read in either
English or Spanish and highlighting products designed specifically for Latinos may be a step
in the right direction. Regardless of racial/ethnic group, mobile beauty apps need to be
entertaining, interactive, and user friendly.
FIGURE 43: Beauty product purchasing online, by race/Hispanic origin, August 2012
“Which of the following beauty products, if any, have you bought over the past 12 months?”
Base: internet users aged
18+
Online:
Shampoo or conditioner
Hand or body lotion
Body wash or shower gel
Facial skincare products
Hair styling products
Brushes, combs, barrettes or
other hair accessories
Makeup
Nail products
Men’s fragrances
Women’s fragrances
Blow dryer, flat iron, curling
iron or other hair appliances
Skin electrical devices (i.e.
Clarisonic)
All
White
Black
Hispanic
311
Asian or
Pacific
Islander
117
2,000
1,462
%
%
%
%
%
6
7
6
10
4
3
6
7
5
9
3
2
6
9
8
9
5
3
5
9
5
14
3
5
7
6
7
11
6
7
8
4
7
8
5
8
4
6
8
4
6
6
8
10
4
13
4
5
5
5
8
7
10
13
8
3
3
4
4
7
300
Source: Mintel
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87
FIGURE 44: Information about beauty products, by race/Hispanic origin, August 2012
“Where do you get information about beauty products?”
Base: internet users 18+ who bought
beauty products
I get recommendations from
friends/family
I visit stores to view/test products
I read online customer reviews
I research products in magazines
and/or newspapers
I get recommendations from a trusted
professional
I visit brands’ websites
I visit the websites of online retailers
for styling and/or product advice
I get recommendations from my
doctor/dermatologist
I read beauty blogs
I look for online tutorial videos (i.e.
youtube.com)
I visit social media sites
I look for products used or endorsed by
celebrities
I don’t look for information about
beauty products
None of the above
All
White
Black
1,928
1,414
295
Asian
Hispan
or
ic
Pacific
Islande
r
110
298
%
33
%
32
%
36
%
37
%
35
30
21
18
29
19
17
30
20
19
29
31
25
33
27
23
18
17
19
17
18
17
15
16
14
17
14
21
21
22
19
12
11
13
13
16
9
8
8
6
11
12
17
15
15
13
7
5
7
5
8
5
8
11
11
8
25
27
22
10
19
12
12
11
15
9
Source: Mintel
FIGURE 45: Attitudes toward shopping for beauty products online, by race/Hispanic origin,
August 2012
“Please indicate whether you agree or disagree with the following statements about
shopping for beauty products online.”
All
White Black
Asian
Hispa
or
nic
Pacific
Islande
r
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88
Base: internet users 18+ who bought
beauty products
Any agree:
Buying online gives me access to hard to
find products
Buying online saves me time
I’d be interested in retailers that allow
me to purchase online and pick up instore
Buying online is more convenient than
shopping in-store
I prefer to research products online and
then purchase in-store
I prefer to visit stores to view products
and then buy online
I’d be interested in an app that helped
me pick products that are customized for
my needs
I’d be more willing to purchase online if
websites had interactive customer
service features like live chat
I’d be interested in websites that shipped
products to my travel destination
Buying online allows me to be the first to
try the latest products
I’m more likely to make an impulse
purchase online than in-store
I like to use my mobile device to
research beauty products once I learn
about them
1,928
1,414
295
110
298
%
%
%
%
%
63
63
61
58
69
62
53
62
51
65
55
59
62
69
62
52
52
55
55
56
49
49
48
65
56
42
40
45
52
46
33
30
43
36
42
28
26
34
35
34
27
24
38
32
35
26
24
30
29
38
22
21
25
24
27
16
14
20
19
27
Source: Mintel
This report is supplied in accordance with Mintel's terms and conditions. Supplied to Conde Nast.
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89
Beauty Online - US - December 2012
Cluster Analysis
In this section, Mintel identifies three unique groups of beauty product purchasers by
performing statistical analysis on consumer questions about general attitudes toward beauty
and personal care products. These results can be used in product development, devising
retailing strategies, or shaping advertising campaigns. The clustering process involved
factor analysis of individual survey items followed by K-means cluster analysis. The
resulting three clusters were selected for 1,928 internet users aged 18+who purchase
beauty products. Mintel named the three clusters according to their particular
characteristics.
FIGURE 46: Target clusters, August 2012
Source: Mintel
Cluster 1: Involved
Opportunities
The Involved cluster represents 40% of the market and is the most engaged in the beauty
category with reported purchases of beauty products online being higher than average. This
cluster actively seeks beauty product information from the commonly cited source of
friends/family but also is more likely to visit brand and retailer websites, beauty blogs, and
social media networks. This group is seeking information and definitely wants to be “in the
know” regarding the latest beauty trends. While members of this cluster shop online at
general merchandise and mass merchandiser websites, they are more likely than average to
shop at specialty beauty and department store websites.
This cluster represents the biggest opportunity for online beauty retailers as members of it
are more likely to agree that shopping online gives them access to the latest beauty
products when compared to the other two cluster groups. However, they are also more
likely to agree that they research beauty products online but purchase them in-store. This
group is using online sources to research beauty trends, but still wants to sample and test
products in-store. They are looking for more interactive features in order to give them that
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90
in-store experience and therefore express above-average interest in features like apps that
recommend customized products for their needs as well as online customer service features
like live chat. This group is not necessarily using the internet for price comparison shopping
or to seek discounts, rather they want to follow beauty trends and are seeking information
to keep them abreast of the latest products. Interactive online and mobile features that
personalize the beauty shopping experience may help turn some of these online beauty
researchers into online beauty shoppers.
Cluster 2: Basics
Opportunities
The Basics cluster is not highly engaged in the category and reports below average
purchasing of beauty products online when compared to total respondents. Nearly 44% of
this cluster does not seek information regarding beauty products, and is likely just shopping
for products when they need a replacement. Basics are primarily older men who are brand
loyal and stick to what works, regardless of price. While not a big opportunity for online
beauty retailers, this cluster may benefit from automatic reordering services or saved past
purchases lists to make future shopping easy and convenient.
Cluster 3: Confident
Opportunities
The Confident cluster represents 30% of the beauty market with product purchasing and
attitudes toward online shopping closely mirroring total respondents. Confidents are
motivated by price and less concerned about being aware of the latest beauty trend or
having access to the newest product. Members of this cluster feel confident in their own
ability to pick out products, are comfortable purchasing private label, and use the internet
because it is convenient and can save time and money. However, they are motivated by
natural ingredients so retailers that feature products making natural claims that also provide
functional benefits may be a way to reach this cluster and potentially encourage them to
trade up to higher-priced products.
Cluster characteristic tables
FIGURE 47: Beauty product purchasing, by target clusters, August 2012
“Which of the following beauty products, if any, have you bought over the past 12 months?”
Base: internet users 18+ who
bought beauty products
Online:
Shampoo or conditioner
Hand or body lotion
Body wash or shower gel
Facial skincare products
Hair styling products (such as
mousse, gel, pomade)
Brushes, combs, barrettes or
other hair accessories
Makeup
Nail products
Men’s fragrances
All
1,928
Involved
780
Basics
575
Confident
573
%
%
%
%
6
7
6
10
4
10
11
8
16
6
3
3
3
4
2
5
6
5
8
2
3
5
1
2
8
4
7
13
7
10
2
2
4
7
3
5
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91
Women’s fragrances
Blow dryer, flat iron, curling iron
or other hair appliances
Skin electrical devices (i.e.
Clarisonic)
8
5
13
7
4
2
6
4
4
7
1
1
Source: Mintel
FIGURE 48: Information about beauty products, by target clusters, August 2012
“Where do you get information about beauty products?”
All
Base: internet users 18+ who bought
beauty products
I get recommendations from
friends/family
I visit stores to view/test products
I read online customer reviews
I research products in magazines and/or
newspapers
I get recommendations from a trusted
professional like a hair stylist or makeup
artist
I visit brands’ websites
I visit the websites of online retailers for
styling and/or product advice (i.e.
Sephora.com or Ulta.com)
I get recommendations from my
doctor/dermatologist
I read beauty blogs
I look for online tutorial videos (i.e.
youtube.com)
I visit social media sites such as
Facebook or Twitter
I look for products used or endorsed by
celebrities
I don’t look for information about beauty
products
None of the above
Basics
1,928
Involve
d
780
575
Confide
nt
573
%
33
%
44
%
17
%
35
30
21
18
39
31
29
16
9
6
29
18
16
18
27
6
16
17
15
26
24
6
5
15
11
12
17
6
10
9
8
16
13
2
4
5
4
7
12
2
5
5
9
3
2
25
11
44
26
12
5
19
12
Source: Mintel
FIGURE 49: Online retailers where purchased, by target clusters, August 2012
“Which types of online retailers have you purchased beauty products from in the past 12
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92
months?”
All
Base: internet users 18+ who bought
beauty products online
A general merchandise website such as
Amazon.com
Mass retailers such as Target.com or
Walmart.com
Directly from the brand website (i.e.
neutrogena.com, esteelauder.com)
A direct seller website such as Avon.com
or Amway.com
A specialty beauty retailer such as
Sephora.com or Ulta.com
A drug store website such as CVS.com or
Walgreens.com
A department store website such as
Bloomingdales.com or Macys.com
An auction site like eBay
TV retailers such as QVC.com or HSN.com
An online only beauty website such as
Beauty.com or Totalbeauty.com
I followed a link on a beauty blog
I followed a link on a social media website
such as Facebook or Twitter
A beauty box subscription such as
Birchbox or Glossybox
Other
Basics
520
Involve
d
307
82
Confide
nt
131
%
33
%
36
%
33
%
28
24
26
15
25
24
24
23
24
23
23
18
27
22
26
15
16
20
22
20
18
17
21
5
14
15
12
11
18
13
12
9
6
5
11
11
12
8
6
9
7
6
5
5
5
5
7
2
3
8
6
18
7
Source: Mintel
FIGURE 50: Attitudes toward shopping for beauty products online, by target clusters, August
2012
“Please indicate whether you agree or disagree with the following statements about
shopping for beauty products online.”
All
Base: internet users 18+ who bought
beauty products
Any agree:
Buying online gives me access to hard to
find products
Buying online saves me time
1,928
Involve Basics
d
780
575
Confide
nt
573
%
%
%
%
63
75
47
62
62
75
47
60
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93
I’d be interested in retailers that allow me
to purchase online and pick up in-store
Buying online is more convenient than
shopping in-store
I prefer to research products online and
then purchase in-store
I prefer to visit stores to view products and
then buy online
I’d be interested in an app that helped me
pick products that are customized for my
needs
I’d be more willing to purchase online if
websites had interactive customer service
features like live chat
I’d be interested in websites that shipped
products to my travel destination
Buying online allows me to be the first to
try the latest products
I’m more likely to make an impulse
purchase online than in-store
I like to use my mobile device to research
beauty products once I learn about them
53
66
33
55
52
65
37
51
49
64
31
48
42
50
30
42
33
50
12
30
28
41
12
25
27
41
14
23
26
44
10
17
22
34
10
17
16
30
5
8
Source: Mintel
FIGURE 51: Reasons for not buying beauty products online, by target clusters, August 2012
“Which of the following statements describe why you did not make any beauty product
purchases online in the past 12 months?”
All
Base: internet users 18+ who did not
buy beauty products online
I prefer to shop for products in-store
I don’t want to pay for shipping
I’m afraid I won’t like what I purchase
Returning products that are purchased
online is a hassle
I don’t like waiting for delivery
I just hadn’t thought about buying
beauty products online
I’m not comfortable sharing personal
information (such as a credit card
number)
I want to be sure I buy products from a
retailer that I trust
Basics
1,408
Involve
d
473
493
Confiden
t
442
%
52
42
30
30
%
56
51
41
36
%
44
34
18
22
%
56
43
31
32
25
23
30
21
18
22
26
25
16
20
13
17
15
20
11
16
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94
I worry that products will get damaged in 12
the mail
I don’t get the customer service I need
9
online
Other
12
17
7
10
13
5
9
5
18
12
Source: Mintel
Cluster demographics
FIGURE 52: Target clusters, by demographic, August 2012
Base: internet users
18+ who bought
beauty products
Gender:
Male
Female
Age:
18-24
25-34
35-44
45-54
55-64
65+
Household income:
<$25K
$25K-49.9K
$50K-74.9K
$75K-99.9K
$100K-149.9K
$150K+
Race:
White
Black
Asian or Pacific
Islander
Other race
Hispanic origin:
Hispanic
Not Hispanic
All
1,928
Involved
780
Basics
575
Confident
573
%
%
%
%
48
52
39
61
63
37
44
56
13
19
17
19
16
15
15
23
20
17
17
8
11
15
16
23
14
21
12
17
14
18
18
21
19
22
20
13
18
9
16
22
19
15
18
11
19
22
18
12
22
8
24
23
22
10
14
7
73
15
6
70
19
6
78
12
5
73
14
6
6
6
4
7
15
85
19
81
13
87
14
86
Source: Mintel
Cluster methodology
This cluster analysis used the following question about attitudes toward beauty and personal
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© Mintel Group Ltd.
95
care from Mintel’s custom research survey to create three clusters. Three clusters were
created based on respondents’ attitudes and behaviors in the overall beauty and personal
care category. These clusters were applied to 1,928 internet users aged 18+ who purchased
beauty products.
“How much do you agree or disagree with each of the following statements?”
Higher-priced beauty and personal care products work better than less expensive ones.
Private label beauty and personal care products work just as well as branded ones.
Branded beauty and personal care products are better quality than a store’s own
label/private label.
Recommendations from friends/family influence by beauty and personal care product
purchases.
Recommendations from magazines/websites/blogs influence my beauty and personal care
product choices.
Recommendations from professionals influence my beauty and personal care product
choices.
I like to splurge on myself when it comes to beauty and personal care products.
I am willing to pay extra for better quality beauty and personal care products.
I feel more attractive when I am well groomed.
It’s important to me that I always look my best when I leave the house.
It’s important to me that beauty and personal care products don’t use unnecessary
chemicals.
It’s important to me that beauty and personal care products use natural ingredients.
I often buy beauty and personal care products on the spur of the moment.
I like to try new brands of beauty and personal care products.
Please note that column shares may not sum to 100% due to rounding. All statistical
significance is reported at the 95% confidence level.
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96
Beauty Online - US - December 2012
Custom Consumer Groups – Impact of
Region/Area
Key points
●
Beauty product purchasers that live in urban areas are significantly more
likely than rural, and in some cases suburban, respondents to be purchasing
several categories of beauty products online including shampoo and conditioner,
lotion, body wash, and men’s fragrances. While respondents that live in rural
areas are likely more removed from shopping destinations, therefore making
online shopping more convenient, that isn’t translating to increased online beauty
product purchasing among rural consumers.
●
Rural beauty product purchasers are less engaged in the beauty category
overall compared to other groups, as they are more likely to report not looking for
information regarding beauty products, as well as report lower purchasing rates of
most beauty products. Urban and suburban respondents are more likely to be
engaged in the category and live in more densely populated areas where emphasis
on beauty and fashion is likely higher than in rural parts of the country.
●
Urban shoppers are more likely than other groups to agree that shopping
online saves them time, and to express interest in technology features like live
chat and mobile apps. This group likely has access to numerous shopping options
that sell specialty and hard to find beauty products, but turns to the internet for
the time-saving and convenience aspects offered by online shopping.
Urban shoppers buy more beauty products online compared to suburban, rural
groups
Theoretically, it could be assumed that beauty product purchasers who live in rural areas
and therefore are more removed from brick and mortar shopping destinations would be
doing more online shopping. However, it appears that just the opposite is happening. Urban
shoppers are more likely than those who live in suburban and rural areas to report buying
beauty products online. Those that live in urban areas may feel more pressure to look
attractive and potentially find themselves in more competitive work and social
environments. These pressures could lead to higher demand for beauty products as those
that live in urban areas are likely more exposed to beauty product retailing and marketing
as dense populations have more shops and more opportunities to advertise (bus stations,
public transport, events).
Urban shoppers looking for convenience
While urban shoppers certainly have access to shopping, they are turning to the internet to
help them save time as well as seek information on beauty trends and products. Urban
shoppers know they have access to many in-store beauty product options, but use the
internet for the convenience it provides in helping consumers sort through all the products
available and identify the latest, must have beauty products and trends. Additionally, urban
shoppers are more likely to report using their mobile devices to research beauty products.
Opportunities for pop-up virtual stores or kiosks that allow shoppers to purchase products
on the go could be a way to engage this mobile user. This idea is currently being employed
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97
by the online grocery company Peapod, which is testing a similar idea in the Chicago area
by setting up virtual stores (similar to billboards) at various train and bus stations that allow
commuters to purchase products using a free app on their smartphones
(huffingtonpost.com, Oct. 1, 2012). This concept could be adapted by beauty retailers who
could showcase beauty products using virtual stores, allowing users to purchase directly
from their mobile devices.
FIGURE 53: Beauty product purchasing, by urban area, August 2012
“Which of the following beauty products, if any, have you bought over the past 12 months?”
Base: internet users aged 18+
Online:
Shampoo or conditioner
Hand or body lotion
Body wash or shower gel
Facial skincare products
Hair styling products
Brushes, combs, barrettes or
other hair accessories
Makeup
Nail products
Men’s fragrances
Women’s fragrances
Blow dryer, flat iron, curling iron
or other hair appliances
Skin electrical devices (i.e.
Clarisonic)
All
2,000
%
Urban
590
%
Suburban
1,001
%
Rural
409
%
6
7
6
10
4
3
7
10
7
11
5
4
6
6
5
10
3
3
4
6
4
9
2
1
8
4
7
8
5
6
5
9
9
6
9
4
6
8
4
7
3
5
8
3
3
5
3
2
Source: Mintel
FIGURE 54: Information about beauty products, by urban area, August 2012
“Where do you get information about beauty products?”
Base: internet users 18+ who bought
beauty products
I get recommendations from
friends/family
I visit stores to view/test products
I read online customer reviews
I research products in magazines and/or
newspapers
All
Urban
1,928
569
Suburba Rural
n
966
393
%
33
%
32
%
34
%
32
30
21
18
27
17
16
32
24
21
26
17
14
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98
I get recommendations from a trusted
professional
I visit brands’ websites
I visit the websites of online retailers for
styling and/or product advice
I get recommendations from my
doctor/dermatologist
I read beauty blogs
I look for online tutorial videos (i.e.
youtube.com)
I visit social media sites
I look for products used or endorsed by
celebrities
I don’t look for information about beauty
products
None of the above
18
19
17
18
17
15
18
14
17
15
14
13
12
13
12
10
9
8
10
9
9
7
7
6
7
5
8
8
7
4
6
3
25
24
24
30
12
13
10
12
Source: Mintel
FIGURE 55: Attitudes toward shopping for beauty products online, by urban area, August
2012
“Please indicate whether you agree or disagree with the following statements about
shopping for beauty products online.”
Base: internet users 18+ who bought
beauty products
Any agree:
Buying online gives me access to hard to
find products
Buying online saves me time
I’d be interested in retailers that allow me
to purchase online and pick up in-store
Buying online is more convenient than
shopping in-store
I prefer to research products online and
then purchase in-store
I prefer to visit stores to view products and
then buy online
I’d be interested in an app that helped me
pick products that are customized for my
needs
I’d be more willing to purchase online if
websites had interactive customer service
features like live chat
All
Urban
Rural
569
Suburb
an
966
1,928
%
%
%
%
63
60
64
64
62
53
65
54
62
54
60
48
52
54
52
50
49
49
53
40
42
45
42
38
33
37
34
26
28
34
27
21
393
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99
I’d be interested in websites that shipped
products to my travel destination
Buying online allows me to be the first to
try the latest products
I’m more likely to make an impulse
purchase online than in-store
I like to use my mobile device to research
beauty products once I learn about them
27
31
27
23
26
31
25
20
22
24
21
19
16
21
16
11
Source: Mintel
FIGURE 56: Reasons for not buying beauty products online, by urban area, August 2012
“Which of the following statements describe why you did not make any beauty product
purchases online in the past 12 months?”
All
Base: internet users 18+ who did not buy 1,408
beauty products online
%
I prefer to shop for products in-store
52
I don’t want to pay for shipping
42
I’m afraid I won’t like what I purchase
30
Returning products that are purchased
30
online is a hassle
I don’t like waiting for delivery
25
I just hadn’t thought about buying beauty 23
products online
I’m not comfortable sharing personal
16
information (such as a credit card
number)
I want to be sure I buy products from a
15
retailer that I trust
I worry that products will get damaged in 12
the mail
I don’t get the customer service I need
9
online
Other
12
Urban
411
Suburba Rural
n
702
295
%
47
37
25
26
%
52
46
32
31
%
58
42
32
32
22
22
27
24
23
21
18
14
20
15
15
16
14
11
9
10
9
9
16
10
12
Source: Mintel
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100
Beauty Online - US - December 2012
Appendix – Other Useful Consumer Tables
Beauty product purchases
FIGURE 57: Beauty product
purchasing, by gender and age, August 2012
“Which of the following beauty products, if any, have you bought over the past 12 months?”
All
Base: internet users aged 18+
Any purchase:
Shampoo or conditioner
Hand or body lotion
Body wash or shower gel
Facial skincare products
Hair styling products (such as
mousse, gel, pomade)
Brushes, combs, barrettes or
other hair accessories
Makeup (i.e. – Eye shadow,
lipstick, foundation, etc.)
Nail products (i.e. – Nail polish,
nail care like strengtheners)
Men’s fragrances
Women’s fragrances
Blow dryer, flat iron, curling
iron or other hair appliances
Skin electrical devices (i.e.
Clarisonic)
Male, Male, Male, Fema Fema
183555+ le,
le,
34
54
183534
54
2,000 316
357
307
316
367
%
%
%
%
%
%
Fema
le,
55+
90
74
72
55
55
84
62
74
44
47
87
58
62
32
39
80
54
48
17
22
96
88
85
79
75
96
88
83
80
78
93
90
77
75
65
47
36
32
24
74
68
45
45
16
11
7
82
77
72
41
16
13
8
79
67
60
41
36
26
64
20
19
55
20
15
46
15
9
29
58
44
30
52
40
21
46
27
10
16
10
2
15
13
7
337
%
Source: Mintel
FIGURE 58: Beauty product purchasing in-store, by urban area, August 2012
“Which of the following beauty products, if any, have you bought over the past 12 months?”
Base: internet users aged 18+
All
2,000
%
Urban
590
%
Suburban
1,001
%
Rural
409
%
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101
In-store:
Shampoo or conditioner
Hand or body lotion
Body wash or shower gel
Facial skincare products
Hair styling products
Brushes, combs, barrettes or
other hair accessories
Makeup
Nail products
Men’s fragrances
Women’s fragrances
Blow dryer, flat iron, curling
iron or other hair appliances
Skin electrical devices (i.e.
Clarisonic)
87
70
69
50
53
45
82
67
66
48
47
43
89
72
71
52
56
46
89
68
69
45
52
47
42
39
36
30
23
38
34
41
32
23
46
42
34
30
23
39
37
34
28
20
7
11
6
5
Source: Mintel
Product information
FIGURE 59: Online beauty product purchasing by offline beauty product information, August
2012
“Where do you get information about beauty products?”
“Which of the following beauty products, if any, have you bought over the past 12 months?”
Base: Internet users 18+ who
bought beauty products
Facial skincare products
Makeup (i.e. – Eye shadow,
lipstick, foundation, etc.)
All
I get
recom
menda
tions
from
friends
/
family
I visit
stores
to
view/t
est
produ
cts
I
resear
ch
produc
ts in
magazi
nes
and/or
newsp
apers
I get
recom
menda
tions
from
my
doctor
/derm
atologi
st
351
I get
recom
menda
tions
from a
truste
d
profes
sional
like a
hair
stylist
or
makeu
p
artist
344
2,00
0
%
10
8
639
570
%
13
11
%
12
11
%
17
16
%
15
15
%
12
11
227
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102
Women’s fragrances
Hand or body lotion
Men’s fragrances
Shampoo or conditioner
Body wash or shower gel
Blow dryer, flat iron, curling iron
or other hair appliances
Nail products (i.e. – Nail polish,
nail care like strengtheners)
Hair styling products (such as
mousse, gel, pomade)
Skin electrical devices (i.e.
Clarisonic)
Brushes, combs, barrettes or
other hair accessories
8
7
7
6
6
5
10
9
7
6
5
6
10
8
6
6
5
6
16
12
10
9
8
7
11
14
7
8
8
8
11
12
7
4
9
5
4
5
4
5
6
6
4
5
3
6
6
4
4
5
5
9
7
6
3
3
3
3
4
4
Source: Mintel
FIGURE 60: Online beauty product purchasing by those who look for celebrity endorsements
for beauty product information, August 2012
“Where do you get information about beauty products?”
“Which of the following beauty products, if any, have you bought over the past 12 months?”
All
Base: Internet users 18+ who bought beauty 1,928
products
%
Facial skincare products
10
Makeup (i.e. – Eye shadow, lipstick,
8
foundation, etc.)
Women’s fragrances
8
Hand or body lotion
7
Men’s fragrances
7
Shampoo or conditioner
6
Body wash or shower gel
6
Blow dryer, flat iron, curling iron or other hair 5
appliances
Nail products (i.e. – Nail polish, nail care like 4
strengtheners)
Hair styling products (such as mousse, gel,
4
pomade)
Skin electrical devices (i.e. Clarisonic)
4
Brushes, combs, barrettes or other hair
3
accessories
I look for
products used or
endorsed by
celebrities
98
%
17
10
14
15
8
6
14
9
12
7
14
6
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103
Source: Mintel
Online shopping attitudes
FIGURE 61: Attitudes toward shopping for beauty products online, by household income,
August 2012
“Please indicate whether you agree or disagree with the following statements about
shopping for beauty products online.”
All
Base: internet users 18+ who bought
beauty products
Any agree:
Buying online gives me access to hard
to find products
Buying online saves me time
I’d be interested in retailers that allow
me to purchase online and pick up instore
Buying online is more convenient than
shopping in-store
I prefer to research products online
and then purchase in-store
I prefer to visit stores to view products
and then buy online
I’d be interested in an app that helped
me pick products that are customized
for my needs
I’d be more willing to purchase online if
websites had interactive customer
service features like live chat
I’d be interested in websites that
shipped products to my travel
destination
Buying online allows me to be the first
to try the latest products
I’m more likely to make an impulse
purchase online than in-store
I like to use my mobile device to
research beauty products once I learn
about them
<$2 $25
5K
K49.9
K
1,92 369 423
8
%
%
%
$50
K74.9
K
381
$75
K99.9
K
243
$10 $15
0K- 0K+
149.
9K
344 168
%
%
%
%
63
58
60
64
70
65
63
62
53
57
46
62
54
63
58
66
56
65
53
63
51
52
48
50
53
57
57
51
49
46
46
55
54
50
43
42
41
42
42
44
43
39
33
33
31
35
32
32
34
28
26
26
34
27
26
27
27
30
28
31
26
21
26
26
22
23
31
29
26
24
22
23
19
23
27
19
21
16
15
15
21
19
11
17
Source: Mintel
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104
FIGURE 62: Attitudes toward online shopping, by products purchased online, August 2012
“Please indicate whether you agree with the following statements about shopping for beauty
products online.”
All Bod
y
was
h or
sho
wer
gel
Base: internet users 18+ who bought 1,9
beauty products (any) or listed
28
product online
%
Any agree:
Buying online gives me access to
63
hard to find products
Buying online saves me time
62
I’d be interested in retailers that
53
allow me to purchase online and pick
up in-store
Buying online is more convenient
52
than shopping in-store
I prefer to research products online
49
and then purchase in-store
I prefer to visit stores to view
42
products and then buy online
I’d be interested in an app that
33
helped me pick products that are
customized for my needs
I’d be more willing to purchase online 28
if websites had interactive customer
service features like live chat
I’d be interested in websites that
27
shipped products to my travel
destination
Buying online allows me to be the
26
first to try the latest products
I’m more likely to make an impulse
22
purchase online than in-store
Blow
dryer
, flat
iron,
curli
ng
iron
or
other
hair
appli
ance
s
110
93
Nail
prod
ucts
(i.e.
–
Nail
polis
h,
nail
care
like
stren
gthe
ners)
82
Hair
stylin
g
prod
ucts
(suc
h as
mous
se,
gel,
pom
ade)
Skin
elect
rical
devic
es
(i.e.
Clari
sonic
)
Brus
hes,
comb
s,
barre
ttes
or
other
hair
acce
ssori
es
70*
68*
58*
%
%
%
%
%
%
88
81
87
93
78
78
90
61
87
68
90
70
90
64
91
74
84
71
80
82
71
83
75
72
47
57
57
47
63
59
45
49
50
54
63
53
45
54
55
66
66
66
43
47
45
50
54
45
39
43
46
43
53
53
45
51
52
53
69
57
37
44
45
49
51
59
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105
I like to use my mobile device to
16
research beauty products once I learn
about them
31
34
38
49
60
47
* low sub-sample
Source: Mintel
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106
Beauty Online - US - December 2012
Appendix – Trade Associations
The following trade associations are associated with the online shopping and beauty
industries in the U.S. Descriptions provided based on associations’ self-descriptions
available online.
National Retail Federation (Digital Division)
325 7th St. NW, Suite 1100
Washington, D.C. 20004
Tel: 202.783.7971
Web: www.shop.org
Shop.org is a unit of the National Retail Federation (NRF). The NRF is the world’s largest
retail trade association, with membership that comprises all retail formats and channels of
distribution including department, specialty, discount, catalog, internet, independent stores,
chain restaurants, drug stores, and grocery stores as well as the industry’s key trading
partners of retail goods and services.
NRF represents an industry with more than 1.6 million U.S. retail establishments, more than
24 million employees, and as an industry umbrella group, NRF also represents more than
100 state, national, and international retail associations.
Personal Care Products Council (PCPC)
1101 17th St. NW, Suite 300
Washington, D.C. 20036
Tel: 202.331.1770
Fax: 202.331.1969
Web: www.personalcarecouncil.org
The PCPC (formerly the Cosmetic, Toiletry and Fragrance Association) is the leading national
trade association for the cosmetic and personal care products industry and represents the
most innovative names in beauty today.
Society of Cosmetic Chemists
120 Wall St., Suite 2400
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107
New York, NY 10005
Tel: 212.668.1500
Fax: 212.668.1504
Web: www.scconline.org
Established in 1945, the Society of Cosmetic Chemists has 18 chapters throughout the U.S.
and Canada, with more than 4,000 individual members. The society is dedicated to the
advancement of cosmetic science, and uses meetings and publications to further the
qualifications and education of cosmetic scientists. Its stated mission is to promote the
interests and recognition of cosmetic scientists, while maintaining the confidence of the
public in the cosmetic and toiletries industry.
Vertical Web Media (Internet Retailer)
125 S. Wacker Drive
Suite 2900
Chicago, IL 60606
Tel: 312.362.9527
Web: www.internetretailer.com
Vertical Web Media publishes Internet Retailer, a monthly magazine founded in 1999 that
covers the strategies and technologies for guiding the e-retailing industry. The magazine
publishes the Top 500 Guide and also holds the internet Retailer Conference and Exhibition
annually.
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108