Mintel Beauty Retailing 2011 - Strengths and Weaknesses

Strengths

Loyalty cards – our discussion group research highlights just how popular loyalty cards are with consumers in this market. Boots and Tesco have both ramped up the rewards on their programmes and Boots also opened its scheme to online retailers in 2010 (see profile). Other players have launched schemes more recently including Debenhams (Beauty Club card) in 2009 and Space NK in 2010. Meanwhile Superdrug is about to do the same in Spring 2011 and is particularly well placed in that it can leverage the expertise of parent company AS Watson which has around 28 million customers in various loyalty schemes around the world.

Product innovation – prevalence of global manufacturers with large R&D budgets secures a constant flow of innovation and renewal in the market. Beauty is often at the forefront of latest thinking and development in areas like science and technology, provenance and sustainability, organics, packaging, and now we are seeing blurring lines between beauty and food too.

Own brands – the skincare and cosmetics market also features many popular and often good value own brands, most particularly from Boots (eg No 7, 17, Botanics, Soltan) but also from Superdrug, The Body Shop, Neal’s Yard etc. Data from Mintel’s GNPD suggest that there was a substantial development in private label products in 2010 as well as new ‘economy’ products both of which were reacting to consumers’ increasingly price-driven choices (see Weaknesses below).

E-commerce – beauty products have been slower to take off online than many categories, but are now starting to grow fast from a low base. This market lends itself well to online purchasing as the products are small and easy to distribute to individual homes, and high margin premium lines allow the more upmarket retailers to build in free delivery to business models too. Moreover strong branding makes for easy recognition and price comparisons. These characteristics should also work well in the context of m- and f-commerce.

Luxury brands come on board - for a long time luxury stakeholders suggested that the price-led footprint of the internet coupled with the depersonalising of the experience made the web an inappropriate channel to market. But that is now changing fast as these brands recognise the importance of responding to consumer needs and expectations, and also appreciate that the combination of a trusted website and the busy lifestyle of their patrons adds up to significant sales potential. Perhaps one of the more notable achievements here is the presence of the Chanel brand at Boots.com.

Affordable treats – at the prestige end of the market beauty can still be an affordable treat, much more so than garments, leather goods or jewellery, which in these hard times many consumers have cut out altogether.

Non-discretionary core – to an extent core beauty products are deemed to be an essential purchase for many women and are quite habitual (see Internal Market Environment tracker research comments). So even though we expect 2011 to be a much tougher year for retailers this characteristic certainly provides an important measure of protection.

The Enthusiasts – our consumer target groups show that although the most enthusiastic beauty shoppers account for just one in ten adults they draw from a wide cross spectrum of by age and affluence.

Weaknesses

The Indifferent – however while 11% of adults are beauty ‘enthusiasts’, a massive 48% are really quite indifferent to beauty/grooming goods according to our consumer research. The bias here is to men and older shoppers and, although the average spend in both demographics is likely to be on the low side, the sheer scale of this target group represents a major weakness in the market but arguably also leaves a lot ‘up for grabs’.

Ageing population – given the relative apathy of older age groups, the ageing population also represent a weakness but again an opportunity too.

Intense competition – the deals/special offer culture has become deeply entrenched in beauty with Boots now blazing the trail because of its influence and sheer scale in the market.

Price-driven choices – but findings from our discussion group and omnibus survey show this is changing the way consumers value beauty products and, for very many, purchasing decisions are based largely on price rather than for example added value qualities, ingredients, claims, recommendation, provenance or efficacy.

E-commerce – importance of colour, tones, texture, scents etc presents some major albeit not insurmountable challenges to online retailers.

Squeezed disposable income – after a recovery in beauty sales in 2010 the more discretionary end of the market could suffer again in 2011 as consumer incomes are squeezed by higher inflation and wage freezes. On the other hand John Lewis reports that its middle class shoppers currently remain relatively unharmed by the austerity measures so this provides a glimmer of hope for retailers that can get their selection, prices, service and ambience right.

For more details of brand specific innovation, new launches and trends, clients should also refer to Mintel Beauty Innovation and GNPD.

Collections

Born Again

Set in the middle of no-where-in-particular and at no specific time, ‘Born Again’ tells the story of a beautiful young woman on a journey that will define who she will be for the rest of her life. The young woman, throughout, is at odds with the world – tense and on edge – she chases the sun in the hope she will find peace in its setting. We see it in her vibrantly coloured eyes and read it on her vividly painted lips – how this search for her true self has taken her to the edge of reason and sanity and ended in the ultimate act of sacrifice and commitment. Only here, at her journey’s end does she realise that to be born again, first  you must die.

Toxic Nature                                                                     

In retaliation against the genetically modified society that plunders it, the landscape has issued forth a torrent of hybrid shades. Corrupted hues glister amongst muted tones - extreme, intoxicating versions of their original selves. This is an atomic-botanical environment where survival is key and camoflague by colour is the path to existence. We scoured the abandoned toxic wastelands of the world to create an eclectic selection of corrupted hues for the eyes, lips, nails, face and body. Flitting effortlessly from poisonous pastel to hazardous neon, this cataclysmic mix of brave new tones take your look to the outer limits of nature's palette. Become a herald of the new age of Toxic Nature with uncharted night-time make-up.

Throb

Feel your pulse quicken, your heart throbbing in your chest. These are Illamasqua’s latest offerings at the altar of beauty, guaranteed to make you gasp with pleasure.

Bite...
Awaken your mouth’s erotic sensuality with the seductive red of Succubus Intense Lipgloss or enjoy the power of being an unashamedly brazen femme fatale with blood red Sangers Lipstick.

...and Scratch

Throb is a passionate red Nail Varnish, the colour of blood spilled by desperate, rejected lovers. Load is a rich, cream coating for the nails and Scorn’s midnight black matt finish is filled with contempt for the love of convention.

Theatre of the Nameless

Descend into the riotous scene of erotic adventure that is the Theatre of the Nameless collection. In this nocturnal den of the dissident leaders of underworld subcultures, exotic dancers rub shoulders with actors and anarchists. Infused with the essence of self-expression that transformed 1920s Berlin, this rich and indulgent collection envelops the senses.Darkly sophisticated tones are accompanied by shocks of dazzling iridescence and kinky rubber-look finishes, creating a breathtakingly modern interpretation of the most illicit nightlife in history. It's time to cross the threshold and embrace a world of unadulterated decadence.

Illamasqua

Our Heritage

Illamasqua is the product of a heady mix of influences. Its roots stem from the dark and illicit 1920s club scene, and combine a rich heritage in the manufacture of make-up for film and theatre. It also takes inspiration from members of the ‘alternative scenes’ for whom self-expression is paramount. Alternative cultures have always dared to be dramatic. They have an emotional attachment to making up. It’s an expression of their darker side, a release for their alter ego. Illamasqua is for the bolder person hiding inside all of us. It is an act and an attitude. A symbol of tolerance. A celebration of idiosyncrasies. A confident statement of self-ownership.

Illamasqua Today

An exciting new London-based brand, Illamasqua celebrated its first birthday in November 2009. And the success of make-up for your alter ego has been phenomenal. Self-expression through make-up is an idea that is spreading outside alternative cultures. Illamasqua’s mission is to provide high-performance, professional make-up to anyone who wants to self-express and accentuate their look beyond the norm. Developed by leading chemists, manufacturers of stage and screen make-up and make-up artists, Illamasqua brings truly professional make-up to the high street for the first time. Designed to be colour-intense, colour-true and long lasting, Illamasqua offers an unprecedented range – giving you a huge palette with which to express yourself, whoever you are and whatever look you want to achieve. Illamasqua brings its rich heritage to life by providing make-up lessons rather than ‘makeovers’. Illamasqua’s make-up artists spend time getting to know individuals, helping them explore their alter ego and create the look they want to achieve. This is self-expression at its most creative, allowing women and men who dare to be different to create a look that can be achieved confidently at home and flaunted at night. We're also a brand with a conscience, and are proud of the fact that none of our products, from blushers to brushes, are tested on animals.

The Art Team

To ensure that Illamasqua remains true to its roots and heritage, we have enlisted the help of three uniquely talented individuals, who we call our Art Team. Within the team, the worlds of alternative music, art, film and fashion collide, resulting in a melting pot of ideas and experiences. The role of this team has been fundamental to the development of Illamasqua and our mission to champion individuality and push the boundaries of creativity and self-expression.

Anja Huwe

An iconic musician and a hugely talented, successful contemporary artist. Born in Germany, Anja now lives between Hamburg and New York, though her work takes her all over the globe. Her art is music on canvas. “I paint music, I hear colour. My work is the synaesthetic translation of sounds and tone. My paintings can be heard with the eyes,” says Anja.Her canvasses come together in a burst of textures and movement as she explores the sound of different colours, and creates harmonies and rhythms. In the 1980s, Anja was the lead singer and front-woman of German band ‘X Mal Deutschland’, and significantly influenced the avant-garde days of the European New Wave culture. Anja travelled extensively, playing with her band all over the world. She soaked up different cultures and explored some of the world’s most influential underground scenes. She has also worked successfully as an editor and producer for a German music channel, shooting films about music, people and art.

Alex Box

A ground-breaking make-up artist with a strong alternative voice. For her degree show at the Chelsea College of Art, Alex Box exhibited installation art exploring the relationship between the body and the environment. Later, her make-up went on to explore this relationship between art, science, nature and the magical. Alex has since become one of the most influential make-up artists of our time. She creates looks for designers such as Karl Lagerfeld, Stella McCartney, McQ, Peter Jensen and Gareth Pugh. She was also the lead artist at 2007’s Fashion Rocks event. Alex’s work has featured in Vogue in Italy, France, Japan, China and Britain. Her work is also regularly seen in titles including Numero, W, Another Magazine, Dazed & Confused, 10 and i-D.

David Vanian

Lead singer of The Damned, inventor of UK punk, a legend in alternative culture. David Vanian is a legend as much for his individuality as for his music. As lead singer of The Damned, his was the first British punk band to release a single, put out an album and tour the United States. David also fronts his own band, David Vanian and His Phantom Chords.  An icon for alternative cultures, David brought the Gothic image and lifestyle out of the shadows with his distinctive style, being one of the first men in music to wear make-up on stage and off. David’s interests, however, go well beyond the life he has on stage – ranging from renaissance art to film noir. He has recently finished scoring the soundtrack for the Neo Noir film, ‘The Perfect Sleep’.

The Illamasqua Distinction in Make-up Artistry Awards 2011

Illamasqua is a brand that has always encouraged self-expression in its purest form, without inhibitions or constraint. That’s why we are proud to be launching the biggest prize in professional make-up art. If you are a student or recent graduate of make-up artistry. If you see yourself as the next big name in make-up art. If your future lies working on international photo shoots or an award-winning TV series. If you dream of rubbing shoulders with the fashion elite, then this is where you make your mark.


S.O.P.H.I.E

On 11th August 2007, 20 year-old Sophie Lancaster and her boyfriend Robert Maltby were kicked, stamped on and left unconscious – for nothing more than looking different. Sophie later died from her injuries. The S.O.P.H.I.E. Lancaster Foundation was set up by Sylvia Lancaster, a youth worker and Sophie's mother, in her memory, and is dedicated to educating young people in our society about acceptance and tolerance towards others through interactive youth workshops. As a brand that promotes the right to experiment and self-express through the way you look, Illamasqua have continually supported the Foundation's work and remains committed to changing attitudes towards subcultures. To mark the 4th anniversary of Sophie's death, we have created a new film in association with The S.O.P.H.I.E. Lancaster Foundation to further raise awareness and celebrate their work.

The Final Act of Self Expression

Illamasqua and family funeral directors of 220 years, Leverton & Sons, have collabortated to launch an innovative service bringing ritual beauty to the final act for those who love to self-express. Offering professional funeral make-up transformations applied by a specially trained Illamasqua make-up artist, the Final Act of Self-Expression encourages people for whom making-up is an intimate part of their identity to plan their final transformation - one that pays tribute to who they were in life and how they want to enter the afterlife. Leverton & Sons is one of the oldest and most respected funeral directors in Britain. The company's longevity combined with Illamasqua's truly professional make-up products ensures a distinguished service of quality and dependability. Illamasqua encourages people to self-express and embrace their alter ego in every way. Why should this be any different when you pass away? It is a celebration of life, and one that should be indulged for your last glamorous look. The rite of passage to the afterlife has been of central importance to human culture for thousands of years. To have the best mahogany, the finest lining, the best stallions... are today chosen in tribute to the life lived. To wear the most fabulous make-up applied by a professionally trained make-up artist for your final journey is the ultimate statement of celebration.