Euromonitor International, in partnership with In-cosmetics 2012, hosted a press briefing session to present the latest research on global trends in the beauty industry. The market research company discussed four elements re-shaping the beauty landscape and gave its predictions for the beauty industry over the next five years. The presentation featured Euromonitor’s global head of beauty and personal care research, Irina Barbalova, and senior personal care company analyst, Oru Mohiuddin.
Barbalova explained that the industry, which saw 5% overall global growth, is continuing the upward curve that was evident in 2011, mainly due to the strong performance of premium market products. Premium cosmetics outperformed mass cosmetics across Western Europe, North America and Asia Pacific in 2011, with 4.7% growth. “The resilience of the industry and the rise of premium products over mass products illustrate one of these global shifts we witnessed last year,” said Barbalova. “As companies compete for lower consumer budgets, they explore new ways of engaging with consumers.”
Euromonitor’s latest research shows that leading beauty industry companies are seeing growth in emerging markets, but the recession in western markets is challenging their business model—leading them to re-consider their approach to retail, mergers and acquisition, innovation and new products positioning in order to remain successful and relevant.
“We see more leading companies engaging in, for example, streamlined commitment to sustainability, as they see themselves taking on a broader role of improving consumer lives,” said Mohiuddin.
In the In-cosmetics launch of its “Inspired by Life” campaign and approach to the market, branded as Care Creations, BASF also has identified the importance of filling a need and addressing a need in consumers’ lives. The company showcased its latest innovations (including synthetic mica-based pigments, high-performance hair care ingredients and cosmetic actives) while inviting brand owners to experience how the market can be shaped by innovations inspired by life.
“We are drawing our inspiration from real life and real people while striving to understand what is relevant to them, their needs and habits,” said Simon Medley, senior vice president of BASF Personal Care Europe. “Our new brand, Care Creations, gives voice to this commitment and our business approach, while expressing clearly our strengths of science excellence and market empathy.”
According to Euromonitor, the four key elements that successful brand owners are rethinking to succeed in a contrasted global market include driving sales with mergers and acquisitions, looking at new product positioning that takes an holistic approach to cater the needs of consumers, capitalizing on high-tech claims and exploring new retail concepts to combat an increasingly competitive retail environment.
“Companies will continue to build a flexible product portfolio to respond to differing consumer needs,” said Mohiuddin. “One objective will be to introduce products from emerging markets to Western markets while driving growth in Western markets through high-tech innovations and more sophisticated product offerings.”
Barbalova will present Reinventing Fragrances: New Global Strategies for Growth at the World Perfumery Congress, June 12–14, 2012. Euromonitor's annual State of the Industry report will be available from GCI, both online and in print, in June.