Beauty Retailing - UK - January 2014 PDF

Beauty Retailing -
UK,
January 2014
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Table of Contents Beauty Retailing
UK, January 2014
INTRODUCTION ................................................................................................................................... 12
Definitions ..................................................................................................................................... 12
Market size ....................................................................................................................................................... 12
Market shares ................................................................................................................................................... 13
Retail sector size .............................................................................................................................................. 14
Financial definitions .......................................................................................................................................... 14
List of abbreviations .......................................................................................................................................... 14
EXECUTIVE SUMMARY ....................................................................................................................... 15

The market .................................................................................................................................... 15
Figure 1: Market size and forecast: retail sales of beauty and personal care products, 2008-18 ...................... 15
Segment performance .................................................................................................................. 15
Figure 2: Segment size and forecast: retail sales of beauty products, 2008-18 ................................................ 16
Online ............................................................................................................................................ 16
Figure 3: Online sales as % of all sales of beauty and personal care products, 2012-14 .................................. 16
Companies, brands and innovation .............................................................................................. 17
Figure 4: Leading beauty and personal care retailers’ shares of spending on all personal care goods, 2012 ... 17
The consumer ............................................................................................................................... 17
How often they use beauty products ................................................................................................................. 17
Figure 5: The consumer: How often they use beauty products, November 2013 .............................................. 18
Where they buy ................................................................................................................................................ 18
Figure 6: The consumer: Where they have bought beauty products, whether in-store or online, in the past
12 months, November 2013 ............................................................................................................................. 19
What factors are important ............................................................................................................................... 19
Figure 7: The consumer: What factors drive the decision where to shop, November 2013 ............................... 20
Attitudes towards buying beauty products as gifts ............................................................................................ 20
Figure 8: The consumer: Attitudes towards gift buying, November 2013 .......................................................... 21
What we think................................................................................................................................ 21
ISSUES IN THE MARKET .................................................................................................................... 22
How can beauty retailers encourage greater customer loyalty?................................................... 22
Who were the retail winners and losers in 2012 and 2013? ......................................................... 22
Can retailers capitalise more on the gift market? ......................................................................... 23
Are there new opportunities in the male beauty market? ............................................................. 24
Can retailers prevent older people ageing out of the beauty market? .......................................... 24
TREND APPLICATION ......................................................................................................................... 26
Trend: Immaterial World ............................................................................................................... 26
Trend: Experience Is All ................................................................................................................ 26
Mintel Futures ............................................................................................................................... 27
MARKET ENVIRONMENT .................................................................................................................... 28
Key points ..................................................................................................................................... 28
Ethnic diversity drives demand for non-white beauty ................................................................... 28
Figure 9: Ethnic composition of England and Wales, 2011 ............................................................................... 28
Figure 10: Asian, African & Caribbean beauty section, Morrisons, Walworth Road, London, December 2013 . 29
Ageing population presents challenges and opportunities ........................................................... 29
Figure 11: Trends in the age structure of the UK population, 2013 and 2018 ................................................... 30
Squeezed incomes despite increased confidence ....................................................................... 30
Figure 12: Annual % change in average weekly earnings versus consumer prices inflation, 2009-13 .............. 30
Figure 13: Consumer confidence levels, December 2012-November 2013 ...................................................... 31
Figure 14: Price promotions on make-up at Superdrug, January 2014 ............................................................. 32
Animal testing ban and CSR ......................................................................................................... 32
MARKET SIZE AND FORECAST ......................................................................................................... 33
Key points ..................................................................................................................................... 33
In this section ................................................................................................................................ 33
Beauty and personal care market size and forecast .................................................................... 33
Figure 15: Market size and forecast: Retail sales of beauty and personal products, 2008-18 ........................... 34
© Mintel Group Ltd. All rights reserved. iii

UK, January 2014
Figure 16: Market size and forecast: Retail sales of beauty and personal products, in current and constant
prices, 2008-18 ................................................................................................................................................. 34
Segment performance .................................................................................................................. 34
Beauty .............................................................................................................................................................. 35
Figure 17: Market size and forecast: Retail sales of beauty products, 2008-18 ................................................ 35
Figure 18: Market size and forecast: Retail sales of beauty products, in current and constant prices, 2008-18 36
Other personal care products ........................................................................................................................... 36
Figure 19: Market size and forecast: Retail sales of personal care products, 2008-18 ..................................... 36
Figure 20: Market size and forecast: Retail sales of personal care products, in current and constant prices,
2008-18 ............................................................................................................................................................ 37
Segmentation by beauty category ................................................................................................ 37
Figure 21: Beauty market: Segmentation by category, 2012 and 2013 ............................................................. 37
Body, hand and footcare................................................................................................................................... 38
Colour cosmetics .............................................................................................................................................. 38
Facial skincare.................................................................................................................................................. 38
Fragrances ....................................................................................................................................................... 38
Total personal care market ........................................................................................................... 38
Figure 22: Total consumer spending on personal care items (incl. VAT), 2008-13 ........................................... 39
Mintel’s forecast methodology ...................................................................................................... 39
RETAIL SECTOR SIZE ......................................................................................................................... 40
Key points ..................................................................................................................................... 40
Sector surges in 2013 despite slower growth in BPC ................................................................... 40
Figure 23: Health and beauty specialists’ sales (incl. VAT; excl. prescriptions), 2008-13 ................................. 40
Relative to spending ..................................................................................................................... 41
Figure 24: Health and beauty specialists’ sales relative to spending on all personal care goods, 2008-13 ....... 41
Outlets, enterprises and employment ........................................................................................... 41
Figure 25: Number of retail outlets, 2008/09-2012/13 ....................................................................................... 41
Figure 26: Number of retail enterprises, 2008-12.............................................................................................. 42
Figure 27: Total employment in retail, 2008-12 ................................................................................................. 42
STRENGTHS AND WEAKNESSES ..................................................................................................... 43

Strengths ....................................................................................................................................... 43
Weaknesses.................................................................................................................................. 43
THE CONSUMER – RETAIL CUSTOMER PROFILE COMPARISONS.............................................. 45
Key points ..................................................................................................................................... 45
Gender .......................................................................................................................................... 45
Figure 28: UK: Customer profile, by gender, November 2013 .......................................................................... 46
Age ................................................................................................................................................ 46
Figure 29: UK: Customer profile, by age, November 2013................................................................................ 47
Socio-economic group .................................................................................................................. 47
Figure 30: UK: Customer profile, by socio-economic group, November 2013 ................................................... 48
Region ........................................................................................................................................... 48
Figure 31: UK: Customer profile, by region, November 2013 ............................................................................ 49
State of finances ........................................................................................................................... 49
Figure 32: UK: Customer profile, by state of finances, November 2013 ............................................................ 50
THE CONSUMER – WHERE THEY BUY IN-STORE AND ONLINE ................................................... 51
Key points ..................................................................................................................................... 51
What we asked ............................................................................................................................. 51
Where consumers buy .................................................................................................................. 51
Figure 33: UK: Where they buy any beauty product, November 2013 .............................................................. 52
Trend data ..................................................................................................................................... 52
Figure 34: UK: Where they buy any beauty product, November 2012 and November 2013 ............................. 54
Where consumers buy – offline/online split .................................................................................. 54
Figure 35: UK: Where they buy beauty products, in-store or online, November 2013 ....................................... 55
Favourite beauty retailers ............................................................................................................. 55
Attitudes towards online shopping… ................................................................................................................. 56
… and social media .......................................................................................................................................... 56
Who shops where ......................................................................................................................... 57
Figure 36: UK: Where they buy any beauty product, by age and affluence, November 2013 ........................... 58
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UK, January 2014
Shopping repertoire ...................................................................................................................... 58

Least interested are the most loyal ................................................................................................................... 58
And the under 25s are the most fickle .............................................................................................................. 58
Figure 37: Repertoire of where they bought beauty products in the last 12 months by demographic,
November 2013 ................................................................................................................................................ 59
Figure 38: Where they buy (in-store or online), by repertoire of where they buy, November 2013 .................... 60
THE CONSUMER – WHAT THEY BUY WHERE ................................................................................. 61
Key points ..................................................................................................................................... 61
What we asked ............................................................................................................................. 61
Where consumers buy .................................................................................................................. 61
Figure 39: UK: Where they buy any beauty product, November 2013 .............................................................. 62
Where consumers buy skincare.................................................................................................... 62
Figure 40: UK: Where they buy skincare, November 2013 ............................................................................... 63
Where consumers buy make-up ................................................................................................... 64
Figure 41: UK: Where they buy make-up, November 2013............................................................................... 64
Where consumers buy fragrances/aftershave .............................................................................. 65
Figure 42: UK: Where they buy fragrance/aftershave, November 2013 ............................................................ 65
Where consumer buy by retail sector ........................................................................................... 66
Department stores ............................................................................................................................................ 66
Figure 43: UK: What beauty products they buy in department stores, November 2013 .................................... 66
Chemists/drugstores ......................................................................................................................................... 66
Figure 44: UK: What beauty products they buy in chemists and drugstores, November 2013 .......................... 67
Supermarkets ................................................................................................................................................... 67
Figure 45: UK: What beauty products they buy in supermarkets, November 2013 ........................................... 68
Beauty specialists ............................................................................................................................................. 68
Figure 46: UK: What beauty products they buy in beauty specialist shops, November 2013 ............................ 69
Other channels ................................................................................................................................................. 69
Figure 47: UK: What beauty products they buy through other channels, November 2013 ................................ 70
Who shops where ......................................................................................................................... 70
Figure 48: UK: Where they buy skincare, by age and affluence, November 2013 ............................................ 71
Figure 49: UK: Where they buy make-up by age and affluence, November 2013 ............................................. 72
Figure 50: UK: Where they buy fragrances and aftershave, by age and affluence, November 2013 ................ 73
Why they choose particular retailers ............................................................................................. 73
Attitudes towards brands .............................................................................................................. 74
Who doesn’t buy ........................................................................................................................... 75
Figure 51: UK: Those that have not bought in last 12 months, November 2013 ............................................... 75
THE CONSUMER – HOW OFTEN AND WHAT TYPE OF BEAUTY PRODUCTS THEY USE .......... 76
Key points ..................................................................................................................................... 76
What we asked ............................................................................................................................. 76
What type of products consumers use ......................................................................................... 76
Figure 52: UK: What type of skincare products they use, November 2013 ....................................................... 77
Figure 53: UK: What type of make-up products they use, November 2013....................................................... 78
Figure 54: What type of fragrance/aftershave product they use, November 2013 ............................................ 79
How often they use beauty products by gender ........................................................................... 79
Skincare ........................................................................................................................................................... 79
Figure 55: How often they use skincare, by gender, November 2013 ............................................................... 80
Make-up ........................................................................................................................................................... 80
Figure 56: How often they use make-up, by gender, November 2013 .............................................................. 81
Fragrance/aftershave ....................................................................................................................................... 81
Figure 57: How often they use fragrance and aftershave, by gender, November 2013 ..................................... 82
How often they use beauty products by age and affluence ............................................................................... 82
Figure 58: How often they use different types of skincare brand, by age and affluence, November 2013 ........ 83
Figure 59: How often they use different types of make-up brand, by age and affluence, November 2013 ........ 84
Figure 60: How often they use different types of fragrance/aftershave brand, by age and affluence,
November 2013 ................................................................................................................................................ 85
THE CONSUMER – KEY DRIVERS ..................................................................................................... 86

Key points ..................................................................................................................................... 86
What we asked ............................................................................................................................. 86
Why consumers shop where they do ............................................................................................ 86
Figure 61: UK: Why consumer shop where they do, November 2013 ............................................................... 87
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UK, January 2014
Key drivers by age and affluence ................................................................................................. 87

Figure 62: UK: Key drivers, by age and affluence, November 2013 .................................................................. 88
Gender differences ........................................................................................................................................... 88
Figure 63: UK: Select key drivers, by gender, November 2013 ........................................................................ 89
Figure 64: Those for whom special offers are important, by where they shop, November 2013 ....................... 90
Figure 65: UK: Select key drivers, by gender, November 2013 ........................................................................ 91
Figure 66: Those for whom new ways to test products are important, by where they shop, November 2013 ... 92
Figure 67: Those for whom a range of beauty treatments available are important, by where they shop,
November 2013 ................................................................................................................................................ 93
THE CONSUMER – ATTITUDES TOWARDS BEAUTY GIFTING ...................................................... 94

Key points ..................................................................................................................................... 94
What we asked ............................................................................................................................. 94
Attitudes towards beauty gifting .................................................................................................... 94
Beauty products are a popular choice of gift ..................................................................................................... 94
Figure 68: UK: Attitudes towards beauty gifting, November 2013 ..................................................................... 95
Opportunities for gift sets .................................................................................................................................. 95
And gift services ............................................................................................................................................... 96
Attitudes by gender ....................................................................................................................... 96
Figure 69: Attitudes towards beauty gifting, by gender, November 2013 .......................................................... 97
Attitudes by age and affluence...................................................................................................... 97
Figure 70: UK: Key drivers, by age and affluence, November 2013 .................................................................. 98
WHO’S INNOVATING? ....................................................................................................................... 100

Key points ................................................................................................................................... 100
New retail concepts ..................................................................................................................... 100
In-store events ............................................................................................................................ 101
More convenient online shopping ............................................................................................... 102
Supermarkets and beauty retailers boost own-label offering ..................................................... 103
CHANNELS OF DISTRIBUTION ........................................................................................................ 105
Key points ................................................................................................................................... 105
Specialists and grocers vie for majority share ............................................................................ 105
Figure 71: Estimated distribution of spending on beauty and personal care goods, 2013 ............................... 105
Figure 72: Estimated distribution of spending on beauty and personal care goods, 2013 ............................... 106
SPACE ALLOCATION SUMMARY .................................................................................................... 107

Key points ................................................................................................................................... 107
Space allocations ........................................................................................................................ 107
Figure 73: Leading personal care retailers: Detailed space allocation, December 2013 ................................. 107
Figure 74: Leading personal care retailers: Detailed space allocation, December 2013 (continued) .............. 109
Space allocation overview .......................................................................................................... 110
Figure 75: Health and beauty space allocations, December 2013 .................................................................. 110
Figure 76: Beauty and personal care products space allocations, December 2012 ........................................ 111
Sales mix..................................................................................................................................... 111
THE LEADING SPECIALIST RETAILERS......................................................................................... 112
Key points ................................................................................................................................... 112
Sales: midmarket weak, value and premium strong ................................................................... 112
The midmarket................................................................................................................................................ 112
Value retailers outperform .............................................................................................................................. 112
Premium performs better ................................................................................................................................ 113
Some notes .................................................................................................................................................... 113
Figure 77: Leading beauty specialists’ net revenues, 2008-12 ....................................................................... 114
Figure 78: Leading beauty specialists’ net revenues: compound annual growth rates, 2008-12 ..................... 115
Leading chemists............................................................................................................................................ 115
Figure 79: Leading pharmacy chains’ net revenues, 2008-12 ......................................................................... 116
Outlets and sales per outlet ........................................................................................................ 116
Figure 80: Leading beauty specialists’ outlet numbers, 2008-12 .................................................................... 116
Figure 81: Leading beauty specialists’ annual sales per outlet, 2008-12 ........................................................ 117
Figure 82: Leading beauty specialists’ annual sales per outlet: Compound annual growth rates, 2008-12 ..... 118
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UK, January 2014
Operating profits and margins..................................................................................................... 118

Figure 83: Leading beauty specialists’ operating profits, 2008-12................................................................... 119
Figure 84: Leading beauty specialists’ operating margins, 2008-12................................................................ 120
Sales area and sales densities ................................................................................................... 120
Figure 85: Selected beauty specialists’ total sales area, 2008-12 ................................................................... 120
Figure 86: Selected beauty specialists’ annual sales per sq m, 2008-12 ........................................................ 120
LEADING RETAILERS’ NEW PRODUCT LAUNCHES..................................................................... 121

Key points ................................................................................................................................... 121
Number of new products launched ............................................................................................. 121
Figure 87: Number of identified new beauty and personal care products launched, selected retailers, 2012
and 2013 ........................................................................................................................................................ 122
Most popular categories .............................................................................................................. 122
Figure 88: Most popular categories for new beauty and personal products launched, selected retailers, 2013123
Most popular product claims ....................................................................................................... 123
Figure 89: Most popular claims for new products launched, selected retailers, 2013 ...................................... 124
What they launched .................................................................................................................... 124
Figure 90: Number of new products launched by product category, selected retailers, 2013 .......................... 125
THE NON-SPECIALIST RETAILERS................................................................................................. 126

Key points ................................................................................................................................... 126
The leading non-specialist retailers ............................................................................................ 126
Figure 91: Leading non-specialist retailers: estimated beauty and personal care goods sales (excl. VAT),
2010-12 .......................................................................................................................................................... 127
The consumer: Where they shop ................................................................................................ 127
Figure 92: The consumer: Where they buy instore and online, November 2013 ............................................. 128
MAJOR RETAILERS: PROFILES ............................................................................................................ 128
Debenhams ................................................................................................................................. 128
John Lewis .................................................................................................................................. 129
House of Fraser .......................................................................................................................... 129
Marks & Spencer ........................................................................................................................ 129
Figure 93: M&S Your Beauty, Oxford Street, July 2013 .................................................................................. 130
The grocers ................................................................................................................................. 130
Figure 94: Beauty hall, Tesco Extra, Dudley ................................................................................................... 131
Value mixed-goods stores .......................................................................................................... 131
Figure 95: Big-name brands at fixed prices: Poundland, Walworth Road, London, December 2013 .............. 132
Others ......................................................................................................................................... 132
MARKET SHARES ............................................................................................................................. 134
Key points ................................................................................................................................... 134
Boots leads – but non-specialists are strong .............................................................................. 134
Figure 96: Leading beauty and personal care retailers’ shares of spending on personal care goods, 2012.... 134
Figure 97: Leading beauty and personal care retailers’ shares of spending on personal care goods, 2010-12135
Technical notes ........................................................................................................................... 135
ONLINE ............................................................................................................................................... 137
Key points ................................................................................................................................... 137
Online market size and forecast ................................................................................................. 137
Figure 98: Market size and forecast of online consumer expenditure on cosmetics and toiletries, 2012-14.... 137
The consumer: What they buy and where they shop online ....................................................... 137
What they buy online ...................................................................................................................................... 138
Figure 99: Beauty and personal care products bought online in the last year, October 2013 .......................... 138
Where they shop online .............................................................................................................. 138
Figure 100: The consumer: Where they buy beauty products online in the past year, November 2013 .......... 139
Leading pureplay specialists ....................................................................................................... 139
Figure 101: Leading pureplay beauty specialists; net revenues, 2011 and 2012 ............................................ 139
Visitor numbers online ................................................................................................................ 140
Figure 102: Fragrance and cosmetics retail sites: number of total unique visitors and average daily visitors,
UK, September 2013 ...................................................................................................................................... 140
MAJOR RETAILERS ONLINE ................................................................................................................. 140
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UK, January 2014
Amazon ....................................................................................................................................... 140

Figure 103: Number of beauty/health and personal care SKUs identified on Amazon.co.uk, December 2013 141
Figure 104: Amazon’s new add-on programme, launched 2013 ..................................................................... 141
Figure 105: Amazon.co.uk’s Beauty homepage, December 2013 .................................................................. 142
Ebay ............................................................................................................................................ 142
Figure 106: Ebay.co.uk’s Health & Beauty homepage, January 2014 ............................................................ 143
The grocers ................................................................................................................................. 143
Figure 107: Tesco Direct’s Beauty homepage, December 2013 ..................................................................... 144
Major store-based specialists ..................................................................................................... 144
Figure 108: Boots.com’s Beauty homepage, December 2013 ........................................................................ 145
BRAND COMMUNICATION AND PROMOTION ............................................................................... 146

Key points ................................................................................................................................... 146
Beauty advertising expenditure in decline .................................................................................. 146
Figure 109: Main monitored media advertising expenditure on cosmetics, personal care and bodycare, by
leading retailers, 2009-12 ............................................................................................................................... 147
Advertising spend by media type ................................................................................................ 147
Figure 110: Main monitored media advertising expenditure on cosmetics, personal care and bodycare, by
leading retailers, by media type, 2012 ............................................................................................................ 148
Notable advertising campaigns in 2012 ...................................................................................... 149
BRAND RESEARCH........................................................................................................................... 150
Brand map................................................................................................................................... 150
Figure 111: Attitudes towards and usage of brands in the beauty retailing sector, November 2013 ............... 150
Correspondence analysis ............................................................................................................................... 151
Brand attitudes ............................................................................................................................ 152
Figure 112: Attitudes, by beauty retailing brand, November 2013................................................................... 152
Brand personality ........................................................................................................................ 153
Figure 113: Beauty retailing brand personality – macro image, November 2013 ............................................ 153
Figure 114: Beauty retailing brand personality – micro image, November 2013 ............................................. 154
Brand experience ........................................................................................................................ 155
Figure 115: Beauty retailing brand usage, November 2013 ............................................................................ 155
Figure 116: Satisfaction with various beauty retailing brands, November 2013 .............................................. 156
Figure 117: Consideration of beauty retailing brands, November 2013 .......................................................... 157
Figure 118: Consumer perceptions of current beauty retailing brand performance, November 2013 .............. 158
Brand index ................................................................................................................................. 159
Figure 119: Beauty retailing brand index, November 2013 ............................................................................. 160
Target group analysis ................................................................................................................. 161
Figure 120: Target groups, November 2013 ................................................................................................... 161
Figure 121: Beauty retailing brand usage, by target groups, November 2013 ................................................ 162
Group One – Conformists ............................................................................................................................... 162
Group Two – Simply the Best ......................................................................................................................... 163
Group Three – Shelf Stalkers ......................................................................................................................... 163
Group Four – Habitual Shoppers .................................................................................................................... 163
Group Five – Individualists ............................................................................................................................. 164
ALLIANCE BOOTS ............................................................................................................................. 165
What we think.............................................................................................................................. 165
Figure 122: Boots UK Retail: Share of sales by product, 2008/09-2012/13 .................................................... 166
Online ............................................................................................................................................................. 166
Company background ................................................................................................................. 167
Company performance ............................................................................................................... 167
Figure 123: Alliance Boots: Group financial performance, 2008/09-2012/13 .................................................. 169
Figure 124: Alliance Boots: Outlet data, 2008/09-2012/13 .............................................................................. 170
Retail offering .............................................................................................................................. 170
A.S. WATSON UK (SUPERDRUG, PERFUME SHOP, SAVERS) .................................................... 171
W HAT WE THINK ................................................................................................................................ 171
Figure 125: A. S. Watson UK: Financial performance, 2008-13 ...................................................................... 174
Figure 126: A. S. Watson UK: Outlet data (part estimated), 2008-13.............................................................. 175
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Retail offering .............................................................................................................................. 175

LUSH RETAIL LTD ............................................................................................................................. 177
What we think.............................................................................................................................. 177
Figure 127: Lush Retail Ltd: Group financial performance, 2007/08-2012/13 ................................................. 179
Figure 128: Lush Retail Ltd: UK outlet data, 2007/08-2012/13 ....................................................................... 179
Retail offering .............................................................................................................................. 179
SPACE NK LTD .................................................................................................................................. 180
What we think.............................................................................................................................. 180
Figure 129: Space NK Ltd: Group financial performance, 2008/09-2012/13 ................................................... 181
Figure 130: Space NK Ltd: Outlet data, 2008/09-2012/13 .............................................................................. 182
Retail offering .............................................................................................................................. 182
THE BODY SHOP ............................................................................................................................... 183
What we think.............................................................................................................................. 183
Figure 131: The Body Shop: Group financial performance, 2008-13 .............................................................. 185
Figure 132: The Body Shop: Estimated UK sales performance, excl. sales tax, 2008-13 ............................... 185
Figure 133: The Body Shop: Outlet data, 2008-13.......................................................................................... 186
Retail offering .............................................................................................................................. 186
APPENDIX – BRAND RESEARCH .................................................................................................... 187
Figure 134: Brand usage, November 2013 ..................................................................................................... 187
Figure 135: Brand commitment, November 2013 ........................................................................................... 187
Figure 136: Brand momentum, November 2013 ............................................................................................. 188
Figure 137: Brand diversity, November 2013 .................................................................................................. 188
Figure 138: Brand satisfaction, November 2013 ............................................................................................. 189
Figure 139: Brand attitude, November 2013 ................................................................................................... 189
Figure 140: Brand image – macro image, November 2013 ............................................................................. 190
Figure 141: Brand image – micro image, November 2013 .............................................................................. 190
Figure 142: Profile of target groups, by demographics, November 2013 ........................................................ 191
Figure 143: Psychographic segmentation, by target groups, November 2013 ................................................ 193
Figure 144: Brand usage, by target groups, November 2013 ......................................................................... 195
Figure 145: Brand usage, by target groups, November 2013 (continued) ....................................................... 197
Brand index ................................................................................................................................. 197
Figure 146: Brand index, November 2013 ...................................................................................................... 197
APPENDIX – THE CONSUMER – HOW OFTEN AND WHAT TYPE OF BEAUTY PRODUCTS THEY
USE...................................................................................................................................................... 198
Figure 147: Most popular how often they use skincare products – How often they use any skincare
products, by demographics, November 2013 ................................................................................................. 198
Figure 148: Next most popular how often they use skincare products – How often they use any skincare
Figure 149: Most popular how often they use skincare products – Store own brand skincare, by
demographics, November 2013 ...................................................................................................................... 202
Figure 150: Next most popular how often they use skincare products – Store own brand skincare, by
Figure 151: Most popular how often they use skincare products – Standard skincare brand, by
Figure 152: Next most popular how often they use skincare products – Standard skincare brand, by
Figure 153: Most popular how often they use skincare products – Premium brand skincare, by
Figure 154: Next most popular how often they use skincare products – Premium brand skincare, by
Figure 155: Most popular how often they use make-up products – How often they use any make-up
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UK, January 2014
Figure 156: Next most popular how often they use make-up products – How often they use any make-up
Figure 157: Most popular how often they use make-up products – Store own brand make-up, by
Figure 158: Next most popular how often they use make-up products – Store own brand make-up, by
Figure 159: Most popular how often they use make-up products – Standard brand make-up, by
Figure 160: Next most popular how often they use make-up products – Standard brand make-up, by
Figure 161: Most popular how often they use make-up products – Premium brand make up, by
Figure 162: Next most popular how often they use make-up products – Premium brand make up, by
Figure 163: Most popular how often they use fragrance and/or aftershave products – How often they use
any fragrances and/or aftershave, by demographics, November 2013 ........................................................... 225
Figure 164: Next most popular how often they use fragrance and/or aftershave products – How often they
use any fragrances and/or aftershave, by demographics, November 2013 .................................................... 226
Figure 165: Most popular how often they use fragrance and/or aftershave products – Standard brand
fragrance/perfume, by demographics, November 2013 .................................................................................. 228
Figure 166: Next most popular how often they use fragrance and/or aftershave products – Standard brand
Figure 167: Most popular how often they use fragrance and/or aftershave products – Standard brand
aftershave, by demographics, November 2013 .............................................................................................. 231
Figure 168: Next most popular how often they use fragrance and/or aftershave products – Standard brand
Figure 169: Most popular how often they use fragrance and/or aftershave products – Premium brand
Figure 170: Next most popular how often they use fragrance and/or aftershave products – Premium brand
Figure 171: Most popular how often they use fragrance and/or aftershave products – Premium brand
Figure 172: Next most popular how often they use fragrance and/or aftershave products – Premium brand
APPENDIX – CONSUMER – WHAT THEY BUY WHERE................................................................. 241

Figure 173: Next most popular where they buy any beauty product, by demographics, November 2013 ....... 241
Figure 174: Other where they buy any beauty product, by demographics, November 2013 ........................... 243
Figure 175: Most popular where they buy skincare, by demographics, November 2013 ................................ 245
Figure 176: Next most popular where they buy skincare, by demographics, November 2013 ........................ 247
Figure 177: Other where they buy skincare, by demographics, November 2013 ............................................ 249
Figure 178: Most popular where they buy make-up, by demographics, November 2013 ................................ 251
Figure 179: Next most popular where they buy make-up, by demographics, November 2013 ........................ 253
Figure 180: Other where they buy make-up, by demographics, November 2013 ........................................... 255
Figure 181: Most popular where they buy fragrances/aftershave, by demographics, November 2013 ........... 257
Figure 182: Next most popular where they buy fragrances/aftershave, by demographics, November 2013 ... 259
Figure 183: Other where they buy fragrances/aftershave, by demographics, November 2013 ....................... 261
APPENDIX – CONSUMER – WHERE THEY BUY IN-STORE AND ONLINE................................... 263
Figure 184: Most popular where they buy instore and on-line, by demographics, November 2013................. 263
Figure 185: Next most popular where they buy instore and on-line, by demographics, November 2013 ........ 265
Figure 186: Other where they buy instore and on-line, by demographics, November 2013 ............................ 267
Figure 187: Most popular where they buy in-store, by demographics, November 2013 .................................. 269
Figure 188: Next most popular where they buy in-store, by demographics, November 2013.......................... 271
Figure 189: Other where they buy in-store, by demographics, November 2013 ............................................. 273
Figure 190: Most popular where they buy on-line, by demographics, November 2013 ................................... 275
Figure 191: Next most popular where they buy on-line, by demographics, November 2013 ........................... 277
Figure 192: Other where they buy on-line, by demographics, November 2013 ............................................... 279
Figure 193: Repertoire of where they buy instore and on-line, by demographics, November 2013................. 281
APPENDIX – CONSUMER – KEY DRIVERS ..................................................................................... 283

Figure 194: Most popular what factors drive the decision where to shop, by demographics, November 2013 283
Figure 195: Next most popular what factors drive the decision where to shop, by demographics, November
2013 ............................................................................................................................................................... 285
APPENDIX – CONSUMER – ATTITUDES TOWARDS BEAUTY GIFTING...................................... 288
© Mintel Group Ltd. All rights reserved. x

UK, January 2014
Figure 196: Most popular attitudes towards gift buying, by demographics, November 2013 ........................... 288
Figure 197: Next most popular attitudes towards gift buying, by demographics, November 2013 .................. 291
UK RESEARCH METHODOLOGY..................................................................................................... 295

Consumer research .................................................................................................................... 295
Sampling and weighting.................................................................................................................................. 295
Definitions....................................................................................................................................................... 297
Qualitative Research ...................................................................................................................................... 299
Trade research ............................................................................................................................ 299
Informal .......................................................................................................................................................... 299
Formal ............................................................................................................................................................ 299
Desk research ................................................................................................................................................ 299
Statistical Forecasting ................................................................................................................. 300
European Research Methodology .............................................................................................. 303
© Mintel Group Ltd. All rights reserved. xi

Introduction Beauty Retailing
UK, January 2014
Introduction
2012 was a weak year for beauty and personal care retailing and this followed through into 2013.
Deal-hunting and channel-switching allowed squeezed consumers to buy fundamentally the same
products at lower cost.
This report shows that fast-developing sectors – particularly online-only retailers and mixed-goods
discounters – are catering to consumer demand for value. This inevitably means specialist retailers are
at risk of losing share of spending.
This report also considers the opportunities for beauty retailers, such as gifting and male beauty. And
we look at issues such as what drive shoppers to choose a particular store, how many different retailers
consumers use for beauty shopping, and how retailers can respond to these attitudes and behaviours to
encourage greater loyalty.
Our consumer research this year asked:
 How often shoppers use each of make-up, skincare and fragrance, and whether each of these is
own-brand, mid-tier, or premium brand.
 From which retailers respondents have bought each of make-up, skincare and fragrance in the past
year.
 Whether beauty purchases were in-store or online.
 What factors are important when deciding where to shop for beauty products.
 Attitudes towards beauty gifting.
And the changing nature of the market is addressed in sections such as:
 Online – which includes Mintel’s online beauty market size and where we discuss Amazon’s
prospects in beauty, along with other issues.
 The Non-Specialist Retailers – where we provides personal care sales estimates of a number of
leading generalists, including major grocers, discount retailers (such as Poundland) and
department stores, and where we provide summary profiles of major non-specialist retailers.
 Market Size and Forecast – which provides segmented five-year forecasts for core beauty products
and other personal care products.
Definitions
Market size
There is a fine line between beauty products and the more general personal care category.
Mintel’s market sizes
Our main market size covers beauty and selected relevant personal care goods, and is broken down
into two segments for which we also provide historic and forecast data:
© Mintel Group Ltd. All rights reserved. 12

UK, January 2014
Market Includes
Beauty and personal care goods Body, hand and footcare; colour cosmetics; facial skincare; men’s and
women’s fragrances; deodorants; depilatory products; hair colourants; hair
styling agents; oral hygiene; shampoos and conditioners; shaving products;
soap, bath and shower products; suncare.
Includes:
Beauty Body, hand and footcare; colour cosmetics; facial skincare; and men’s and
women’s fragrances.
Other personal care Deodorants; depilatory products; hair colourants; hair styling agents; oral
hygiene; shampoos and conditioners; shaving products; soap, bath and
shower products; and suncare.
And we provide category size data, 2012-13, for the four consistent categories of the beauty segment
size: body, hand and footcare; colour cosmetics; facial skincare; and men’s and women’s fragrances
Mintel market sizes are based on data from Information Resources, Inc. (IRI). Our consumer spending
data in the UK report is quoted including VAT and is for sales through retail outlets, excluding
channels such as salons.
National statistics data
In addition, we provide the total market size for all personal-care goods, as outlined by the Office for
National Statistics. This data includes the following products sub-categories.
COICOP Market Includes
12.1 Personal care All personal care goods and services

Includes:
12.1.2 Electrical appliances for personal care Electric razors and hair trimmers, hairdryers, curling
tongs, sunlamps, vibrators, electric toothbrushes, etc.
12.1.3 Personal care products (excl. Non-electric appliances: razors, scissors, nail files,
appliances) combs, shaving brushes, hairbrushes, toothbrushes,
personal weighing machines, baby scales, etc.;
articles for personal hygiene: soap, cleansing oil and
milk, shaving soap, shaving cream, toothpaste, etc.;
beauty products: lipstick, nail varnish, make-up, hair
styling products, pre-shave and after-shave products,
sunbathing products, hair removers, fragrances,
deodorants, bath products, etc.; other products: toilet
paper, paper towels, sanitary towels, cotton wool,
nappies, etc.
Market shares
Because ONS spending data covers all personal care-related product categories, we use this as the
basis for our market share figures in this report.
Our Market Shares section provides data on share of spending for leading beauty specialists (such as
Boots, Superdrug and The Body Shop) and generalists (such as supermarkets, discount stores and
department stores). Due to the paucity of reliable data on beauty and personal care goods sales by
chemist chains, our market shares data excludes pharmacy chains such as Lloyds Pharmacy.
By far the greatest proportions of most chemists’ sales (around 70%) are believed to be from NHS
prescriptions. Boots has a much higher proportion of BPC sales than typical chemist chains and is
included in our market shares data.

UK, January 2014
Retail sector size

Retail sales data is adapted from ONS data for specialised retailers of “Pharmaceutical, Medical,
Cosmetic & Toilet goods”. This data excludes income from dispensing NHS prescriptions. The ONS
data excludes Boots, so we add Boots UK H&B sales into our sector size.
All retail sales data in the UK report is quoted including VAT.
Crown copyright material is reproduced with the permission of the Controller of HMSO and the
Queen’s Printer for Scotland.
Financial definitions
Financial definitions used are:
 Sales: Turnover as reported by the company, excluding VAT.
 Operating profits: pre-tax profits plus interest, less non-trading income such as the sale of fixed
assets and any exceptional items, including provisions.
 Pre-tax profits: the net trading profit after deducting all operating costs including depreciation and
finance charges, but before deduction of tax, dividends and other appropriations.
 Operating margin: operating profits as a percentage of sales.
 Pre-tax margin: pre-tax profits as a percentage of sales.

List of abbreviations
ACORN A Classification of Residential Neighbourhoods
B2B Business-to-Business sales
B2C Business-to-Consumer sales
BPC Beauty and Personal Care
CAGR Compound Annual Growth Rate
CPI Consumer Price Index
e Mintel Estimate
f Forecast
GDP Gross Domestic Product
GMI Global Market Insite Inc.
GNPD Mintel Global New Products Database
H&B Health and Beauty
HoF House of Fraser
IRI Information Resources, Inc.
M&S Marks & Spencer
JLP John Lewis Partnership
NA Not Available or Not Applicable
Nielsen Media Research For further information please contact nmr.communication@nielsenmedia.co.uk
ONS Office for National Statistics
OTC Over-the-Counter
p Provisional Data
PDI Personal Disposable Income
RPI Retail Price Index
SKU Stock Keeping Unit
USP Unique Selling Point
VAT Value Added Tax

Executive Summary Beauty Retailing
UK, January 2014
Executive Summary
“Online was the biggest success story in 2013. Amazon now lists just under half a million
products on the beauty section of its UK site and we suspect it may well follow its US arm which
recently launched a Luxury Beauty store.”
– Hilary Monk, Senior Retail Analyst
The market
The beauty and personal care products market grew by a modest 2.3% in 2013 (est).
We expect 2014 to be another relatively weak year: the context of the squeezed consumer coupled
with the growing options to trade down – particularly, to discount stores or to online pureplays – and
further promotional activity will depress value sales.
FIGURE 1: MARKET SIZE AND FORECAST: RETAIL SALES OF BEAUTY AND PERSONAL CARE PRODUCTS, 2008-18
12,000 Best case (£m)

11,358
Mintel forecast (£m)
(£m)
10,000 10,308
8,936
Worst case (£m)
9,258
Market value (£m)
8,000
6,000
4,000
Confidence intervals
2,000
95%
90%
00
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 70%
Est. 50%
Actual Forecast
This market includes: body, hand and footcare; colour cosmetics; facial skincare; men’s and women’s fragrances;
deodorants; depilatory products; hair colourants; hair styling agents; oral hygiene; shampoos and conditions;
shaving products; soap, bath and shower products; suncare.
SOURCE: MINTEL
Segment performance
Our total market size is split almost exactly 50/50 between beauty and other personal care products.
The core beauty segment was hit by a sales slowdown that began in 2012 and continued in 2013, when
there was just 2.2% growth. We expect growth to strengthen a little for 2014 and thereafter, in part as
conversion to frugal shopping habits slow.

UK, January 2014
FIGURE 2: SEGMENT SIZE AND FORECAST: RETAIL SALES OF BEAUTY PRODUCTS, 2008-18
7,000
Best case (£m)

6,000 6,168
(£m) 5,385
Market value (£m)
5,000 4,466 Worst case (£m)

4,602
4,000
3,000
2,000
1,000
95%
90%
00
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 70%
Est. 50%
Actual Forecast
The beauty segment includes body, hand and footcare; colour cosmetics; facial skincare; and men’s and women’s
fragrances.
SOURCE: MINTEL
Online
A 21% surge took online sales of BPC products to £734 million in 2013, we estimate. This was
equivalent to just over 8% of total category spending in 2013.
Given the popularity of online-only retailers (see below), we feel store-based specialists must offer a
convincing multichannel proposition to prevent loss of share online: Superdrug and The Body Shop
are among those who do not yet have fully integrated online/in-store propositions.
FIGURE 3: ONLINE SALES AS % OF ALL SALES OF BEAUTY AND PERSONAL CARE PRODUCTS, 2012-14
10
9.1
9
8.2
8
6.9
7
% 5
0
2012 2013 (est) 2014 (fore.)
SOURCE: MINTEL

UK, January 2014
Companies, brands and innovation

Boots has a major lead among the specialists. But once we factor in the non-specialists, notably the
grocers, its dominance is less imposing.
Personal care spending fragments to multiple sectors – with grocers, department stores, value retailers
and home shopping all among the leading operators.
If we count Avon as a beauty specialist (not a home-shopping retailer), then just five of the 15 largest
operators are specialists: Boots, Superdrug, Avon, Savers and The Perfume Shop.
FIGURE 4: LEADING BEAUTY AND PERSONAL CARE RETAILERS’ SHARES OF SPENDING ON ALL PERSONAL CARE GOODS, 2012
Boots
17%
All others
34%
Tesco
10%
Superdrug - AS
Watson
Waitrose 6%
1% Savers - AS
Watston
Wilkinson 1%
2% Asda
House of Fraser 5% The Perfume
J. Sainsbury Shop - AS
2%
Morrisons 6% Watson
Co-operative Avon 5% 1%
Food 2%
Debenhams
2% 3%
John Lewis
2%
Some data estimated. Based on spending on all personal care goods, including beauty and other personal care
goods categories – as outlined in the Market Size section of this report, adjusted for VAT.
SOURCE: COMPANIES/ONS/MINTEL
The consumer
How often they use beauty products

Of the three core beauty categories, fragrances/aftershaves is narrowly the most popular.
This is in large part because of the high participation rates for the fragrances/aftershave category
among men. Skincare and especially make-up see much lower participation rates by men.

UK, January 2014
Make-up is likely to remain a female-led category, but there could be opportunity to boost male use of
skincare. Our research found women are much more likely than men to use skincare daily or two to
three times per week. However less often than this and usage levels are much the same between men
and women. So there are opportunities to drive up frequency of use by encouraging more men to adopt
a daily skincare routine.
FIGURE 5: THE CONSUMER: HOW OFTEN THEY USE BEAUTY PRODUCTS, NOVEMBER 2013
Base: 2,000 internet users aged 16+
Fragrances/aftershave Skincare Make-up
90 78
80 75
70
60 53
47
50
%
40 32
24 25
30 20 20 22
20 1311 1312
8 10 10 8 10 9 6
10
0
Use this At least At least At least At least Less Do not
product - once a two to once a once a than use
any* day three week month once a
times a month
week
* Netted total of any frequency of use.
SOURCE: GMI/MINTEL
Where they buy

There are relatively few beauty specialists, and the two largest – Boots and Superdrug – have posted
tepid sales growth (at best) in recent years.
The data confirms the inroads discount retailers – whether grocers such as Lidl or mixed-goods
retailers such as Poundland – have made into the beauty market. Meanwhile, the 19% of respondents
shopping from an online-only retailer further confirms the pressures facing store-based specialists.
The specialists sector sees relatively few major retailers for two reasons: non-specialists such as
grocers and department stores have long taken large shares of spending, while Boots holds a dominant
position in the specialist sector.

UK, January 2014
FIGURE 6: THE CONSUMER: W HERE THEY HAVE BOUGHT BEAUTY PRODUCTS, WHETHER IN-STORE OR ONLINE, IN THE PAST 12
MONTHS, NOVEMBER 2013
Base: 1,654 internet users aged 16+ who have bought make-up, skincare, fragrance or aftershave products in the
last 12 months
Boots 68
Superdrug 42
Tesco 35
Discount store (eg Wilkinsons, Aldi) 27
The Body Shop 23
Asda 22
Debenhams 20
Sainsbury’s 19
Internet specialist (eg Amazon) 19
John Lewis 14
Other beauty specialist (eg The
18
Fragrance Shop)
Other department store (eg House of
14
fraser)
Other chemist (eg Lloyds) 14
Other (eg duty free) 19
0 10 20 30 40 50 60 70 80
%
SOURCE: GMI/MINTEL
What factors are important

Value and convenience (in terms of location and wide brand choice) are by far the most important
factors for shoppers. The top big motivating factors are important across the age and income spectrum.
Value-added factors are much less popular: just 15% say a premium store environment is important
and 12% look for premium branded beauty counters. While “only” 8% look to retailers to offer a range
of beauty treatments, this is a sizeable number given in-store beauty treatments are relatively new to
the mass market.

UK, January 2014
FIGURE 7: THE CONSUMER: W HAT FACTORS DRIVE THE DECISION WHERE TO SHOP, NOVEMBER 2013
last 12 months
Low prices 64
Convenient location 52
Special offers 48
A wide range of brands available 44
Products made from natural ingredients 16
Premium store environment (eg

15
cleanliness, impressive displays)
Premium branded beauty
12
counters/advisors (eg Clarins)
New ways to test products (eg skin
9
testing, virtual makeovers)
Range of beauty treatments available
8
(eg nail bars)
Self-service checkout available 6
Click & collect service available 5
None of these 3
0 10 20 30 40 50 60 70
%
SOURCE: GMI/MINTEL
Attitudes towards buying beauty products as gifts

Beauty products are a popular choice of gift: 33% of us like to buy them as a present for someone else.
And products are much more popular than services or vouchers.
However, there is relatively limited demand for extra services such as gift-wrapping and in-store gift
advice.

UK, January 2014
FIGURE 8: THE CONSUMER: ATTITUDES TOWARDS GIFT BUYING, NOVEMBER 2013
last 12 months
I like to buy beauty products as a gift

33
for someone else
Beauty gift sets are good value for
28
money
I like to buy beauty gift sets which offer
23
free samples when you make a purchase
I would like beauty gift sets to be more
22
widely available other than Christmas
I like the idea of receiving a monthly
18
beauty gift box (incl. samples)
I would like gift wrapping services to be
15
made more widely available
I like to buy beauty treatment
14
vouchers/gift cards as a gift (eg spa)
I would prefer to buy a beauty gift
14
card/voucher than buy a gift set
I prefer to shop online for beauty gifts 14
In store beauty advisors provide useful

12
gift ideas
I would like more beauty retailers to
8
provide a gift list service
None of these 22
0 5 10 15 20 25 30 35 40
%
SOURCE: GMI/MINTEL
What we think
Online was the biggest success story in 2013. This channel has become significantly more important to
beauty, not only for multi-channel retailers, but also for internet-only retailers where shopper numbers
more than doubled last year. Amazon now lists just under half a million products on the beauty section
of its UK site and we suspect it may well follow its US arm which recently launched a Luxury Beauty
store.
Frugal shoppers have turned to online retailers in a search for value without having to trade down from
their favourite brands. Discount retailers are proving increasingly popular too. In the face of
competition, midmarket specialists, such as Boots and Superdrug, could well continue to struggle to
maintain positive sales growth.
We think major specialists could fight back with innovations such as off-price websites offering
premium brands at cut prices and they could trial online subscription programmes similar to Amazon’s
Subscribe & Save programme. Meanwhile, gifting, male beauty, and health and beauty services
suggest themselves as further opportunities for growth.

Issues in the Market Beauty Retailing
UK, January 2014
Issues in the Market

“With consumers ever keener to secure the best deals, retailers would do well to find new ways
to bolster customer loyalty. Following the lead of food retailers and introducing a Price
Matching scheme could be one way to encourage loyalty by deepening trust. Giving customers a
feeling of control over their loyalty programme interaction could be compelling too, for
instance by offering shoppers a choice in how their loyalty is rewarded.”
– Hilary Monk, Senior Retail Analyst
How can beauty retailers encourage greater customer loyalty?

We estimate that core beauty (skincare, cosmetics and fragrances) accounted for 50% of all beauty and
personal care (BPC) sales in 2013. But growth in the BPC product market slowed from 2.8% in 2012
to 2.3% last year. Moreover we expect 2014 to be another relatively weak year: the context of the
squeezed consumer coupled with the growing options to trade down – to discount stores or to online
pureplays – and heavy promotional activity will depress value sales.
Smart shopping – pursuing deals and discounts, and switching between retailers and channels – will
allow consumers to continue to buy the same product at lower cost. Our consumer research shows that
the under 25s, a key target market for beauty, are the most fickle customers with 36% of them
shopping from five or more retailers. Women and more affluent consumers are also more likely than
average to shop around. Our data also shows that while customer loyalty is good at Boots all other
retailers surveyed have lower levels of loyalty.
With consumers ever keener to secure the best deals, retailers would do well to find new ways to
bolster customer loyalty. Following the lead of food retailers and introducing Price Matching scheme
could be one way to encourage loyalty by deepening trust. Giving customers a feeling of control over
their loyalty programme interaction could be compelling too, for instance by offering shoppers a
choice in how their loyalty is rewarded. Mobile apps have an important role to play here. But whatever
methods retailers decide to employ we think building in greater flexibility and convenience will
become increasingly important as time pressed consumers look for greater simplicity in their lives.
Who were the retail winners and losers in 2012 and 2013?
2012 was another weak year for sales at broad-range, midmarket retailers such as Boots and
Superdrug. Trend data from our consumer research suggests those patterns continued in 2013: Boots
beauty customer numbers fell by 4 percentage points while Superdrug’s popularity was unchanged on
2012 levels.
The midmarket retailers remain vulnerable to trading down to grocers and discount retailers as well as
more general price-conscious spending habits. Value-positioned retailers Savers and The Fragrance
Shop both performed well in 2012, with double-digit sales growth. Our consumer trend data points to a
good year for the discounters (eg Wilkinsons, Savers, Poundland and Aldi) in 2013 too, with consumer
buying levels on beauty rising from 22% in 2012 to 27%. Tesco, Sainsbury’s and Asda all saw their
beauty shopper numbers increase too. Among the factors important to shoppers when deciding where
to buy are a convenient location (52%) and special offers (48%) which goes some way to explaining
the success of the supermarkets, while 64% said low prices were important, feeding in to the success
of discounters.

UK, January 2014
But online was the biggest success story of all in 2013. This channel has become significantly more
important to beauty, not only for multi-channel retailers, but internet specialists (eg Amazon,
feelunique) as well where customer numbers more than doubled last year. Amazon now offers just
under half a million products at the beauty section of its UK site and we suspect it may well follow its
US arm with a Luxury Beauty store.
The picture for premium specialists was mixed. We think some mono-branded operators, such as
L’Occitane, Crabtree & Evelyn and Space NK, continued to grow sales in 2012. But Molton Brown,
which focuses on premium toiletries such as handwash, looks to have been hit by trading down while
Penhaligon’s, focused on fine fragrances, saw sales fall in 2012. These retailers are too small to
include as separate entries in our consumer survey although beauty specialists as a whole saw their
customer numbers drop in 2013.
We estimate that the two leading department stores – Debenhams and John Lewis – both grew their
beauty sales in 2012 along with Selfridges and M&S, but House of Fraser’s reported flat beauty sales
for the period. Our consumer data saw Debenhams and John Lewis increase their customer numbers
marginally in 2013 suggesting that the appetite for a premium multi-branded offer remains healthy.
That seems to marry with 44% people agreeing that a wide range of brands is important to them when
deciding where to buy.
Can retailers capitalise more on the gift market?

Beauty products are a popular choice of gift – as many as 33% of us like to buy them as a present for
someone else. Moreover products are twice as popular as beauty treatment vouchers or gift cards
suggesting that people still prefer to give a tangible object rather than an experience.
Our research points to opportunities in the gift market including wider availability of gift wrapping and
gift list services plus more frequent provision of gift sets. Consumer perceptions of gift sets are
positive. Some 28% of consumers think these sets are good value and 22% would like to see them
more widely available at different times of the year not just Christmas.
Debenhams customers (32%) are especially interested in better provision of gift sets. Moreover, as
many as 41% of Debenhams customers like to buy gift sets which come with free samples so this
could be a particularly effective way for the department store chain to engage more customers
throughout the year. Gift wrapping could further cement customer loyalty as 25% of Debenhams
shoppers agree they would like gift wrapping services to be more widely available compared to 15%
for the survey as a whole.
Department store shoppers are also more interested than average in the idea of a gift list service for
beauty, suggesting people like to receive as well as give beauty products. While most department
stores offer a Wedding List service not all offer a general ‘Wish List’ service to compete with the likes
of John Lewis, Marks & Spencer and Debenhams.
Women are more important to the beauty gifting market in terms of their participation, positive
perceptions and wants. On the other hand our survey didn’t ask about transaction values and we think
men’s average spending on gifting could possibly be just as high if not higher so this cohort is
certainly important too. The Perfume Shop reported strong Christmas trading recently and said this
was due to an influx of male customers buying gifts and they made good use of services such as the
Husband Help Desk.

UK, January 2014
Are there new opportunities in the male beauty market?

Male beauty is moving beyond grooming to take in a more comprehensive regime, including products
previously seen as the exclusive preserve of women. These include cosmeceuticals, skincare devices
and even colour cosmetics created specifically for men. The consumer research for this report shows
that when it comes to buying beauty products, men are less likely than women to be motivated by
special offers (39% versus 55%) and more likely to value self-service checkouts (9% versus 4%).
Perhaps less predictably they are just as likely as women to be motivated by a premium store
environment (14%), new ways to test products (8%) and by the availability of beauty treatments (7%).
These results provide insight into the male mind set and retailers of beauty would do well to explore
related opportunities. For instance investment in self scanning and NFC (near field communication) to
speed up payments could be worthwhile in stores where there is a captive male audience (eg City of
London, transport hubs with high business passenger footfall) or where the men’s grooming offer is
particularly successful.
While many retailers have upped their game in male beauty, our survey findings point to new
opportunities in product testing and treatments, and department stores look particularly well placed to
capitalise on this. For instance Tokyo department store, Isetan Mitsukoshi, has discovered that while
men may find the more traditional approach of male and female beauty brands merchandised together
quite intimidating, they feel much more comfortable trying out products in a dedicated male space
without pressure from sales staff. Most UK department stores merchandise male grooming products
and women’s beauty in the same space although some, like Harrods, do provide grooming services
alongside other male-dedicated departments. But retailers would do well to create more spaces where
men can comfortably test out grooming products and treatments anonymously. Department stores and
airport outlets could work well here. Increasing investment in skin diagnostic testing, skin simulation
and colour-matching devices would also speak to this audience and help to deliver a genuine
competitive edge.
Can retailers prevent older people ageing out of the beauty market?
Our consumer survey showed that 17% of adults had not bought make-up, skincare, fragrances or
aftershave in the last 12 months. Part of this is explained by make-up which is largely, albeit not
exclusively, a female oriented market. But significant numbers of the over 55s are not engaged in the
market for beauty either.
While it’s common for older people to “age out” of certain markets including beauty, Mintel’s trend
Retired for Hire talks about the over 65s increasingly opting to delay retirement and stay in the
workforce – because they want to, because they have to, or a bit of both. With the official retirement
age due to rise, this cohort will swell in numbers and become increasingly influential and demanding.
Beauty brands and retailers would do well to capitalise on this trend by responding directly to the
needs and wants of today’s older workers. They have greater disposable income at hand than previous
generations and, as our consumer research shows, they are more likely to be loyal shoppers than
younger people.
It is the younger end of the over 55s market that are likely to be the most lucrative target market for
brands and retailers. According to Mintel report Technology and the Over-55s – UK – January 2013
employed people in this age group have higher ownership levels of technology products and appear to
replace them more regularly than older retired groups. So digital marketing messages that use less
stereotyping, and value and validate mature consumers would be a good starting point.

UK, January 2014
But as more seniors become regular internet users there are opportunities for multi-channel and pure
play beauty retailers to tailor beauty offers and services to this cohort. We’ve already seen Amazon
launch an online store in the US catering to shoppers aged 50+ helping them to find what they need
more easily. There is also scope for more online advice and tips directed at this age group for example
supporting older women on how best to make-up in today’s work place.

Trend Application Beauty Retailing
UK, January 2014
Trend Application
Mintel’s approach in this section goes beyond merely identifying trends. We apply trends from
Mintel's trend tool to understand the wider implications of cultural changes, gaining insight into how
companies and brands can translate these into on-the-ground opportunities relevant to the beauty retail
sector.
Trend: Immaterial World

Immaterial World: When it comes to happiness, consumers are finding out that it’s better to indulge in
experiences than to fill their homes with material possessions. Psychologists have found that we
actually get more satisfaction (and we enjoy this feeling for longer) if we spend money on experiential
purchases. Material possessions, on the contrary, tend to blend into the background of our everyday
life with the passage of time.
Some 33% of consumers like to buy beauty products as a gifts for someone else compared to just 14%
who say they like to buy beauty treatment vouchers/gift cards as a gift (eg spa treatment, manicure).
There is an opportunity here for retailers and brands to promote experience over products. Our survey
findings show that convenience is a key factor for people when deciding where to shop for beauty so
could brands make experiences more accessible for busy consumers by, for instance, coming to the
workplace or on route to the workplace? Consumers the world over are busier than ever so bringing
services to the customer can take the hassle out of the process.
We’ve already seen Manicube providing professional manicures for busy New Yorkers in the
workplace while City Bliss in India provides a taxi van service to Mumbai commuters complete with
massage chairs and beauty treatments. These services could be rolled out to other countries and there
may be room for spas and beauty brands to create targeted carriages on trains or areas that offer
relaxation services. Moreover as cars move to a more pod-like concept we could see more beauty
elements increasingly incorporated into vehicle design too. Nissan, for instance, has a new model that
pumps breathable Vitamin C through the air conditioning unit to moisturise skin as well as reduce
mould and airborne bacteria.
Retailers could also make purchasing of treatments a more integrated process using social media.
We’ve already seen a Facebook promotion from Heinz and partner agency We Are Social letting
friends send each other real (rather than virtual) cans of soup emblazoned with a “Get Well Soon”
message. Beauty brands could tap into this market allowing people to send digital treatment vouchers
to friends when they need a pick-me-up because they’ve been unwell or are having a tough time.
Facilitating a good experience could also engender positive emotional associations that the brand could
capitalise on at a later date.
Trend: Experience Is All

Experience Is All: Globalisation has created something of a monotonous retail experience where
corporate chains dominate and quirky or personal service gets lost in the chase for speed and
efficiency. Shopping can and should be about more than just price or convenience, and consumers do
actually care about experience. In fact, in many ways the rise of quick-service formats and automated
service has fuelled a greater desire for good old-fashioned customer service, particularly in face-to-
face form.

Trend Application Beauty Retailing
UK, January 2014
Similar numbers of men and women (7% and 8%) say the range of beauty treatments available in a
store is an important factor in deciding where to shop for beauty products.
This finding underlines how men have become more conscious of their appearance and are willing to
fork out in areas once typically associated with women. This suggests there is potential for stores and
beauty brands to create more male-dedicated services and male-friendly selling points which could
also be combined with high profile collaborative events.
According to Mintel report Hand, Nail and Foot Care – UK, 60% of British women use nail varnish
and nail bars have become a ubiquitous part of the female retail landscape in recent years. But with
grooming brand EvolutionMan moving into the nail varnish and nail paint market with products
designed specifically for the male consumer there may be scope to offer such services to couples or
groups of friends too. In this setting unisex lines emulating the success of CK One could work well.
Alternatively male-only grooming bars could provide a sanctuary where men can socialise, have a
drink and treat themselves to a nail makeover. As EvolutionMan’s founder Marco Berardini points out
“wearing a Rolex with chewed, scraggy nails is a contradiction of sorts”. So this idea might work
particularly well in a luxury environment where consumers can demonstrate their success and power
with the perfect clean manicure.
Harrods collaboration with Dior in 2013 – So Dior – produced a truly impressive event making must-
see destinations of both brands. But bringing men and male products into the frame of such events
would broaden the appeal of such headline-grabbing exhibitions and pave the way for new way to
market male grooming services.
Mintel Futures
Mintel Futures are those trends identified as benchmark trends for the coming years.
Trend: Generation Next: Many of today’s teens are growing up in an era of intense economic
hardship and stringent state regulations, whilst watching on as many of their elders suffer the
consequences of failing to look after their long-term financial or physical health.
Times are tough for young people today and the government has been criticised recently for
overlooking this cohort in favour of families and older people as both those groups are more likely to
vote.
Beauty retailers could curry favour with hard done by teens by looking out for their physical and
mental wellbeing. Affordable beauty products that seek to nourish and protect young skins could be
developed and marketed specifically for this age group with special incentives and rewards for loyalty.
Teenagers are growing up in a world that strives for sustainable sourcing and good ethical practices so
these qualities are also likely to appeal to this audience. In an age when more teenagers suffer from
depression and anxiety finding ways to help them feel good about themselves has to be the way
forward.

Market Environment Beauty Retailing
UK, January 2014
Market Environment
Key points
 Census data shows 15% of the England and Wales population was non-white in 2011 –
showing the potential for diverse beauty products.
 And an ageing society provides opportunities and challenges for brands and categories.
 Consumer confidence rose sharply from mid-2013, although towards the end of the year this
trend stalled.
 Shoppers’ spending power continues to diminish month after month as inflation continues to
outstrip wages.
Ethnic diversity drives demand for non-white beauty

The 2011 census is the latest most detailed data on ethnic composition. The survey shows the extent to
which mass immigration has depressed the white British population – to just 80% in England and
Wales.
In total, the non-white population stood at 15% in 2011.

FIGURE 9: ETHNIC COMPOSITION OF ENGLAND AND W ALES, 2011
Caribbean Other Black
African 1%
Other Asian 1%
2%
3%
Pakistani Any other
Indian 1%
3% 2%
White Mixed
2%
White Other
5%
White British
80%
SOURCE: ONS
So we could see mass-market retailers increasingly extend their ranges to cater for non-white beauty
shoppers, as this Morrisons store has done – albeit on a store-by-store basis to cater to local demand

UK, January 2014
FIGURE 10: ASIAN, AFRICAN & CARIBBEAN BEAUTY SECTION, MORRISONS, W ALWORTH ROAD, LONDON, DECEMBER 2013
SOURCE: MINTEL
We are also likely to see more beauty brands offer greater tailoring to ethnicity or promise that their
products are “suitable for all ethnicities” – as Estée Lauder did with its Advanced Night Repair in
2013.
Ageing population presents challenges and opportunities

By 2018, over-65s are forecast to have grown to 18.5% of the total UK population, from 17.5% in
2013. The proportion of the population accounted for by 15-24-year-olds is expected to decline from
12.8% in 2013 to 11.5% in 2018.
So there will be shifts in demands for beauty. Youth-positioned brands and categories will give way to
older-positioned rivals. Anti-ageing products are likely to see higher demand while colour cosmetics
may be hit.
Moreover, future generations of retirees cannot be pigeonholed by those of the past: the baby boomers
and beyond are likely to take an interest in personal appearance into their retirement.

UK, January 2014
FIGURE 11: TRENDS IN THE AGE STRUCTURE OF THE UK POPULATION, 2013 AND 2018
2013 (proj) 2018 (proj) % point change

2013-18
% % %
0-4 6.4 6.3 -0.1

5-9 5.8 6.1 0.3
10-14 5.4 5.6 0.2
15-19 5.9 5.3 -0.6
20-24 6.9 6.2 -0.7
25-34 13.8 14.2 0.4
35-44 13.0 12.2 -0.8
45-54 14.1 13.6 -0.5
55-64 11.3 11.8 0.5
65-74 9.4 9.8 0.4
75-84 5.7 6.0 0.3
85+ 2.4 2.7 0.3
Total 100.0 100.0 na
SOURCE: OFFICE FOR NATIONAL STATISTICS/GAD/MINTEL
Squeezed incomes despite increased confidence

Economic recovery and a resurgent housing market have helped drive up consumer confidence –
although the upward trend stalled later in 2013.
But shoppers’ spending power has yet to recover: month after month inflation outstrips average wage
growth, depressing disposable spending. As we note in the market size section of this report, 2013 was
a slow year for growth in beauty and personal care in part because of savvy shopping and an apparent
renewed frugality among consumers.
FIGURE 12: ANNUAL % CHANGE IN AVERAGE WEEKLY EARNINGS VERSUS CONSUMER PRICES INFLATION, 2009-13
Average earnings Prices (CPI)
% 0
-2
-4
-6
-8
Oct-09
Oct-10
Oct-11
Oct-12
Jan-09
Apr-09
Jan-10
Apr-10
Jan-11
Apr-11
Jan-12
Apr-12
Jan-13
Apr-13
Jul-09
Jul-10
Jul-11
Jul-12
Jul-13
SOURCE: ONS/MINTEL
Increased consumer confidence is clearly good – but it does not necessarily translate into increased
spending.

UK, January 2014
FIGURE 13: CONSUMER CONFIDENCE LEVELS, DECEMBER 2012-NOVEMBER 2013
0
-2
-4
-6
-8
-10
-12
-14
-16
-18
-20
SOURCE: EUROSTAT © EUROPEAN UNION, 2012-13/MINTEL

As we note elsewhere in this report, this pursuit of value appears to have benefited off-price specialists
such as The Fragrance Shop and Savers (see The Leading Specialist Retailers section) and boosted
shopping at online-only retailers and discount generalists (see the Consumer: What They Buy Where
section of this report).
Midmarket retailers including Boots, Superdrug and supermarkets continue to offer many, and often
deep, price promotions on beauty and personal care goods. Among the department stores, Debenhams
is a frequent discounter in beauty; this forces John Lewis to price-match under its “Never knowingly
undersold” promise; but House of Fraser has tended to resist heavy discounting in peak Christmas
trading periods in order to protect margins (as we note in The Non-Specialist Retailers section).
Given the context, we are unlikely to see any significant scaling back of promotional activity in 2014.

UK, January 2014
FIGURE 14: PRICE PROMOTIONS ON MAKE-UP AT SUPERDRUG, JANUARY 2014
SOURCE: SUPERDRUG.COM
Animal testing ban and CSR

March 2013 saw the EU prohibit the sale of cosmetics developed through animal testing. The ban on
the import and sale of animal tested products had been planned since 2009, and the EU Commission
has allocated €238 million to developing alternatives to animal testing enabling brands to continue to
innovate.
Corporate social responsibility is increasingly informing new product development. For example, in
December 2012, Unilever announced it would remove microplastics as ‘scrub’ materials from all
personal care products over the next two years.

Market Size and Forecast Beauty Retailing
UK, January 2014
Market Size and Forecast

Key points
 The beauty and personal care products market grew by a modest 2.3% in 2013 (est.),
slowing from 2.8% in 2012.
 Beauty products were hit by a sales slowdown that began in 2012 and continued in 2013,
when there was just 2.2% growth.
 Consumers spent £8.9 billion on beauty and personal care products in 2013, of which £4.5
billion (50%) was on core beauty products – skincare, cosmetics and fragrances.
 We forecast just 2.3% growth for sales of beauty and personal care products in 2014, but the
beauty segment will outperform, with forecast 3.1% sales growth.
 Smarter shopping – taking advantage of special offers or switching between retail channels –
is depressing value sales growth.
In this section
This section includes the following data:
 Our main market size forecast: retail sales of beauty and personal care goods – this is Mintel data.
 A drill-down to the beauty products and personal care products segments with a five-year forecast
for each.
 We then provide further segmentation of the beauty segment by product type, 2012 and 2013.
 Total spending on a broad range of personal care-related items – sourced from the ONS.
Annual sector sales for health and beauty specialists can be found in the Sector Size section.
Beauty and personal care market size and forecast

Beauty and personal care spending grew by just 2.3% in 2013, we estimate, as the market saw a
second year of relatively slow growth.
Declines in spending on body, hand and foot care, a flat performance in depilatory products and low
growth in hair styling agents contributed to the poor performance in both years. And in 2013 a
slowdown in growth was seen in each of colour cosmetics, facial skincare, shaving products, soap,
bath and shower products and sun care, we estimate.
We expect 2014 to be another weak year: the context of the squeezed consumer coupled with the
growing options to trade down – to discount stores or to online pureplays – and heavy promotional
activity will depress value sales. Smart shopping – pursuing deals and discounts and migrating to value
retailers – will allow consumers to continue to buy the same product at lower cost.

UK, January 2014
FIGURE 15: MARKET SIZE AND FORECAST: RETAIL SALES OF BEAUTY AND PERSONAL PRODUCTS, 2008-18
12,000 Best case (£m)

11,358
(£m)
10,000 10,308
8,936
Worst case (£m)
9,258
Market value (£m)
8,000
6,000
4,000
2,000
95%
90%
00
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 70%
Est. 50%
Actual Forecast
This market includes: body, hand and footcare; colour cosmetics; facial skincare; men’s and women’s fragrances;
deodorants; depilatory products; hair colourants; hair styling agents; oral hygiene; shampoos and conditioners;
shaving products; soap, bath and shower products; suncare.
SOURCE: MINTEL
The estimated performance in 2013 was the weakest seen during the review period.
In the expectation that shoppers regain some spending power and that promotional activity may ease a
little, we expect stronger growth from 2015.
FIGURE 16: MARKET SIZE AND FORECAST: RETAIL SALES OF BEAUTY AND PERSONAL PRODUCTS, IN CURRENT AND CONSTANT
PRICES, 2008-18
Total Index % annual £m at 2013 Index % annual

change prices change
£m
2008 7,669 86 na 9,428 105 na

2009 7,869 88 2.6 9,372 105 -0.6
2010 8,165 91 3.8 9,367 105 -0.1
2011 8,497 95 4.1 9,259 104 -1.1
2012 8,738 98 2.8 8,978 100 -3.0
2013 (est) 8,936 100 2.3 8,936 100 -0.5
2014 (fore) 9,142 102 2.3 8,902 100 -0.4
2015 (fore) 9,425 105 3.1 8,910 100 0.1
2016 (fore) 9,720 109 3.1 8,909 100 0.0
2017 (fore) 10,009 112 3.0 8,901 100 -0.1
2018 (fore) 10,308 115 3.0 8,891 99 -0.1
Deflator used for constant-prices forecast is for personal care.
SOURCE: MINTEL
Segment performance
Our total market size is split almost exactly 50/50 between beauty and other personal care products.

UK, January 2014
The core beauty segment comprises body, hand and footcare; colour cosmetics; facial skincare; and
fragrances.
The residual personal care segment includes deodorants; depilatory products; hair colourants; hair
styling agents; oral hygiene; shampoos and conditioners; shaving products; soap, bath and shower
products; and suncare.
Beauty
Estimated 2.2% growth in 2013 was a very weak performance in the context of recent years, and one
fuelled by smarter shopping: consumers appear to have pursued special offers and deals more
ruthlessly in 2013.
We expect growth to strengthen a little for 2014 and thereafter, in part as conversion to frugal
shopping habits slow.
In aggregate, the beauty category is expected to continue to outperform the total BPC market. We
break out sales values and provide commentary on recent performance for each of the beauty
categories later in this section.
FIGURE 17: MARKET SIZE AND FORECAST: RETAIL SALES OF BEAUTY PRODUCTS, 2008-18
7,000
Best case (£m)

6,000 6,168
(£m) 5,385
Market value (£m)
5,000 4,466 Worst case (£m)

4,602
4,000
3,000
2,000
1,000
95%
90%
00
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 70%
Est. 50%
Actual Forecast
The beauty segment includes body, hand and footcare; colour cosmetics; facial skincare; and men’s and women’s
fragrances.
SOURCE: MINTEL
Beauty will see some real-terms growth after 2014 as value sales growth once again outstrips the
inflation rate for personal care.
Some categories, such as colour cosmetics, saw a degree of trading down to cheaper lines in 2013.
Overall, though, there is unlikely to have been any real-terms cut in spending in recent years: smarter
shopping habits, such as taking advantage of multibuys and switching between retailers, were observed
in 2012 and 2013 – depressing value sales but ultimately making no difference to unit-volume sales.
(Consumer prices inflation takes no account of factors such as multibuys.)

UK, January 2014
FIGURE 18: MARKET SIZE AND FORECAST: RETAIL SALES OF BEAUTY PRODUCTS, IN CURRENT AND CONSTANT PRICES, 2008-
18

£m
2008 3,534 79 na 4,345 97 na

2009 3,810 85 7.8 4,538 102 4.4
2010 4,036 90 5.9 4,630 104 2.0
2011 4,248 95 5.3 4,629 104 0.0
2012 4,368 98 2.8 4,488 100 -3.0
2013 (est) 4,466 100 2.2 4,466 100 -0.5
2014 (fore) 4,605 103 3.1 4,484 100 0.4
2015 (fore) 4,801 108 4.3 4,539 102 1.2
2016 (fore) 4,998 112 4.1 4,581 103 0.9
2017 (fore) 5,190 116 3.8 4,615 103 0.7
2018 (fore) 5,385 121 3.8 4,645 104 0.7
Deflator used for constant-prices forecast is for persona care.
SOURCE: MINTEL
Other personal care products

The everyday personal care category has long been a slower-growth market. Sustained heavy
promotional activity since the onset of recession in 2008 has depressed value sales.
Estimated 2.3% growth in 2013 was typically low-growth – yet it was unusual for this segment to
outpace the beauty segment (which saw estimated 2.2% growth in 2013): that was a measure of the
weakness of the beauty category in 2013.
FIGURE 19: MARKET SIZE AND FORECAST: RETAIL SALES OF PERSONAL CARE PRODUCTS, 2008-18
5,500
Best case (£m)
5,190
5,000 Mintel forecast (£m)
(£m) 4,923
4,470 Worst case (£m)
Market value (£m)
4,500 4,655
4,000
3,500
3,000
95%
90%
2,5000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 70%
Est. 50%
Actual Forecast
The personal care segment includes deodorants; depilatory products; hair colourants; hair styling agents; oral
hygiene; shampoos and conditioners; shaving products; soap, bath and shower products; and suncare.
SOURCE: MINTEL

UK, January 2014
Relative to inflation in personal care, ie in real terms growth is expected to be negative.
As with the beauty category, however, the under-pacing of inflation does not necessarily translate into
unit-volume cuts, due to promotional activity and consumer shifts between retailers.
FIGURE 20: MARKET SIZE AND FORECAST: RETAIL SALES OF PERSONAL CARE PRODUCTS, IN CURRENT AND CONSTANT PRICES,
2008-18

£m
2008 4,135 92 na 5,083 114 na

2009 4,059 91 -1.8 4,834 108 -4.9
2010 4,129 92 1.7 4,737 106 -2.0
2011 4,249 95 2.9 4,630 104 -2.2
2012 4,370 98 2.8 4,490 100 -3.0
2013 (est) 4,470 100 2.3 4,470 100 -0.4
2014 (fore) 4,537 101 1.5 4,418 99 -1.2
2015 (fore) 4,624 103 1.9 4,371 98 -1.0
2016 (fore) 4,722 106 2.1 4,328 97 -1.0
2017 (fore) 4,820 108 2.1 4,286 96 -1.0
2018 (fore) 4,923 110 2.1 4,246 95 -0.9
Deflator used for constant-prices forecast is for persona care.
SOURCE: MINTEL
Segmentation by beauty category

Our core beauty market size breaks down thus:
FIGURE 21: BEAUTY MARKET: SEGMENTATION BY CATEGORY, 2012 AND 2013
Market value Market value Growth

2012 2013 2012-13
£m £m %
Body, hand and foot care 396 387 -2.3

Colour cosmetics 1,430 1,460 2.1
Facial skincare 1,122 1,149 2.4
Fragrances 1,420 1,470 3.5
Total beauty 4,368 4,466 2.2
Percentage of total Percentage of total Percentage point

beauty beauty change
2012 2013 2012-13
% % %
Body, hand and foot care 9.1 8.7 -0.4

Colour Cosmetics 32.7 32.7 0.0
Facial skincare 25.7 25.7 0.0
Fragrances 32.5 32.9 0.4
Total beauty 100.0 100.0 na
Retail sales including VAT.
SOURCE: MINTEL

UK, January 2014
Below we provide market summaries from relevant Mintel beauty reports, which can be found on
oxygen.mintel.com.
Body, hand and footcare
The body, hand and footcare market went into decline in 2011 and saw further, but less marked,
declines in value in 2012 (-1.5%) and 2013 (-2.3%, est.). Offsetting higher levels of NPD in the key
bodycare category was widespread discounting which served to hamper value growth; bodycare
accounts for well over half of this market. The smaller handcare and footcare categories have
performed more robustly, seeing an increase in sales in 2012.
Colour cosmetics
Following a surge in sales in 2011, growth in the colour cosmetics market slowed to 3.5% for 2012
and 2.0% for 2013 (est). This slowdown in growth can be attributed to consumers increasingly seeking
out money-saving deals (such as three-for-two offers), or trading down to budget versions of point
colour make-up (such as lipstick and nail varnish). It also reflects the increase in ‘savvy’ online
shoppers looking to make a deal on higher-priced cosmetics.
Facial skincare
After strong growth in 2011, the facial skincare market grew 3.4% in 2012 and just 2.4% in 2013
(est). Stronger sales from the men’s mass market and prestige products balanced a decline in women’s
mass market sales in 2012. Reduced annual growth can be attributed to a slowdown in growth of mass
market products. In a results-driven category, facial skincare products have got to perform, and Mintel
consumer research for our Facial Skincare report found 52% of women do not always believe the
claims made by facial skincare products.
Fragrances
Growth in the fragrance market halved in 2011 and fell further to just 2.9% growth in 2012 before
strengthening a little to 3.5% in 2013 (est). But even this is not as substantial an increase as has been
seen previously. The slowdown in growth reflects the increase in more shoppers looking to save on
fine fragrances through discounts, either online or due to high street loyalty schemes (such as Boots
Advantage and Debenhams Beauty Club) and a lack of blockbuster fragrance launches.
Total personal care market

To provide context, we also note total spending on personal care goods as defined by the Office for
National Statistics.
ONS data suggests sustained robust growth on the core personal care products category after 2010.
The relatively strong growth recorded by the ONS in 2012 and 2013 could be the result of either of
two factors:
 Stronger growth in categories excluded from Mintel’s market sizes above.
 Methodology: in the short term, ONS spending data is based in large part on retail sales data,
which in turn may be subject to changes in the sampling of retailers. The ONS typically issues
subsequent revisions to its spending figures once it has processed the results of its household
surveys.

UK, January 2014
The Personal Care Products category used by the ONS extends well beyond core BPC categories to
include semi-durables such as toothbrushes, scissors, combs, nail brushes, and hairpins; sunbathing
products; cotton wool and cotton tops; scales/weighing machines; and paper products such as toilet
paper, paper handkerchiefs, paper towels, sanitary protection, and babies’ napkins.
FIGURE 22: TOTAL CONSUMER SPENDING ON PERSONAL CARE ITEMS (INCL. VAT), 2008-13
2008 2009 2010 2011 2012 2013 (est)

£m £m £m £m £m £m
Personal care products (excl. appliances) 15,871 16,026 15,921 16,586 17,567 18,322
Annual % change -1.3 1.0 -0.7 4.2 5.9 4.3
Electrical appliances for personal care 971 1,166 1,523 1,559 1,385 1,537
Annual % change -14.6 20.1 30.6 2.4 -11.2 11.0
SOURCE: ONS/MINTEL
Mintel’s forecast methodology

Mintel has produced this forecast based on an advanced statistical technique known as ‘multivariate
time series auto-regression’ using the statistical software package SPSS.
The model is based on historical market size data taken from Mintel’s own market size database
supplemented by macro- and socio-economic data sourced from leading organizations (eg Office for
National Statistics, HM Treasury, Bank of England). Since August 2013, in a joint agreement, Mintel
has been using the continually updated databank from the respected economic and political analysts,
the Economist Intelligence Unit (EIU), to allow more timely and creditable forecasts.
The model searches for relationships between actual market sizes and a selection of key economic and
demographic determinants (independent variables) in order to identify those predictors having the
most influence on the market.
For the Beauty segment, consumer prices inflation was identified to have the most influence on the
market value.
For the Personal Care segment, personal disposable income was identified to have the most influence
on the market value.
The total Beauty and Personal Care market size is the sum of these two segments.
Next to historical market sizes and a current year estimate, the fan chart illustrates the probability of
various outcomes for the clothing market’s value over the next five years.
The future uncertainty within this market is illustrated by the coloured bands around the five year
forecast. The widening bands successively show the developments that occur within 95%, 90%, 70%
and 50% probability intervals. Statistical processes predict the central forecast to fall within the darker
shaded area which illustrates 50% probability ie a 5 in 10 chance.
At a 95% confidence interval, we are saying that 95 out of 100 times, the forecast will fall within these
outer limits, which we call the best and worst case forecast as these, based on the statistically driven
forecast, are the highest (best case) and lowest (worst case) market sizes the market is expected to
achieve.

Retail Sector Size Beauty Retailing
UK, January 2014
Retail Sector Size

Key points
 H&B specialists’ sales grew an estimated 4.9% in 2013, taking the sector to £9.8 billion (incl.
VAT, excluding NHS prescription income), according to the Office for National Statistics.
 But we think methodological changes in the ONS survey could explain some of this growth,
given major beauty specialists such as Superdrug are likely to have continued to see weak
sales growth.
 Relative to the total market size, as recorded by the Office for National Statistics, the
specialists gained in 2013.
 The specialists sector size was equivalent to 53% of total personal care spending in 2013
(est).
Sector surges in 2013 despite slower growth in BPC

2013 was a strong year for health and beauty specialists, according to data from the Office for National
Statistics. This was in spite of slowing growth for beauty and personal care products, as we outline in
the market size section of this report.
We think there are three possible reasons for the discrepancy – and the first is most likely:
 Methodology: the ONS retail sales survey may be subject to changes in its sample of retailers,
which could distort year-on-year growth rates.
 Specialists gained share of overall spend at the expense of some non-specialist sectors. But the
leading specialists, Boots and Superdrug, have posted weak sales growth in recent years while we
expect non-specialists such as discount stores and online pureplays to have gained share.
 There was strong demand for non-BPC products at specialists. Yet the sector size excludes NHS
prescription revenues, so any surge in demand would have to have come from a limited number of
categories, such as OTC medicines or baby products.
FIGURE 23: HEALTH AND BEAUTY SPECIALISTS’ SALES (INCL. VAT; EXCL. PRESCRIPTIONS), 2008-13
2008 2009 2010 2011 2012 2013 (est)

£m £m £m £m £m £m
H&B specialists 8,853 8,547 8,873 9,204 9,301 9,755

Annual % change 2.9 -3.5 3.8 3.7 1.1 4.9
All retail sales (excl. automotive 279,777 285,332 292,348 302,873 310,766 320,275
fuel retail)
H&B specialists as % of all retail 3.2 3.0 3.0 3.0 3.0 3.0
SOURCE: ONS/COMPANIES/MINTEL
Some technical notes:
 The ONS does not include Boots in its sector size, so we add Boots H&B retail sales (incl. VAT)
into our sector size. Boots posted weak sales growth in 2010, 2011 and 2012 as its owners focused
on profit over topline growth – and our 2013 estimates assume a continuation of this trend.

UK, January 2014
 The sector size excludes income from dispensing prescriptions, which are a major element (often
circa 65-70%) of revenue at high-street chemists. According to the ONS, national health receipts
in specialised retailers amounted to £8.5 billion in 2011 (latest) and in the entire retail sector
amounted to £11.5 billion in 2011 (including VAT).
Relative to spending
Relative to the ONS’s total market size – spending on all personal care goods – the specialists have
shown inconsistent trends year-to-year.
The strong growth reported for the specialists in 2013 represented a small jump, relative to category
spending – but the ratio remains below that seen in most recent years.
FIGURE 24: HEALTH AND BEAUTY SPECIALISTS’ SALES RELATIVE TO SPENDING ON ALL PERSONAL CARE GOODS, 2008-13
60.0 55.8 55.7 55.5

53.3 52.9 53.2
50.0
40.0
% 30.0
20.0
10.0
0.0
2008 2009 2010 2011 2012 2013 (est)
SOURCE: ONS/MINTEL
Outlets, enterprises and employment

In structural terms – outlets, enterprise and employment – chemists are by far the largest element of
the sector. Beauty specialists such as The Body Shop will be included within cosmetics/toiletries
specialists.
We believe the ONS does not classify Boots as a health and beauty specialist so it will be excluded
from the data below; outlet numbers for this retailer can be found in our company profile in this report.
FIGURE 25: NUMBER OF RETAIL OUTLETS, 2008/09-2012/13
At March 2009 2010 2011 2012 2013
Cosmetics/toiletries specialists 3,194 3,386 3,490 3,565 3,860

Chemists 10,063 10,199 10,550 10,845 11,000
Medical goods specialists (eg hearing aid retailers) 1,731 1,909 1,565 1,630 1,720
All retail 293,829 295,672 284,490 287,100 284,885
SOURCE: ONS

UK, January 2014
FIGURE 26: NUMBER OF RETAIL ENTERPRISES, 2008-12
2008 2009 2010 2011 2012
Cosmetic and toiletries specialists 889 852 818 835 798

Dispensing chemists 4,383 4,445 4,414 4,491 4,600
Medical goods specialists (eg hearing aid 1,227 1,189 1,159 1,182 1,232
retailers)specialists
All retail (excl. automotive fuel retail) 190,879 184,333 183,808 185,777 184,410
SOURCE: ONS/MINTEL
FIGURE 27: TOTAL EMPLOYMENT IN RETAIL, 2008-12
2008 2009 2010 2011 2012

000 000 000 000 000
Cosmetic and toiletries specialists 38 30 32 31 30

Dispensing chemist 83 80 81 82 88
Medical goods specialists (eg hearing aid retailers) 6 6 7 7 7
All retail (excl. automotive fuel retail) 3,060 3,119 2,995 3,012 3,034
Annual average.
SOURCE: ONS/MINTEL

Strengths and Weaknesses Beauty Retailing
UK, January 2014
Strengths and Weaknesses

Strengths
 Potential to benefit from the ‘lipstick effect’ – small-ticket treating – during tough economic
times.
 Male beauty continues to grow: increasing willingness among men to use skincare and other
beauty products provides a market to tap into.
 Beauty is a category in which there is great scope to carve strong USPs, add value and generate
shopper interest through NPD – using elements such as natural ingredients, ethical sourcing,
solutions to new personal care ‘problems’ and changing lifestyles, and luxury ingredients.
 An ageing population should bolster demand for beauty and personal care items, including anti-
agers, in the longer term. Moreover, imminent and future generations of retirees (ie baby boomers
and beyond) are likely to take a greater interest in personal appearance than previous generations.
 And older shoppers have been hit least by the economic downturn, making them a valuable
market: ONS data published in December 2013 showed median income for retired households
rose between 2007/08 and 2011/12 compared to income declines for non-retired households.
 Premium beauty is likely to continue to outperform, where brands can justify higher price tags:
high-value and proven-effective ingredients are expected to continue to draw shoppers in
categories such as skin care. But this does not mean consumers will view all premium product and
premium ingredients equally: value has to be tangible.
 An increased focus on personal appearance: given the ongoing growth in spending on categories
such as clothing, footwear and beauty – in spite of the squeeze on disposable incomes – there can
be little doubt that consumers are prioritising spending on products and services that enhance their
appearance.
Weaknesses
 Slow growth for beauty was seen in 2012 and 2013, amid savvy shopping and signs of some
cynicism towards premium products. The beauty category continues to grow, but added-value
brands and product claims need to work harder to justify premium pricing.
 Potentially difficult to retail online: the tangible nature of some products such as fragrance and
colour cosmetics present barriers to selling on the internet.
 Heavy price-cutting continues: deep price promotions remain common across grocers and
specialists, hitting value growth and potentially making shoppers resistant to paying full price for
mid-market products.
 Beauty treatments – widely rolled out from Superdrug and Tesco to John Lewis – risk potential
saturation, ie over-expansion.
 For specialists, the bolstering of beauty offers by non-specialists, such as Tesco in its new
hypermarket format and John Lewis revamps of its beauty halls, heightens competition. Moreover,
online pureplays threaten to chip away at store-based retailers’ share of spending.

Strengths and Weaknesses Beauty Retailing
UK, January 2014
 Not all beauty categories are equally strong – sales of body, hand and foot care are expected to
see declines to 2018 while facial skincare is expected to plateau and start declining within the next
five years. These categories will partially offset gains in the fragrance and colour cosmetics
markets.
 An expected decline in the 15-24-year-old population in the next five years risks undermining
growth for categories such as colour cosmetics.
 While older consumers are generally better off, younger shoppers have been hit hard: high
youth unemployment, stagnating wages, rising rents and household bills, and soaring house prices
have hit younger consumers hard. Moreover, for new graduates, there is the prospect of repaying
substantial student loans.

The Consumer – Retail Customer Profile Comparisons Beauty Retailing
UK, January 2014
The Consumer – Retail Customer Profile

Comparisons
Key points
 Most retailer of beauty products attract more men than women although the supermarkets
Sainsbury’s and Asda attract broadly equal numbers by gender.
 The Body Shop and ‘Other Chemist’ attract the youngest shoppers and John Lewis the most
affluent.
 John Lewis also draws more consumers in the best financial situation.
 Discount stores are favoured by those doing less well financially and so too are Boots and
Superdrug perhaps because of the regular promotional offers they run.
Mintel commissioned online research conducted by GMI into how often people use beauty products,
where people shop for different beauty categories, and whether they shop in-store or online. We also
looked at consumer attitudes towards beauty gifting and what motivates people to use particular stores.
The second question in the survey asked all respondents (2,000 internet users aged 16+):
“Thinking about beauty, make-up (eg lipstick, mascara), skincare (eg facial, body care),
fragrances and aftershave products. From which of the following retailers, if any, have you
bought for either yourself or someone else in the last 12 months?”
In this section we compare the demographic profiles of people shopping at specific retailers or through
specific channels.
Gender
Most retailer of beauty products attract more men than women although the supermarkets Sainsbury’s
and Asda attract broadly equal numbers by gender.

UK, January 2014
FIGURE 28: UK: CUSTOMER PROFILE, BY GENDER, NOVEMBER 2013
last 12 months
Debenhams 64 36
Other beauty specialist shop (eg The

Fragrance Shop, Space NK, L’Occitane)
63 38
The Body Shop 63 37
Superdrug 63 37
Boots 60 40
Discount store (eg Wilkinsons, Savers,

Poundland, Aldi) 59 41
Other (eg duty free, direct sales, clothing

retailers) 58 42
Other chemist (eg Lloyds Pharmacy,

Independent chemist) 58 42

Fraser) 57 43
John Lewis 55 45
Internet specialist (eg Amazon,

Feelunique, Mankind)
53 47
Tesco 53 47
Sainsbury's 50 50
Asda 49 51
0% 20% 40% 60% 80% 100%
Female Male
SOURCE: GMI/MINTEL
Age
The Body Shop along with ‘other chemist’ attract the youngest shoppers – the latter result surprises us
as the beauty offer in a local independent chemist can often be quite limited and conventional although
Lloyds Pharmacy does have a much more comprehensive offer and a good online offer. Retailers in
the bottom third of the chart appeal to a broad range of age groups, while John Lewis has a particularly
strong bias to the 25-34s.

UK, January 2014
FIGURE 29: UK: CUSTOMER PROFILE, BY AGE, NOVEMBER 2013
last 12 months
Other chemist 29 27 15 16 6 7
The Body Shop 29 26 20 14 7 4
Other beauty specialist shop 27 26 15 16 9 7
Other department store 26 27 17 17 6 7
John Lewis 26 32 17 12 8 5
Debenhams 25 25 20 15 9 6
Asda 25 27 21 15 10 3
Internet specialist 24 28 18 16 8 6
Sainsbury's 24 29 17 17 8 5
Superdrug 24 21 18 20 10 8
Other 22 23 17 17 11 9
Discount store 22 20 20 18 11 9
Tesco 21 23 20 18 10 9
Boots 20 22 18 17 11 11
0% 20% 40% 60% 80% 100%
16-24 25-34 35-44 45-54 55-64 65+
SOURCE: GMI/MINTEL
Socio-economic group
Predictably department stores attract more AB shoppers than other retailers or channels while discount
retailers appeal most to the DE socio-economic group.

UK, January 2014
FIGURE 30: UK: CUSTOMER PROFILE, BY SOCIO-ECONOMIC GROUP, NOVEMBER 2013
last 12 months
John Lewis 43 29 21 61
Other department store 37 33 18 10 2
Other beauty specialist shop 37 29 21 10 2
Internet specialist 35 29 21 12 3
Other 34 32 20 10 4
Sainsbury's 33 31 21 13 2
Debenhams 32 33 23 10 3
The Body Shop 32 30 23 12 3
Other chemist 31 32 21 12 4
Tesco 31 29 22 14 5
Boots 31 30 22 12 5
Superdrug 30 30 23 13 4
Asda 27 31 27 12 3
Discount store 26 28 24 16 7
0% 20% 40% 60% 80% 100%
AB C1 C2 D E
SOURCE: GMI/MINTEL
Region
John Lewis is also more London-centric than other retailers.

UK, January 2014
FIGURE 31: UK: CUSTOMER PROFILE, BY REGION, NOVEMBER 2013
last 12 months
John Lewis 29 20 11 11 10 8 10
Other department store 27 18 11 17 10 7 10
Sainsbury's 24 24 9 15 9 10 9
Other chemist 23 18 11 15 9 10 14
Debenhams 22 21 11 14 11 9 13
The Body Shop 22 23 13 15 9 8 10
Other beauty specialist shop 21 18 13 19 9 8 13
Internet specialist 21 20 14 13 9 10 13
Other 20 22 11 19 11 8 9
Superdrug 18 23 14 14 10 9 12
Asda 16 18 10 15 14 13 13
Tesco 16 23 15 15 9 8 14
Discount store 15 19 13 20 10 9 14
Boots 15 25 12 15 10 10 13
0% 20% 40% 60% 80% 100%
Inner and Greater London South East/East Anglia South West and Wales
East and West Midlands North West Yorkshire, Humberside
North and Scotland
SOURCE: GMI/MINTEL
State of finances
John Lewis also draws more consumers in the best financial situation. While discount stores are
favoured by those doing less well financially, so too are Boots and Superdrug perhaps because of the
regular promotional offers they run.

UK, January 2014
FIGURE 32: UK: CUSTOMER PROFILE, BY STATE OF FINANCES, NOVEMBER 2013
last 12 months
John Lewis 39 41 16 4
Internet specialist 34 42 18 7
Other department store 33 39 22 5
Other 32 41 22 5
Other beauty specialist shop 32 41 22 5
Other chemist 32 39 21 8
Debenhams 32 42 21 5
Sainsbury's 31 44 17 8
Tesco 28 43 23 6
The Body Shop 28 43 22 6
Asda 27 45 20 8
Discount store 26 41 24 9
Boots 26 45 21 8
Superdrug 24 45 23 8
0% 20% 40% 60% 80% 100%
Healthy - I have money left at the end of the month for a few luxuries or to add
to my savings
OK - I get by, but there's not a lot left by the time the basics are taken care of.
Tight - I'm making ends meet, but only just
Struggling/In trouble
SOURCE: GMI/MINTEL

The Consumer – Where They Buy In-store and Online Beauty Retailing
UK, January 2014
The Consumer – Where They Buy In-store and Online

Key points
 Some 68% of people who have bought skincare, make-up or fragrances/aftershave in the last
year bought from Boots which is well ahead of closest rivals Superdrug (42%) and Tesco
(35%).
 The three top supermarkets, Tesco, Asda and Sainsbury’s all feature in the top ten thanks to
their convenience, the affordable branded and own brand lines they offer and heavy
promotional activity.
 Our trend data suggests that Boots was less popular in 2013 than 2012 (68% versus 72%).
 Internet specialists, chemists and discount stores, on the other hand, all gained a lot of
ground.
 While Boots attracts more online beauty shoppers than any other retailer, John Lewis and
beauty specialist shops have the highest proportion of virtual customers in relation to their
overall customer numbers.
 The beauty market remains skewed to the under 35s.
 John Lewis attracts the most affluent shoppers (and also biased to the under 35s), The Body
Shop has the youngest shopper profile, while discount stores appeal to an older and less
affluent shopper overall.
What we asked
This section of the report examines the results of research conducted by GMI on behalf of Mintel into
where people shop for beauty products. The interviews were conducted online. The sample of 1,654
internet users aged 16+ who had bought make-up, skincare, fragrance or aftershave in the last 12
months were asked the following question:
“You’ve indicated that you have purchased make-up (eg lipstick, mascara), skincare (eg
facial, body care) or fragrance/perfume and/or aftershave product for yourself or someone
else from at least one of the following retailers in the last 12 months. Please indicate
whether you have made this/these purchase(s) online, in-store or both.”
The response data is presented in this chapter and in the Appendix – Where They Buy In-store and
Online crossed by various demographic breaks and other lifestyle characteristics.
Where consumers buy

As we saw in the Consumer section What They Buy Where, Boots is easily the most popular
destination for beauty products. Only two other health and/or beauty specialists feature in the top ten –
Superdrug and The Body Shop. In recent years the supermarkets have carved out an important position
in the market with a mix of affordable branded and own brand lines. Department stores Debenhams
also feature in the top ten while John Lewis which has considerably fewer stores is ranked further
down the list.
This first chart makes no distinction between online or in-store.

UK, January 2014
FIGURE 33: UK: W HERE THEY BUY ANY BEAUTY PRODUCT, NOVEMBER 2013
last 12 months
Boots 68
Superdrug 42
Tesco 35
Poundland, Aldi) 27
The Body Shop 23
Asda 22
Debenhams 20
Other (eg duty free, direct sales,
clothing retailers)
19
Sainsbury’s 19
Feelunique, Mankind) 19
18
Independent chemist)
14
John Lewis 14
Fraser) 14
0 20 40 60 80
%
SOURCE: GMI/MINTEL
Trend data
Below we compare the data from our 2012 and 2013 surveys.
The survey question was worded slightly differently in 2012:

“From which, if any, of these retailers have you bought make up (eg lipstick, mascara,
foundation), skincare products (face or body care), fragrances or aftershaves for yourself or
as a gift in the last 12 months, either in-store or online?”

UK, January 2014
And the list of retailers was not exactly the same, but the comparisons are nevertheless useful. Based
on these numbers Boots certainly seems to have lost customers in 2013. At the time of writing the
company had yet to announce its 2013/14 results but this dip in popularity does not surprise us given
the leap in number of people shopping with internet specialists, discount stores and chemists, all of
which could have stolen market share from Boots in 2013. Although Boots has been a solid performer
in recent years it has certainly been less dynamic than the likes of Amazon and we wait to see what
ideas new owner Walgreens may bring.
The internet specialists now have a stronger bias to the under 35s and to the ABs than seen in 2012 and
the ‘Other chemist’ profile is also slightly younger than it was. We find the leap in popularity of other
chemists and their patronage by younger people hard to explain as most independent chemists tend to
stock traditional and classic ranges and brands. However Lloyds Pharmacy, the largest conventional
chemist chain in the country, (Boots is a hybrid) does have a strong offer which is likely to appeal to a
wide audience. It also has a comprehensive online beauty assortment offering standard and premium
brands at competitive prices.
Key analysis: the trend data suggests that some consumers traded down in 2013. Amazon responded
well to this by launching its new Add-On programme for low-value products (items are dispatched
with qualifying orders of £10 or more and are eligible for free deliver). It also offers Subscribe &
Save (automatic re-orders for many frequently used products with monthly free delivery). Both
schemes are likely to have benefited its sales of beauty products and we think Amazon will have
been a major factor behind the strong progress of internet players in general this year.

UK, January 2014
FIGURE 34: UK: W HERE THEY BUY ANY BEAUTY PRODUCT, NOVEMBER 2012 AND NOVEMBER 2013
Base: 2012, 1,586; 2013 1,654 internet users aged 16+ who have bought make-up, skincare, fragrance or
aftershave products in the last 12 months
November November % point change Notes

2012 2013 2012-13
% %
Boots 72 68 -4
Superdrug 42 42 -
Tesco 33 35 +2
Discount store (eg Wilkinsons, Savers, Poundland, 22 27 +5
Aldi)
The Body Shop 22 23 +1
Asda 20 22 +2
Debenhams 18 20 +2
Sainsbury’s 18 19 +1
Internet specialist (eg Amazon, Feelunique, Mankind) 9 19 +10
Other beauty specialist shop (eg The Fragrance Shop, 7 18 +11 (a)
Space NK, L’Occitane)
John Lewis 13 14 +1
Other chemist (eg Lloyds Pharmacy, Independent 7 14 +7
chemist)
Other department store (eg House of Fraser) 5 14 +9 (b)
Other (eg duty free, direct sales, clothing retailers) 19
M&S 13 na (c)
The Perfume Shop 10 na (d)
Lush 9 na (d)
House of Fraser 8 na (c)
Avon 5 na (g)
Clothing specialist (eg Topshop, Ted Baker) 4 na (g)
(a) Excludes The Perfume Shop and Lush in 2012, includes The Perfume Shop and Lush in 2013
(b) Excludes House of Fraser and M&S in 2012, includes House of Fraser and M&S in 2013
(c) Included in Other department store in 2013
(d) Included in Other beauty specialist shop in 2013
(g) Included in Other in 2013
SOURCE: GMI/MINTEL
Where consumers buy – offline/online split

The relative importance of online shopping is much more marked for some retailers than others. In
particular John Lewis and beauty specialist shops (excluding The Body Shop) do well here.
Of the multi-channel operators, Boots attracts the highest number of online shoppers although these
shoppers represent a small proportion of the market leader’s total customers. We think this largely
reflects Boots’ strength in bricks and mortar where it has extensive national coverage with its chain of
over 2,000 outlets.

UK, January 2014
FIGURE 35: UK: W HERE THEY BUY BEAUTY PRODUCTS, IN-STORE OR ONLINE, NOVEMBER 2013
Base: 1,654 internet users aged 16+ who have bought beauty products in the last 12 months
Boots 65
9
Superdrug 38
6
Tesco 31
8
Discount store (eg Wilkinsons, Savers, 24
Poundland, Aldi) 3
Asda 19
4
The Body Shop 19

6
Debenhams 16
5
Sainsbury’s 16
4
Other (eg duty free, direct sales, 15
clothing retailers) 5
Other beauty specialist shop (eg The 12
Fragrance Shop, Space NK, L’Occitane) 8
Other department store (eg House of 11
Fraser) 4
Other chemist (eg Lloyds Pharmacy, 11
Independent chemist) 4
John Lewis 10
5
Internet specialist (eg Amazon, 0
0 10 20 30 40 50 60 70
%
In-store Online
SOURCE: GMI/MINTEL
Favourite beauty retailers

Our discussion group shows a range of opinions around people’s favourite beauty retailers and
additional services they could offer.
“Boots is definitely my favourite beauty retailer. There’s always an offer on things I want to buy
and these are rarely taken away like some other retailers.”
– 25-34-year-old, AB female
“I shop at Boots out of habit but would shop more at Debenhams/House of Fraser if I could
afford to.”
– 16-24-year-old, E female

UK, January 2014
“I don’t have a favourite. As a man I just want something that works. Once I’ve found it I'll keep
getting it and keep m y eye out for an offer, other than that I couldn't ask for more.”
– 25-34-year-old, C2 male
“My favourite is a supermarket called Aldi. I like their skincare and cosmetics range and it
doesn’t need improving.”
– 45-54-year-old, C1 female
“I don’t have a favourite as such because I don’t buy beauty products for myself. But I trust
Debenhams beauty department as they have good staff and I believe they have a beauty loyalty
card. Additional services could be advice for us guys who are looking to buy for the ladies in
their life so we don’t buy the wrong thing.”
– 25-34-year-old, E male
Attitudes towards online shopping…

Despite the growing popularity of internet specialists as a channel for beauty products, several people
in the discussion group were resistant to the idea of online shopping.
“Never ordered online, as no way to test.”

– 45-54-year-old, C1 female
“Seems a bit pointless to shop online, especially for beauty products. The main benefit of
shopping online is having it delivered! I prefer to go in to the shop and buy after testing it
myself.”
“No I have not bought online and is something I would not do. I like to be able to pick the item
up and smell it plus it could be damaged in the post and some online sites sell fake stuff.”
“No, I don’t buy products online because I can’t try them so don’t know if they suit me.”
– 16-24-year-old, D female
“I have shopped once online at Boots and it was an OK experience, no problems. But think I
prefer to browse for beauty products in store. I think online is handy though for when you want
to stock up on products eg before going on holiday.”
… and social media

Respondents were also sceptical about buying through social media.
“I don’t use social networking sites to make purchasing decisions. I would not buy products
from social networking sites because I wouldn’t trust them with my payment details or the
security on there. I would be happy to post my purchases or reviews on there after though.”

UK, January 2014
“I don't use social media websites but do look at other sites for reviews on certain beauty
products. The reviews can be very helpful especially if they highlight specific features/flaws of a
product. I don't think I would buy from social network sites as I think the high street has more to
offer and is more trustworthy.”
“I sometimes use social network sites to help me make a purchasing decision and just to have a
look at feedback from other customers.”
Who shops where

Boots and Superdrug results are closest to the average which means that they actually attract a broad
spread of consumers from across the age and income spectrum. Tesco also occupies the middle ground
which is fairly predictable given that its food offer has to appeal to most people.
The Body Shop is most biased to younger people while John Lewis attracts the most affluent
customers. John Lewis also appeals to a surprisingly young shopper with its buying levels almost two
times higher among the under 35s than the over 35s.
Although discount stores attract more under 25s than any other age group, the relative importance of
older customers is higher than most. Predictably discount stores attract a higher proportion of less
affluent customers than other retailers too.

UK, January 2014
FIGURE 36: UK: W HERE THEY BUY ANY BEAUTY PRODUCT, BY AGE AND AFFLUENCE, NOVEMBER 2013
3.7
John
3.6 Lewis Internet
specialist
3.5
Affluence on scale 1-5*
The Body
3.4 Shop Debenhams Boots
Sainsbury's
3.3 Tesco
3.2
Asda
3.1 Superdrug
Discount
3
store
2.9
35 37 39 41 43 45
Age
* Affluence represents gross household income on 1-5 scale, where 1 = <£9,500, 2 = £9,500-15,499, 3 =
£15,500-24,999, 4= £25,500-49,999, 5= £50,000+ Excludes ‘Prefer not to say’ responses.
Bubble size represents usage in past 12 months. Cross-hairs represent average age and affluence of total
sample.
SOURCE: GMI/MINTEL
Shopping repertoire
Least interested are the most loyal

Loyalty appears to have increased in 2013 with 23% of respondents using just one outlet to shop for
beauty compared with 16% in 2012. But these loyal consumers are most likely to be men, 65 years and
over or from the E socio-economic band all of which are the least engaged with the beauty market (see
Who Doesn’t Buy in chapter The Consumer – What They Bought Where). So their loyalty is about
lack of interest rather than the compelling features of particular retailers.
And the under 25s are the most fickle
At the other end of the spectrum women, young people and the more affluent are more likely to shop
around. That is bad news for retailers as these three demographic groups represent the key target
customers for beauty operators.
The under 25s are the most fickle of all, with 36% of them shopping from five or more retailers for
beauty products.

UK, January 2014
Key analysis: with consumers ever keener to secure the best deals, retailers would do well to find
new ways to bolster customer loyalty. Following the lead of food retailers, introducing Price
Matching schemes could be one way to encourage loyalty through deeper trust. Giving customers a
feeling of control over their loyalty programme interaction could be compelling too, for instance by
offering shoppers a choice in how their loyalty is rewarded. Retailers like Boots and Superdrug
could also offer schemes similar to Amazon’s ‘Subscribe & Save’ mentioned earlier in this chapter.
“I always look for the best deals so special offers are important to me and I tend to stick with
the same brands.”
FIGURE 37: REPERTOIRE OF WHERE THEY BOUGHT BEAUTY PRODUCTS IN THE LAST 12 MONTHS BY DEMOGRAPHIC,
NOVEMBER 2013
1 type of 2 types of 3-4 types of 5+ types of None of

retailer retailers retailers retailers these
% % % % %
All 23 22 28 25 1
Gender:
Male 28 26 24 21 1
Female 20 19 32 28 -
Age:
16-24 17 17 30 36 1
25-34 19 22 26 32 -
35-44 23 24 27 26 -
45-54 27 22 26 23 1
55-64 24 25 36 14 1
65+ 34 26 30 8 2
Socio-economic group:
AB 20 21 28 29 1
C1 23 23 27 26 -
C2 20 22 30 27 1
D 29 20 33 18 -
E 38 30 18 12 2
SOURCE: GMI/MINTEL

UK, January 2014
FIGURE 38: W HERE THEY BUY (IN-STORE OR ONLINE), BY REPERTOIRE OF WHERE THEY BUY, NOVEMBER 2013
All 1 type of 2 types of 3-4 types of 5+ types of None of

retailer retailers retailers retailers these
Sample size: 1,654 386 369 471 415 13
% % % % % %
Boots 68 41 57 78 94 -
Superdrug 42 7 28 52 76 -
The Body Shop 23 1 6 20 61 -
Tesco 35 14 27 38 60 -
Sainsbury’s 19 6 7 15 48 -
Asda 22 4 13 22 50 -
Debenhams 20 1 8 16 51 -
John Lewis 14 1 5 8 40 -
Discount store (eg Wilkinsons, 27 9 14 29 54 -
Savers, Poundland, Aldi)
Internet specialist (eg Amazon, 19 6 9 17 43 -
Feelunique, Mankind)
Other chemist (eg Lloyds 14 2 2 11 39 -
Pharmacy, Independent
chemist)
Other beauty specialist shop (eg 18 2 4 15 50 -
The Fragrance Shop, Space
NK, L’Occitane)
Other department store (eg 14 2 5 7 40 -0
House of Fraser)
Other (eg duty free, direct sales, 19 4 15 17 40 -
clothing retailers)
SOURCE: GMI/MINTEL

The Consumer – What They Buy Where Beauty Retailing
UK, January 2014
The Consumer – What They Buy Where

Key points
 Boots is by far the most popular retailer for all three beauty categories surveyed: 44% of
consumers buy skincare from Boots, 30% buy make-up and 28% fragrances/aftershaves
(28%).
 Superdrug comes second in all three categories but shares this position with Tesco in
skincare.
 Retailers positioned at the lower end of the market (eg Superdrug, supermarkets and
discount stores) are more popular in skincare than in the other two categories suggesting
that, on the whole, people are less prepared to spend more on skincare.
 In relative terms department stores do better in make-up than in skincare suggesting that
more consumers are willing to splash out on cosmetics.
 People are more likely to shop for fragrances/aftershaves than other beauty products in
department stores, internet specialists and Others (incl. duty-free, direct sellers and clothing
retailers).
 Some 17% of consumers have not bought skincare, make-up, fragrances or aftershave in the
last 12 months including 28% of men, 26% of people aged 55 and over, and 31% of the E
socio-economic group.
What we asked
where people shop for beauty products and what they buy. The interviews were conducted online. The
sample of 2,000 adults aged 16+ were asked the following question:
“Thinking about beauty, make-up (eg lipstick, mascara), skincare (eg facial, body care),
fragrances and aftershave products. From which of the following retailers, if any, have you
bought for either yourself or someone else in the last 12 months?”
The response data is presented in this chapter and in the Appendix – What They Buy Where crossed
by various demographic breaks and other lifestyle characteristics.
Where consumers buy

Overall Boots is the most popular destination and has a commanding lead over its nearest rivals. Easy
access (around 2,480 stores across the country plus the website and a click and collect service), strong
own brands (particularly No7), a trusted name, regular promotional activity and the successful
Advantage loyalty card all play a part in Boots’ commanding lead.
But channels to market for the beauty category are wide ranging as the chart below shows. Specialists,
drugstores, department stores, supermarkets and internet retailers all capture significant numbers of
shoppers.

UK, January 2014
FIGURE 39: UK: W HERE THEY BUY ANY BEAUTY PRODUCT, NOVEMBER 2013
Boots 57
Superdrug 35
Tesco 30
Poundland, Aldi) 23
The Body Shop 20
Asda 19
Other (eg duty free, direct sales,
clothing retailers) 17
Debenhams 17
Sainsbury’s 17
16
Fraser) 12
John Lewis 12
I have not bought any of these products
in the last 12 months 17
0 10 20 30 40 50 60
%
SOURCE: GMI/MINTEL
Where consumers buy skincare

Thanks to the success of its market leading No 7 range Boots is twice as popular as its nearest rivals,
Tesco and Superdrug. But despite Boots’ commanding lead, the skincare category appears to be more
widely shopped than make-up or fragrances/aftershaves with seven retailers posting double digit levels
of usage.

UK, January 2014
Key analysis: retailers positioned at the lower end of the market (eg Superdrug, supermarkets and
discount stores) are more widely used in skincare than in the other two beauty categories suggesting
that, on the whole, people are less prepared to spend extra on skincare. In a results driven category,
facial skincare products have got to perform. So the fact that 52% of women do not always believe
the claims made (see Mintel Report Facial Skincare – UK – May 2013) may point to increasingly
scepticism around skincare marketing messages as highlighted in Mintel’s trend Decline of
Deference. These results also marry up with our usage figures which show that while 68% of
shoppers use standard skincare brands, and 54% use own brands only 37% use premium brands.
Contrast this to fragrances where 56% of consumers use premium brands compared to 50% using
standard brands.
FIGURE 40: UK: W HERE THEY BUY SKINCARE, NOVEMBER 2013
Skincare
Boots 44
Tesco 22
Superdrug 22
Poundland, Aldi) 15
Asda 13
The Body Shop 13
Sainsbury's 11
7
Debenhams 7
Fragrance Shop, Space NK, L'Occitane) 6
retailers) 6
Fraser) 5
John Lewis 5
Not bought any of these products in last
12 months 28
0 10 20 30 40 50
%
SOURCE: GMI/MINTEL

UK, January 2014
Where consumers buy make-up

The survey findings show that consumers shop around less for make-up. Boots and Superdrug
dominate the market and no other retailer manages to attract double digit levels of usage.
Key analysis: however in relative terms department stores do better in make-up than in skincare
suggesting that consumers are more willing to splash out on make-up. For instance Debenhams
ranks sixth on make-up compared to tenth in skincare, while John Lewis comes in at number eight
on cosmetics compared to number 13 on skincare.
FIGURE 41: UK: W HERE THEY BUY MAKE-UP, NOVEMBER 2013
Make-up
Boots 30
Superdrug 18
Tesco 9
Internet specialist (eg Amazon, Feelunique,
Mankind)
7
Poundland, Aldi) 7
Debenhams 7
retailers) 6
John Lewis 6
Asda 6
The Body Shop 6

Fraser) 5
Sainsbury's 5
Other beauty specialist (eg The Fragrance
Shop, Space NK, L'Occitane) 4
Not bought any of these products in last 12
months
49
0 10 20 30 40 50 60
%
SOURCE: GMI/MINTEL

UK, January 2014
Where consumers buy fragrances/aftershave

Boots’ lead in fragrances and aftershaves is especially commanding – it is more than twice as popular
as any other retailer. After Boots, a clutch of five retailers come in at 10% usage or just above
including the ‘Other’ option which include duty-free, an important channel for perfumes and
aftershaves.
FIGURE 42: UK: W HERE THEY BUY FRAGRANCE/AFTERSHAVE, NOVEMBER 2013
Fragrance/Aftershave
Boots 28
Superdrug 12
retailers) 11
Other beauty specialist (eg The Fragrance
Shop, Space NK, L'Occitane) 10
Debenhams 10
Tesco 10
Poundland, Aldi) 8
The Body Shop 7

Fraser) 6
John Lewis 6
Asda 6
Sainsbury's 5
Not bought any of these products in last
12 months 33
0 5 10 15 20 25 30 35
%
SOURCE: GMI/MINTEL

UK, January 2014
Where consumer buy by retail sector
Department stores
Debenhams does particularly well in fragrances/aftershave.
FIGURE 43: UK: W HAT BEAUTY PRODUCTS THEY BUY IN DEPARTMENT STORES, NOVEMBER 2013
Department stores
12
10
10
8 7 7
6 6 6
% 6 5 5 5
0
Debenhams John Lewis Other department
store (eg House of
Fraser)
Skincare Make-up Fragrance/aftershave
SOURCE: GMI/MINTEL
Chemists/drugstores
Skincare is the most popular category in this retail sector, particularly in the case of Boots.

UK, January 2014
FIGURE 44: UK: W HAT BEAUTY PRODUCTS THEY BUY IN CHEMISTS AND DRUGSTORES, NOVEMBER 2013
Chemist/drugstores
50
44
45
40
35
30
30 28
% 25 22
20 18
15 12
10 7
5 4
5
0
Boots Superdrug Other chemist (eg
Lloyds Pharmacy,
SOURCE: GMI/MINTEL
Supermarkets
Skincare also leads in the supermarket sector attracting double the number of shoppers compared to
make-up and fragrances. While supermarkets have improved their cosmetics ranges in recent years and
some have added own brands, choice is still limited to the lower end of the mass market. Selling
fragrances is even more difficult in a supermarket environment and a lot of people prefer to buy in a
more aspirational setting. There are also supplier related issues with top end fragrance brands
unwilling to distribute through the supermarket channel.

UK, January 2014
FIGURE 45: UK: W HAT BEAUTY PRODUCTS THEY BUY IN SUPERMARKETS, NOVEMBER 2013
Supermarkets
25
22
20
15 13
% 11
10
10 9
6 6
5 5
5
0
Tesco Sainsbury's Asda
SOURCE: GMI/MINTEL
Beauty specialists
The Body Shop’s heritage lies in skincare and this remains its most widely used category. Other
beauty specialists are more geared to fragrances and aftershaves which we suspect reflects the
importance of retailers like The Perfume Shop and The Fragrance Shop.

UK, January 2014
FIGURE 46: UK: W HAT BEAUTY PRODUCTS THEY BUY IN BEAUTY SPECIALIST SHOPS, NOVEMBER 2013
Beauty specialists
14 13
12
10
10
8 7
% 6 6
6
4
4
0
The Body Shop Other beauty specialist (eg The
Fragrance Shop, Space NK,
L'Occitane)

SOURCE: GMI/MINTEL
Other channels
Not surprisingly the results for other channels show mixed patterns.

UK, January 2014
FIGURE 47: UK: W HAT BEAUTY PRODUCTS THEY BUY THROUGH OTHER CHANNELS, NOVEMBER 2013
Other channels
16 15
14
12 11
10
10
8
% 8 7 7 7
6 6
6
0
Discount store (eg Internet specialist (eg Other (eg duty free, direct
Wilkinsons, Savers, Amazon, Feelunique, sales, clothing retailers)
Poundland, Aldi) Mankind)
SOURCE: GMI/MINTEL
Who shops where

Boots is close to the average in all three categories which means that it appeals in the main to a broad
spread of ages and income groups. The Body Shop attracts younger people in all three product classes,
John Lewis is skewed to the more affluent customer while discount stores appeal to older less affluent
shoppers. Internet specialists have a younger profile for make-up and skincare than for fragrances and
aftershave.

UK, January 2014
FIGURE 48: UK: W HERE THEY BUY SKINCARE, BY AGE AND AFFLUENCE, NOVEMBER 2013
Skincare
3.9 John Lewis
3.7
Affluence on scale of 1-5*
Internet Debenhams
Boots
3.5 The Body specialist
Shop
3.3 Tesco
3.1 Asda
Sainsbury's
Superdrug
2.9
Discount
2.7 store
2.5
35 37 39 41 43 45
Age
sample.
SOURCE: GMI/MINTEL

UK, January 2014
FIGURE 49: UK: W HERE THEY BUY MAKE-UP BY AGE AND AFFLUENCE, NOVEMBER 2013
Make-up
3.7
3.6 John
Lewis
The Body
3.5 Sainsbury's
Shop
Asda
3.4
Debenhams
3.3 Internet Boots
specialist
3.2 Tesco
3.1
Superdrug
Discount
3
store
2.9
30 32 34 36 38 40 42 44 46
Age
sample.
SOURCE: GMI/MINTEL

UK, January 2014
FIGURE 50: UK: W HERE THEY BUY FRAGRANCES AND AFTERSHAVE, BY AGE AND AFFLUENCE, NOVEMBER 2013
Fragrance and aftershave
3.9
John Lewis
Internet
3.7 specialist
Boots
Debenhams
3.5
The
3.3 Body Superdrug
Shop
3.1 Asda
Tesco
Sainsbury's
2.9
Discount
store
2.7
2.5
34 36 38 40 42 44 46
Age
sample.
SOURCE: GMI/MINTEL
Why they choose particular retailers

Comments from the online discussion group for this report throw some light on why consumers make
the choices they do.
Promotions and deals are particularly important to people:
“Wherever there is a good deal to be honest. My wife and I always check our local Asda but
also shop in Boots, a local chemist (occasionally), and Wilkinsons for a good bargain. If I was
looking for an aftershave or perfume for my wife Boots would probably be my first port of call.”
“I usually use supermarkets such as Sainsbury's in-store and online, or Asda or Boots and
Wilkinsons as they offer good promotions unless it’s for a special occasion when I might use a
department store such as Debenhams.”

UK, January 2014
“I always look for the best deals so special offers are important to me and I tend to stick with
the same brands.”
“Stocking my favourite items is the most important factor. Special offers are very helpful, but
only on the things I'm planning to buy (money is very tight these days.).”
– 25-34-year-old, AB male
People views were more mixed in relation to testing out products before buying:
“I think it’s helpful to be able to test make up and necessary to be able to test out perfumes.”
“I am not all that concerned with being able to test or sample products as you need to use them
for a while to get a good feel of whether you like it or not.”
No one in the discussion group said they had changed the way they purchase these products in the last
12 months ie in terms of where they mainly shop, which brands they use or how much they buy.
Attitudes towards brands

Respondents in the discussion group had a range of views on brands and brand loyalty.
“I do tend to stick to the same brands for certain products but would say it's not the branding
that attracts me but the qualities of the product. For skincare and make- up I buy branded
products and for fragrances I buy premium brands as they last longer.”
“Brand is not important to me so much, it’s about the smells I like. I buy Jean Paul Gaultier and
Emporio Armani Black because I love the smell. If these smells were in a value or own label
brand I would buy them instead.”
“I always trust the big well-known brands and am usually loyal to them. Skincare wise brands
such as Dove and Nivea for men range. Fragrances Hugo Boss etc. What attracts me to them is
their product claims and my experience in using them and knowing they work. I would say
it’s50/50 importance as to brand and product. No good it just having a brand name on a poor
product. I always like to get the best of what I can afford. I tend to stick with the same brands.”
“I usually stick with the same brands not for the name but as they usually are better in quality
and not much difference in price and last well.”

UK, January 2014
Who doesn’t buy

Mintel estimates that the beauty market (body, hand and foot care, colour cosmetics, facial skincare
and fragrances) was worth £4.4 billion in 2012 (see Market Size and Forecast chapter). However our
consumer survey shows that 17% of adults are not engaged with this market. Part of this is explained
by make-up which is largely albeit not exclusively a female oriented market. But significant numbers
of older or less affluent people are not in the market for beauty either.
Key analysis: It’s common for older people to “age out” of certain markets including beauty as our
consumer data shows. However Mintel’s trend Retired for Hire talks about the over 65s increasingly
opting to delay retirement and stay in the workforce – because they want to, because they have to, or
a bit of both. With the official retirement age due to rise too, this cohort will swell in numbers and
become increasingly influential and demanding.
Beauty brands and retailers would do well to capitalise on this trend as our consumer research
shows they are more likely to be loyal shoppers than younger people. We think there are
opportunities for multi-channel and pure play beauty retailers to tailor beauty offers and services to
this cohort as more seniors become regular internet users. We’ve already seen Amazon launch an
online store in the US catering to shoppers aged 50+ helping shoppers to find what they need more
easily.
FIGURE 51: UK: THOSE THAT HAVE NOT BOUGHT IN LAST 12 MONTHS, NOVEMBER 2013
Have not bought in last 12 months
28
Any beauty product 27
31
17
77
Make-up 60
62
49
37
Fragrance/aftershave 45
50
33
45
Skincare 40
45
28
0 20 40 60 80 100
%
Male Age 55+ E socio-economic group All
SOURCE: GMI/MINTEL

The Consumer – How Often and What Type of Beauty Products They Use Beauty Retailing
UK, January 2014
The Consumer – How Often and What Type of Beauty

Products They Use
Key points
 Some 78% of consumers use fragrances/aftershave, 75% use skincare and 53% use make-up
which is lower because the majority of men don’t use cosmetics.
 Standard brands are most popular for skincare and make-up products. However own
brands do relatively well too particularly in make-up.
 In fragrances premium brands are more widely used than standard brands although
premium aftershave brands don’t do as well.
 Overall women are far more likely to use skincare than men mainly because they use it more
regularly.
 The use of skincare and make-up are both more heavily skewed to young people compared
to fragrances/aftershave usage.
 In skincare and make-up, standard brands and own brand products appeal to a similar
customer demographic. But usage of premium skincare and make-up brands is biased to a
younger more affluent shopper.
What we asked
how often people use different types of beauty products. The interviews were conducted online. The
sample of 2,000 adults aged 16+ were asked the following question:
“How often, if at all, do you use the following types of, make-up (eg lipstick, mascara),
skincare products (eg facial, body care), fragrance and/or aftershave products?”
The response data is presented in this chapter and in the Appendix – How Often and What Type of
Beauty Products They Use crossed by various demographic breaks and other lifestyle characteristics.
What type of products consumers use

Fragrances/aftershaves is the most used category (78% of adults) followed closely by skincare (75%).
Make-up (53%) lags some way behind as this is mostly but not exclusively used by women.
Looking at the results by brand type, standard brands are most popular for skincare and make-up
products. However own brands also attract high levels of usage and in cosmetics are not far behind
standard brands.
Premium skincare and make-up brands are used by fewer people (just over a third of consumers in
skincare and just under a third in make-up). But premium products will of course capture a larger share
by market value because of higher average transaction values.

UK, January 2014
Key analysis: the results charted below marry up with our findings in the Consumer chapter What
They Buy Where which show that retailers positioned at the lower end of the market (eg Superdrug,
supermarkets and discount stores) are more widely used for skincare than for the other two product
categories. Facial skincare brands are faced with a particular challenge in an increasingly sceptical
marketplace and it’s interesting that in the first quarter of 2013 the fastest growing claims category
on new launches related to time/speed claims rather than claims around anti-ageing qualities,
brightening/illuminating, or moisturising/hydrating qualities (see Mintel report Facial Skincare –
UK – May 2013). In 2012 we saw the biggest baby boom since 1971 and time pressed mothers will
be a key consumer group for new convenient beauty products.
FIGURE 52: UK: W HAT TYPE OF SKINCARE PRODUCTS THEY USE, NOVEMBER 2013
Skincare
75
Any skincare product
25
Standard skincare brand (eg 68

Nivea, Simple) 33
Store own brand skincare (eg 54

Boots No.7, Superdrug) 46
Premium brand skincare (eg 37

Clinique/ Crème de la mer) 63
0 20 40 60 80
%
Use this product I do not use this product
SOURCE: GMI/MINTEL

UK, January 2014
FIGURE 53: UK: W HAT TYPE OF MAKE-UP PRODUCTS THEY USE, NOVEMBER 2013
Make-up
53
Any make-up products
47
Standard brand make-up (eg 48

Max Factor, Rimmel) 52
Store own brand make-up (eg 43

Boots No. 7, Superdrug) 57
Premium brand make up (eg 31

Clarins, Bobbi Brown) 69
0 20 40 60 80
%
SOURCE: GMI/MINTEL
We did not include an own brand option for fragrances and aftershaves as this segment of the market is
very undeveloped. But, unlike the other two product classes, premium fragrance brands are more
widely used than standard brands although premium aftershave brands don’t do as well.
Key analysis: gifting is a key factor in the leadership of premium brands in fragrance usage. A third
of shoppers say they like to buy beauty products as a gift for someone (see The Consumer –
Attitudes to Gift Buying) and we know spending on fragrances is especially high at times like
Christmas, Valentine’s Day and Mother’s Day. Some users actually rely on receiving such gifts
instead of buying premium perfumes for themselves. However we wonder if more consumers are
prepared to pay extra for premium perfume because of the pleasure of the sensory experience while
people have become more sceptical about what premium skincare has to offer. For instance Mintel
report Facial Skincare – US – June 2012 found that 32% of women agree with the statement “most
facial skincare products are more hype than help.”

UK, January 2014
FIGURE 54: W HAT TYPE OF FRAGRANCE/AFTERSHAVE PRODUCT THEY USE, NOVEMBER 2013
Fragrance/aftershave
Use any fragrances and/or 78

aftershave 22
Premium brand fragrance/perfume

56
(eg Christian Dior, Dolce &
Gabanna) 44
Standard brand fragrance/perfume

50
(eg Impulse, Lacoste, Touch of
Pink) 50
Standard brand aftershave (eg Old 39

Spice, Lynx Africa) 61
Premium brand aftershave (eg

33
Dior Homme, Giorgio Armani
Acqua de Gio) 67
0 20 40 60 80 100
%
SOURCE: GMI/MINTEL
How often they use beauty products by gender
Skincare
Overall women are far more likely to use skincare than men. They are also much more likely to use it
daily or two to three times per week. However less often than this and usage levels are much the same
for men and women.
Key analysis: while gender roles have become more fluid and men are starting to make their mark
in traditionally female-dominated categories, the gap between male and female usage of skincare is
still significant. There is a real opportunity here for retailers and brands to boost skincare sales by
encouraging more men to adopt a daily routine. Arguably men will be open to convincing
arguments as Mintel’s trend Men in the Mirror talks about the move of metrosexuality into the
mainstream a decade on, and men are now taking pride in, and greater confidence from,
maintaining a well-groomed appearance. We wonder if brands could capitalise more on the
confidence angle given that a report from L’Oréal found that 72% of British men feel more
confident when well groomed, rising to 84% of 18-29-year-olds.

UK, January 2014
FIGURE 55: HOW OFTEN THEY USE SKINCARE, BY GENDER, NOVEMBER 2013
Skincare
100
91
90
80 75
70
59
60
% 50 45
41
40 32
30 25
18
20 131015 121211 10 9 10 9 9 9 9
10
0
Use this At least At least At least At least Less than I do not
product once a day two to once a once a once a use this
three week month month product
times a
week
All Male Female
SOURCE: GMI/MINTEL
Make-up
We find the levels of make-up usage among male consumers surprisingly high and wonder if some
men have included use of products like lip balm as well as concealers. On the other hand results in the
chapter The Consumer – What They Buy Where shows that 77% of men had not bought make-up in
the last 12 months suggesting that 23% had. While some of that is likely to have been gift purchasing
for women it would appear that more men are buying into the make-up market for themselves as well.
Key analysis: make-up is a fundamental part of the daily grooming regime for many South Korean
men and Tom Ford’s new grooming line launched in November 2013 in the US includes two make-
up items: a wash-off bronzing gel and a concealer to make “skin look better”. This launch suggests
that some brands are confident Western men will wear some form of make-up on a regular basis.
Mintel inspire trend Man in Mirror examines the changing role of men in the household and the
way it is leading them to adopt previously traditional feminine pursuits such as yoga, personal
grooming and shopping. This trends suggests that beauty brands could capitalise on these changing
perceptions and habits but any successful make-up items for men will have to be effective, quick
and easy to apply, and convenient to buy.

UK, January 2014
FIGURE 56: HOW OFTEN THEY USE MAKE-UP, BY GENDER, NOVEMBER 2013
Make-up
90 84
78
80
70
60 53
47
50
% 36
40
30 22 20 18
20 16
11 8 6 10 11 10
5 8 6
10 4 4 3
0
Use this At least At least At least At least Less than I do not
product once a day two to once a once a once a use this
three times week month month product
a week
All Male Female
SOURCE: GMI/MINTEL
Although more women use fragrances than men the gender gap is much less pronounced in this
category. It would appear that men see more reasons to use fragrance/aftershaves than skincare. They
are also more likely to use such products regularly (54% use it once at least once a week or more).

UK, January 2014
FIGURE 57: HOW OFTEN THEY USE FRAGRANCE AND AFTERSHAVE, BY GENDER, NOVEMBER 2013
90 83
78
80 73
70
60
50
%
40
29 27
30 24 22
20 20 20 21
17
20 13 14 13
10 10 10 10 9 11
10
0
Use this At least At least two At least At least Less than I do not use
product once a day to three once a once a once a this product
times a week month month
week
All Male Female
SOURCE: GMI/MINTEL
How often they use beauty products by age and affluence

The use of skincare and make-up are both more heavily skewed to young people compared to
fragrances/aftershave usage.
In skincare, standard brands and own brand products appeal to a similar customer demographic, while
premium skincare brands are more likely to attract younger more affluent shoppers.

UK, January 2014
FIGURE 58: HOW OFTEN THEY USE DIFFERENT TYPES OF SKINCARE BRAND, BY AGE AND AFFLUENCE, NOVEMBER 2013
Skincare
3.7
Premium
skincare brand
3.5 Own brand
Any skincare
skincare
brand
3.3
3.1
Standard
2.9 skincare
brand
2.7
2.5
38 39 40 41 42 43 44 45 46
Age
sample.
SOURCE: GMI/MINTEL
The same is true for make-up brands.

UK, January 2014
FIGURE 59: HOW OFTEN THEY USE DIFFERENT TYPES OF MAKE-UP BRAND, BY AGE AND AFFLUENCE, NOVEMBER 2013
Make-up
3.6
Premium
3.5 make-up
brand
3.4 Own-brand
Any make-up
make-up
3.3 brand
3.2
3.1
3
Standard
2.9 make-up
2.8 brand
2.7
2.6
36 38 40 42 44
Age
sample.
SOURCE: GMI/MINTEL
Fragrances/aftershave usage is more widespread across the age spectrum albeit biased to the under 55s.
Premium brands particularly in aftershave attract a more affluent audience than the standard brands.

UK, January 2014
FIGURE 60: HOW OFTEN THEY USE DIFFERENT TYPES OF FRAGRANCE/AFTERSHAVE BRAND, BY AGE AND AFFLUENCE,
NOVEMBER 2013
3.8
Premium Premium
aftershave Standard fragrance/perfume
3.6 brand aftershave brand

brand
3.4
3.2
Standard
3 fragrance/perfume Any fragrance/
brand aftershave
2.8 brand
2.6
37 39 41 43 45
Age
sample.
SOURCE: GMI/MINTEL

The Consumer – Key Drivers Beauty Retailing
UK, January 2014
The Consumer – Key Drivers

Key points
 Some 64% of consumers decide where to shop for beauty products based on low prices.
 Other key factors include convenient location (52%), special offers (48%) and a wide range
of brands available (44%).
 Value-added factors such as products with natural ingredients (16%), range of beauty
treatments available (8%), or click & collect services (5%) are much less important.
 Special offers are significantly less important to men than women so retailers would do well
to focus more of their promotional activity on female specific products.
 Men value the convenience of self-service checkouts more, so investment in self-scanning and
NFC (near field communication) to speed up payments could be worthwhile in select stores
where there is a captive male audience (eg City of London, transport hubs with high business
passenger footfall) or where the men’s grooming offer is particularly successful.
 Men and women are motivated in equal measure by premium store environments, new ways
to test products, and availability of beauty treatments suggesting there is scope for further
new developments in the male grooming market.
What we asked
what motivates people to shop at particular stores. The interviews were conducted online. The sample
of 1,654 internet users aged 16+ who had bought make-up, skincare, fragrance or aftershave in the last
12 months were asked the following question:
“Still thinking about buying make-up, skincare, fragrances and/or aftershave products for
yourself or someone else, which of the following factors are most important to you in
deciding which store to shop in?” Please select up to five responses.
The response data is presented in this chapter and in the Appendix – Why They Shop Where crossed
Why consumers shop where they do

Low prices is the number one factor that drives people to particular stores – almost two thirds of
consumers pick this as one of their options. Convenient location, special offers and a wide range of
brands are other significant drivers.

UK, January 2014
FIGURE 61: UK: W HY CONSUMER SHOP WHERE THEY DO, NOVEMBER 2013
last 12 months
Low prices 64
Convenient location 52
Special offers (eg 3 for 2, loyalty
48
point offers)

Natural product range (ie made
16
from natural ingredients)
Premium store environment (eg
15
cleanliness, impressive displays)
Premium branded beauty
12
counters/advisors (eg Clarins)
New ways to test products (eg
9
skin testing, virtual makeovers)
Range of beauty treatments
8
available (eg nail bars, threading)
None of these 3
0 10 20 30 40 50 60 70
%
SOURCE: GMI/MINTEL
Key drivers by age and affluence

The four big motivating factors – low prices, convenient location, special offers and a wide choice of
brands – are important across the age and income spectrum- hence all four factors sit close to the
average cross hairs in the chart.
Consumers influenced by a premium store environment or premium branded counters and advisors are
more likely to be better off and older than average.
On the other hand those interested in click & collect services, in-store beauty treatments and new ways
of testing products such as virtual makeovers are biased to younger affluent shoppers.

UK, January 2014
FIGURE 62: UK: KEY DRIVERS, BY AGE AND AFFLUENCE, NOVEMBER 2013
3.7
Click & collect
3.6 available
Premium branded
counters/advisors
3.5
Range of beauty treatments
available
3.4
Natural Premium store
product environment
3.3 New ways to range
test products Self service
3.2 checkout
Convenient
3.1 location
Special
offers
3
Low prices Wide range
of brands
2.9
available
2.8
2.7
30 35 40 45 50
Age
sample.
SOURCE: GMI/MINTEL
Gender differences
The statements where there is a statistically significant difference between gender are shown in the
first chart below.

UK, January 2014
FIGURE 63: UK: SELECT KEY DRIVERS, BY GENDER, NOVEMBER 2013
Special offers (eg 3 for 2, loyalty 55

point offers) 39

41
Natural product range (ie made from 20

natural ingredients) 12
Premium branded beauty 15

counters/advisors (eg Clarins) 9

9

7
0 10 20 30 40 50 60
%
Female Male
SOURCE: GMI/MINTEL
Key analysis: special offers are significantly less important to men than women so retailers would
do well to focus more of their promotional activity on female specific products. Special offers seem
to be less important to people shopping from department stores but are an especially important
driver for customers of The Body Shop, discount stores and Superdrug. While discount stores and
Superdrug already run effective promotional campaigns we think The Body Shop could benefit
from some new ideas. While the company’s advertising campaigns continue to reinforce the brands
core values, scoring discounts has evolved from a chore into a form of entertainment thanks to the
likes of Groupon and there is scope for The Body Shop to respond with more fun and innovative
discount promotions to better engage its young audience.

UK, January 2014
FIGURE 64: THOSE FOR WHOM SPECIAL OFFERS ARE IMPORTANT, BY WHERE THEY SHOP, NOVEMBER 2013
Special offers important
The Body Shop 57

Poundland, Aldi) 54
Superdrug 54
Boots 53
retailers) 52
Tesco 51
Fragrance Shop, Space NK, L'Occitane) 49
Debenhams 48
Asda 46
Sainsbury's 45
Fraser)
43
John Lewis 40
0 10 20 30 40 50 60
%
SOURCE: GMI/MINTEL
Key analysis: however men value the convenience of self-service checkouts more, so investment in
self-scanning and NFC (near field communication) to speed up payments could be worthwhile in
select stores where there is a captive male audience (eg City of London, transport hubs with high
business passenger footfall) or where the men’s grooming offer is particularly successful.
Men and women are equally influenced by the factors shown in the next chart when deciding where to
shop.

UK, January 2014
Key analysis: male beauty is moving beyond grooming to take in a more comprehensive regime,
including products previously seen as the exclusive preserve of women. These include
cosmeceuticals, skincare devices and even colour cosmetics created specifically for men. The results
of our survey chime with these trends as today’s male shopper is as motivated as the female shopper
by premium store environments, availability of treatments and new ways to test products. Retailers
have upped their game in male grooming but we think our results point to further opportunities in
particular for department stores and the brands they sell. For instance Dior’s collaboration with
Harrods in Spring 2013 – So Dior –was a truly impressive event making must-see destinations of
both brands. But bringing men and male products into the frame would broaden the appeal of such
headline-grabbing exhibitions. This could work particularly well for luxury brands like Burberry,
Armani, Gucci and Dunhill that offer fashion, accessories and beauty, allowing them multiple
touch points around the store.
FIGURE 65: UK: SELECT KEY DRIVERS, BY GENDER, NOVEMBER 2013
Premium store environment 16

(eg cleanliness, impressive
displays) 14
New ways to test products (eg 10

skin testing, virtual makeovers) 8
Range of beauty treatments 8

available (eg nail bars,
threading) 7
0 5 10 15 20
%
Female Male
SOURCE: GMI/MINTEL
People who are motivated by having new ways to test products are most likely to shop for beauty in
specialist stores or at Debenhams, John Lewis or The Body Shop. These retailers may therefore gain
the most from investing in services such as virtual makeovers and skin testing devices.
Key analysis: Tokyo department store, Isetan Mitsukoshi, has discovered that while men may find
the more traditional approach of male and female beauty brands merchandised together quite
intimidating, they feel much more comfortable trying out products in a dedicated male space
without pressure from sales staff. UK department stores could learn from this. Most merchandise
male and female beauty products in the same space although some, like Harrods, do provide
grooming services alongside other male-dedicated departments. But retailers would do well to create
more spaces where men can comfortably test out grooming products and treatments anonymously.
Department stores and airport outlets could work well here. Increasing investment in skin
diagnostic testing and skin simulation devices would also speak to this audience and help to deliver
a genuine competitive edge.

UK, January 2014
FIGURE 66: THOSE FOR WHOM NEW WAYS TO TEST PRODUCTS ARE IMPORTANT, BY WHERE THEY SHOP, NOVEMBER 2013
New ways to test products

Fragrance Shop, Space NK, L’Occitane) 20
John Lewis 19
Debenhams 19
The Body Shop 18

Sainsbury’s 16
Fraser) 15
Asda 14
Superdrug 13
Poundland, Aldi) 11
Boots 11
Tesco 10
0 5 10 15 20 25
%
SOURCE: GMI/MINTEL
People who are motivated by having a range of beauty treatments available are most likely to shop for
beauty at John Lewis or other department stores, although Debenhams comes slightly lower on the list.
Nevertheless department stores are particularly well placed to offer treatments having more space than
other types of retailers and many of them are already successfully doing this.

UK, January 2014
FIGURE 67: THOSE FOR WHOM A RANGE OF BEAUTY TREATMENTS AVAILABLE ARE IMPORTANT, BY WHERE THEY SHOP,
NOVEMBER 2013
Range of beauty treatments available
John Lewis 18
fraser) 16
The Body Shop 15

14
Debenhams 14
Asda 11
Sainsbury’s 11
Superdrug 11
Poundland, Aldi)
10
Tesco 9
Boots 9
0 5 10 15 20
%
SOURCE: GMI/MINTEL

The Consumer – Attitudes Towards Beauty Gifting Beauty Retailing
UK, January 2014
The Consumer – Attitudes Towards Beauty Gifting

Key points
 Beauty products are a popular choice of gift – 33% of us like to buy them as a present for
someone else.
 People have positive opinions of beauty gift sets: 28% of consumers think they are good
value and 22% would like to see them more widely available at different times of the year
not just Christmas.
 Women are more important to the beauty gifting market in terms of their participation,
perceptions and wants. On the other hand our survey did not ask about transaction values
and we think men’s average spending on gifting could possibly be higher.
 Debenhams customers (32%) are particularly interested in the idea of more regular use of
gift sets and 41% of them also like to buy gift sets which come with free samples so this could
be a way for Debenhams to engage more customers on a regular basis.
 Department store and beauty specialist customers are particularly keen on the idea of add-
on beauty services like gift wrapping, gift lists and monthly beauty gift boxes.
 People who prefer to shop online for beauty gifts are likely to be more affluent than average
suggesting opportunities for premium and luxury brands.
What we asked
attitudes towards beauty gifting. The interviews were conducted online. The sample of 1,654 internet
users aged 16+ who had bought make-up, skincare, fragrance or aftershave in the last 12 months were
asked the following question:
“Thinking specifically now about buying a beauty gift for someone including make-up,
skincare products, fragrances and/or aftershave. Which of the following statements, if any,
do you agree with? Please select any that apply.”
The response data is presented in this chapter and in the Appendix – Why They Shop Where crossed
Attitudes towards beauty gifting
Beauty products are a popular choice of gift

Beauty products are a popular choice of gift – 33% of us like to buy them as a present for someone
else.
Moreover, as a gift purchase, beauty products are more than twice as popular as beauty treatment
vouchers and gift cards.

UK, January 2014
FIGURE 68: UK: ATTITUDES TOWARDS BEAUTY GIFTING, NOVEMBER 2013
last 12 months
I like to buy beauty products as a gift

for someone else 33
Beauty gift sets are good value for

money 28
I like to buy beauty gift sets which

offer free samples when you make a 23
purchase
I would like beauty gift sets to be
more widely available at other times 22
in the year than Christmas
beauty gift box (including new 18
product samples)
I would like gift wrapping services to
be made more widely available 15

vouchers/gift cards as a gift (eg spa 14
treatment, manicure)
card/voucher than buy a gift set for 14
someone
I prefer to shop online for beauty
gifts
14
In store beauty advisors provide

useful gift ideas 12
I would like more beauty retailers to

provide a gift list service 8
None of these 22
0 10 20 30 40
%
SOURCE: GMI/MINTEL
Opportunities for gift sets

Some 28% of consumers think beauty gift sets are good value and 22% would like to see them more
widely available at different times of the year not just Christmas, demonstrating there are some
positive perceptions around on gift sets.

UK, January 2014
Key analysis: these results flag up the potential for more regular use of gifts sets and our cross
analysis reveals that Debenhams customers (32%) are particularly interested in this idea. Moreover,
as many as 41% of Debenhams customers like to buy gift sets which come with free samples so this
could be an effective way for Debenhams to engage more of its customers on a regular basis.
And gift services
While 15% of consumers would like gift wrapping services to be made more widely available this
rises to 23% for customers of The Body Shop and 25% for Debenhams and John Lewis shoppers.
People who shop at these three retailers as well as other beauty specialist shops and department stores
are also much more inclined than average to like the idea of a gift list service and monthly beauty gift
boxes.
Key analysis: these results suggest customers of department stores and specialist beauty stores
including The Body Shop are especially engaged in the notion of add-on beauty services and there
may be more retailers can do here to foster customer loyalty. For instance, while most department
stores offer a wedding gift list service, John Lewis, M&S and Amazon also offer a Wish List service
which others could emulate. These personalised online lists show all the things customers would
like to own and allow friends, family and benefactors to purchase the perfect present for special
occasions.
People who prefer to shop online for beauty gifts (14% of consumers) are a key target market for
wish list providers. This group are more likely to be ABs and under 35. But while department stores
may be the best match for this demographic perhaps there is scope for the supermarkets, who
already sell gift cards, to extend the idea into online gift list services as well.
Beauty gift boxes have become popular in the UK, US and further afield as consumers are eager to
try the most recently launched products coming to market. More recently we’ve seen companies
arriving in Chile asking consumers to write reviews on products and those who do can win a free
beauty box. UK companies could learn from beauty box brands in Chile and further stimulate users
to write their opinions online, especially considering the rising importance of bloggers and social
media influential.
Attitudes by gender
Those statements posting the highest responses were driven by particularly high levels of agreement
among women.
Key analysis: women are more important to the beauty gifting market in terms of their participation,
positive perceptions and wants. On the other hand our survey didn’t ask about transaction values
and we think men’s average spending on gifting could possibly be higher, and this cohort is
certainly important too. Moreover the statements rankings shown below differ by gender. For
instance gift wrapping services are ranked third by men compared to seventh by women and ‘I
would prefer to buy a beauty gift card/voucher than buy a gift for someone’ comes joint fourth for
men compared to eighth for women. In other words men have different needs to women when
buying beauty gifts and retailers would do well to capitalise fully on those needs.

UK, January 2014
FIGURE 69: ATTITUDES TOWARDS BEAUTY GIFTING, BY GENDER, NOVEMBER 2013
last 12 months
I like to buy beauty products as a gift 37

for someone else 29
Beauty gift sets are good value for 33

money 20
I like to buy beauty gift sets which

offer free samples when you make a
29
purchase 15
I would like beauty gift sets to be more

widely available at other times in the
28
year than Christmas 14

beauty gift box (including new product
24
samples) 11

vouchers/gift cards as a gift (eg spa
16
treatment, manicure) 11
I would like gift wrapping services to be 14

made more widely available 16

card/voucher than buy a gift set for
14
someone 15
I prefer to shop online for beauty gifts

13
14
In store beauty advisors provide useful 11

gift ideas 13
I would like more beauty retailers to 8

provide a gift list service 8
0 10 20 30 40
%
Female Male
SOURCE: GMI/MINTEL
Attitudes by age and affluence

The next charts shows that while there are some differences in attitudes based on age and affluence
several statements sit close to the average meaning they draw from across the age and income
spectrum.

UK, January 2014
Key analysis: younger more affluent shoppers (a key target market for beauty retailers) are
particularly interested in a gift list service. Results for this statement crossed by where people shop
suggest there may be particularly good opportunities here for ‘other department stores’ and we
think House of Fraser and Selfridges could both benefit launching this type of service.
FIGURE 70: UK: KEY DRIVERS, BY AGE AND AFFLUENCE, NOVEMBER 2013
3.5
I prefer to shop online for
3.45 beauty gifts
I like to buy beauty

3.4
products as a gift for
I would like more In-store beauty someone else
3.35 retailers to provide a advisors provide
gift list service useful gift ideas
3.3
3.25
3.2
I would prefer to buy
I like the idea of receiving a beauty gift
3.15 card/voucher than
a monthly gift box
buy a gift set for
3.1 someone
3.05 All other statements
3
35 37 39 41 43 45 47
Age
sample.
SOURCE: GMI/MINTEL
People who prefer to shop online for beauty gifts are likely to be more affluent than average.
Key analysis: these results suggest that the online opportunities for premium and luxury brands
may be particularly attractive. We’ve recently seen Burberry open its first standalone beauty store in
Covent Garden and as one of the digital leaders in the luxury sector Burberry has swapped
traditional tills for iPads and iPhones to take payments and offer digital receipts. But could luxury
brands like Burberry leverage their digital credentials to drive online gift purchasing for example
with gift e-cards.

UK, January 2014
With more consumers moving to online shopping, packaging also needs to regain some of the gloss
that shopping in the luxury boutiques previously provided in order to drive gift purchasing (see
Mintel Trends in Luxury Beauty Packaging from Mintel’s Packaging Perspectives Webinar series).
Luxury packaging design is being pulled in many sometimes contradictory directions, from
consumers’ desire for environmental responsibility through recyclability, to the need for unique
materials that deliver not just a product but an experience, too. These are challenges that luxury
brands need to address in order to stay one step ahead of the competition.

Who’s Innovating? Beauty Retailing
UK, January 2014
Who’s Innovating?
Key points
 Premium beauty retailers and direct sellers have turned to in-store events to increase
customers’ dwell time and to drive sales.
 While online retailers offer a wide range of beauty products, consumers may not find it
convenient to wait for their delivery to arrive. Retailers have responded by introducing more
convenient delivery options, which allow customers to plan their day better, eg click-and-
collect, collection lockers and parcel tracking services.
 Supermarkets and beauty retailers have boosted own-label NPD targeting consumers who
have cut back on their spending during the recession. Boots re-launched its own-label
Botanics sub-brand in 2012. Sainsbury’s introduced a new colour cosmetics brand,
Boutique, and extended its skincare offering with exclusive brands and collections in 2013.
New retail concepts

The Chanel-owned French cosmetics brand Bourjois celebrated its 150th anniversary with the opening
of its first standalone store, since the closure of the original store in the 1930s, in Paris in April 2013.
The brand previously hosted a pop-up store at the department store chain Galeries Lafayette in 2012.
Bourjois’ store was designed around a Parisian theme with pink street lamps and images of the city.
The store offers beauty and make-up services in its La Jolie Room, including manicures, make-up
lessons, do-it-yourself nail polish applications for €1 and a false eyelash or mascara and liner
application for €3.
The cosmetics brand Benefit launched Glam Up and Away beauty kiosks at 25 major airports in the
United States in August 2013. The vending machines are shaped like pink beauty buses and offer 30
best-selling Benefit products, including mini make-up kits and the brand’s most popular products such
as They’re Real! Mascara and Porefessional primer. Customers can access tips on the kiosks’
interactive screens before purchasing products.
Jo Malone opened a boutique for its new brand Jo Loves in October 2013. The store was designed to
resemble a brasserie with playful ways to display the brand’s product range, which includes
fragrances, bath colognes and shower gels. Bath colognes are served from hot tagines, shower gels are
displayed in shot glasses and body lotions can be tested on the skin using foam guns. The store
cautions its customers that, while some of its drinks are displayed like food and drink, they are not
edible and are designed to “amuse the nose”.
The UK spa brand Cowshed opened a beauty boutique and salon in Shoreditch, London, in October
2013. The Cheeky Parlour targets a younger audience and will sell products from Cowshed’s new,
younger brand Cheeky, including hair care, bath and body care products and colour cosmetics. The
beauty salon offers affordable beauty services, such as ‘Cheeky Blows’ (blow fries) and ‘Cheeky
Updos’ (hair styling) for £15 and ‘Cheeky File & Paint’ (manicure) for £10. The store and salon
features a ‘Selfie Studio’ which allows customers to take photos of themselves and share them on
social networks.

UK, January 2014
In October 2013, Chanel opened a beauty pop-up store at Heathrow Airport’s Terminal 5, offering the
brand’s skincare, make-up, nail and fragrance ranges as well as complimentary nail shape and paint
services at the nail bar. The temporary store will be opened until February 2014. Earlier in 2013,
Chanel launched a vending machine at Selfridges Oxford Street to mark the launch of its first
volumising mascara, Le Volume de Chanel Mascara.
Cosmetics brand Shu Uemura introduced an interactive retail design at its new store in Covent Garden,
London in October 2013. The L’Oréal-owned brand has designed the store around a central
consultation area, the Shu Atelier. The area features adjustable lighting which lets customers test the
brand’s products under different lighting conditions, including sunlight, spotlight and indirect lighting.
Shu Uemura has rolled out the concept to 100 of its stores worldwide.
December 2013 saw the opening of the first Burberry Beauty Box dedicated beauty store. The store is
located in the Covent Garden area of London, which is rapidly developing into something of a
destination for prestige beauty shopping, also housing stand-alone beauty stores operated by Dior and
Chanel.
The store stocks Burberry’s extensive fragrance collections and cosmetics lines as well as accessories
such as handbags, make up bags, scarves and sunglasses. Burberry is renowned for its digital
innovations and the store operates a till-free system, using iPads and iPhones for payment, while a
Digital Runway Nail Bar enables customers to virtually “try on” new colours. The store features a
chandelier made up of iPad screens and screens around the store show current ad campaigns and
catwalk collections.
The launch forms part of Burberry's strategy to increase its focus on beauty, since it brought the range
in-house after terminating its licensing contract with Inter Parfums at the end of 2012. The move has
also led to the launch of seasonal beauty looks to complement the brand’s catwalk collections and
Runway Made to Order for beauty, with customers able to buy the beauty products immediately after
they appear in the seasonal Burberry fashion shows.
In-store events
Amid growing competition from online retailers, which offer a wide range of products and convenient
delivery options, brick-and-mortar retailers are trying to improve the in-store experience with special
events and pop-up initiatives to drive sales and extend customers’ dwell time.
In March 2013 Harrods partnered with Dior for an exhibition celebrating Christian Dior’s relationship
with the department store. Throughout the duration of the Dior ‘takeover’, all 33 of Harrods’ windows
featured Dior displays. The event consisted of an exhibition showcasing miniature couture dresses and
contemporary art, a pop-up restaurant serving the designer’s favourite foods, in-store displays
resembling the Paris Dior headquarters and an exclusive beauty offering especially created for the
event.
Harrods launched month-long series of in-store events centred around perfumes and fragrance brands.
The Fragrance Explosion offers talks, tutorials, interviews and workshops with industry professionals,
including Chanel fragrance expert Joanna Norman, who will host an event to celebrate Chanel’s
signature scents with Champagne and macaroons flavoured to reflect the ingredients of Chanel No. 5
and Coco. The Fragrance Explosion also included a fragrance master class and afternoon organised by
the brand Jo Malone and a talk by Camille Goutal, who will use fresh flowers to demonstrate the story
of her mother Annick Goutal’s perfumes.

UK, January 2014
Selfridges hosted a week of events with make-up artist Charlotte Tilbury in September 2013. Entitled
the ‘House of Rock’n’Kohl, the week-long celebration at The concept Store at Selfridges offered
makeover sessions, live demonstrations, panel discussions, beauty tips from the make-up artist, the
Quick Flick Eye Bar for eye make-up, Daily Beauty Treat manicures, The Kissing Gallery which
offers limited edition make-up bags printed with the kisses of celebrities. A range of beauty products
selected by Charlotte Tilbury was available from Selfridges Beauty Hall and The Beauty Workshop.
Space NK began celebrating its twentieth anniversary with a year of events in October 2013. The
programme began with the launch of The Beauty Council, which consists of 20 influential individuals
– including chef Tom Aikens, food magicians Bompas & Parr and celebrities Pearl and Daisy Lowe –
and discusses what beauty means through their chosen medium such as films, essays and collections of
images. In addition to The Beauty Council, Space NK will host events at its flagship stores throughout
the year. Consumers need to purchase tickets for the events, but the ticket price of £15 is redeemable
against purchase.
Chanel regularly offers in-store events and promotions at its Beauty Boutique in Covent Garden,
London, and at its department store concessions. In October 2013, Chanel opened a photo booth to
promote its lipstick range. Customers could take a photo in the Chanel Le Rouge photo booth, using
Chanel-themed props such as giant lipsticks and the brand’s logo, and digitally ‘try on’ Chanel lipstick
shades and textures. As part of the promotion, the store offered complimentary lipstick consultations to
find customers’ perfect shade of lipstick.
Mintel Trends: Mintel’s Trend Experience Is All explores how the growing number of online
retailers and click-and-collect services are reducing the time customers spend in-store. As a result,
retailers are increasingly looking for opportunities to create more enjoyable in-store experience and to
increase dwell time. They do so by adding in-store services, eg nail bars and make-up demonstrations,
hosting events with industry professionals, and setting up pop-up stores offering exclusive products for
a limited time.
More convenient online shopping

In 2012 and 2013, retailers extended their offering to beauty products and added services to make
shopping online and receiving deliveries more convenient for consumers.
The luxury fashion e-retailer Net-a-Porter started selling beauty products, including skincare, colour
cosmetics and hair care in March 2013. Its beauty store sits alongside its fashion offering on its
website and includes a selected of premium beauty brands such as Aesop, Chantecaile and KORA
Organics, the latter of which is available in the UK for the first time.
Amazon launched a Luxury Beauty Store in the United States in October 2013. The online store,
which forms part of the retailer’s main website, offers cosmetics, skincare, hair care, fragrances and
men’s grooming products from 24 premium brands, including Burberry, Deborah Lippman,
L’Occitane and STILA. Amazon offers free shipping for orders above $25 and free samples with
purchase for selected items.
Mintel’s report Beauty Online – UK, December 2013 revealed that 23% of consumers do not always
find it convenient to stay at home and wait for their delivery. Retailers have introduced delivery
options targeting these concerns:

UK, January 2014
 Online fashion retailer Asos, which also offers a wide range of beauty products, launched a real-
time parcel-tracking service in June 2013. Customers receive text message or email on the day of
delivery to inform them of their one-hour time slot. They can live-track the delivery and received
an accurate real-time 15-minute countdown. Users of the service can also reschedule the delivery
for a different date or request for it to be deposited with a neighbour.
 House of Fraser launched a next-evening delivery option in July 2013. The service offers
deliveries between 6pm and 10pm, seven days a week. It is priced at £6 per order. The department
store retailer will also offer a same-day click-and-collect service at selected stores in time for
Christmas 2013.
 eBay partnered with Argos to trial a new “click and collect” service in the UK in September 2013.
The new delivery option is available for 50 selected eBay merchants and allows customers to
retrieve their order from 150 Argos stores.
 The Perfume Shop launched 90-minute deliveries in London ahead of the festive season in
October 2013. The service is aimed at consumers who need to send a present immediately, eg for a
last-minute Christmas gift or forgotten birthdays and anniversaries. The 90-minute delivery option
is priced at £7.50.
Mintel’s report Beauty Online – UK, December 2013 also revealed that 23% do not buy beauty and
personal care products online because they are concerned they will not like the products. This has
particularly posed a barrier to purchasing fragrances online, but some fragrance online retailers have
introduced services to tackle this concern:
 The Perfume Shop launched a ‘helper hotline’ ahead of Christmas 2012 after the retailer found
that many men do not know which fragrance their partners use. The hotline provided advice on
how to find the perfect fragrance for a loved one. Customers could also submit images of perfume
bottles for the advisers to identify the scent or provide them with an alternative.
 The Fragrance Shop introduced a ‘try it first’ service in June 2013 with the aim to solve the
problem of unwanted fragrance purchases that did not appeal after the packaging was opened. The
initiative provides customers with a free sample of the fragrance they have purchased, allowing
them to test the scent first before opening the full-sized bottle and return the product if they do not
like it.
Mintel Trends: According to Mintel’s Trend FSTR HYPR, the mass adoption of the internet and
mobile technologies have considerably sped up consumers’ lives, allowing them to connect with
people, access information anywhere and buy anything on-the-go. This has shaped consumers’
expectations as they are looking for faster and easier ways to do things. Retailers have responded to
this trend by launching vending retail options (eg BeautyMART), click-and-collect services and same-
day delivery.
Supermarkets and beauty retailers boost own-label offering

With only a quarter of consumers believing that cheap body moisturisers and colour cosmetics
products work just as well as expensive ones (see Mintel’s reports Body, Hand and Footcare – UK,
2013 and Colour Cosmetics – UK, July 2013), supermarkets and beauty retailers have stepped up their
own-label product development, launching affordable products with a more premium ‘feel’ or
prestigious ingredients, such as organic botanical extracts.

UK, January 2014
Boots teamed up with The Royal Botanic Gardens in Kew to re-launch its Botanics skincare range in
July 2012. The line offers facial skincare, shower and bodycare products containing active botanical
ingredients, such as willow bark, hibiscus and marshmallow. Boots’ Botanics range is grouped into
five lines – Radiant Youth, All Bright, Ultra Calm, Shine Away and Organic.
Boots introduced the No7 Foundation Match Made Service in February 2013, driving awareness of the
various foundation ranges available under the No7 brand. Using a specially designed device, staff at
668 Boots stores can identify the colour of a customer’s skin and then select the foundation and shade
that match.
Tesco boosted its beauty offering in March 2013, introducing the new Tesco Pro Formula range, which
covers skin care, hair care and men’s grooming categories. The retailer also updated its standard
personal care range with a new packaging design and new ingredients.
Sainsbury’s launched a new own-label colour cosmetics range, Boutique, in September 2013. The
range is positioned as a ‘premium-quality’ line at affordable prices starting from £4. In July 2013,
Sainsbury’s hosted a beauty pop-up shop, entitled ‘Beauty Boutique Café’, for press and bloggers to
drive awareness of the new cosmetics line prior to its launch.
In addition, Sainsbury’s extended its skincare offering in September 2013, with the relaunch of the
Skin Therapy range, which offers products for Normal/Combination and Sensitive skin. The retailer
partnered with the founder of Aromatherapy Associates in October 2013 to launch a new brand,
Aroma Actives, exclusively available at Sainsbury’s. The collection comprises 16 products featuring
aromatherapy ingredients at an affordable price, retailing between £7 and £18.
Mintel Trends: Mintel’s Trend Extend My Brand explores how the recession has led consumers to
review their spending habits and whether buying branded products are worth the cost. Trust plays an
important role in their decision process and retailers have used their established reputation to extend
into new categories, offering consumers added convenience as they sell ancillary products alongside
their traditional product range.

Channels of Distribution Beauty Retailing
UK, January 2014
Channels of Distribution
Key points
 We estimate the health and beauty specialists – chemists, drugstores and beauty specialists –
account for the largest share of spending – but this sector is only marginally ahead of the
grocers.
 Grocers will account for the largest share of spending in everyday personal care categories –
but the overall share of H&B specialists and department stores is boosted by their presence
in core beauty products including premium brands.
 We estimate mixed goods retailers such as Wilkinsons and Poundland now account for 6.5%
of all BPC spending.
Specialists and grocers vie for majority share

We estimate H&B specialist retailers – chemists, drugstores and beauty specialists – maintain the
largest share of spending, but that grocers are not far behind.
Value-positioned mixed goods retailers, such as Wilkinsons and Poundland, have established a
sizeable share of category spending, and this is likely to be at the expense of specialists and grocers.
Our figures are based on spending on the total market for beauty and personal care goods.
FIGURE 71: ESTIMATED DISTRIBUTION OF SPENDING ON BEAUTY AND PERSONAL CARE GOODS, 2013
Others***
Mixed goods 5%
retailers**
6.5%
H&B
specialists*
Department
37%
stores
15.5%
Grocers
36%
Based on spending of £8.9 billion, as outlined in the Market Size section of this report.
* Includes chemists, drugstores and beauty specialists.

** Value mixed goods retailers such as Wilkinsons, Poundland, B&M.
*** Includes direct sales such as Avon and online pureplays.
SOURCE: MINTEL

Channels of Distribution Beauty Retailing
UK, January 2014
In total, then, an estimated £5.6 billion of the £8.9 billion market size is channelled through non-
specialist retailers.
FIGURE 72: ESTIMATED DISTRIBUTION OF SPENDING ON BEAUTY AND PERSONAL CARE GOODS, 2013
£bn %
H&B specialists* 3.3 37.0

Grocers 3.2 36.0
Department stores 1.4 15.5
Mixed goods retailers** 0.6 6.5
Others*** 0.5 5.0
Total 8.9 100.0
Totals may not sum due to rounding.
* Includes chemists, drugstores and beauty specialists.

** Value mixed goods retailers such as Wilkinsons, Poundland, B&M.
*** Includes direct sales such as Avon and online pureplays.
SOURCE: MINTEL

Space Allocation Summary Beauty Retailing
UK, January 2014
Space Allocation Summary

Key points
 While personal care products are important to specialist such as The Body Shop and Boots,
the premium beauty products occupy a similar proportion of space in both.
 By far the largest proportion of space given to beauty is in department stores. But their
beauty concessions are highly profitable and are placed at the front of the store.
 Boots’ weakness lies in the space allocated to non-personal care products, but the company
seems to be slowly reducing that.
Space allocations
Mintel surveyed the outlets of 10 beauty retailers, both specialists and non-specialists. For the non-
specialists, the grocers and John Lewis, we analysed just the beauty, health and toiletries areas. For the
drugstores and specialists we analysed the whole store.
The detailed findings are shown next. The categories are Mintel’s own and we accept that it can
sometimes be unclear where a product should be classified. The classifications used in the next two
tables are then also used in the summary tables later.
FIGURE 73: LEADING PERSONAL CARE RETAILERS: DETAILED SPACE ALLOCATION, DECEMBER 2013
Boots Morrisons Sainsbury's Tesco Asda

% % % % %
Baby:
Baby care (eg soothers, teethers, toiletries) 1.2 3.2 3.7 4.7 3.5
Baby clothing 0.8 5.1 1.3 6.4 11.6
Baby food & drink 0.9 4.4 7.4 5.1 4.6
Baby wipes & nappies 1.2 6.7 6.6 8.2 7.4
Toiletries:
Bodycare (eg vaseline) 1.6 1.6 2.1 1.4 1.0
Colour cosmetics/make-up/eye lashes & nails 13.4 2.2 0.3 2.9 1.7
Deodorants & anti-perspirants 0.9 1.6 1.8 1.0 1.0
Eyecare 0.7 0.6 0.5 0.4 0.4
Feminine hygiene 1.2 3.8 4.5 2.3 1.5
Footcare 0.8 0.6 0.5 0.4 0.8
Hair colourants & perms 1.4 2.9 2.9 1.8 1.9
Men's toiletries 3.3 3.2 4.2 2.3 2.5
Shampoo & conditioner 3.8 5.7 4.7 3.3 3.5
Soap, bath, shower 2.8 4.8 5.8 4.1 2.5
Suntan preps/Self-tanning 0.6 0.6 0.5 0.8 0.6
Toothpaste/Oral hygiene 3.1 4.8 4.5 2.9 2.5
Gift-packs/Seasonal 11.3 4.1 3.9 2.1 4.6

UK, January 2014
OTC:
Allergy relief 0.7 na na na na
Alternative health 0.4 na na na 0.4
Children's OTC 0.6 0.6 0.5 0.4 0.4
Coughs & cold remedies 1.5 1.6 1.1 0.8 1.0
Digestive care 0.8 0.6 0.5 0.4 0.6
First aid 0.8 0.3 0.5 0.4 0.4
Healthcare – sleep & stress 0.2 0.3 0.3 0.2 0.4
Pain relief 0.9 1.3 0.5 0.6 0.8
Pregnancy kits 0.3 0.3 na 0.4 0.2
Sexual 0.3 0.6 0.8 0.4 0.2
Smoking cures 0.3 0.6 0.5 0.4 0.4
Vitamins & supplements 3.6 0.6 1.6 1.6 1.0
Weak bladder 0.3 na na na 0.4
Weight management & sports nutrition 1.3 0.6 0.8 0.6 0.6
Perfume and cosmetics:

Facial skincare 4.8 3.5 2.6 2.9 2.5
Men's perfume 1.4 0.6 na 0.4 0.4
Women's perfume 2.7 1.3 na 0.8 1.2
In-store branded concessions 7.6 na na na na
Photographic:
Photo/Instant photo kiosk 1.2 0.6 0.5 0.8 1.0
Cameras/Photography albums 1.0 na 0.5 1.0 0.4
Healthcare:
Consultants 0.6 na 1.1 na na
Pharmacy 2.1 3.2 3.7 1.9 1.5
Optical na na na na na
Opticians 2.0 na na 1.9 4.4
Spectacles 0.2 0.6 0.3 0.4 0.2
Food:
Food-to-go 4.0 2.9 5.0 3.7 2.7
Other:
Batteries 0.6 2.5 1.6 1.2 1.5
Hot water bottles 0.2 na na na na
Magazines and cards 0.2 12.4 14.2 20.0 18.0
Water filters 0.1 1.3 na na na
H&B accessories:
Bath accessories (eg brushes & sponges) 0.7 0.6 0.5 0.4 0.4
Beauty gadgets 3.8 0.6 na 1.6 na
Diagnostics & electrical health 0.4 na na na na
Hair removal/cotton wool/accessories 0.7 1.0 1.3 0.6 0.6
Haircare accessories (eg brushes, clips) 1.4 0.3 0.5 0.6 0.4
Tissues 0.6 2.2 2.6 2.5 2.1
Travel health/accessories/travel-sized 0.7 0.3 0.8 0.4 0.6
products
Clothing and accessories:

Clothing na na na na na
Jewellery 0.7 0.6 1.1 1.2 1.9
Tights/hosiery 0.8 1.9 1.3 1.8 1.9
Umbrellas 0.4 na na na na
Total 100 100 100 100 100
SOURCE: MINTEL

UK, January 2014
FIGURE 74: LEADING PERSONAL CARE RETAILERS: DETAILED SPACE ALLOCATION, DECEMBER 2013 (CONTINUED)
The Body Superdrug Savers Avon John

Shop Lewis
% % % % %
Baby:
Baby care eg soothers, teethers, toiletries na 0.6 2.3 na na
Baby clothing na na na 1.1 na
Baby food & drink na 0.5 0.9 na na
Baby wipes & nappies na 0.5 1.9 na na
Toiletries:
Bodycare (eg vaseline) 17.1 2.1 2.8 1.1 0.8
Colour cosmetics/make-up/eye lashes & nails 12.8 25.7 4.4 32.2 2.1
Deodorants & anti-perspirants na 1.5 2.8 1.1 na
Eyecare na 0.4 0.5 na na
Feminine hygiene na 1.9 3.3 na na
Footcare na 0.7 0.9 na na
Hair colourants & perms na 4.5 5.8 0.6 na
Men's toiletries 1.9 3.0 5.1 1.1 na
Shampoo & conditioner 0.5 4.8 5.1 4.5 1.6
Soap, bath, shower 12.8 3.0 5.4 4.0 1.2
Suntan preps/Self-tanning na 0.6 1.4 na 0.2
Toothpaste/Oral hygiene na 4.2 4.9 na na
Gift-packs/Seasonal 35.5 7.0 15.2 13.6 7.0
OTC:
Allergy relief na 0.2 na na na
Alternative health na 0.1 na na na
Children's OTC na 0.7 0.9 na na
Coughs & cold remedies na 1.1 2.3 na na
Digestive care na 0.6 0.9 na na
First aid na 1.1 0.9 na na
Healthcare – sleep & stress na 0.2 1.4 na na
Pain relief na 1.1 1.4 na na
Pregnancy kits na 0.4 0.9 na na
Sexual na 1.0 0.7 na na
Smoking cures na 0.4 0.9 na na
Vitamins & supplements na 2.4 1.6 na na
Weak bladder na 0.2 na na na
Weight management & sports nutrition na 0.5 0.9 na na
Perfume and cosmetics:

Facial skincare 10.4 5.8 4.4 9.6 2.5
Men's perfume na 1.2 1.2 1.7 na
Women's perfume 6.6 3.2 5.1 6.2 na
In-store branded concessions na na na na 82.3
Photographic:
Photo/Instant photo kiosk na na na na na
Cameras/Photography albums na na na na na
Healthcare:
Consultants na 0.4 na na na
Pharmacy na 0.9 na na na
Optical na na na na na
Opticians na na na na na
Spectacles na 0.1 na na na
Food:
Food-to-go na 8.1 1.2 na na

UK, January 2014
Other:
Batteries na 1.0 1.9 na na
Hot water bottles na 0.1 0.5 na 0.4
Magazines and cards na 0.4 0.9 na na
Water filters na na na na na
H&B accessories:
Bath accessories (eg brushes & sponges) 1.9 0.6 1.4 na 0.4
Beauty gadgets na 1.6 0.2 na 0.2
Diagnostics & electrical health na na na na na
Hair removal/cotton wool/accessories na 1.1 1.6 na 0.4
Haircare accessories (eg brushes, clips) 0.5 0.9 0.9 na 0.6
Tissues na 0.9 3.0 na 0.2
Travel health/accessories/travel-sized products na 0.7 0.9 na na
Clothing and accessories:

Clothing na na na 13.0 na
Jewellery na 0.9 na 9.6 na
Tights/hosiery na 0.7 0.5 0.6 na
Umbrellas na 0.1 0.5 na na
Total 100 100 100 100 100
SOURCE: MINTEL
Space allocation overview

Summarising this data gives the following picture we have drawn a distinction between the stores
where we have analysed the whole store (Boots, Superdrug, etc) and those where we have analysed
personal care and baby only (John Lewis and the grocers).
Note – while we have estimated the space allocated to gift packs in the table above, we have treated
the entire category as toiletries in this analysis.
FIGURE 75: HEALTH AND BEAUTY SPACE ALLOCATIONS, DECEMBER 2013
Whole store
Avon 17.5 1.1 58.2 23.2
The Body Shop 17.1 80.6 2.4
Boots 16.5 4.1 45.0 12.0 22.4
Savers 10.7 5.1 57.6 13.1 13.5
Superdrug 10.31.6 59.4 10.2 18.5
Specialist areas only
Sainsbury's 2.6 36.3 35.0
John Lewis 84.8 13.0 2.3
Morrisons 5.4 19.4 36.5 7.6 31.1
Tesco 4.1 24.3 25.7 6.0 39.9
Asda 4.1 27.1 24.6 6.6 37.7
0% 20% 40% 60% 80% 100%
Perfume and cosmetics Baby Toiletries OTC Other
SOURCE: MINTEL

UK, January 2014
Comparisons are not easy. Department stores focus on beauty through concessions (or areas that are
devoted to single brands and can look like concessions). For the food retailers premium products are
usually sourced from the grey market. It is interesting to see that in spite of radically different product
offers, the proportion of space allocated to beauty products is much the same in The Body Shop and
Boots.
The next chart takes toiletries and cosmetics and compares the space allocated, irrespective of the type
of retailer. The perfumes and cosmetics category includes all the premium branded areas. Colour
cosmetics are the mass market products.
FIGURE 76: BEAUTY AND PERSONAL CARE PRODUCTS SPACE ALLOCATIONS, DECEMBER 2012
John Lewis 82.3 2.1 8.0 2.9
Boots 11.7 13.4 3.3 17.8 6.6 3.9
Avon 7.9 32.2 1.1 16.4 8.5
The Body Shop 6.6 12.8 1.9 52.6 13.3
Savers 6.3 4.4 5.1 31.7 10.5 5.8
Superdrug 4.5 25.7 3.0 17.9 7.8 5.0
Morrisons 1.9 2.2 3.2 15.2 10.5 5.4
Asda 1.5 1.7 2.5 11.0 6.0 3.3
Tesco 1.2 2.9 2.3 9.7 7.4 3.3
Sainsbury's 0.0
0.3 4.2 16.3 10.5 5.0
0% 20% 40% 60% 80% 100%
Perfumes and cosmetics Colour cosmetics etc Men's toiletries

womens' toiletries bath/shower Other
Other includes facial care, sun care, deodorants and hair styling agents.
SOURCE: MINTEL
Sales mix
We do not have enough information to make satisfactory estimates of sales mix – we have no basis for
distinguishing between the various categories. We do know that for department stores the beauty
concessions generate very high turnovers and margins – that is why they are at the front of the store.
We also know that 2012/13 we know that dispensing and other NHS income amounted to 35.5% of
Boots’ UK turnover, from only 2% (this does not include the storage and dispensary area, which we do
not have access to measure, so is a small under-estimate). Superdrug and the major grocers also
operate pharmacies, but we do not think that the NHS share of personal care income would be as great
as at Boots.

The Leading Specialist Retailers Beauty Retailing
UK, January 2014
The Leading Specialist Retailers

Key points
 2012 was another weak year for sales at broad-range, midmarket retailers such as Boots
(zero growth in H&B sales) and Superdrug (sales down 2.7%).
 The midmarket retailers are vulnerable to trading down to grocers and discount retailers as
well as more general price-conscious shopping habits.
 Value-positioned retailers Savers and The Fragrance Shop performed well, with double-digit
sales growth.
 In the premium tier, Space NK continued to turn in strong sales growth in 2012, and we
estimate L’Occitane also saw a good performance.
 But not all premium brands/retailers are equal: Molton Brown, which is focused on
premium toiletries such as handwash, looks to have been hit by trading down. And
Penhaligon’s, focused on fine fragrances, saw sales decline in 2012.
Sales: midmarket weak, value and premium strong

The beauty specialists sector is dominated by privately-owned retailers – so there is little indication of
performance other than their annual accounts, and the latest of these runs to 2012. A few have not even
published 2012 accounts at the time of writing so we provide estimates below.
The midmarket
Topline growth has been weak at Boots as its owners appear to have prioritised profitability over sales;
its health and beauty revenues were flat in 2012. Superdrug’s sales have also been weak, falling nearly
3% in 2012.
In the context of heavy promotional activity by major grocers and competition on price from value
retailers, these retailers are likely to have lost share in everyday toiletries to non-specialists ranging
from Tesco to 99p Stores.
At the same time, Boots’s perfumery sales are vulnerable to the growth of off-price specialist chains,
The Perfume Shop and The Fragrance Shop as well as promotional activity from Debenhams: Boots
reported a decline in fragrance sales over Christmas 2012 due to price competition.
L’Oréal-owned The Body Shop is believed to have struggled with falling UK sales for a number of
years – but we estimate this decline reversed slightly in 2012, largely on the back of a major overhaul
of stores.
Value retailers outperform
AS Watson-owned Savers experienced a double-digit surge in sales in 2012, helped by a small jump in
store numbers. This retailer is likely to be benefitting from increased consumer willingness to shop
around more at discount stores. In the medium term, though, there is the potential for Savers to be
threatened by the growth of the likes of Poundland and 99p Stores as well as Aldi and Lidl.

UK, January 2014
Among the value perfumeries, topline growth at AS Watson’s The Perfume Shop was driven purely by
an increase in store numbers: on a sales-per-outlet basis, The Perfume Shop saw annual declines. Its
smaller competitor The Fragrance Shop fared better by this measure in 2012.
Premium performs better
Strong performance has tended to be seen at premium brands with retail divisions, such as L'Occitane
and Space NK.
But not all premium players are equal. We think shoppers perceive more of a tangible benefit of
trading up in some sub-categories, such as skincare and anti-agers, over others, such as shower gel or
handwash. So while natural skincare specialist L’Occitane is expected to have performed strongly,
soap-and-bath specialist Molton Brown has fallen behind.
Some notes
For brands such as L’Occitane, Penhaligon’s and Jo Malone, revenues below will include an element
of wholesaling to third-party retailers. For Molton Brown, our data is for its retail sales only. Note that
Sally Beauty includes a substantial (though undisclosed) proportion of business-to-business sales.

UK, January 2014
FIGURE 77: LEADING BEAUTY SPECIALISTS’ NET REVENUES, 2008-12
2008 2009 2010 2011 2012 % change Notes

2011-12
£m £m £m £m £m
Alliance Boots UK Retail total 6,343.0 6,642.0 6,721.0 6,706.0 6,547.0 -2.4
Boots UK health & beauty retail 3,851.0 3,971.0 3,984.0 4,004.0 4,003.0 0.0
A. S. Watson UK 1,400.1 1,425.6 1,402.9 1,440.4 1,447.1 0.5

Savers Health and Beauty Ltd 161.0 171.5 171.1 189.1 214.5 13.4
Superdrug Stores Plc 1,074.9 1,074.8 1,054.6 1,049.1 1,021.0 -2.7
The Perfume Shop Ltd 164.2 179.3 177.2 202.1 211.6 4.7
The Body Shop UK 173.0 159.0 156.0 154.0 156.0 1.3 (e)
Sally Beauty 76.2 82.0 107.5 127.7 131.0 2.6 (a)
Bodycare (Health & Beauty) Ltd 127.1 126.9 121.1 127.1 130.7 2.8
The Fragrance Shop 45.0 40.4 49.3 56.2 63.3 12.6
Space NK Ltd 44.0 46.8 49.7 53.9 58.5 8.5
Lush Retail Ltd 41.0 44.2 47.2 52.7 57.4 8.8 (b, c)
L'Occitane Ltd 21.8 27.4 33.2 40.0 48.2 20.7 (b, d)
Jo Malone 25.8 28.0 31.8 35.5 39.5 11.0 (b, c, d)
Molton Brown Ltd (UK) 33.2 34.8 38.5 32.5 31.5 -3.1 (g)
Crabtree & Evelyn 25.6 22.6 25.8 26.8 27.2 1.4 (b, c, h)
Penhaligon's Ltd 7.6 8.4 9.2 10.7 10.5 -2.0 (d)
Online pureplays/home
shopping:
Avon Cosmetics Ltd 318.6 316.6 328.9 311.8 291.2 -6.6
Feelunique.com na 8.0 16.1 26.7 37.4 40.1 (b)
Lookfantastic.com na 17.9 14.2 20.8 22.4 7.9 (b)
AllBeauty.com (formerly na na 13.0 15.0 18.0 20.0 (e)
CheapSmells.com)
FragranceDirect.co.uk na 9.6 12.6 13.2 14.4 9.1
Escentual.com 7.0 5.9 6.8 7.3 7.8 8.0 (b, i)
Yves Rocher UK 3.3 2.9 2.8 2.8 2.6 -5.4
(a) Includes an element of B2B sales. Sally Beauty integrated its Salon Services Ltd business in 2010, boosting
sales in that year.
(b) 2012 data estimated.
(c) Year-end is June – we consider year ending June 2013 as 2012, etc.
(d) Includes an element of wholesale.
(g) Retail sales – excluding wholesale.
(h) Total international sales.
(i) Data is for parent company, RK Aggarwal Ltd, which also includes dispensing chemists.
SOURCE: COMPANIES/MINTEL
While a number of pureplays have seen substantial growth over the review period, this is often from a
tiny base figure – and as can be seen above, players such as Escentual.com remain tiny.
The early-movers in natural beauty, The Body Shop and Yves Rocher, have lost out as other, more
premium players have emerged.
Yves Rocher, which is home-shopping only, appears to have failed to ride the wave of growth in e-
commerce: its sales have declined each year from 2001, when they closed their UK stores and moved
to home-shopping only; at the same time, new online pureplays have boomed.

UK, January 2014
FIGURE 78: LEADING BEAUTY SPECIALISTS’ NET REVENUES: COMPOUND ANNUAL GROWTH RATES, 2008-12
Feelunique.com (a) 67.2

Escentual.com 30.3
L'Occitane (b) 22.0
Sally Beauty (c) 14.5
FragranceDirect.co.uk (d) 14.5
Jo Malone (b) 11.2
The Fragrance Shop 8.9
Lush (b) 8.8
Penhaligon's 8.5
Lookfantastic.com (a) 7.8
Savers 7.4
Space NK 7.4
The Perfume Shop 6.5
Crabtree & Evelyn (g) 1.5
Boots H&B retail 1.0
Bodycare 0.7
Superdrug -1.3
Molton Brown -1.3
Avon -2.2
The Body Shop (e) -2.6
Yves Rocher -5.2
-20.0 0.0 20.0 40.0 60.0 80.0

%
(a) Three-year CAGR, 2009-12; and 2012 data estimated.

(b) 2012 data estimated.
(c) Includes an element of B2B sales. Sally Beauty integrated its Salon Services Ltd business in 2010, boosting
sales in that year.
(d) Three-year CAGR, 2009-12.
(g) Total international sales.
Leading chemists
The focus of this report is beauty retailing – not health retailers such as chemists.
But for completeness, we provide a five-year revenue summary for the five largest pharmacy/chemist
retailers below.
As a very broad guide, we think around 70% of a typical chemists’ sales may be from dispensing
prescriptions: this leaves around 30% as the residual for OTC healthcare and BPC sales (ie comparable
to the retail sales of Superdrug or Boots). On this basis, we provide ballpark estimates of potential
health, beauty and personal care sales in the final column of the table below.

UK, January 2014
FIGURE 79: LEADING PHARMACY CHAINS’ NET REVENUES, 2008-12
2008 2009 2010 2011 2012 H&B retail sales

estimates, 2012*
£m £m £m £m £m £m
Lloyds Pharmacy (UK) (Celesio) 1,713 1,729 1,803 1,852 1,826 548
The Co-operative Pharmacy 744 745 771 754 764 229
L Rowland & Co (Retail) Ltd 519 527 524 514 493 148
(Phoenix Group/Tamro)
Paydens Ltd 100 104 107 110 108 32
WR Evans Ltd 69 74 76 76 74 .22
* estimated at a flat 30% of 2012 revenues.
Outlets and sales per outlet

More niche operators grew their estates in 2012, while the mature, midmarket players cut back a
fraction. So we saw Savers, The Perfumer Shop and The Fragrance Shop increase store numbers while
Boots, Superdrug and The Body Shop reduced their portfolios.
We exclude pureplays and home-shopping operators from the following tables.

FIGURE 80: LEADING BEAUTY SPECIALISTS’ OUTLET NUMBERS, 2008-12
2008 2009 2010 2011 2012
Alliance Boots UK Retail 2,591 2,473 2,472 2,477 2,476

Boots UK health & beauty retail 2,591 2,473 2,472 2,477 2,476
A. S. Watson UK 1,321 1,321 1,316 1,345 1,370

Savers Health and Beauty Ltd 235 230 231 232 243
Superdrug Stores Plc 923 923 900 887 882
The Perfume Shop Ltd 163 168 185 229 245
The Body Shop UK 338 329 311 315 306

Sally Beauty 249 252 255 256 259
Bodycare (Health & Beauty) Ltd 132 139 134 133 132
The Fragrance Shop 103 101 113 127 137
Space NK Ltd 69 61 60 60 63
Lush Retail Ltd 87 94 92 101 106
L'Occitane Ltd 40 47 53 62 70
Jo Malone na na na 38 40
Molton Brown Ltd (UK) 43 43 43 39 38
Crabtree & Evelyn 43 39 39 39 35
Penhaligon's Ltd 14 13 12 12 12
Some data estimated
The weak performance of the market leaders – Boots and AS Watson – in 2012 is confirmed by data
on sales per outlet.
The Perfume Shop again turned in a decline in sales per store – and this is in contrast to the
performance of The Fragrance Shop. Superdrug has in recent years installed Perfume Shop counters in
its stores and if these are being counted as Perfume Shop outlets within the company’s accounts, this
may be a reason for the declining sales per outlet. But we simply don’t know whether AS Watson
considers these counters to be part of Superdrug or The Perfume Shop.

UK, January 2014
Sales per outlet can be distorted for brands such as Crabtree & Evelyn due to their wholesaling
operations to third-party retailers.
FIGURE 81: LEADING BEAUTY SPECIALISTS’ ANNUAL SALES PER OUTLET, 2008-12
2008 2009 2010 2011 2012 % change Notes

2011-12
£000 £000 £000 £000 £000
Alliance Boots UK Retail 2,436 2,623 2,719 2,711 2,644 -2.5

Boots UK health & beauty retail 1,479 1,568 1,612 1,618 1,616 -0.1
A. S. Watson UK 1,067 1,079 1,064 1,083 1,066 -1.6

Savers Health and Beauty Ltd 677 739 744 819 903 10.3
Superdrug Stores Plc 1,171 1,164 1,158 1,175 1,154 -1.8
The Perfume Shop Ltd 1,053 1,087 1,007 976 893 -8.6
The Body Shop UK 524 477 487 492 502 2.1 (e)
Sally Beauty 306 327 424 500 509 1.8 (a)
Bodycare (Health & Beauty) Ltd 1,324 940 890 956 986 3.2
The Fragrance Shop 437 396 461 469 480 2.3
Space NK Ltd 666 719 828 899 960 6.8
Lush Retail Ltd 471 492 507 549 554 0.9 (b)
L'Occitane Ltd 545 637 663 701 731 4.3 (b)
Jo Malone na na na 935 1,011 8.2 (b, c)
Molton Brown Ltd (UK) 772 809 895 794 819 3.1
Crabtree & Evelyn 609 550 663 688 735 6.8 (d)
Penhaligon's Ltd 584 648 767 894 876 -2.0
(a) Sally Beauty integrated its Salon Services Ltd business in 2010, boosting sales in that year.
(b) 2012 sales data estimated.
(c) Store numbers estimated/approximate.
(d) Based on total international sales data.
Premium players have tended to lead by this measure over the years 2008-12. But, as we noted above,
not all prestige brands are equal: shoppers look to have prioritised those operators where premium
ingredients appear to offer a tangible difference – notably, skincare.
Sally Beauty’s sales per outlet were given a boost by the integration of its Salon Services business in
2010.

UK, January 2014
FIGURE 82: LEADING BEAUTY SPECIALISTS’ ANNUAL SALES PER OUTLET: COMPOUND ANNUAL GROWTH RATES, 2008-12
Sally Beauty (a) 13.6
Penhaligon's 10.7
Space NK 9.6
L'Occitane (b) 7.6
Savers 7.5
Crabtree & Evelyn (c) 4.8
Lush (b) 4.1
The Fragrance Shop 2.4
Boots H&B retail 2.2
Molton Brown 1.5
Superdrug -0.4
The Body Shop (e) -1.0
The Perfume Shop -4.0
Bodycare -7.1
-10.0 -5.0 0.0 5.0 10.0 15.0

%
No full-period data for Jo Malone.
(a) Includes an element of B2B sales. Sally Beauty integrated its Salon Services Ltd business in 2010, boosting
sales in that year.
(b) Based on estimated sales data for 2012.
(c) Based on total international sales data.
Operating profits and margins

Privately-owned, Swiss-domiciled Alliance Boots has focused on profitability in recent years – and by
this measure the chain performed very well in 2012.
AS Watson appeared to take a similar tack with Superdrug – yet this chain plunged into the red in
2012. Gross margin improved very slightly at Superdrug in 2012, but operating profit looks to have
been hit by a depreciation reassessment.
AS Watson’s Savers chain finally moved into profit in 2012, after turning operating losses for the prior
six years.
But operating losses afflict the sector. While Penhaligon’s has improved its position year on year,
Crabtree & Evelyn’s performance has been very inconsistent.

UK, January 2014
Lush has posted consistent losses as it has grown – but this is likely due, in part at least, to the
structure of the Lush group: Lush Retail purchases its stock from Lush Manufacturing and the
company states it has “the support of its parent company, Lush Cosmetics Ltd”.
FIGURE 83: LEADING BEAUTY SPECIALISTS’ OPERATING PROFITS, 2008-12
2008 2009 2010 2011 2012 % change

£000 £000 £000 £000 £000 2011-12
Alliance Boots UK Retail 628,000 677,000 713,000 750,000 813,000 8.4

A. S. Watson UK -1,200 20,400 31,300 36,895 30,762 -16.6
Savers Health and Beauty Ltd -17,709 -9,576 -7,757 -368 6,952 na
Superdrug Stores Plc -2,419 6,033 15,240 10,799 -1,399 na
The Perfume Shop Ltd 18,878 23,985 23,784 26,464 25,209 -4.7
Sally Beauty 1,214 -301 2,403 3,605 666 -81.5

Bodycare (Health & Beauty) Ltd -383 -246 -1,751 -378 -878 na
The Fragrance Shop na 2,809 3,591 5,390 6,537 21.3
Space NK Ltd -933 716 768 1,269 1,024 -19.3
Lush Retail Ltd -3,352 -2,316 -1,465 -1,959 na na
L’Occitane Ltd 101 178 552 41 na na
Jo Malone 5,421 7,273 8,539 9,937 na na
Crabtree & Evelyn 270 -2,254 -53 -855 na na
Penhaligon's Ltd -3,721 -152 -174 637 815 27.9
Online pureplays/home
shopping:
Avon Cosmetics Ltd 20,844 -4,325 3,538 22,256 6,691 -69.9
Feelunique.com na 601 985 1,980 na na
Lookfantastic.com na 1,282 605 500 462 -7.6
FragranceDirect.co.uk na 519 647 279 870 211.8
Escentual.com 836 712 838 645 729 13.0
Yves Rocher UK 493 -13 335 331 111 -66.5
Boots was taken private in 2007 and has bolstered its margins consistently since then.
Margin performance has tended to be much more inconsistent at other top-tier specialists.

UK, January 2014
FIGURE 84: LEADING BEAUTY SPECIALISTS’ OPERATING MARGINS, 2008-12
2008 2009 2010 2011 2012

% % % % %
Alliance Boots UK Retail 9.9 10.2 10.6 11.2 12.4

A. S. Watson UK -0.1 1.4 2.2 2.6 2.1
Savers Health and Beauty Ltd -11 -5.6 -4.5 -0.2 3.2
Superdrug Stores Plc -0.2 0.6 1.4 1.0 -0.1
The Perfume Shop Ltd 11.5 13.4 13.4 13.1 12.6
Sally Beauty 1.6 -0.4 2.2 2.8 0.5

Bodycare (Health & Beauty) Ltd -0.3 -0.2 -1.4 -0.3 -0.7
The Fragrance Shop na 7.0 7.3 9.6 10.3
Space NK Ltd -2.1 1.5 1.5 2.4 1.7
Lush Retail Ltd -8.2 -5.2 -3.1 -3.7 na
L’Occitane Ltd 0.5 0.7 1.7 0.1 na
Jo Malone 21.0 26.0 26.9 28.0 na
Crabtree & Evelyn 1.1 -10.0 -0.2 -3.2 na
Penhaligon's Ltd -49 -1.8 -1.9 5.9 7.8
Online pureplays/home shopping:

Avon Cosmetics Ltd 6.5 -1.4 1.1 7.1 2.3
Feelunique.com na 7.5 6.1 7.4 na
Lookfantastic.com na 7.2 4.3 2.4 2.1
FragranceDirect.co.uk na 5.4 5.1 2.1 6.0
Escentual.com 32.7 10.2 14.2 9.4 9.9
Yves Rocher UK 15.1 -0.4 11.9 11.9 4.2
Sales area and sales densities

We have good indications of total selling area only for the two largest specialists, Boots and AS
Watson.
FIGURE 85: SELECTED BEAUTY SPECIALISTS’ TOTAL SALES AREA, 2008-12
2008 2009 2010 2011 2012 Notes

000 sq m 000 sq m 000 sq m 000 sq m 000 sq m
Alliance Boots UK Retail 740 732 732 732 732 (e)

A. S. Watson UK na 303 293 289 306 (e)
Savers Health and Beauty Ltd na 48 48 48 50 (e)
Superdrug Stores Plc 255 255 245 241 240 (e)
The Perfume Shop Ltd na 11 12 15 16 (e)
FIGURE 86: SELECTED BEAUTY SPECIALISTS’ ANNUAL SALES PER SQ M, 2008-12
2008 2009 2010 2011 2012

£ £ £ £ £

A. S. Watson UK na 4,708 4,709 4,948 4,826
Savers Health and Beauty Ltd na 3,589 3,573 3,932 4,346
Superdrug Stores Plc 4,257 4,215 4,218 4,313 4,241
The Perfume Shop Ltd na 16,011 15,078 14,665 12,926
Based on estimated sales areas

Leading Retailers’ New Product Launches Beauty Retailing
UK, January 2014
Leading Retailers’ New Product Launches

Key points
 New product launches by the three largest specialists – Boots, Superdrug and The Body
Shop – slowed in 2013, possibly as a consequence of slower market growth in 2012.
 Among the leading non-specialists, Tesco recorded a high number of new beauty/personal
product launches in 2012 and 2013, apparently confirming its innovative strengths.
 Lip Colour was the most popular BPC category for new launches in 2013.
 Ethical-Animal was the most popular product claim on new BPC launches in 2013.
Number of new products launched

The data below covers identified new product launches for the three largest specialists – Boots,
Superdrug and The Body Shop – and the three largest non-specialists – Tesco, Sainsbury’s and Asda.
Own-brand is very important for each of the major specialists – and for The Body Shop own-brand is
their only product. The data for the three specialists shows a slowing of new product launches in 2013
– which could well be an after-effect of slower market growth in 2012.
The data for Tesco appears to confirm this retailer is an innovator in the beauty and personal care
category (which we discuss in The Non-Specialist Retailers section of this report). The increase in new
Tesco products in 2013 was in large part due to the launch of its Pro-Formula brand across multiple
sub-categories in the year. But the retailer has also been reformulating and/or repackaging many of its
own-brand products as part of its turnaround strategy.
The large number of Sainsbury’s product launches in 2012 was largely due to the roll-out of its By
Sainsbury’s own brand across all its mid-tier lines.

UK, January 2014
FIGURE 87: NUMBER OF IDENTIFIED NEW BEAUTY AND PERSONAL CARE PRODUCTS LAUNCHED, SELECTED RETAILERS, 2012
AND 2013
2012 2013
800
708
Number of new products
700
600
500
400
273
300 204
186
200 170 148 153
126
100 55 40 30 30
0
Tesco
Boots
Sainsbury's
Asda
The Body Shop
Superdrug
SOURCE: MINTEL GLOBAL NEW PRODUCTS DATABASE
Most popular categories

Among these six leading retailers, core beauty categories were the most popular – new launches in
more mundane personal care categories such as shower products and shampoo were much less
common.

UK, January 2014
FIGURE 88: MOST POPULAR CATEGORIES FOR NEW BEAUTY AND PERSONAL PRODUCTS LAUNCHED, SELECTED RETAILERS,
2013
Lip Colour 89
Face/Neck Care 81
Sets 68
Body Care 44
Shower Products 43
Eye Shadow 38
Nail Colour Cosmetics 35
Shampoo 34
Bath Additives 33
Face Colour Cosmetics - Concealer 26
0 20 40 60 80 100
Most popular product claims

The strength of the ethical-animal claim is helped by the supermarkets: Sainsbury’s and Tesco each
put “no animal testing” claims on own-brand products. If we exclude the three supermarkets and look
at Boots, Superdrug and The Body Shop only, the ethical-animal claim falls to second place among the
leading product claims.
Note that products can make multiple product claims, so the total number of claims exceeds the total
number of new launches.

UK, January 2014
FIGURE 89: MOST POPULAR CLAIMS FOR NEW PRODUCTS LAUNCHED, SELECTED RETAILERS, 2013
Ethical - Animal 349
Botanical/Herbal 279
Ethical - Environmentally Friendly
258
Package
Moisturising / Hydrating 233
Dermatologically Tested 165
Brightening / Illuminating 145
Time/Speed 141
Seasonal 134
Long-Lasting 133
Ethical - Human 115
0 100 200 300 400

What they launched

In 2013, Boots had a strong product-launch focus on the core beauty categories of colour cosmetics
and skincare – new product development is central to this retailer’s proposition and its flagship beauty
brand, No. 7. Superdrug’s new launches were heavily weighted towards skincare.
Grocery retailers tended to have a greater focus than the major specialists on the more functional
categories, deodorants and hair products. But Tesco also made a significant number of launches in
colour cosmetics, once again suggesting this retailer is among the beauty leaders in the grocery retail
sector.

UK, January 2014
FIGURE 90: NUMBER OF NEW PRODUCTS LAUNCHED BY PRODUCT CATEGORY, SELECTED RETAILERS, 2013
Company Category Number of products
Asda:
Deodorants 3
Fragrances 2
Hair Products 3
Shaving & Depilatories 1
Skincare 12
Soap & Bath Products 9
Boots:
Colour Cosmetics 141
Deodorants 2
Fragrances 2
Hair Products 2
Skincare 104
Sainsbury's:
Deodorants 8
Hair Products 11
Skincare 15
Superdrug:
Colour Cosmetics 3
Hair Products 4
Skincare 38
Tesco:
Colour Cosmetics 36
Deodorants 10
Fragrances 3
Hair Products 44
Skincare 60
The Body Shop:

Colour Cosmetics 62
Fragrances 14
Skincare 23
Total sample 728
 Subscribers can undertake searches and analysis on Mintel’s Global New Products Database at
gnpd.mintel.com.

The Non-Specialist Retailers Beauty Retailing
UK, January 2014
The Non-Specialist Retailers

Key points
 BPC is a fragmented category, with non-specialist retailers proving incredibly popular:
grocers and, increasingly, discount stores cater to everyday requirements while department
stores are destinations for premium brands.
 The leading non-specialist by revenues is Tesco, with estimated 2012 BPC sales of £1.7
billion. This makes Tesco the UK’s second largest BPC retailer, ahead of AS Watson.
 After the big-four grocers, Debenhams is the biggest non-specialist with 2012 sales of £582
million (est).
 Our consumer research confirms a fragmentation of spending: discount stores are used by
27% of BPC shoppers while 19% buy from online pureplays.
The leading non-specialist retailers

Non-specialists are very strong in beauty and personal care: generalists such as the grocers are strong
in everyday toiletries while department stores are big in premium beauty.
Tesco’s BPC revenues are estimated to be bigger than the total sales of AS Watson UK, the second
largest specialist retailer.
Each of the top 12 non-specialists is thought to see sales greater than The Body Shop UK (the third-
largest specialist retailer).

UK, January 2014
FIGURE 91: LEADING NON-SPECIALIST RETAILERS: ESTIMATED BEAUTY AND PERSONAL CARE GOODS SALES (EXCL. VAT),
2010-12
2010 2011 2012

£m £m £m
Tesco 1,561 1,626 1,656

J. Sainsbury 888 925 955
Asda 801 841 868
Morrisons 727 768 786
Debenhams 489 474 496
John Lewis 345 345 361
Avon Cosmetics (a) 329 312 291
Co-operative Food 285 273 275
House of Fraser 240 250 250
Wilkinson 250 250 245
Waitrose 210 219 231
TJ Morris/Home Bargains 144 183 212
Poundland 128 156 176
B&M Bargains 81 107 140
Selfridges 89 93 98
Fenwick 77 74 74
Marks & Spencer 66 67 70
99p Stores 46 54 68
QVC 60 60 62
All sales figures except Avon are estimated. To ensure comparability with specialists such as Superdrug and
Boots, figures are for revenues from all health, beauty and personal care goods (including toiletries). Department
store figures are based on gross transactional values, ie including sales by third-party concessions
(a) Avon UK total including an element of non-personal care revenues from clothing, jewellery etc.
The consumer: Where they shop

Our consumer research confirms the extent to which discount stores have made inroads into the
category.

UK, January 2014
FIGURE 92: THE CONSUMER: W HERE THEY BUY INSTORE AND ONLINE, NOVEMBER 2013
last 12 months
Boots 68
Superdrug 42
Tesco 35
Discount store (eg Wilkinsons,

27
Savers, Aldi)
The Body Shop 23
Asda 22
Debenhams 20
Sainsbury’s 19

19
Feelunique)
John Lewis 14
Other beauty specialist shop (eg

18
The Fragrance Shop, Space NK)
Other department store (eg House
14
of fraser)
Other chemist (eg Lloyds
14
Pharmacy, independent)
Other (eg duty free, clothing
19
retailers)
0 20 40 60 80
%
SOURCE: GMI/MINTEL
Major retailers: Profiles

Debenhams
Debenhams, John Lewis and House of Fraser each have classic beauty-hall offers, featuring prestige
beauty brands such as Chanel, Clarins, Estée Lauder and Lancôme.
Debenhams claims to be the UK’s leading retailer of premium beauty – and our consumer research,
above, appears to back this up. The retailer seeks to engender loyalty with its Beauty Club reward
card, offering points that are redeemable for rewards as well as free samples, makeovers and online
delivery.
Debenhams said its premium health and beauty sales increased by 11% in year ending August 2012.
However in the year to August 2013, the company stated “we continue to consolidate our strong
market position in premium beauty” – which suggests weaker growth was seen in the year.

UK, January 2014
Total Debenhams sales were up 2.5% to £2.78 billion in the year ending August 2013.
John Lewis
John Lewis has pushed into beauty services with shopfloor beauty-bar services from brands such as
Benefit (brow bars), Nails Inc., and Bobbi Brown (make-up). Clarins Skin Spas are available in 14
stores while Elemis SpaPods are in 11 stores, at December 2013.
John Lewis has performed very strongly in the recent past. But it has not released details of its
performance in beauty – and growth in the category has almost certainly been outpaced by that in the
clothing and electricals categories, which are driving John Lewis’s strong performance.
The revamped beauty hall in John Lewis’s Oxford Street was opened in April 2012. The chain has also
opened ‘Retreat’ spas in five stores since late 2011. Following these moves into beauty services, in
January 2014 John Lewis’s managing director stated it may explore a move into health-related
services.
 Total John Lewis sales were up 13.5% to £3.05 billion in the year ending January 2013.
House of Fraser
In the year ending January 2013 (latest), House of Fraser said its beauty sales were "in line with the
previous period" – ie flat. House of Fraser reported it had opted not to price match in "unprecedented
competition" ahead of Christmas 2012, in order to protect margins.
House of Fraser said its online beauty sales were up nearly 50% in 2012/13.
 Total House of Fraser sales were up 3.0% to £1.15 billion in the year ending January 2013.
Marks & Spencer

Beauty has traditionally been something of an overlooked category at M&S, with limited ranges and
basic in-store merchandising. This is now changing – but the beauty offer will continue to depend on
footfall for womenswear and M&S has been underperforming in the latter category.
M&S rolled out its new ‘Your Beauty’ departments to 55 stores in 2012/13. Your Beauty features
‘exclusive’ global brands, but eschews the classic big names found in department stores. The new
departments are mid-way between a classic counter-led beauty hall and an off-the-shelf beauty store.
M&S said sales in the new departments were 25% ahead of its un-converted stores. Given this
indication, we estimate M&S’s total beauty sales growth came in at a little over 4% for 2012.
 Total M&S non-food sales were down 2.4% to £4.09 billion in the year ending March 2013.

UK, January 2014
FIGURE 93: M&S YOUR BEAUTY, OXFORD STREET, JULY 2013
SOURCE: MINTEL
The grocers
The major grocers specialise in high-density, functional H&B retail. Asda and Morrisons are strongly
focused on high-volume, midmarket brands while Sainsbury’s complements its standard branded offer
with a few premium-midmarket brands such as Mandara Spa.
We think Tesco stands apart as a major innovator in the category:
 Tesco launched its first premium-look beauty halls in later 2011 and has continued to roll these
out, including at its new ‘store of the future’ format at Tesco Watford.

UK, January 2014
FIGURE 94: BEAUTY HALL, TESCO EXTRA, DUDLEY
SOURCE: TESCO
 Selected Tesco Extra stores, including the new-format Watford store, also feature Nutri Centre
zones adjacent to beauty, offering natural, complementary, and healthy-living products, including
beauty.
 In 2013, Tesco launched a new Pro-Formula own brand across haircare, hair styling, skincare,
deodorants, handwash and hand hygiene.
 And, as we note in the Online section of this report, Tesco offers a strong online beauty
proposition at both tesco.com/groceries and tesco.com/direct.
Value mixed-goods stores

Value-positioned mixed-goods retailers have carved a substantial share of the market.
The six largest retailers here are:
 Wilkinson: total sales fell 2.3% to £1,530 million in the year ending January 2013.
 Home Bargains/TJ Morris: company sales rose 15.6% to £1,058 million in the year ending June
2013.
 B&M Retail: total revenues rose 31.1% to £935 million in 2012.
 Poundland: total sales rose 12.9% to £880 million in the year ending March 2013.
 Poundstretcher: company revenues grew 5.6% to £368 million in the year ending April 2013.
 99p Stores: total revenues surged 26.4% to £341 million in the year to January 2013.
Personal care is a major category for most of these retailers, including the fixed-price retailers such as
Poundland who focus more on grocery categories and broader-ranging retailers such as Wilkinsons
which puts beauty front and centre in its stores.

UK, January 2014
For Poundland, 99p Stores and Home Bargains, we estimate around one-sixth of the average store’s
sales area is dedicated to health, beauty and personal care goods – but strong demand means the BPC
category is likely to over-index in sales terms. The proportion of store space given to H&B is thought
to be typically less in Poundstretcher, Poundworld, B&M Bargains and Wilkinsons.
However, each of the major value retailers is privately owned, so disclosure is limited and we have no
concrete indications of their sales breakdowns.
At the fixed-price discounters such as 99p Stores, big-name brands from the likes of Colgate-
Palmolive, PZ Cussons, Nivea, Unilever and P&G are supplemented by private-label and imported
brands. At Wilkinsons, midmarket cosmetics brands such as Rimmel are a core part of the offer, while
Home Bargains includes premium fragrances from brands such as Calvin Klein and Elizabeth Arden.
FIGURE 95: BIG-NAME BRANDS AT FIXED PRICES: POUNDLAND, W ALWORTH ROAD, LONDON, DECEMBER 2013
SOURCE: MINTEL
Others
Beauty has been an obvious category extension for major clothing retailers:
 Next offers men’s and women’s fragrances, including own-brand (Next Code) and branded (such
as Jean Paul Gaultier and Issey Miyake).
 Topshop and Topman have pushed into beauty: Topman launched its first fragrance in September
2011 and its flagship Oxford Circus store includes a Sharps barber shop.

UK, January 2014
 Topshop’s beauty offer includes a substantial own-brand make-up range as well as products from
brands including Nail Rock, St Tropez and Face Lace. The Topshop Beauty brand is also sold at
John Lewis stores. Topshop’s – 2 floor at Oxford Circus is devoted to salon services.

Market Shares Beauty Retailing
UK, January 2014
Market Shares
Key points
 Boots leads, with 17% market share in 2012.
 The second-largest specialist operator, AS Watson, took 9% share of category spending in

2012, mainly through its Superdrug chain (6% share).
 But AS Watson is pushed into third place by Tesco with 10% share.
 Sainsbury’s and Asda round up the top five – highlighting the strong role of non-specialists
in the beauty market.
Boots leads – but non-specialists are strong

Boots has a major lead among the specialists. But once we factor in the non-specialists, notably the
grocers, its dominance is less imposing.
Personal care spending fragments to multiple sectors – with grocers, department stores, value retailers
and home shopping all among the leading operators.
If we count Avon as a beauty specialist (not a home-shopping retailer), then just five of the 15 largest
operators are specialists: Boots, Superdrug, Avon, Savers and The Perfume Shop.
FIGURE 96: LEADING BEAUTY AND PERSONAL CARE RETAILERS’ SHARES OF SPENDING ON PERSONAL CARE GOODS, 2012
Boots
17%
All others
34%
Tesco
10%
Superdrug - AS
Watson
Waitrose 6%
1% Savers - AS
Watston
Wilkinson 1%
2% Asda
House of Fraser 5% The Perfume
J. Sainsbury Shop - AS
2%
Morrisons 6% Watson
Co-operative Avon 5% 1%
Food 2%
Debenhams
2% 3%
John Lewis
2%
Some data estimated. Some data estimated. Based on spending on all personal care goods, as outlined in the
Market Size section of this report, adjusted for VAT.

UK, January 2014
As we note elsewhere, Boots’s owners appear to have prioritised profit over sales growth in recent
years – and this helps account for its slip in market share in 2012.
The third-largest specialist, The Body Shop, is pushed towards the bottom of the top 20 retailers.
Of the top 20, six are grocers, three are department stores and four are value-positioned mixed-goods
retailers (Wilkinsons, TJ Morris, Poundland and B&M Bargains).
 In total the six leading grocers took an estimated 30% share of category spending in 2012.
 The three major department-store chains captured an estimated 7% share of spend.
 The four largest value mixed-goods retailers are estimated to have accounted for a 5% share of
category spending in 2012.
FIGURE 97: LEADING BEAUTY AND PERSONAL CARE RETAILERS’ SHARES OF SPENDING ON PERSONAL CARE GOODS, 2010-12
2010 2011 2012 Notes

% % %
Boots 17.3 17.3 16.6 e, a

Tesco 10.4 10.7 10.4 e
AS Watson UK 9.4 9.4 9.1 b
Of which:
Superdrug – AS Watson 7.0 6.9 6.4 b
Savers – AS Watson 1.1 1.2 1.3 b
The Perfume Shop – AS Watson 1.2 1.3 1.3 b
J. Sainsbury 5.9 6.1 6.0 e

Asda 5.3 5.5 5.5 e
Morrisons 4.9 5.0 4.9 e
Debenhams 3.3 3.1 3.1 e
John Lewis 2.3 2.3 2.3 e
Avon Cosmetics 2.2 2.0 1.8 b
Co-operative Food 1.9 1.8 1.7 e
House of Fraser 1.6 1.6 1.6 e
Wilkinson 1.7 1.6 1.5 e
Waitrose 1.4 1.4 1.5 e
TJ Morris/Home Bargains 1.0 1.2 1.3 e
Poundland 0.9 1.0 1.1 e
The Body Shop UK 1.0 1.0 1.0 b
B&M Bargains 0.5 0.7 0.9 e
Sally Beauty 0.7 0.8 0.8 b, c
(a) Estimated to include sales of cosmetics and toiletries and other personal care goods only.
(b) Based on total revenues, including any revenues from non-personal care products.
(c) Includes some B2B sales.
Based on spending on all personal care goods, as outlined in the Market Size section of this report, adjusted for
VAT.
Technical notes
The total market used to calculate the market shares above is that given by the ONS for personal care
products including electrical appliances for personal care – as outlined in the Market Size section of
this report – adjusted to strip out VAT at average annual rates.

UK, January 2014
Our market shares include leading beauty specialists and generalists but exclude chemists – see this
report’s Introduction for further details.

Online Beauty Retailing
UK, January 2014
Online
Key points
 A 21% surge took online sales of BPC products to £734 million in 2013, we estimate.
 This is equivalent to 8% of total BPC spending in 2013.
 We expect online sales growth to slow to 14% for 2014 and to slow further thereafter, as the
channel begins to mature.
 Amazon launched an Add-on service for the purchase of lower-value items in 2013, and we
expect this to bolster its BPC sales.
 Among the leading beauty specialists, we think Boots leads the way in offering a proposition
that integrates stores and online.
Note that online beauty retailing is covered in detail in our report, Beauty Online – UK, December
2013.
Online market size and forecast

2013 was an unusually strong year for beauty online, with estimated 21% growth. Innovation in
delivery and product sampling is thought to have helped drive up growth for the year:
The online beauty market’s pace of growth is slowing – but this is a natural consequence of a maturing
market.
FIGURE 98: MARKET SIZE AND FORECAST OF ONLINE CONSUMER EXPENDITURE ON COSMETICS AND TOILETRIES, 2012-14
Online sales Annual % change As % of total BPC market size

£m
2012 606 19.1 6.9

2013 (est) 734 21.1 8.2
2014 (fore) 836 13.9 9.1
SOURCE: MINTEL
 For a full five-year forecast, see the report, Beauty Online – UK, December 2013.
New, more flexible delivery options for online retailers include Amazon’s collection lockers, eBay’s
‘click and collect’ service in partnership with ASOS, and The Perfume Shop’s 90-minute delivery in
London. Sampling innovations include The Fragrance Shop’s ‘Try it first’ service, which provides
customers with a free sample of the fragrance they have purchased, enabling them to test the scent
before opening the full-size bottle, and return the fragrance if they do not like it.
The consumer: What they buy and where they shop online
Comprehensive consumer data can be found in the relevant consumer sections of this report and in
Beauty Online – UK, December 2013. But to provide a summary, we chart some key data below.

UK, January 2014
What they buy online

It’s perhaps no surprise that the most commonly-used categories – everyday toiletries and
shampoo/conditioner – are popular for buying online.
Typically higher-value fragrances are likely to be popular due to online price competition on
recognised, big-name brands.
FIGURE 99: BEAUTY AND PERSONAL CARE PRODUCTS BOUGHT ONLINE IN THE LAST YEAR, OCTOBER 2013
Everyday toiletries 35
Fragrances 32
Shampoo or hair conditioner 30
Everyday basic skincare (eg

29
facewash, moisturiser)
Make-up (eg mascara, lipstick) 24
Hair treatments (eg styling

19
products, colourants)
Added-benefit skincare (eg anti-
18
cellulite, self-tanning)
Other beauty and personal care
18
products
0 10 20 30 40
%
SOURCE: GMI/MINTEL
 Note that the graph above has a different base from that below.
Where they shop online

While online-only retailers are the most popular option, the data is for all online-only retailers so it’s
not strictly comparable to a single, named retailer.
Relatively high participation figures for the grocers are likely to be underpinned by the ability to make
an online beauty purchase as part of an online grocery shop – thereby reducing the cost and potential
inconvenience of delivery.

UK, January 2014
FIGURE 100: THE CONSUMER: WHERE THEY BUY BEAUTY PRODUCTS ONLINE IN THE PAST YEAR, NOVEMBER 2013
last 12 months
Internet specialist (eg Amazon) 19

Boots 9
Tesco 8
Superdrug 6
The Body Shop 6
John Lewis 5
Debenhams 5
Asda 4
Sainsbury’s 4
Discount store 3
Other beauty specialist shop 8
Other department store 4
Other chemist 4
Other 5
0 5 10 15 20
%
SOURCE: GMI/MINTEL
Leading pureplay specialists

The category sees a number of pureplay specialists – but they each remain tiny by comparison to their
store-based rivals.
TheHut.com acquired Lookfantastic.com in late 2010. TheHut.com also operates mankind.co.uk and
HQhair.com, but we have no indications of revenue from these two online fascias. The Hut.com’s total
revenues in 2012 were £46.1 million.
In 2013, Cheapsmells was relaunched as AllBeauty.com, to reflect the broadening of its offer.
Two pureplays too small to be required to file accounts are Cult Beauty and Eyes Lips Face.
FIGURE 101: LEADING PUREPLAY BEAUTY SPECIALISTS; NET REVENUES, 2011 AND 2012
2011 2012 Notes

£m £m
Feelunique.com 37.4 40.1 (a)

Lookfantastic.com 20.8 22.4 (a)
Allbeauty.com (formerly Cheapsmells.com) 15.0 18.0 (e)
FragranceDirect.co.uk 13.2 14.4
Escentual.com 7.3 7.8 (a, b)
(a) 2012 estimated.

(b) Data is for parent company, RK Aggarwal Ltd, which also includes dispensing chemists.

UK, January 2014
Visitor numbers online

Data on visitor numbers confirms the strength of some pureplays, despite their minor revenues.
Note that generalists such as Amazon and Tesco will be excluded from the criteria for the data below.
FIGURE 102: FRAGRANCE AND COSMETICS RETAIL SITES: NUMBER OF TOTAL UNIQUE VISITORS AND AVERAGE DAILY VISITORS,
UK, SEPTEMBER 2013
Total unique visitors Average daily visitors

000 000
Avon Products Inc. 461 36

Feelunique.com 369 16
Fragrancedirect.co.uk 301 13
Theperfumeshop.com 297 13
The Body Shop 273 12
Cheapsmells.com 263 12
Escentual.com 161 6
Lookfantastic.com 134 6
Maccosmetics.co.uk 124 6
Benefitcosmetics.co.uk 88 4
Esteelauder.co.uk 86 4
Lush Ltd 84 4
Savers.co.uk 83 4
Thefragranceshop.co.uk 83 3
Clinique.co.uk 81 4
Aveda.co.uk 79 4
Strawberrynet.com 75 5
GHDhair.com 69 3
Sallyexpress.com 58 3
Gorgeousshop 58 2
Lizearle.com 57 3
Sephora.com 56 2
Esteelauder.com 56 2
Coty Inc. 56 2
Mankind.co.uk 55 4
Rejuvenexnow.com 50 2
Lancôme 48 2
Beautybay.com 47 2
Bareminerals.co.uk 46 3
Clarins sites 45 2
SOURCE: COMSCORE
Major retailers online

With further double-digit growth expected in online sales, major retailers including generalists such as
Amazon and Tesco are improving their online offers in the category.
The beauty specialists retail sector is dominated by privately owned companies such as Alliance Boots
and AS Watson. This means disclosure is highly limited and there is virtually no firm indication of
online sales for the major store-based chains.
For major chains such as Boots or Superdrug, a few percentage points of total sales are likely to be
currently online.
Amazon
We think Amazon is a fast-growing retailer for beauty and personal care goods.

UK, January 2014
In GB£, Amazon UK’s total revenues grew 31.2% to £5.0 billion in 2013. Much less than 1% of this is
expected to be from BPC products. If, theoretically, one-quarter of one percentage point of Amazon’s
total revenues were in the BPC category, this suggests sales of £13 million in 2012.
In December 2013, we identified just under half a million products in the Beauty section of
Amazon.co.uk – but it should be noted that Amazon cross-categorises many products into multiple
categories. This beauty total constituted less than 1% of all Amazon.co.uk SKUs.
FIGURE 103: NUMBER OF BEAUTY/HEALTH AND PERSONAL CARE SKUS IDENTIFIED ON AMAZON.CO.UK, DECEMBER 2013
No. of SKUs % of total SKUs*
Beauty 495,397 0.6

Health & personal care (excl. beauty) 345,033 0.4
* % of total SKUs identified on Amazon.co.uk, excluding digital-only products such as MP3 downloads and
ebooks.
SOURCE: AMAZON.CO.UK/MINTEL
Amazon launched its Add-on service for low-value items in 2013. This new service enables Amazon
to despatch low-price items, when the customer makes a minimum order of £10.
FIGURE 104: AMAZON’S NEW ADD-ON PROGRAMME, LAUNCHED 2013
SOURCE: AMAZON.CO.UK
Key analysis: Amazon’s Add-on service joins its existing Subscribe & Save option, whereby
shoppers can opt for delivery of chosen products at selected intervals. Both offer a good fit with
lower-value beauty and toiletry products that may not otherwise be ordered online outside of a
grocery shop. So we expect both innovations to be pushing up Amazon’s BPC sales.
Amazon may be a generalist but it has a convincing Beauty store front.
And there could be a stronger proposition on the way: in October 2013, Amazon US launched a
Luxury Beauty store for cosmetics, skincare, haircare, fragrances, men’s grooming products and
beauty tools and accessories. At December 2013, the store lists 24 premium brands, including
Burberry, Dr Brandt, Deborah Lippmann, Jack Black, L’Occitane, NARS and Stila. Amazon Luxury
Beauty offers free shipping for orders above $25 and free samples with purchase on selected items.

UK, January 2014
FIGURE 105: AMAZON.CO.UK’S BEAUTY HOMEPAGE, DECEMBER 2013
SOURCE: AMAZON.CO.UK
Ebay
eBay is likely to be a similarly popular destination for off-price premium beauty: the nature of eBay,
with individual sellers listing items, suggests that ordering would be more justified for higher-value
products – yet lower-ticket items such as nail varnish feature prominently in its health and beauty
section.

UK, January 2014
FIGURE 106: EBAY.CO.UK’S HEALTH & BEAUTY HOMEPAGE, JANUARY 2014
SOURCE: EBAY.CO.UK
Key analysis: Our consumer research (shown elsewhere in this report) found strong demand for
beauty gift sets – and the higher-value nature of these sets looks to offer a good fit for internet
retailers. We think online beauty retailers – both pureplays and multichannel retailers – could
emphasise gift-box options: the convenience of having orders mailed directly to the recipient and
added services such as gift-wrapping are likely to appeal to many shoppers.
The grocers
Tesco and Asda each offer BPC on two sites: their main grocery sites and within their ‘Direct’ general
merchandise websites.
Tesco Direct’s online beauty storefront is – like Amazon’s – a convincing and glossy proposition. As
part of the standalone non-food Tesco Direct site, it focuses on the kind of premium beauty that may
not be part of a regular grocery shop.
Key analysis: Asda Direct has no single storefront for the beauty category while Sainsbury’s H&B
homepage could be more aspirational. We think both retailers could borrow from the glossy,
aspirational look of Tesco Direct and Amazon.

UK, January 2014
FIGURE 107: TESCO DIRECT’S BEAUTY HOMEPAGE, DECEMBER 2013
SOURCE: TESCO.COM
Major store-based specialists

The privately owned nature of the major specialist chains means there is no real disclosure on their
online sales. In spring 2012, The Body Shop’s general manager for the UK revealed that just under
12% of its UK revenues originate online, suggesting 2011 online revenues of around £18 million.
Boots is arguably the only one of the three biggest specialists to fully integrate its in-store and online
offer:
 Boots offers free delivery to store for fragrances including gift sets. Boots offers click-and-collect
on all products, allowing next-day collection on orders placed before 2pm. Boots allows returns in-
store or free by post.
 Superdrug offers free delivery on orders over £10 and free delivery to store for all orders. But
Superdrug only allows returns by post, not in-store.
 The Body Shop offers free delivery on orders over £5. There is no in-store collection option, yet
online orders may be returned to a store (excluding franchise stores).

UK, January 2014
Key analysis: Boots’s beauty homepage balances price with prestige brands and an emphasis on
indulgence and treating. Its look and feel matches very closely that of Boots stores, and underlines
the retailer’s credentials in offering quality and genuine value for money. The options for click-
and-collect, including in-store returns, underline this multichannel proposition.
In May 2013, Boots announced a plan to expand its online business in Europe. The retailer is expected
to open a European e-commerce website, offering more than 23,000 products. Boots already runs
stores in the Republic of Ireland, the Netherlands, Norway and the US, but this will be the first
comprehensive overseas online drive for the retailer.
FIGURE 108: BOOTS.COM’S BEAUTY HOMEPAGE, DECEMBER 2013
SOURCE: BOOTS.COM

Brand Communication and Promotion Beauty Retailing
UK, January 2014
Brand Communication and Promotion

Key points
 Advertising expenditure on cosmetics, personal care and bodycare by the leading 25 retailers
totalled over £41.2 million in 2012, down 16.2% on 2011.
 Boots leads in terms of above-the-line advertising spend, with £21.4 million in 2012.
 On the back of the launch of its new beauty department, Marks & Spencer has significantly
boosted its advertising expenditure to almost £1.6 million in 2012.
 Television and press advertising dominate the marketing activity in the beauty retail sector,
but an increasing number of retailers are also embracing the opportunities of mobile
marketing, for example, Tesco and The Body Shop.
Beauty advertising expenditure in decline

Advertising expenditure on cosmetics, personal care and bodycare products by the leading 25 retailers
declined by more than 16% from £49.1 million in 2011 to £41.2 million in 2012.
Boots continues to be the biggest advertiser in the beauty retailing sector, with an above-the-line
advertising expenditure of £21.4 million in 2012. Despite decreasing its advertising expenditure by
3.2%, Boots accounted for more than half (52%) of the 25 leading retailers’ total advertising spend on
cosmetics, personal care and bodycare in 2012. The retailer introduced a major new
Among the health and beauty retailers, Superdrug is Boots’ closest competition, with an annual
advertising expenditure of just under £2.5 million in 2012. In February 2013, Superdrug released a
new TV advertising campaign featuring real staff from its stores to emphasize the retailer’s dedication
to customer service. The campaign will continue to run, coinciding with seasonal events, such as
Mother’s Day, Valentine’s Day and Christmas, showing the offers that are available for these
occasions. The advert also features a bespoke soundtrack.
The upmarket direct seller L’Occitane almost doubled its advertising spend between 2011 and 2012 as
it looks to build its presence in the UK market. The retailer launched its first UK television campaign
in September 2013, promoting its new anti-ageing product ‘Divine Cream’. Lush Cosmetics increased
its advertising expenditure by 22% in 2012.
The majority of department store retailers, with the exception of Harrods and Selfridges, have cut their
advertising spend on cosmetics, personal care and bodycare. Throughout 2012 and 2013, Harrods
hosted a number of major in-store events, such as Fragrance Explosion in August 2013, a whole month
dedicated talks, tutorials, interviews and workshops with the world’s leading fragrance brands, and the
Dior Store Takeover in March 2013. Selfridges also used in-store activity to promote beauty products,
including the House of Rock’N’Kohl, hosted by make-up artist Charlotte Tilbury, and a pop-up nail
bar by Chanel.

UK, January 2014
FIGURE 109: MAIN MONITORED MEDIA ADVERTISING EXPENDITURE ON COSMETICS, PERSONAL CARE AND BODYCARE, BY
LEADING RETAILERS, 2009-12
Advertiser 2009 2010 2011 2012 % change

£000 £000 £000 £000 2011-12
Boots the Chemists 18,087 20,925 22,129 21,415 -3.2

Tesco 1,734 1,465 2,886 2,904 +0.6
Superdrug stores 2,543 3,113 3,164 2,487 -21.4
Avon Cosmetics 6,096 6,119 5,185 1,877 -63.8
Asda stores 2,686 3,921 3,263 1,680 -48.5
Debenhams 1,468 1,119 1,708 1,560 -8.6
Marks & Spencer - 216 13 1,516 +11,560.6
Wm Morrison supermarkets 1558 4,787 3,148 1,392 -55.8
The Body Shop 510 187 279 1,032 +269.9
Shop Direct - - 162 774 +378.3
Perfume Shop 1,079 1,198 931 713 -23.4
L'Occitane 945 40 321 616 +92.1
Argos 96 164 765 611 -20.2
Sainsbury’s supermarkets 808 1,749 939 576 -38.6
Lush Cosmetics 58 551 348 425 +22.0
JML Direct 268 783 1,756 385 -78.1
John Lewis Partnership 98 389 624 263 -57.8
Selfridges & Co 337 305 195 242 +23.7
House of Fraser 567 429 589 219 -62.8
Lloyds Pharmacy 140 282 417 162 -61.2
Harrods 92 106 135 139 +2.9
The Fragrance Shop 36 9 17 97 +465.5
Fenwick 71 65 35 34 -3.1
Harvey Nichols 4 14 70 32 -54.6
Liberty Retail 17 4 55 22 -59.3
Total 39,300,122 47,939,336 49,132,101 41,173,113 -16.2
SOURCE: NIELSEN MEDIA RESEARCH/MINTEL
Advertising spend by media type

Press and television continue to be the dominant advertising media used by retailers to promote
cosmetics, personal care and bodycare products in 2012. Over 83% of the twenty-five biggest retailers’
total advertising expenditure was used for press and television, with some retailers relying exclusively
on press advertising, such as Sainsbury’s, Harrods and Harvey Nichols.
Notably, the third most popular advertising channel was the internet, accounting for over 10% of the
twenty-five leading retailers’ advertising expenditure in 2012. More than half of the leading retailers
used online advertising. The Fragrance Shop dedicated the highest proportion of its total advertising
expenditure to online advertising (88%), followed by Tesco (61%).
Direct mail was the main advertising medium for Lush Cosmetics, L’Occitane and The Body Shop.

UK, January 2014
FIGURE 110: MAIN MONITORED MEDIA ADVERTISING EXPENDITURE ON COSMETICS, PERSONAL CARE AND BODYCARE, BY
LEADING RETAILERS, BY MEDIA TYPE, 2012
Advertiser Press TV Internet Direct Radio Cinema Door Outdoor Total

mail drops
% % % % % % % % %
Boots the Chemists 48.0 37.8 7.5 2.8 0.4 3.6 - - 100.0
Tesco 37.9 - 61.4 - 0.7 - - - 100.0
Superdrug stores 61.1 28.8 10.1 - - - - - 100.0
Avon Cosmetics 49.3 50.3 0.3 - - - - - 100.0
Asda stores 100.0 - - - - - - 100.0
Debenhams 95.6 - 2.8 - 0.9 - 0.7 - 100.0
Marks & Spencer 67.2 - 32.8 - - - - - 100.0
Wm Morrison 68.6 30.3 - - 1.1 - - - 100.0
supermarkets
The Body Shop 14.9 - 0.1 85.0 - - - - 100.0
Shop Direct 71.3 28.7 - - - - - - 100.0
Perfume Shop 15.4 71.2 0.6 - 12.2 - 0.6 - 100.0
L'Occitane 18.9 - - 81.1 - - - - 100.0
Argos 42.4 55.8 1.7 - - - - - 100.0
Sainsbury’s 100.0 - - - - - - - 100.0
Lush Cosmetics - - - 100.0 - - - - 100.0
JML Direct - 100.0 - - - - - - 100.0
John Lewis Partnership 95.0 - 5.0 - - - - - 100.0
Selfridges & Co 99.7 - 0.3 - - - - - 100.0
House of Fraser 98.5 - - - 1.0 - - 0.6 100.0
Lloyds Pharmacy 100.0 - - - - - - - 100.0
Harrods 100.0 - - - - - - - 100.0
Fragrance Shop 11.7 - 88.3 - - - - - 100.0
Fenwick 80.3 - - - 19.7 - - - 100.0
Harvey Nichols 100.0 - - - - - - - 100.0
Liberty Retail 99.9 - 0.1 - - - - - 100.0
SOURCE: NIELSEN MEDIA RESEARCH/MINTEL

In addition to the traditional advertising media, some retailers are also turning to mobile marketing.
Tesco and The Body Shop were among the first UK retailers to sign up to Apple’s Passbook, a mobile
wallet that allows consumers to save voucher codes, coupons and special tickets. The application
allows retailers to update customer about the expiry date of their vouchers and invite them to visit their
stores with a geo-targeting function. Retailers can see if and when consumers have taken advantage of
an offer or voucher code, allowing them to track the success their mobile marketing campaigns and the
uptake of m-commerce more accurately.
L’Occitane launched an augmented catalogue in June 2013, encouraging customers to use the
L’Occitane smartphone app to can the pages of the printed catalogue to access the product information
and video demonstrations, to buy the product online or to find the nearest store. Other retailers have
also used smartphone apps to increase consumers’ engagement with their websites. ASOS launched a
weekly mobile magazine in December 2012. Consumers can access the multi-media magazine via the
app FashionUp and the magazine features ‘shoppable’ editorial content linking to ASOS’ website as
well as video tutorials showing how to use beauty products and images submitted by consumers via
Instagram. Department store Harrods introduced a mobile version of its Harrods Magazine in April
2012, allowing readers to shop items directly from the editorial content as well as a virtual make-up
tester that lets users share the results on social media.

UK, January 2014
Notable advertising campaigns in 2012

Boots launched a new marketing campaign, encouraging consumers to “try something new”, in March
2013. The retailer held a series of in-store events, including ‘Give It A Go Friday’ which was held at
the thirty of Boots’ largest stores. To support the experiential campaign, Boots released a television
advert that showed customers and their friends and family trying new make-up and hairstyles. In
addition to in-store activity and television adverts, Boots create online content and direct mail material
for Advantage Card holders, showing reluctant consumers how to choose a bold lip colour and create
new hairstyles.
Boots continued the ‘Give It A Go’ campaign in September 2013 with the launch of its microsite
autumnwintertrends.co.uk. The website shows consumers the latest beauty trends for autumn and
winter 2013, featuring tips from make-up artist Jose Bass, hairdresser Beverly C and nail artist Marian
Newman. The microsite is designed to resemble a magazine-style beauty spread.
In August 2013, Boots launched a new campaign for the colour cosmetics collection of its No7 brand.
The multi-channel campaign featured ‘real’ women aged between 25 and 55. The retailer did not use
modelling agencies and casted the women on the street and in its stores. Boots announced that its
amateur models represent UK women ‘as mothers, professionals and time-poor beauty customers’.
According to the retailer, it did not use airbrushing in production of the campaign.

Brand Research Beauty Retailing
UK, January 2014
Brand Research
Brand map
The Mintel Brand Research Map below illustrates a three-dimensional brandscape based on:
 Differentiation: an indication of vitality and profitability. Taken from consumer perceptions of a

brand’s standout from others in its competitive sphere.
 Trust: an indication of brand integrity and stature. Derived from agreement with the statement ‘a
brand that I trust’.
 Experience: consumers who have ever used/visited/bought the brand, an indication of presence in
the category.
This map gives a snapshot of the current strength and quality of selected brands, where they are in
their growth and how healthy they are.
FIGURE 111: ATTITUDES TOWARDS AND USAGE OF BRANDS IN THE BEAUTY RETAILING SECTOR, NOVEMBER 2013
Base: internet users aged 16+ who have heard of the brand and expressed a view
Bubble size represents usage (% ever used)
SOURCE: GMI/MINTEL

UK, January 2014
There is a relative spread of brands across the spectrum in this market, with no real pattern between
trust and perceptions of differentiation. The most trusted brands are not those that necessarily stand out
the most, while neither trust nor differentiation necessarily indicate usage.
Boots is the most trusted name of those brands analysed, helped by its strong presence on the high
street. This trust is particularly strong among women in the 45-54 age range. 91% of consumers have
used Boots before, which suggests that it is has a large number of products to entice customers and
that consumers will feel that they can rely upon it. ABC1s and C2DEs are equally as likely to trust it,
indicating that its image is consistent across a wide range of people regardless of expectations of either
price or quality.
Many of these brands are considered to stand out by a significant proportion of consumers, suggesting
well defined brands. While Lush has a smaller customer base, its distinctive proposition of colours and
smells helps it to stand out on the high street. This is especially the case for women under 25, who are
also most likely to consider The Body Shop as standing out.
Avon lags in terms of trust and perceived differentiation, which is likely to be based on its more
unusual business model, meaning that consumers miss out on a more engagement through seeing it on
the high street. Over 35s are less likely to consider it standing out, suggesting that the additional online
presence may have a greater impact on under 35s.
Correspondence analysis
In order to display brand images (and/or consumer attitudes towards brands) related to each brand
covered in this survey in a joint space that is easy to understand, Mintel has conducted correspondence
analyses. Correspondence analysis is a statistical visualisation method for picturing the associations
between rows (image, attitudes) and columns (brands) of a two-way contingency table. The
significance of the relationship between a brand and its associated image is measured using the Chi-
square test. If two brands have similar response patterns regarding their perceived images/attitudes,
they are assigned similar scores on underlying dimensions and will then be displayed close to each
other in the perceptual map.

UK, January 2014
Brand attitudes
FIGURE 112: ATTITUDES, BY BEAUTY RETAILING BRAND, NOVEMBER 2013
This chart shows the level of association of each brand surveyed with a set of key performance attributes core to
beauty retailing brands overall. The more significant an attribute is as part of a brand’s image relative to other
attributes, the nearer it will be to that attribute. If a brand is between a number of attributes, it is reasonably closely
associated with each of these.
SOURCE: GMI/MINTEL
Superdrug is clearly associated with value. While it lacks some of the more glamorous benefits of
other brands, this value element ensures that it is clearly defined in the market place and offers a
reason for visiting. This image is particularly strong among over 45s, C2DEs and consumers living in
rural areas.
The department stores brands are located closely together, around words that denote quality.
Debenhams in particular is noted for its online capability, suggesting an advantage over other similar
brands. While John Lewis and Marks & Spencer still have a slight feminine bias like all other brands,
they are the brands most likely to have an even gender split. Boots’ visibility and number of stores
means that it is considered well trusted and widely available.

UK, January 2014
The Body Shop and Lush are located around being socially responsible and caring for the
environment, and are the only two brands to receive a stronger image of ethics among women. The
ethical code of The Body Shop is well known, with aversions to testing on animals. Similarly, Lush
also publicises that it is against animal testing and promotes handmade cosmetics. These brands also
have an innovative image, boosted by The Body Shop’s original green, ethical approach and Lush’s
bold and sensory in-store experience.
Avon has a weaker image in comparison to other brands because of its different model of direct selling
through representatives, meaning it is not as visible on a daily basis as other brands, therefore
providers fewer opportunities for consumers to understand its purpose. Its central position on the map
helps to indicate this weaker image.
Brand personality
FIGURE 113: BEAUTY RETAILING BRAND PERSONALITY – MACRO IMAGE, NOVEMBER 2013
This chart shows all beauty retailing brands in relation to a set of broad image attributes applicable to all
categories.
SOURCE: GMI/MINTEL
Both Boots and Superdrug have an image of accessibility, driven by their wide availability as well as
cheaper prices and products in comparison to other stores. Both find women and over 35s more likely
to consider them accessible. This accessibility goes across different regions of the UK and also across
socio-economic groups, indicating a wide ranging strong image.

UK, January 2014
Lush and The Body Shop have more upbeat images driven by a focus on individual products not
available elsewhere, alongside sensory-based experiences. The image of fun tends to be consistent
across age groups, although younger women are more likely to note its vibrancy.
Avon has an unappealing image among over 45s, while over 55s are likely to consider it as boring and
tired. This may be driven by an association with the past around Avon ladies, however is also likely to
be influenced by an increasing focus on younger consumers through the use of brand ambassadors like
Reese Witherspoon and Lucy Hale. Similarly, over 55s tend to have a more negative impression of
Debenhams, again likely to be due to being targeted at a more youthful market.
Both John Lewis and Marks & Spencer have a fairly rounded image, however the main difference is in
perception of accessibility, with John Lewis more likely to be considered as exclusive.
FIGURE 114: BEAUTY RETAILING BRAND PERSONALITY – MICRO IMAGE, NOVEMBER 2013
This chart complements the wider brand image display, using a set of image traits specific to the beauty retailing
sector.
SOURCE: GMI/MINTEL
Superdrug’s image is again strong, this time with associations of being basic. This again gives it a
clear purpose for consumers, despite not necessarily being a particularly glamorous one. ABC1s are
more likely than C2DEs to consider it as basic, while the strength of this image increases with age.

UK, January 2014
The department stores are considered as stylish but expensive, reflective of their more upmarket
product lines. The difference between brands is within age groups as negative impressions of
Debenhams like disappointment increase with age while older groups are less likely to be negative
about John Lewis and Marks & Spencer.
Lush follows up its innovative image with considerations of being cutting-edge and trendsetting,
helped by the experience it offers consumers visiting its store and the type of products it sells
including bright, colourful soaps. Once again it is women under 25 who are more likely to consider it
as cutting-edge, suggesting a real connection with this group of consumers.
Brand experience
FIGURE 115: BEAUTY RETAILING BRAND USAGE, NOVEMBER 2013
Base: 2,035 and 2,029 internet users aged 16+
* usage = % ever used
SOURCE: GMI/MINTEL

UK, January 2014
The widely available, accessible brands have the greatest amount of usage. These are likely to be
stores where people quickly visit for purchasing more mainstream cosmetic and personal care items.
More specialised stores like the department stores are more expensive and more rarely found, which
limits their usage somewhat. Even so, all brands have a significant amount of usage, demonstrating
their importance and penetration among the public.
Lush is the newest brand on the market which means that consumers have been less exposed to the
brand name than others. It has the strongest ABC1 bias of these brands, perhaps indicating that the
products it sells are not considered as necessary as other brands with a greater proportion of its usage
from C2DEs. The consumers most positive about the brand, women under 25, are most likely to have
used the brand both overall and in the last 12 months, suggesting that impressions are shaped by usage
or that this sector of the market act on their perceptions.
These brands have generally been used more by women, apart from John Lewis and Marks & Spencer
which have a more even gender split thanks to their wider product range across categories.
Usage in the last year is broadly similar to overall usage, with Marks & Spencer and John Lewis both
increasing their standing slightly ahead of Debenhams and The Body Shop respectively.
FIGURE 116: SATISFACTION WITH VARIOUS BEAUTY RETAILING BRANDS, NOVEMBER 2013
Base: internet users aged 16+ who have ever used the brand
SOURCE: GMI/MINTEL
While the perception of quality within John Lewis and Marks & Spencer is affirmed with satisfaction
levels, the reliability of Boots also leads to a high proportion of positive endorsements.
Lush’s original, innovative experience and unusual product range means that it gains more enthusiasm
than all stores apart from John Lewis. This enthusiasm mainly comes from under 25s, again indicating
its most positive demographic.

UK, January 2014
Under 25s are often the most enthusiastic about these brands, with the notable exceptions of Marks &
Spencer and Debenhams. Marks & Spencer earns slightly more enthusiasm from over 55s, while the
25-44 age group are most likely to express their experience of Debenhams as excellent.
Superdrug’s basic, value-focused perception means that consumers are less likely to be enthusiastic
about it, but still has predominantly good ratings. Like Boots, it is seen as reliable and accessible.
While Boots has equal satisfaction between socio-economic groups, Superdrug’s value looks to make
it more attractive to C2DEs than ABC1s.
FIGURE 117: CONSIDERATION OF BEAUTY RETAILING BRANDS, NOVEMBER 2013
SOURCE: GMI/MINTEL
Boots’ reliability again proves useful in terms of building preference. Superdrug too earns a significant
amount of preference despite a more basic image. Consumers will consider these stores as places
where they know they will be able to pick up the essentials. Superdrug earns a greater proportion of
commitment from C2DEs while Boots has greater support from ABC1s.
While reliability helps to build preference, Marks & Spencer and John Lewis’ additional quality and
expressive benefits also serve them well. Along with Debenhams, these brands gain a relatively
consistent level of commitment across consumers both over and under 35. However, there is a
difference between them in that Debenhams is the only brand of the three to gain more commitment
from ABC1s, perhaps reflecting its slightly more designer-led approach to product lines.
All brands apart from John Lewis are more likely to gain commitment from women. John Lewis
instead has no discernible gender difference.

UK, January 2014
Avon has a greater amount of absolute favouritism than its overall position would indicate, suggesting
that there is a small group of committed followers. However, its level of avoidance is significantly
higher than other brands, mainly driven by men who are unlikely to consider Avon as it is self-styled
“the company for women”.
FIGURE 118: CONSUMER PERCEPTIONS OF CURRENT BEAUTY RETAILING BRAND PERFORMANCE, NOVEMBER 2013
SOURCE: GMI/MINTEL
Once again John Lewis has the most consistent perception of momentum across gender. While Boots
has a more dynamic image among women, the consistent level of John Lewis’s momentum across both
men and women pushes it to the top. All other brands have a more dynamic image among women,
suggesting that they are more aware of developments and advertising.

UK, January 2014
Both John Lewis and Marks & Spencer have more dynamic images among over 45s than within other
age groups, perhaps reflecting their long history and associations with quality and reputation alongside
greater perceptions of exclusivity. Other brands have greater perception of momentum from younger
age groups. They are also the only brands to have a more dynamic image from consumers outside built
up urban areas, with rural dwellers more likely to consider them as having momentum.
Only Avon is considered to be falling behind, something driven by over 55s in particular. These are
the consumers most likely to have been exposed to the brand, and the consumers who are most likely
to consider it as tired. Under 35s are more likely to consider it as moving forwards than falling behind,
perhaps influenced by the increasing online offering that Avon provides and the attempts at
modernising it through younger brand ambassadors.
Brand index
The Mintel brand index gives an overview of a brand’s standing relative to others in its own
category or outside. A brand scoring 100 on the index would have 100% penetration, be
universally seen as unique, score universally on all attributes and be top-rated for all relevant
scaled brand aspects. A brand scoring zero on the index would be completely unknown.

UK, January 2014
FIGURE 119: BEAUTY RETAILING BRAND INDEX, NOVEMBER 2013
SOURCE: GMI/MINTEL
Boots has the strongest brand index, helped by high usage and levels of reliability which encourages
intention. Its brand index is consistent across all over 25s, but like many other brands has a strong
feminine bias. Marks & Spencer combines upmarket connotations with accessibility, which creates the
second highest brand index.
John Lewis has a very consistent brand index across genders, age, regions and socio-economic groups.
While not the higher brand index on display, the brand’s image and strength goes across all consumers
making it clear that its message filters through to all kinds of consumers.
Lush has a differentiated proposition and appeals to women under 25 in particular. There is also an
urban and ABC1 bias which may indicate a slightly less accessible brand to those outside of town
centres, but one with more glamorous and upbeat personality traits. The Body Shop is the only other
brand to achieve a higher brand index from under 35s than over 35s. Similarly it is the only brand to
have its highest brand index among Londoners and consumers from ABC1 households, suggesting that
Lush and The Body Shop are closer direct competitors than other brands.

UK, January 2014
Avon’s brand index is consistent across over and under 35s, due to the change in approach it has
undertaken. While it is something of a historic brand with its iconic Avon ladies, it has updated its
image to appeal to younger audience. Older consumers now appear less inclined to use it and have a
more negative impression of it. This is tempered somewhat by more encouraging perceptions among
younger groups; however the 25-54 age group is where Avon has the highest brand index.
Target group analysis

Mintel’s brand target groups are based on psychographic analysis highlighting different attitudinal and
personality traits between people, informing their interactions with and motivations towards brands
and brand purchase.
Through varying combinations of these traits and the importance survey respondents place on them,
Mintel allocates them to one of five groups, although there are some common traits between them.
The five groups are illustrated here in relation to Mintel’s beauty retailing research sample, together
with the brands they are most likely to buy, shopping habits and the attitudes they have towards
individual brands.
FIGURE 120: TARGET GROUPS, NOVEMBER 2013
SOURCE: GMI/MINTEL

UK, January 2014
FIGURE 121: BEAUTY RETAILING BRAND USAGE, BY TARGET GROUPS, NOVEMBER 2013
Bubble size represents usage (% ever used)
SOURCE: GMI/MINTEL
Group One – Conformists

Conformists are the most brand-loyal of all groups and are primarily driven by a desire to fit in with
others. They seek reassurance from others ahead of making a purchase, and will as such think carefully
about buying something beforehand rather than buying impulsively. However, they are the least
concerned about quality and premium products and brands.
Conformists are strictly mass market; they prefer popular brands and are liable to say such brands
make them feel confident or express their personality. Personal emotional benefits are important to
them, reflecting their concern over fitting in with others and feeling part of the crowd. In line with this,
they are among the most likely to agree that they buy brands they know their friends would approve of
and to feel that owning fashionable brands makes them attractive.
Conformists are more likely to be women than the average, particularly women under 25 and over 55.
They are more likely than average to live outside town and city centres, with a higher proportion in
suburban and rural areas.

UK, January 2014
The big names of many of the brands in this market appeals to Conformists’ nature, which explains
why many of them have higher than average usage. The feminine edge to the group also influences
this higher level of usage of the majority of brands in the market. As the least used brand, Lush has the
lowest amount of usage from Conformists, as this brand is less likely to provide the comfort and
confidence that Conformists desire. Avon might have a higher than average level of usage due to the
one-to-one service that may encourage more confidence within its products.
Group Two – Simply the Best
This group is by far the most concerned about quality and premium goods, but like Conformists are
worried about their image and status. They are least likely to worry about price, product range or offers
and, while no more impulsive than average, they are arguably more likely to buy something ‘with
confidence’ when they see it.
However, they are most likely to be early adopters and adventurous in their brand and product choices,
and their status motivations are therefore more likely to be driven by projections of prestige rather than
fitting in with others – they are among the least likely to ask opinions of friends and family.
The Simply the Best group is dominated by consumers from ABC1 household, and has a significantly
higher proportion of ABs than the average. It is also more urban than the average with a slight
masculine bias.
While this group has no more than average usage of the stores with the most upmarket connotations,
John Lewis and Marks & Spencer, they are more likely to use them regularly. This also says
something about the reputations of these stores as consumers of all types are likely to have used them
despite their more exclusive, upmarket images.
Group Three – Shelf Stalkers
Shelf Stalkers are the anxious shoppers of the batch and are characterised by the propensity to consider
every facet of a purchase and the products available before committing to buy. Quality matters to them
and they are among the least likely to be impulse shoppers.
They are internally motivated, making their own minds up on whatever criteria they need to consider,
and while slightly more likely to be individualistic than others on this basis, they will to some extent
consult others before purchasing – an additional source of information to consider, although ultimately
they will make their own minds up.
This is the oldest of the groups, with over 60% aged 45 or older while it also has the highest
proportion of rural consumers.
This group is cautious, but has been exposed to these brands for longer periods due to their age and the
time on the market that the majority of these brands have. In the last year they are still more likely than
average to have used Boots and John Lewis, while other brands have lower than average usage. The
newer status and younger target market of the Body Shop and Lush means that they are less likely to
have used them. The colourful and interesting products are unlikely to appeal to them as much as more
standard, traditional products.
Group Four – Habitual Shoppers
Habitual Shoppers are characterised primarily by sticking to what they know, although within that
parameter they are relatively carefree and will buy products on impulse. Like Simply the Best
consumers, they are unconcerned with price and bargain shopping, although conversely they are no
more than averagely likely to be attracted to premium goods.

UK, January 2014
Interestingly and against their habitual characteristics, they do not consider themselves brand-loyal.
This indicates that they are more likely to buy ‘replacement’ products.
Habitual Shoppers are the youngest of the groups, with 57% under the age of 35. It has a significantly
more urban representation than the average, particularly in London and the Midlands.
While the general patterns of usage are still the same, usage is more consistent across brands, because
this group is less preoccupied by quality or price. The higher than average usage of Lush reflects the
high proportion of urban consumers and the relative age of the group. This younger age also means
that Habitual Shoppers have had less exposure to stores within the market compared to groups with
older consumers.
The tendency to choose similar brands and products from this group combined with the importance of
convenience for this group means that regular usage is higher than in other groups, even when overall
usage is lower.
Group Five – Individualists
Individualists are a smaller group representing the quirky, more bohemian end of the spectrum.
Conformism is anathema to these consumers and they are by far the most likely to be driven by doing
their own thing and standing out. They will buy based solely on their own wants without consulting
others, but at the same time they like to be admired for their choices and their style.
These are the least habitual shoppers and will branch out to try new things, typically acting
impulsively. Quality and brand loyalty are of low importance to them, but Individualists are at the
same time most likely to take into account product ranges, price and promotions – they are bargain
hunters.
This group is another dominated by women, particularly those over the age of 35. It is also another
group more likely to live outside of built up areas, with a higher proportion than average living on the
outskirts of town and cities, and in rural areas.
The nature of this group to try and stand out means that usage of stores in this sector is higher than
average. The tendency of Individualists to look for the best deal available also causes reason for
experimentation, boosting usage of different stores further. The original experience and products that
Lush and The Body Shop provide encourages usage, as does the accessibility of Boots and Superdrug.
The downside for retailers within this group is that this experimentation means regular usage is lower,
and that consumers will not necessarily stay loyal, and will instead shop around often.

Alliance Boots Beauty Retailing
UK, January 2014
Alliance Boots
What it does: Market leading health and beauty retailer with strong pharmacy business. It has
small scale operations elsewhere and is now 45% owned by Walgreens of the US.
Latest year-end: March 2013
Sales: £7.5bn (-2.5%)
Operating profit: £865m (+6.4%)
Website: www.boots-plc.com
Countries of operation: UK, Netherlands, Norway, Ireland, Lithuania, Asia. Also joint ventures in Italy and
Croatia.
Company trend data and For further company retail data go to the following sections:
competitor intelligence:
Market share
Financials and outlets
Space allocation
Online
Consumer profiles
What we think
Boots became part of Alliance Unichem in 2006 and then came into Walgreen’s orbit in 2012.
The Alliance deal appears to have had a positive impact. After years of failing abroad, Boots retail
now has some successful businesses, and in Thailand it is one of the market leaders.
New owners
It is too early to say much about the impact of Walgreen’s. Although it only has a 45% share in
Alliance Boots, it is clear that relations are much closer. Alex Gourlay, formerly MD to Alliance
Boots’ retail division, has been moved over to become “Executive Vice President, President of
Customer Experience and Daily Living”. In the meantime Richard Ashworth, Walgreens Corporate
Operations Vice President for the Western United States, has been appointed as Director of
Healthcare, Health & Beauty UK and Republic of Ireland (ROI) at Alliance Boots.
The two businesses are culturally far apart. Their retail offerings – one downmarket, the other
marginally upmarket, represent the opposite extremes of health and beauty retailing. Walgreen has the
upper hand. The risk is that it might start to interfere with Boots without really understanding how it
works.
That’s why the exchange of managers is encouraging. There is no sense that Walgreen is trying to
move quickly. In fact its recent focus appears to have been on wholesaling as it and Alliance Boots
have set up a long term deal with AmerisourceBergen to supply Walgreens 8,000 US outlets.
Nor would we argue that Boots wouldn’t benefit from new ideas. Its performance in recent years has
been solid and it has clearly benefited from input from Alliance, especially when it comes to overseas
development.
The deal was closed on 2nd August 2012. Walgreens has the option in the six months up to 2nd
August 2015 to acquire the rest of the business. It is far too early to guess whether it will do so. But
there are no obvious reasons why it should pull out and all its actions so far have been to pull the two
sides closer together.

UK, January 2014
Focusing on healthcare
In the UK Boots seems to be placing more emphasis on healthcare. It has a long-term problem of
having too much space, dating back to the 1960s, and it has never been satisfactorily resolved. The
core health and beauty offer is still the main driver, but as we show in the space allocation section,
other ranges account for around one-third of space and that proportion is much higher in larger stores.
So Boots has now installed 16 doctors’ surgeries in stores and 100 outlets have the travel health
service.
This is a logical move, even if it increases Boots’ dependence on income from the NHS. In the last five
years the Lifestyle share of sales has fallen by two percentage points to under 15% and we expect to
see a continuing slow decline from this level.
FIGURE 122: BOOTS UK RETAIL: SHARE OF SALES BY PRODUCT, 2008/09-2012/13
40
35
30
25
% 20
15
10
0
2009 2010 2011 2012 2013
Retail health Beauty & toiletries Lifestyle NHS income
Note: Retail health is sale of non-prescription medicines and other health related products.
Lifestyle includes all non- health and beauty ranges, including baby, photography and nutrition.
SOURCE: ALLIANCE BOOTS/MINTEL
Online
While the stores appear to be becoming more focussed, the same is not true online. On the whole the
online offer matches the core high street strengths, but it also includes products that have never been
found on the high street, for example white goods. This is very odd. If the brand strength cannot
support unrelated items in-store, why try to sell even more online? We feel that Boots should
concentrate on what it does well on the high street.
In Thailand, Boots’ main non-UK wholly owned business, the website is not transactional, although it
seems to be set up to enable the move soon.

UK, January 2014
Prospects
Boots seems solid and dependable and has one of the strongest brands in UK retailing. The brand
strength, built up over a century of good service, and the trust that comes through having pharmacies
in-store are its greatest strengths. Boots has been highly successful in capitalising on that strength in its
core health and beauty business, but has largely failed to extend it into new product areas. The current
strategy of focussing in on the core health and beauty businesses seems to us to be the right one, but it
may not appeal to a new owner wanting to see more dynamic growth.
Yet it seems to us that the opportunities for Boots lie in developing similar strengths outside the UK.
Under Alliance’s ownership it has been more successful outside the UK and Walgreens has much that
it could learn from Boots as well as gain through developing Boots’ own brands in the US.
To describe Boots as being solid and dependable seems to be “damning with faint praise” and yet it is
its greatest strength. It needs to be treated carefully because its strengths could easily be undermined.
Company background
1849 John Boot opened the British and American Botanic Establishment in Nottingham selling herbal
remedies and providing advice to the needy.
1956 First self-service Boots store opens in London.
1980s Retail division diversifies, both organically and by acquisition. All non-core fascias – including Do It
All, Halfords, Children’s World and Sephora – were subsequently sold.
1990s Retail chains in New Zealand and Canada sold. Enters Republic of Ireland.
1997 Boots Advantage Card launched. Opens stores in Netherlands and Thailand.
2000 Dutch stores sold to Etos.
2006 Alliance Unichem plc merges with Boots Group plc to form Alliance Boots plc.
2007 Alliance Boots plc acquired by AB Acquisitions Ltd, taken private, delisted from the London Stock
Exchange and renamed Alliance Boots Ltd.
2008 Roll-out of the “your local Boots pharmacy” format begins. Launches ‘order-online and collect-in-
store’ service.
2009 Boots Opticians and Dollond & Aitchison merge to form the second largest optical chain in the UK.
Former CEO of HBoS, Andy Hornby, appointed CEO.
2010 Launches the Treat Street partnerships portal
2011 Andy Hornby resigns in March (replaced by Alex Gourlay). New skincare brand, Boots
Laboratories, launched and distributed to independent pharmacies in Italy, followed by Spain,
Germany, Austria and Switzerland in collaboration with Procter & Gamble.
2012 March: Transfers 51% stake In Alliance Healthcare Russia from UK holding company to a
company controlled by the group’s ultimate shareholder, AB Acquisitions Holdings Limited.
August: Walgreens pays $6.7 billion to acquire a 45% equity stake in Alliance Boots and has three
years to decide if it wants to buy the remaining stake. Plans announced to extend the skincare
research and development operations as part of transformation plans for disused parts of its
Nottingham HQ site. Boots Laboratories distribution extended to Germany.
Company performance
Boots retail sales have hardly changed over five years. But that is because of some slimming of the
store portfolio and a 4.4% decline in NHS income. Retail sales are up 3.9% over the last five years.
Sales of retail goods per outlet grew 9.3% over the last five years, a creditable performance during the
downturn, though there are no industry statistics for a fair comparison. This is better than the specialist
chemists (+4%), but worse than mixed goods retailers (+20%). But that is more or less what one would
expect given the large number of small pharmacies in the chain and the nature of the business.

UK, January 2014
In 2012/13:
 NHS income fell for technical reasons – some branded medicines came off-patent and were
replaced by generics and there was one trading day less.
 Beauty sales were up only 1.2%. There was a strong performance from No 7, but Boots blames
competitor discounting over Christmas for disappointing fragrance sales.
 The company is oddly coy about revealing its online sales. We are told that they rose 17% in
2012/13, that 25% of visitors to Boots.com were on a mobile device and that 45% of online orders
were for click and collect. Our best guess is that online sales – which are mainly in non-healthcare
sectors, are of the order of 15% of retail sales – approaching 7.5% of Boots UK retail turnover.

UK, January 2014
FIGURE 123: ALLIANCE BOOTS: GROUP FINANCIAL PERFORMANCE, 2008/09-2012/13
Year to March 2009 2010 2011 2012 2013
Sales (£m, excl. sales tax):

Alliance Boots 7,147 7,520 7,626 7,671 7,482
Of which:
Boots (International) 804 878 905 965 935
Including:
Boots Netherlands N/A 174 164 162 135
Boots Ireland 218 235 227 238 232
Boots Russia 4 3 2 N/A N/A
Boots Norway 338 373 386 412 401
Of which:
Boots Opticians Ltd 181 320 329 332 335
Boots UK Retail 6,162 6,322 6,392 6,374 6,212
Of which
Retail health 756 798 913 891 904
Beauty & toiletries 2,056 2,182 2,108 2,151 2,178
Lifestyle 1,039 991 963 962 921
Boots the Chemist NHS income 2,311 2,351 2,408 2,370 2,209
Sales (€m, excl. sales tax):

Alliance Boots 8,975 8,433 8,878 8,840 9,225
Of which:
Boots (International) 1,010 985 1,054 1,112 1,153
Including:
Boots Netherlands N/A 195 191 187 166
Boots Ireland 274 264 264 274 286
Boots Russia 5 3 2 N/A N/A
Boots Norway 424 418 449 475 494
Of which:
Boots UK Retail 7,738 7,090 7,441 7,345 7,659
Of which
Retail health 948 895 1,063 1,028 1,114
Beauty & toiletries 2,582 2,447 2,454 2,479 2,685
Lifestyle 1,305 1,111 1,121 1,109 1,135
Boots the chemist NHS income 2,902 2,637 2,803 2,731 2,723
Operating profit (£m):

Alliance Boots 673 730 767 813 865
Alliance Boots UK Retail 628 677 713 750 813
Operating margin (%):

Alliance Boots 9.4 9.7 10.1 10.6 11.6
Alliance Boots UK Retail 9.9 10.2 10.6 11.2 12.4
SOURCE: COMPANY ACCOUNTS AND ANNUAL REPORT/MINTEL

Alliance Boots publishes no details of its store portfolio, but based on previously published
information we believe around 1,000 units trade as “Your local Boots Pharmacy” with the remainder
being larger outlets ranging from small high street shops to out-of-town stores and major city centre
units.

UK, January 2014
FIGURE 124: ALLIANCE BOOTS: OUTLET DATA, 2008/09-2012/13
Year to March: 2009 2010 2011 2012 2013
Outlet numbers:
Alliance Boots 3,048 3,250 3,280 3,330 3,120
Of which:
Boots (International) 457 477 493 528 554
Including:
Boots Netherlands n/a 74 72 72 72
Boots Ireland 51 53 58 71 74
Boots Russia 10 9 5 n/a n/a
Boots Norway 149 153 154 154 155
Includes Boots Opticians Ltd 685 671 656 624 604
Sales area (‘000 sqm):

Alliance Boots UK Retail 740 732 732 732 732
Sales per outlet (£’000):

Alliance Boots 2,337 2,388 2,336 2,321 2,320
Boots (International) 1,759 1,880 1,866 1,892 1,728
Boots Netherlands n/a 2,351 2,247 2,250 1,875
Boots Ireland 4,449 4,519 4,127 3,719 3,222
Boots Russia 333 333 286 n/a n/a
Boots Norway 2,268 2,470 2,523 2,675 2,604
Boots UK Retail 2,366 2,497 2,586 2,576 2,509
Sales per sqm (£):

Retail offering
Positioning A broad mass market retailer with a dominant position in health and beauty on the high
street. Its branded fragrance and cosmetics offer gives it a marginally upmarket bias.
Loyalty card Boots advantage card scheme now has some 17.8 million members.
Brands Own brands are strong with consumer trust built up over a long period. Some of its own
brands – notably No 7 and Soltan, are market leaders in their own right. Other own brands
include Boots 17 and Botanics.
Recent activity December 2013 – new colour cosmetics range for No.17.
New skincare range for Botanics.
June 2013: Kimberley Walsh chosen to be the face of a number of smaller exclusive brands,
such as Clearasil and E45 allowing customers to take a picture on a smartphone, which can
then be used at the till to buy the product.

A.S. Watson UK (Superdrug, Perfume Shop, Savers) Beauty Retailing
UK, January 2014
A.S. Watson UK (Superdrug, Perfume Shop, Savers)

What it does: A.S Watson operates three UK chains in the beauty sector. Superdrug is
the company’s largest operation and the UK’s second largest health and
beauty retailer. The Perfume Shop is the country’s leading specialist
perfumery chain, and Savers is a discount drugstore operation.
Latest year-end: December 2013
Sales (estimated): £1.4 bn (-0.4%)
Number of stores: 1,358
Websites: www.aswatson.com, www.superdrug.com www.theperfumeshop.com,
www.savers.co.uk
Countries of operation: UK plus other European markets and Asia
Market share
Space allocation
Online
Consumer profiles
What we think
Superdrug:
Watson’s largest UK business was the weakest performing in 2012, with sales down and a loss
recorded at the operating level. Store closures are a contributory factor but our sales per store figures
indicate a decline in this metric too, suggesting that underlying performance has stalled. Margins too
are very low compared to many other operators in the beauty sector.
The business is implementing a number of initiatives to strengthen and extend its retail brand (see
below) but to us there seem to be lots of trials and small-scale developments going on, with little
overall clarity as to where the business as a whole is trying to go. It is trying to capture share of the
perfume retailing, beauty services and healthcare markets, and has made some inroads into each of
these, but none on a chain-wide basis. Given the recent decline in performance, perhaps Superdrug
would be better to focus on strengthening its core business, where it has a strong reputation and
standing across a broad range of UK shoppers.
Broadening the range
As our consumer research shows, Superdrug has a broad appeal across ages and socio-economic
groups. It is perceived as accessible, driven by the extensive network of stores as well as cheaper
prices and products in comparison to other stores. Its own label ranges cover the spectrum, from
budget to more premium, but it needs to maintain the momentum of new launches, which are vital to
driving traffic in this sector.

UK, January 2014
It has also looked to ramp up its standing as a perfume retailer, by introducing fragrance concession
counters in some stores, and to expand into beauty treatments. Many larger stores have lash and brow
bars, and the latest innovation has been tanning booths. More technical treatments are offered in the
Proskin clinics. We wonder how successful this venture has been – we were sceptical about the
demand for more substantial, premium services from Superdrug, thinking that consumers would be
more reluctant to pay for services, some of which are quite invasive, in a store environment, preferring
the reassurance of a professional salon environment. There were original plans for 50 by the end of
2013 but by December 2013 there were still only eight in operation, suggesting this target was over-
ambitious.
Expanding share of the healthcare market
Superdrug has set its sights on capturing a larger share of the lucrative UK healthcare sector (standing
up to Boots) and has been investing in ramping up its healthcare services, including in-store
pharmacies, nurse clinics and the launch of the Online Doctor service in July 2013. However, given
the relatively small number of stores offering these, we think there is a long way to go with this
venture. Superdrug currently has very little in the way of a reputation or standing in this field and
building such an image, in the country that is home to Boots, seems like a very steep hill to climb.
The Perfume Shop:
The Perfume Shop is one of the very few specialist perfumery chains in the UK, and is certainly the
largest (ahead of The Fragrance Shop). Although it is the most profitable of the Watson UK
businesses, operating margins have declined over the last two years, and The Perfume Shop needs to
contain its costs, improve efficiencies and continue to innovate in order to maintain its value message
to customers. The chain has a reputation for good customer service but needs to promote this more to
its customers – its current marketing is focusing on bringing that expertise to the fore.
The new test concept store that opened in Stratford in September 2013 is an example of a great
innovative shop environment, with a design to appeal to fragrance consumers who would like to learn
more about fragrance. It offers a much more hands-on, experiential environment, very different to the
core format, which has a small footprint, with glass counters separating staff and products from
customers. If successful the challenge will be in finding the right stores to convert to this very different
concept.
Savers:
Savers was the strongest of Watson’s UK chains in 2012, after years of being the underdog. The
turnaround programme of the last few years now seems to be bearing fruit. The chain’s discount pitch,
recent store refurbishment programme and new openings saw it grow sales by 13%, and it turned in a
profit for the first time in seven years. Growing sales per store suggest that the chain has also seen
underlying growth. However, the website is a real weak spot, which is something of a surprise, given
Watson’s expertise, and the well-developed online businesses of Superdrug and Perfume Shop.

UK, January 2014
Flotation on the horizon
As we write, it has been announced that Watson’s owner, Hutchison Whampoa is looking to float all
or part of its global retail division in a separate IPO. Watson’s is predominantly a health and beauty
retailer, (under the Watson’s brand in Asia) but also includes Watson's Wine and the Fortress
electrical-appliances chain. Details have not yet been released but this raises the prospect that
Superdrug, Savers and the Perfume Shop (or some combination thereof) will become part of a public
company. Raising as much cash as possible from the float, and keeping shareholders happy going
forward might help to focus strategy at Superdrug, given the need for transparency in a publicly-
quoted business.
Company background
A. S. Watson is the retail and manufacturing arm of Hong Kong-based Hutchison Whampoa Ltd. It
operates over 8,600 health and beauty stores in 38 countries. This profile focuses on its UK operations,
which include the drugstore chains Superdrug and Savers, plus The Perfume Shop.
2002 A.S. Watson acquires the Kruidvat group in the Netherlands.
2005 The Perfume Shop acquired by A.S. Watson.
2007 Superdrug starts repositioning as ‘fashion-led’ beauty and health retailer. Over 200 Savers stores
converted to Superdrug fascia.
2008 Savers integrated into A.S. Watson’s central and distribution functions.
2010 Perfume Shop counters trialled in 11 Superdrug stores.
2011 Perfume Shop counters rolled out to circa 50 Superdrug stores.
Superdrug loyalty card launched.
Perfume Shop loyalty card launched.
New format Superdrug stores launched, including nail and brow bars and Perfume Shop counters.
2012 In January, Jeremy Seigal exits as CEO of A. S. Watson UK. In July Commercial Director of
Superdrug Steve Jebson leaves. Joey Wat becomes MD of Savers and Superdrug and Jo Walker MD
of Perfume Shop, both reporting in to Group MD Dominic Lai.
Price comparison campaign launched in partnership with price comparison website
Mysupermarket.com.
2013 September: Perfume Shop opens new concept store in Westfield Stratford City shopping centre.
December: Hutchison Whampoa appoints three banks to oversee a potential dual IP of its retail arm,
A.S. Watson.
Company performance
There is no legal company entity known as A.S. Watson UK. The figures presented below as the total
are Mintel’s own, arrived at by combining the figures from the three UK businesses, Superdrug, The
Perfume Shop and Savers.
Superdrug
2012 was the fifth year of flat or falling sales at the largest business, with turnover down -2.7%. Store
closures were partly to blame, but also reduced footfall, especially outside London. Gross margin
edged up to 39.2%, but a small loss was reported. Before the exceptional charge (relating to the store
estate) however, operating profits were up slightly to £13.7 million, giving an operating margin of just
under 1%. This is a very low margin, compared to say Boots, which had an operating margin of 12.4%
in 2012/13.

UK, January 2014
The Perfume Shop
Similar in size to Savers, The Perfume Shop grew turnover by 4.7% in 2012, aided by 14 new stores
and three new shop-in-shops. Given the higher value merchandise, operating margins in double digits
are much higher than Superdrug. The UK generated 95% of total sales, the remainder from 13 stores in
Ireland. Turnover in the UK rose by 5.5% to £200 million, while sales in the Republic of Ireland fell
by 8% to £12.2 million.
Savers
Benefiting from its discount positioning and the opening of 11 new stores, Savers grew 2012 sales by
13.4%, the strongest performance of the three Watson UK businesses. It returned to profit for the first
time since 2005 and increased gross margin to 28.5%.
FIGURE 125: A. S. W ATSON UK: FINANCIAL PERFORMANCE, 2008-13
Year to December 2008 2009 2010 2011 2012 2013 (e)
Sales (£m, excl. sales tax) 1,400 1,426 1,403 1,440 1,447 1,441
Of which:
Savers 161 172 171 189 214 223
Superdrug (a) 1,075 1,075 1,055 1,049 1,021 988
The Perfume Shop (a) 164 179 177 202 212 230
Sales (€m, excl. sales tax) 1,758 1,599 1,633 1,660 1,784 1,694
Of which:
Savers 202 192 199 218 264 262
Superdrug (a) 1,350 1,205 1,228 1,209 1,259 1,162
The Perfume Shop (a) 206 201 206 233 261 270
Operating profit (£m) -1 20 31 37 31 na

Of which:
Savers -18 -10 -8 - 7 na
Superdrug -2 6 15 11 -1 na
The Perfume Shop 19 24 24 26 25 na
Operating margin (%) -0.1 1.4 2.2 2.6 2.1 na

Of which:
Savers -11.0 -5.6 -4.5 -0.2 3.2 na
Superdrug -0.2 0.6 1.4 1.0 -0.1 na
The Perfume Shop 11.5 13.4 13.4 13.1 12.6 na
Pre-tax profit (£m) -6 14 25 32 28 na

Of which:
Savers -18 -10 -8 - 7 na
Superdrug -7 0 9 6 -4 na
The Perfume Shop 20 24 24 27 25 na
Note: 2011 was a 53 week period.
(a) Includes some sales in Ireland; five Superdrug stores and 13 The Perfume Shop stores in 2012.

Superdrug has an extensive network of stores in high streets and shopping centres. The brand is high
profile as a result, as reflected in our brand research. In 2007/08 several of the larger Savers outlets
were converted to Superdrug stores. However, many were too close to other Superdrug stores and
there has since been some store closures.

UK, January 2014
The focus in 2012 was on store refurbishments, particularly in the South-East, and this is being rolled
out across the whole estate in 2013/14.
Savers stores trade in secondary sites with lower rents. A total of 11 stores opened in 2012 as the
company seeks to capture more of cash-strapped consumers’ spending.
The Perfume Shop also trades in high streets and shopping centres as well as in some travel retail
locations, and some stores are very small. The rate of opening concessions in Superdrug stores has
slowed – in 2012 it opened three of these concessions and 14 stand-alone stores.
FIGURE 126: A. S. W ATSON UK: OUTLET DATA (PART ESTIMATED), 2008-13
At December 2008 2009 2010 2011 2012 2013 (e)
Outlet numbers:
A. S. Watson UK 1,321 1,321 1,316 1,348 1,370 1,358
Of which:
Savers 235 230 231 232 243 245
Superdrug (a) 923 923 900 887 882 855
The Perfume Shop (b) 163 168 185 229 245 258
Sales per outlet (£’000) (c):

A. S. Watson UK 1,067 1,079 1,064 1,083 1,066 1,056
Savers 677 739 744 819 905 914
Superdrug (b) (c) 1,171 1,164 1,158 1,175 1,155 1,137
The Perfume Shop (b) (c) 1,053 1,087 1,007 976 893 913
(a) Estimated store numbers, excluding Ireland.

(b) Excludes stores in Ireland; 13 in 2012. Includes concession counters in Superdrug stores.
(c) Includes online sales but excludes Irish stores.
Retail offering
Superdrug
Positioning Everyday, accessible beauty products at highly competitive prices. Our research highlights
Superdrug’s association with value, a good basic offer, and accessibility. It has broad appeal
across age and socio-economic groups. The bias towards women is slightly higher than at
Boots, and the largest customer age group is 16-24-year-olds.
The new store design, which was first launched in 2010, pitches the format as much more of
a fashion store, with greater emphasis on the cosmetics offer, as well as beauty and
perfumery, in a fresher store environment.
Range Comprehensive health and beauty offer, but more emphasis on beauty, with cosmetics a
particularly strong area. Some larger outlets offer in-store beauty services, such as brow and
lash bars.
In 2012 the company launched its first in-store skincare clinics in partnership with ProSkin,
offering treatments such as anti-wrinkle injections, laser hair-removal and
microdermabrasion. Plans for 50 clinics by 2013 now look over-ambitious – only eight at
December. Two stores have teeth whitening clinics.
Currently expanding offer in the healthcare arena – pharmacies in around a quarter of stores
and 14 stores with nurse clinics offering health checks. Online Doctor service offers click and
collect prescriptions, advice and consultations and some medicines and home testing kits.
Own brands New products are a key driver of growth in this market and Superdrug has a number of own
brands, with frequent new product launches.
Essential (economy), Simply Pure (gentle and vegan-friendly skincare), Vitamin E (enriched
skincare), Optimum (premium anti-ageing), Naturals (natural ingredients), Tea Tree (facial
skincare), Solait (sun care and self-tan), Superdrug (core, mid-tier own brand). Exclusive
cosmetics brands include GOSH, Clubworks Make Up Academy (MUA) and 2true. Most
recent brand launch was B, a cosmetics and skincare brand, with a message of “simplicity
and efficacy, offering premium products at an accessible price”.

UK, January 2014
Recent activity Look at Me beauty blog and Dare magazine (print and digital versions) complement and drive
traffic to the transactional website.
July 2013 saw launch of Superdrug Online Doctor, a service enabling customers to order
prescriptions and items such as home test kits without having to visit their GP. In partnership
with Health Bridge, customers can have consultations with qualified doctors and purchase
items such as impotence tablets, contraceptives, hair loss treatments and cholesterol tablets,
with advice on various health issues, and click and collect prescription services.
Recent product/range developments have included:
Launch of new premium brand of skincare and make-up, B at Superdrug, also selling online
at its own website bisforbeautiful.co.uk.
Spray tanning booth opened in Superdrug at Meadowhall, Sheffield store.
Ann Summers sex toys added to the Superdrug range online, and in a small number of
stores.
Partners with UK skin cancer charity SKCin on the summer campaign launching the Sun
Safe Schools awards scheme. Marie Curie appointed Superdrug’s charity partner for 2013
and 2014.
March/April: Free Wifi to be rolled out across the Superdrug chain and launch of live in-store
radio, Superdrug Live
A new TV advertising campaign promoting customer service was launched in February 2013,
moving away from previous celebrity-led campaigns. Called ‘The Superdrug Feeling’, the ad
shows shoppers celebrating after finding a bargain product recommended by staff.
In November it launched its first ever TV advertising campaign focusing on healthcare, as it
seeks to grow share of the UK health market. The ad continues with the “That Superdrug
Feeling” theme and features a Superdrug in-store pharmacist.
The Perfume Shop

Positioning Authoritative range of around 150 fragrance brands, virtually all offered below RRP. Pitched
to consumers as accessible luxury. Perfume Shop report a customer mix of 50:50 men and
women and that their customer base begins as young as 12-year-olds, mainly interested in
celebrity scents.
Range Comprehensive with a strong showing from celebrity fragrances.
Own brands None.
Recent activity The Perfume Shop Rewards Club launched in September 2011. Transactional website with
links to Twitter and Facebook, with features and competitions to drive traffic and grow brand
awareness.
Quarterly in-store magazine, “Scents” (hard copy and online – scents.theperfumeshop.com)
was launched in November 2012, and now has a circulation of 300,000. The first two issues
had some shared content with DARE but it is now purely Perfume Shop content.
New concept store opened September 2013 in London’s Westfield Stratford City shopping
mall. Very different to a standard store, it is a relaxed, open space, encouraging customers to
interact with staff, learn about fragrance and try different products.
Savers
Positioning Health, home and beauty discounter. Sells branded products at discount prices.
Range Opportunistic sourcing and end-of-line stocks mean household cleaners rub shoulders with
celebrity fragrance gift-sets. Focus on household, hair and health products. Most stores now
also sell fragrance and many stock alcoholic drinks. We estimate around two-thirds of sales
derive from health and beauty products.
Own brands None. Plans to introduce some own label products, but no details released.
Recent activity Very basic and unsophisticated website. Not transactional.

Lush Retail Ltd Beauty Retailing
UK, January 2014
Lush Retail Ltd

What it does: Health and beauty retailer specialising in natural and handmade cosmetics.
None of its products are tested on animals. Branched out to in-store spas in
2009.
Latest year-end: June 2013
Estimated sales: £57m
Website: www.lush.co.uk
Countries of operation: Store and online shop network spanning some 51 countries covering Europe
(including the UK), North and South America, the Middle East and Asia-
Pacific.
Market share
Online
What we think
Product selection and exclusivity give it a distinct USP
Lush’s strategy of creating handmade products using only natural raw materials that have not been
tested on animals sets it apart from more generic mass-market cosmetic brands. Its artisan-style
product selection gives it a distinct USP in the market. What’s more Lush does not supply its products
to any other companies, which means its products retain their exclusivity, and this has resulted in a
cult-like following of devoted brand loyalists known as “Lushies”. A steady stream of inventive
environmentally-friendly beauty products has established Lush as a leading innovator. For eco-
conscious beauty shoppers, especially, Lush represents a credible alternative to the mainstream brands.
In-store experience reflects the brand’s uniqueness
Lush stores are designed to showcase its products in the most natural way possible. The in-store
environment mimics that of an old-fashioned grocer, with product lists on chalkboards and products
displayed without packaging. This accessible and transparent display encourages customers to explore
its goods before purchasing and gives a distinctively sensory shopping experience.
Added value service
The introduction of in-store spas offering full body massages and facials enhances Lush’s one-stop
health and beauty shop credentials. The spa concept provides an opportunity for Lush to generate
additional revenues but also reinforces the brand’s credentials. While the company plans to open a
seventh in-store spa, possibly in Cardiff, it would seem that the factor slowing down a roll-out of a
more expansive in-store spa network is the size of its shops, which tend to be relatively small.
Green issues becoming more mainstream
Increased consumer awareness of organic and eco-friendly products presents an opportunity for Lush
to expand its customer base. The brand’s minimally packaged environmentally-friendly products
should give it a competitive advantage over brands that have yet to make a real commitment to
safeguarding the environment.

UK, January 2014
E-commerce an integral part of business
In 2011, Lush’s website was hacked, rendering it obsolete for several weeks. Since then the company
has worked hard to regain customer trust in its online site. The retailer says its e-commerce sales have
recovered since it launched a totally new online site. Reports suggest online sales accounted for 10%
of all its UK sales for the period 2011/12. Lush UK property director, Paul Wheatley said in 2013 the
company wants to increase this proportion to 50%. Lush reported a 27.7% increase in online sales in
the five weeks leading up to December 2013 compared to the same time a year earlier.
We believe there is potential for Lush to grow online sales, but think to realise the channel’s full
potential the company needs to offer a more robust multichannel proposition, perhaps with the addition
of a click & collect service. Click & collect has the added advantage of driving footfall to its shops,
creating an opportunity for incremental store sales.
Company background
2008 Continues to pursue aggressive international growth in North America and Japan.
Parent company increases its stake in B Never too Busy to be Beautiful, the fragrance and colour
cosmetic retailer.
2009 Opens first in-store spa in King’s Road London store and treatment rooms in its Poole, Kingston and
Leeds stores. In the autumn announces that B will cease trading with Lush absorbing the business in
order to retain the assets.
2010 Lush co-founder Mark Constantine sets up off-shoot business Gorilla Perfumes with his son Simon
Constantine. The two view their business as an “antidote to boring mass-market scents and a
movement to get people excited about good quality perfume”. Perfumes are available online and
through Lush stores.
2011 Opens spa in Paris.
2012 Opens store in Westfield Stratford City, next to the London 2012 Olympic site.
Launches its first make-up range, Emotional Brilliance.
2013 Announces plans to open its first LUSH spas in the US. The locations chosen are New York City and
Philadelphia. The spas are expected to open in early 2014.
Voted ‘Best Toiletries and Cosmetics Retailer’ in the Which? High-Street Shopping Survey 2013.
Customers rated Lush top for its customer service, store environment, pricing and innovative product
range.
Company performance
In the year ended 30 June 2012, the latest year for which results have been published, sales for Lush
Retail Ltd, the retail subsidiary trading in the UK, were up 11.7% on the year before, at £52.69
million, boosted by a 5.5% increase in like-for-like store sales and positive sales growth from its mail
order operation especially over the crucial Christmas period. The UK division saw its operating loss
deepen to £1.96 million (2011: £1.47 million), and an increased pre-tax loss for the year after taxation
of £1.751 million against £1.320 million for 2010/11, which the company blamed on a significant
increase in training investment.
Separately, parent company Lush Cosmetics Ltd, which includes all the manufacturing activities
including Lush Manufacturing Ltd, which supplies stock to overseas Lush stores, posted global
revenue of £326 million for 2011/12, up 19.9% on 2010/11’s £272 million. Revenues were boosted by
a 6.6% increase in like-for-like sales across all markets and a return to positive like-for-like sales
growth (+4.8%) in Japan, following the disruption in the previous year caused by the earthquake and
tsunami in the region. Unlike, the loss-making UK subsidiary, Lush Cosmetics Ltd is a profitable
business, posting a net profit of £10.6 million for the year ending 30 June 2012.

UK, January 2014
FIGURE 127: LUSH RETAIL LTD: GROUP FINANCIAL PERFORMANCE, 2007/08-2012/13
Year to June 2008 2009 2010 2011 2012 2013 (e)
Sales (£m, excl. sales tax) 42 41 44 47 53 57

Sales (€m, excl. sales tax) 61 51 50 55 61 71
Operating profit (£m) -1 -3 -2 -1 -2 na

Operating margin (%) -3.6 -8.2 -5.2 -3.1 -3.7 na
Pre-tax profit (£m) -1 -3 -2 -1 -2 na
Note: Figures rounded up.

In the year to the end of June 2012, Lush grew its UK store numbers to 101. Since then, another five
UK stores have opened, advancing the retailer’s store network in the country to 106.
In total, the group ended the financial year (2011/12) with a total of 822 shops worldwide having
opened a record 144 and having closed 50. The store openings were concentrated in mainland Europe,
US, Japan, Korea and Russia. In October 2012 Lush opened its first store in South Africa, in Cape
Town. By the end of December 2013, the Lush global store count stood at 910.
FIGURE 128: LUSH RETAIL LTD: UK OUTLET DATA, 2007/08-2012/13
Year to June 2008 2009 2010 2011 2012 2013 (e)*
Outlet numbers 87 87 94 92 101 106

Sales per outlet (£’000) 485 471 492 507 549 557
* stores as of December 2013.
Retail offering
Range An estimated 300 product lines covering bath, shower, haircare, skincare, make up, cosmetics
and perfumes. Also operates in-store spa treatment rooms at outlets in Edinburgh, Kingston,
Leeds, Liverpool, London Chelsea and Poole offering full body massages and facials.
Brands 100% private-label. All the products are handmade by Lush Manufacturing Ltd. using natural
plant extracts and oils.
Pricing Generally more expensive than local competitors and supermarkets. Its higher price points
reflect the handmade nature of the product and its organic materials as well as its shop
locations, which are often in upmarket areas to attract affluent customers.
Recent activity In December 2013 Lush took Amazon to court, claiming the online retailer is infringing the Lush
trademark. The beauty company claims Amazon has been buying Google and other search
engine ad words for Lush and other Lush related terms to drive traffic to its website, which
does not sell Lush products. When people get to Amazon’s site and search for Lush, they are
shown a competitor’s product. Lush says this can lead to customers mistaking other
company’s products for its own. The company said: “This is not a theoretical risk as actual real
customers have said they have been misled.” A ruling is expected early in 2014.
On 23 November 2013 Lush rolled out five new limited edition fragrances. The range
comprises Snowcake, which features notes of marzipan, floral rose absolute and cassie
absolute; Snow Fairy, a sweet-scented fragrance; Ponche, a citrus-based fragrance with
petitgrain oil; Calacas, which features the festive scent of frankincense; and Rose Jam, which
includes Turkish rose oil, rose absolute, lemon and geranium oil. The fragrances were made
available for just one month.
Teamed up with Vivienne Westwood to promote Climate Revolution, a movement created by
the fashion designer to pioneer a more sustainable world. Launched on 1 January 2013, the
initiative involves Lush stores across the UK and Ireland and invites customers to sign up to
protect the environment and to petition, act and protest for a sustainable future.

Space NK Ltd Beauty Retailing
UK, January 2014
Space NK Ltd
What it does Upmarket cosmetics and beauty retailer. Operates a chain of boutique
apothecary-style stores and concessions staffed by trained makeup artists
and skincare specialists as well as an online store.
Latest year-end (published) March 2013
Sales £ 58.5m (+8.5%)
Operating profit: £ 1m (-19.3%)
Website www.spacenk.co.uk
Countries of operation UK, US
Market share
Space allocation
What we think
Relaxed, unpressured store environment
Space NK offers a boutique apothecary-style store with staff providing independent skincare and
make-up advice. Customers are offered make-up consultations and facials so they can try the products
before buying. The stores aim to deliver an environment that is welcoming and not intimidating.
Reputation for offering exclusive and hard-to-find beauty products
Space NK’s product offering differs from that of most rival premium beauty retailers in that as well as
stocking well-known established brands it also offers a wide range of hard-to-find cult beauty products
that are unavailable elsewhere, certainly on the high street. The company is keen to point out that all
these new unique products sourced from all over the world are hand-picked and tested by staff. This
strengthens both the brand’s credibility as an innovator and validates the products’ credentials, and it
bolsters the relationship between Space NK sales staff and customers.
With the increasing importance of online sales to the beauty market, Space NK must endeavour to
differentiate itself through store services and atmosphere as those hard-to-find brands will be
increasingly widely available online.
Online goodie bag events
One of Space NK’s objectives is to grow its e-commerce business and connect more readily with its
online shoppers. To this effect, the company has introduced online goodie bag events. Similar to in-
store events, which reward customers with a complimentary bag of goodies, the online version allows
shoppers who don’t live near a Space NK outlet, to enjoy the same benefits as store visitors.
Customers who spent £150 online between 1am on the 15 May 2013 and midnight on 16th May 2013
received a goodie bag of beauty products worth £190.
Spa NK potential
A very limited number of Space NK stores operate in-store spa treatment rooms offering customers
body, facial, pedicure and manicures. Currently only available at the retailer’s Knightsbridge and
Westbourne Grove outlets, the Spa NK concept gives customers another reason to visit its shops. As
well as the potential for cross-selling, Spa NK fits well with Space NK’s tranquil and indulgent retail
proposition on the high street.

UK, January 2014
Company background
1993 Founder Nicky Kinnaird opens first store in Covent Garden, London. Started out as a lifestyle
store offering clothing, accessories, beauty and a café/juice bar.
2005 Opens first men’s store, Space.NK.men, in London.
2007 Opens its first store outside the UK in New York.
Further expansion in the UK with eight new openings.
2008 Opens concessions in Bloomingdales department stores in the US.
2009 CEO of five years standing, Judith Pilkington leaves the company.
Fraser Allen appointed CEO.
2010 Introduces customer loyalty programme. The N.dulge loyalty card gives the user one point for
every £1 spent. 100 points brings a £5 reward. Cardholders are also sent exclusive invitations and
birthday treats. A second tier, N.dulge de luxe, provides those spending £1,000 or more over a 12
month period with a £10 N.centive for every 100 points earned, double points on spa treatments
and priority access to private events.
Launches new cosmetic range especially for mums and mums-to-be. The Bloom and Blossom
collection consists of indulgent anti-stretch mark oil, revitalising leg and foot spray and
rejuvenating facial spritz.
2011 QVC and Space NK sign an agreement to sell select items from the latter’s high-end boutiques
through the TV channel in the US.
2012 Launches new UK and US websites as part of its strategy to expand into new international
markets online.
Opens a store in Primrose Hill, London, despite protests by locals to prevent it, claiming it will
drive up rents and force out independent businesses in the area.
2013 Opens its first outlet in Chicago, US.
Company performance
In the year to March 2013, Space NK reported an 8.5% increase in sales to £58.5 million. However,
group profitability declined during the year, with operating profit down 19.4% to £1.23 million and net
profit for the year down 15.3% to £436,023. The decline in profitability was blamed on a slowdown in
trade as a result of the London-based Olympic Games, the start-up costs associated with launching the
new e-commerce platform for the Direct channel and the 53-week trading period the year earlier
versus the 52-week period in the year to 30 March 2013.
FIGURE 129: SPACE NK LTD: GROUP FINANCIAL PERFORMANCE, 2008/09-2012/13
Year to March 2009 2010 2011 2012* 2013
Sales (£m, excl. sales tax) 44 47 50 54 59

Sales (€m, excl. sales tax) 55 52 58 62 72
Operating profit (£m) -1 1 1 1 1

Operating margin (%) -2.1 1.5 1.5 2.4 1.7
Pre-tax profit (£m) -1 0 1 1 1
* 53-week period.
Note: Figures rounded up.
In its latest year-end results statement Space NK stated that it had opened three new stores over the
period. Space NK’s store portfolio now consists of 63 UK stores (including five shop-within-shops in
Harvey Nichols stores), and 23 US stores: seven free-standing and 16 shop-within-shops in selected
Bloomingdale’s outlets.

UK, January 2014
FIGURE 130: SPACE NK LTD: OUTLET DATA, 2008/09-2012/13
Year to March 2009 2010 2011 2012 2013
Outlet numbers 69 61 60 60 63
Sales per outlet (£’000) 666 719 828 899 960
Retail offering
Range Claims to offer 5,000 skincare, cosmetic, haircare, fragrance and home scent products, some
of them on an exclusive basis, across some 60-plus brands.
Brands As well as its own signature collection of cosmetics, skincare, bath & body products and
aromatherapy oils, Space NK claims to stock some 100-plus different beauty brands, including
NARS Cosmetics, Dr Brandt, Laura Mercer, Tata Harper, Caudalie, Sunday Riley and Marc
Jacobs.
Pricing Positioned at the premium end of the market.
Recent activity To celebrate its 20th anniversary the retailer hosted a series of in-store music, artwork and film
events at selected stores throughout 2013. The £15 entry fee included Champagne and
canapés created by award-winning chef Tom Aikens.
Partners with charity Women for Women International to launch In Peace perfume. 10% of the
net profit sales of the perfume go directly to the charity which supports women survivors of
war.
Launches ‘Christmas Angels’ shopping service advisory service for men. The service is aimed
at helping men buy the ideal Christmas gift for their wives or girlfriends and reducing the
number of returns of unwanted presents at its shops in January.

The Body Shop Beauty Retailing
UK, January 2014
The Body Shop

What it does: Manufacturer and retailer of natural, ethical beauty products. Owned by
cosmetics and beauty manufacturer, L’Oréal Group.
Latest year-end: December 2013.
Sales (estimated): €568.9m (Retail sales, Western Europe)
Website: www.thebodyshop.com
Countries of operation: Owned and franchised stores in over 60 markets worldwide including the
UK, North America, Asia Pacific, Europe, UK, the US and South America,
and 22 e-commerce sites.
Market share
Space allocation
Online
Consumer profiles
What we think
‘Pulse Boutique’ bolsters brand values and sales
The revamp of The Body Shop’s stores to the new ‘Pulse Boutique’ concept continues. The ‘Pulse’ in-
store environment – which to our eyes mimics that of rival Lush’s shops in some ways – makes for an
exciting and interactive shopping experience that seeks to educate and engage customers. The stores
invite customers to try before they buy, discover new products and learn about The Body Shop’s
ethical values. ‘Create your own gift’ areas and dedicated skincare and makeup experts are on hand to
offer advice to customers. The group claims the redesign has increased customer dwell time in its
stores from an average five minutes to more than ten. The new store environment had an immediate
effect on group sales, following disappointing figures in 2010. As the Pulse stores aim to engage
shoppers more they have given The Body Shop an opportunity to re-assert its brand values and
connect with those customers who abandoned The Body Shop after its takeover by L’Oréal, amid fears
that the French multinational’s business practices might be compromising The Body Shop’s ethical
position.
Pioneering heritage lives on
The Body Shop has made a habit of introducing inventive beauty products that capture the imagination
of consumers, and 2013 was no different. The ethical brand launched a limited edition cruelty-free
makeup collection in partnership with pop singer Leona Lewis; a brand new Vitamin E Cool BB
Cream, hailed as a breakthrough skincare product that intensely hydrates to improve skin tone; and
Honeymania, a naturally moisturising indulgent bath and body range infused with fair trade honey.
However, intensifying competition in the natural, ethical beauty market has the effect of eroding The
Body Shop’s USP in the market, so a compelling product offering with a strong ethical message
becomes more important.
Connecting with new and existing customers
Digital marketing and social media is playing an increasingly important role in The Body Shop’s
strategy to connect with new and existing customers. The brand is using social media to drive
customers to its stores and bolster its e-commerce distribution channel in its own right. Initiatives on
its Facebook site like The Joy Genie – which encourages followers to enter friends and organisations
into a weekly competition to win a selection of Body Shop goodies – is understood to have increased
the brand’s Facebook following by 10,000 and introduced many newcomers to The Body Shop brand.

UK, January 2014
Travel retail market
The November 2013 creation by L’Oréal of a Group Travel Retail Division, which includes The Body
Shop, signalled a new approach to accelerate the group’s beauty brands’ development in the travel
retail channel, dubbed the ‘Sixth Continent’ by the group. The aim of the new venture is to attract a
billion new customers to the L’Oréal group over the next ten years. L’Oréal has identified group-wide
synergies between the various L’Oréal brands at travel terminals.
Already well-established at the luxury end of the travel retail market with its L’Oréal Luxe brands –
the group’s luxury range of beauty products – the group sees further potential in the channel for its
affordable mass market brands, such as The Body Shop. Given the expansion of low-cost airlines at
airports around the world, the French multinational plans to use the expertise it has built up in the
travel retail sector through its Luxe division to target this untapped mass market potential through the
transfer of knowledge and implementation of best practice methods to brands like The Body Shop.
While this ‘universalisation strategy’, as the L’Oréal group calls it, will give The Body Shop a helping
hand to grow its exposure in the travel retail market, it could also be the start of closer ties between
The Body Shop and L’Oréal. Only time will tell if this closer co-operation with L’Oréal impacts
negatively on The Body Shop’s strong ethical stance and relationship with its core customers.
Company background
2006 Founders Anita and Gordon Roddick sell The Body Shop to L’Oréal SA for £652 million.
2007 Acquires The Body Shop Svenska, its Swedish franchisee.
Dame Anita Roddick dies.
2008 Acquires Cosmenatura SA, its Spanish franchisee.
New CEO, Sophie Gasperment, appointed from within L’Oréal.
2009 Xavier Vidal appointed as international commercial director to oversee development of the brand in
all markets of operation.
2011 Sold the trade and assets of Soapworks Ltd, a wholly-owned subsidiary as part of a management
buyout.
2012 L’Oréal denies rumours of a planned sell-off of The Body Shop.
Model Lily Cole appointed new brand ambassador as the company launches a new store concept,
the Pulse Boutique store.
2013 Acquires 51% stake in Emporio Body Store in Brazil. Emporio Body Store offers a complete range of
beauty products sold through a franchised network.
The Body Shop and Cruelty Free International call for a global ban on animal testing for cosmetic
purposes.
Jeremy Schwartz takes over from Sophie Gasperment as chief executive of The Body Shop
International.
Company performance
The Body Shop increased its group operating profit to €77.5 million in the year to 31 December 2012
(the latest full-year published results). The group delivered like-for-like sales up 4.9%, while total
sales grew 11.4%. Individual country sales are not published, but the group acknowledged that sales
were boosted by a dynamic performance in the Middle East, solid sales across Europe and healthy
online sales.
Interim results for the period to the end of June 2013 look disappointing by comparison, with like-for-
like sales growth of 0.5% and total sales down 1.4%. Performance was impacted by the continuing
difficult trading environment, particularly in Europe, and costs connected with the continuing roll-out
of its ‘Pulse’ store concept and new product launches. We expect sales to pick-up in the second part of
the year, boosted by the traditional Christmas gift market demand.

UK, January 2014
FIGURE 131: THE BODY SHOP: GROUP FINANCIAL PERFORMANCE, 2008-13
Year to December 2008 2009 (a) 2010 2011 2012 2013 (e)
Sales (€m):
Consolidated sales (excl. VAT) 756.0 726.3 754.9 767.6 855.3 na
Retail sales (excl. VAT) (b) 1,217.7 1,328.7 1,294.4 1,344.3 1,470.5 1,570.3
Of which:
Western Europe 518.0 535.2 508.8 518.9 548.1 568.9
North America 202.5 192.8 177.8 175.5 184.8 188.5
Rest of the World 497.1 600.6 607.7 649.9 737.6 812.8
Like-for-like retail sales growth (%) -2.3 -0.6 -4.0 +3.8 +4.9 na
Operating profit 36.2 54.0 65.0 68.1 77.5 na

Operating margin (%) 4.7 7.4 8.7 8.8 9.1 na
(a) Restated figures not comparable with earlier years.

(b) Total sales to consumers through all channels including franchisees.

Parent company L’Oréal does not publish Body Shop UK-specific sales data. The Mintel estimate of
UK sales below is based on the division returning a slight rise in like-for-like sales for the remainder
of 2013 following the flattish sales it posted in the first-half, as suggested by the company’s latest
interim results.
FIGURE 132: THE BODY SHOP: ESTIMATED UK SALES PERFORMANCE, EXCL. SALES TAX, 2008-13
Year to December 2008 2009 2010 2011 2012 2013 (e)
Sales (£m) 173 159 156 154 156 157

Sales (€m) 217 178 192 190 192 184
NB: Retail sales to consumers through all stores (incl. franchises), mail order and The Body Shop at Home.
SOURCE: MINTEL
While the total number of Body Shop outlets worldwide continues to grow, the number of UK outlets
fell in 2012, following a brief period of expansion in 2011. Of the 306 UK outlets, the vast majority
are company-owned.
As of the end of September 2013, the global Body Shop store network stood at 2,849.

UK, January 2014
FIGURE 133: THE BODY SHOP: OUTLET DATA, 2008-13
At December 2008 2009 2010 2011 2012 2013*
Group:
Outlet numbers 2,550 2,550 2,605 2,748 2,837 2,849
Of which:
Company-owned 1,069 1,089 1,088 1,109 1,111 n/a
Franchised 1,481 1,461 1,517 1,639 1,726 n/a
Sales per outlet (€’000) 489 521 502 502 527 n/a
UK:
Outlet numbers 338 329 311 315 306 n/a
Of which:
Company-owned 299 295 297 304 297 n/a
Franchised 39 34 14 11 9 n/a
Estimated sales per outlet (£000) 524 477 487 492 502 n/a
Estimated sales per outlet (€000) 658 535 568 567 620 n/a
* Period to 30 September 2013.
Retail offering
Range 1,200 natural beauty products for the body, face, hair and home.
Brands Own-label.
Pricing Generally perceived as being more expensive than similar types of products sold in
supermarkets. Regularly runs discounted price promotions ranging from 10% to 50%,
particularly on best-selling products to give the impression of value for money.
Recent activity Launched a nationwide campaign in October 2013 to find five ambassadors, known as
‘Heartmakers’, to represent the brand’s ethical core values and support it’s ‘Beauty With Heart’
branding strategy. As well as getting the chance to review and trial new products,
‘Heartmakers’ will attend launches and other VIP events, write guest blog posts for The Body
Shop blog and newsletter and receive a one-year subscription to Glamour magazine.
Partnered with Teenage Cancer Trust in 2013 to help raise £250,000 for the charity. In addition
to fundraising activities by staff, customers were invited to make a 10p top-up donation at the
end of their purchase. The Body Shop also offered make-up workshops in the charity’s
specialist cancer units across the UK, and work experience opportunities in its stores for young
people with cancer.

Appendix – Brand Research Beauty Retailing
UK, January 2014
Appendix – Brand Research

“Which single statement best describes your use of each of these brands?”
FIGURE 134: BRAND USAGE, NOVEMBER 2013
Debenhams The Body Superdrug Boots Lush Avon John Marks &
Shop Lewis Spencer
Base: internet 2,035 2,035 2,035 2,035 2,035 2,035 2,029 2,029
users aged 16+
% % % % % % % %
Never used, 5 6 4 2 41 9 8 8
and never
heard of it
Never used, but 20 31 12 6 30 44 37 17
have heard of it
Use rarely 25 28 21 14 12 21 21 19
Use sometimes 27 22 33 29 9 12 20 28
Use often 16 9 22 31 5 9 11 19
Use all the time 7 4 8 17 3 5 4 9
Used in the last 41 23 53 72 12 19 27 49
12 months
Ever used 76 63 83 91 29 47 56 75
Awareness 95 94 96 98 59 91 92 92
SOURCE: GMI/MINTEL
“Which single statement best describes your intentions towards each of these brands?”
FIGURE 135: BRAND COMMITMENT, NOVEMBER 2013
Shop Lewis Spencer
Base: internet 1,942 1,906 1,949 1,988 1,206 1,850 1,869 1,872
users aged 16+
who have heard of
a brand and
expressed an
opinion
% % % % % % % %
I would never 4 7 2 2 11 16 6 5
consider using this
brand
I would only 16 19 10 6 21 24 17 12
consider using this
brand if I had no
other option
I have no 55 55 62 43 47 45 49 44
preference for this
brand over others
I prefer this brand 19 15 21 38 15 9 20 28
over others
This is a favourite 5 3 5 12 6 5 8 11
brand
Committed 24 18 26 49 21 14 28 39
SOURCE: GMI/MINTEL

UK, January 2014
“How well do you think the following brands are doing?”
FIGURE 136: BRAND MOMENTUM, NOVEMBER 2013
Shop Lewis Spencer
Base: internet users 1,942 1,906 1,949 1,988 1,206 1,850 1,869 1,872
aged 16+ who have
heard of a brand and
expressed an opinion
% % % % % % % %
Falling behind 12 19 9 6 18 30 7 16
1 – falling behind 2 3 1 1 4 6 1 3
2 10 17 8 5 14 24 6 13
3 – standing still 48 54 50 41 49 44 38 46
Surging forward 40 27 41 52 33 26 55 38
4 34 22 35 40 24 21 42 30
5 – surging forwards 6 5 6 12 8 5 13 8
SOURCE: GMI/MINTEL
“Which single statement best describes how well you think each brand stands out from
others?”
FIGURE 137: BRAND DIVERSITY, NOVEMBER 2013
Debenhams The Superdrug Boots Lush Avon John Marks &

Body Lewis Spencer
Shop
aged 16+ who have
% % % % % % % %
Not diverse 27 20 30 18 22 36 17 15
It's the sort of brand 3 4 3 2 6 11 4 2
that you don't notice
and it doesn't stand out
at all
It's much the same as 24 16 27 17 16 25 13 12
most brands and
doesn't stand out much
It isn't very different 35 33 45 42 27 34 31 38
from other brands but it
does stand out
Diverse 38 47 25 40 51 30 52 48
It stands out as being 31 36 21 31 32 23 38 37
somewhat different
from other brands
It's a unique brand 6 11 4 9 19 7 14 11
which really stands out
from other brands
SOURCE: GMI/MINTEL

UK, January 2014
“How would you rate your overall satisfaction with the following brands?”
FIGURE 138: BRAND SATISFACTION, NOVEMBER 2013
Shop Lewis Spencer
Base: internet users 1,541 1,278 1,699 1,862 586 957 1,128 1,525
aged 16+ who have
used a brand and
% % % % % % % %
Negative 5 5 3 2 6 12 3 4
endorsement
Unsatisfactory 1 1 0 1 1 2 1 1
Poor 4 4 3 2 4 11 2 3
Average 34 38 39 27 30 40 23 24
Positive endorsement 61 57 58 71 65 48 74 72
Good 44 44 48 51 41 35 43 52
Excellent 16 13 10 20 23 13 31 20
SOURCE: GMI/MINTEL
“Choose all brands you associate with each statement.”
FIGURE 139: BRAND ATTITUDE, NOVEMBER 2013
Shop Lewis Spencer
aged 16+ who have
% % % % % % % %
A store that I trust 41 34 39 67 26 20 44 53

A store that cares for the 11 49 14 25 36 12 22 26
environment
A store that is widely 47 39 67 87 17 21 34 70
available
A store that has a good 57 51 42 75 35 30 63 66
reputation
A store that has great 36 29 23 52 26 15 44 51
customer service
A store that is socially 16 45 18 31 34 15 29 31
responsible
A store that is innovative 21 35 17 31 41 18 24 22
A store that offers good 22 18 63 46 13 20 21 26
value
A store that is worth 22 22 9 24 24 7 28 28
paying more for
A store that provides a 31 16 17 40 12 17 24 35

great online service
SOURCE: GMI/MINTEL

UK, January 2014
“From the pairs below, please choose the word from each pair that matches your image of
each brand.”
FIGURE 140: BRAND IMAGE – MACRO IMAGE, NOVEMBER 2013
Shop Lewis Spencer
Base: internet 1,942 1,906 1,949 1,988 1,206 1,850 1,869 1,872
users aged 16+
who have heard of
a brand and
expressed an
opinion
% % % % % % % %
Boring 22 12 14 12 7 22 14 16
Fun 26 41 31 31 54 26 27 27
Tired 22 14 14 12 7 23 12 17
Vibrant 30 41 30 35 54 25 36 29
Exclusive 17 12 3 5 14 13 24 11
Accessible 49 49 66 69 39 37 40 59
Unappealing 14 10 8 6 9 17 9 9
Engaging 38 42 33 45 45 28 44 42
Unethical 4 4 3 3 4 5 2 3
Ethical 27 58 26 35 47 25 39 39
SOURCE: GMI/MINTEL
“Now, from the list below, please select all words that describe your image of each brand.”
FIGURE 141: BRAND IMAGE – MICRO IMAGE, NOVEMBER 2013
Debenha The Body Superdrug Boots Lush Avon John Marks &
ms Shop Lewis Spencer
Base: internet 1,942 1,906 1,949 1,988 1,206 1,850 1,869 1,872
users aged 16+
who have heard of
a brand and
expressed an
opinion
% % % % % % % %
Exciting 11 14 9 12 24 10 12 8
Stylish 34 18 10 16 24 15 35 23
Aspirational 9 15 6 10 17 7 16 9
Welcoming 26 27 25 36 23 16 28 31
Reliable 35 24 40 53 13 22 37 43
Cutting-edge 5 8 3 6 15 5 8 4
Trendsetting 12 14 8 11 22 9 12 7
Responsive 10 13 11 20 9 10 15 15
Authoritative 7 4 3 14 4 5 11 10
Basic 10 7 42 15 5 15 4 9
Expensive 32 26 3 14 25 13 38 27
Overrated 15 16 4 7 10 12 12 12
Disappointing 8 6 5 4 4 8 4 10
Only cares about 8 4 4 7 4 8 5 6
profits
Impersonal 8 5 10 8 3 6 5 3
None of these 14 18 16 12 26 30 16 14
SOURCE: GMI/MINTEL

UK, January 2014
“Different people have different views about themselves. Please tell me the extent to which
you agree or disagree with each statement on a scale of 0-5 (where 1 means you strongly
disagree and 5 means you strongly agree).”
FIGURE 142: PROFILE OF TARGET GROUPS, BY DEMOGRAPHICS, NOVEMBER 2013
All Conformists Simply the Shelf Habitual Individualists

Best Stalkers Shoppers
Base: internet users aged 16+ 4,064 459 601 1,233 1,107 664
% % % % % %
Gender:
Male 50 39 53 50 60 40
Female 50 61 47 50 40 60
Age:
16-24 17 21 15 8 30 15
25-34 19 17 20 14 27 17
35-44 19 17 19 17 18 22
45-54 19 15 19 22 14 22
55+ 27 30 27 39 12 24
Gender and age:

Men 16-24 9 6 9 4 17 6
Men 25-34 10 6 10 7 16 8
Men 35-44 9 6 10 8 12 8
Men 45-54 9 6 10 11 8 9
Men 55+ 13 15 13 20 7 9
Women 16-24 8 15 5 4 12 9
Women 25-34 9 11 10 7 11 9
Women 35-44 9 11 9 9 6 14
Women 45-54 9 10 9 11 6 13
Women 55+ 13 15 14 19 6 15
Region:
Inner and Greater London 13 12 17 10 18 9
South East/East Anglia 25 28 22 28 20 25
South West and Wales 14 14 12 15 12 15
East and West Midlands 16 13 15 16 18 18
North West 10 10 11 10 10 10
Yorks, Humberside 9 11 9 7 9 9
North and Scotland 13 12 14 14 13 13
Area:
Inner city/town 31 26 36 23 45 26
Town/city outskirts 50 54 47 54 43 55
Rural area 18 20 17 23 12 20
ABC1 58 55 66 57 58 55
C2DE 42 45 34 43 42 45
AB 29 24 40 27 31 25
C1 29 32 26 30 28 30
C2 21 21 19 20 21 22
D 14 14 10 14 15 15
E 7 10 5 9 6 8
DE 21 24 15 23 21 23

UK, January 2014
Internet access:
Using a computer at 42 43 51 34 44 42
work/university/college
Using my personal computer 94 95 95 97 89 98
Using a tablet device (eg iPad) 35 29 46 30 38 34
Using a gaming device (eg 18 11 23 11 26 20
Xbox, Wii)
Using an ereader (eg Kindle) 14 11 17 13 16 12
Using a smartphone/BlackBerry 52 51 61 45 51 60
Other 2 3 2 2 1 1
Websites visited:
News sites (eg BBC News) 87 85 90 86 87 87
Online magazines (eg Ask Men, 45 38 58 30 61 43
Vogue)
Online video (eg BBC iPlayer, 89 86 92 86 90 89
YouTube)
Blogs 59 50 67 50 68 62
Online maps/GPS services (eg 89 87 91 88 87 91
Google Maps)
Social networking sites (eg 80 79 83 72 88 80
Facebook, Twitter)
Shopping sites (eg Amazon, 97 98 98 98 96 99
eBay, ASOS)
Online supermarkets (eg Tesco, 76 73 80 72 79 74
Ocado, Asda)
Brands’ own sites (eg L’Oréal, 68 64 77 61 72 68
Apple)
Price comparison sites (eg 79 76 82 78 77 82
uSwitch, Kelkoo, Compare the
Market)
Other 78 72 81 82 74 78
Social media usage:

Facebook 96 96 97 94 98 96
Twitter 51 49 58 40 60 48
Bebo 13 5 15 3 30 5
LinkedIn 30 21 37 22 40 23
Friends Reunited 24 16 27 20 32 19
MySpace 17 7 19 7 32 9
Other 21 14 24 14 32 15
SOURCE: GMI/MINTEL

UK, January 2014
FIGURE 143: PSYCHOGRAPHIC SEGMENTATION, BY TARGET GROUPS, NOVEMBER 2013

Base: internet users aged 4,064 459 601 1,233 1,107 664
16+
% % % % % %
I consider all available

options before deciding
what product to buy:
Any agree 72 75 63 83 58 82
Neither agree nor disagree 23 20 26 15 37 15
Any disagree 5 5 11 2 5 3
I often buy things on the

spur of the moment:
Any agree 46 31 59 31 57 52
Any disagree 23 36 16 39 7 20
I tend to make purchase

decisions quickly, based
on 'gut feeling':
Any agree 42 32 45 31 57 45
Any disagree 23 36 24 33 6 23
I only buy brands I have

bought before:
Any agree 17 10 6 7 45 1
Any disagree 49 54 64 59 5 85
I like to try new brands

that I see:
Any agree 60 32 68 57 60 75
I want to stand out from

the crowd:
Any agree 28 11 40 7 45 43
Any disagree 40 62 27 69 15 23
I like people to admire

things I own:
Any agree 39 50 62 4 52 54
Any disagree 25 13 7 62 7 12
I do my own thing,
regardless of the current
trends:
Any agree 80 69 79 92 65 93

UK, January 2014
I don’t like to be too

different from everyone
else:
Any agree 31 56 19 22 49 10
Any disagree 34 11 46 43 9 60
I like to have new products

ahead of everybody else:
Any agree 29 11 49 7 45 37
Any disagree 36 57 19 63 11 28
I shop around from a

variety of brands:
Any agree 78 79 75 86 63 93
Once I find a brand I like I

tend to stick to it:
Any agree 50 70 60 48 58 14
I look for the lowest

possible prices when I go
shopping:
Any agree 64 86 22 69 62 82
I always look out for

special offers:
Any agree 83 96 72 88 70 97
I am happy to pay extra for

better quality:
Any agree 61 49 91 64 54 46
I tend to go for premium

rather than standard
goods/services:
Any agree 34 7 70 24 47 16
Any disagree 26 58 4 31 9 42
I feel more comfortable

buying branded products
than a shop's own label:
Any agree 36 22 62 27 52 15
Any disagree 27 44 8 35 7 53

UK, January 2014
I seek other people’s

opinions before choosing
a product:
Any agree 26 36 13 20 44 13
Any disagree 38 26 54 46 14 60
I always buy the brands I

think my family/friends
would approve of:
Any agree 23 17 22 7 50 13
Any disagree 44 49 47 68 6 56
SOURCE: GMI/MINTEL
FIGURE 144: BRAND USAGE, BY TARGET GROUPS, NOVEMBER 2013

Base: internet users aged 16+ 2,035 228 299 603 565 340
% % % % % %
Debenhams:
Never used, and never heard of it 5 3 2 2 9 3
Never used, but have heard of it 20 20 12 20 22 22
Use rarely 25 33 22 33 13 29
Use sometimes 27 28 26 30 24 28
Use often 16 12 29 11 19 13
Use all the time 7 4 8 4 13 4
Used in the last 12 months 41 36 52 39 38 40
Ever used 76 77 86 78 68 74
Awareness 95 97 98 98 91 97
The Body Shop:

Use rarely 28 36 29 35 15 31
Use sometimes 22 20 27 19 21 26
Use often 9 4 11 4 15 9
Ever used 63 62 71 59 60 67
Awareness 94 94 96 96 88 96
Superdrug:
Use rarely 21 27 20 26 12 23
Use sometimes 33 41 32 37 27 32
Use often 22 18 24 18 24 24
Ever used 83 91 84 87 75 86
Awareness 96 98 97 98 90 98

UK, January 2014
Boots:
Use rarely 14 18 8 19 8 19
Use sometimes 29 36 24 32 24 33
Use often 31 32 38 31 30 26
Use all the time 17 11 22 14 21 16
Ever used 91 98 92 96 83 94
Awareness 98 99 98 100 94 99
Lush:
Use rarely 12 14 13 11 9 18
Use sometimes 9 7 11 8 10 11
Use often 5 3 4 3 9 3
Ever used 29 25 30 22 35 33
Awareness 59 54 62 56 62 61
Avon:
Use rarely 21 29 24 25 12 24
Use sometimes 12 11 16 10 11 12
Use often 9 7 7 7 13 6
Ever used 47 51 52 44 46 47
Awareness 91 93 93 94 85 92
SOURCE: GMI/MINTEL

UK, January 2014
FIGURE 145: BRAND USAGE, BY TARGET GROUPS, NOVEMBER 2013 (CONTINUED)

Base: internet users aged 16+ 2,029 227 298 599 565 340
% % % % % %
John Lewis:
Never used, and never heard 8 7 9 8 9 6
of it
Never used, but have heard of 37 41 36 37 35 37
it
Use rarely 21 19 22 21 19 24
Use sometimes 20 22 17 20 21 20
Use often 11 7 9 11 13 11
Ever used 56 52 55 56 56 58
Awareness 92 93 91 92 91 94
Marks & Spencer:

Never used, and never heard 8 6 9 8 8 6
of it
Never used, but have heard of 17 15 17 16 18 19
it
Use rarely 19 24 19 17 18 21
Use sometimes 28 24 28 29 30 27
Use often 19 22 15 21 19 16
Ever used 75 79 74 76 74 75
Awareness 92 94 91 92 92 94
SOURCE: GMI/MINTEL
Brand index
FIGURE 146: BRAND INDEX, NOVEMBER 2013
Mean
Debenhams 47.73
The Body Shop 46.24
Superdrug 49.07
Boots 59.51
Lush 27.63
Avon 37.22
John Lewis 47.20
Marks & Spencer 51.18
SOURCE: GMI/MINTEL

Appendix – The Consumer – How Often and What Type of Beauty Retailing
Beauty Products They Use UK, January 2014
Appendix – The Consumer – How Often and What

Type of Beauty Products They Use
FIGURE 147: MOST POPULAR HOW OFTEN THEY USE SKINCARE PRODUCTS – HOW OFTEN THEY USE ANY SKINCARE
PRODUCTS, BY DEMOGRAPHICS, NOVEMBER 2013
Sample Use this At least At least At least two

size product once a week once a day to three
or more times a
week
% % % %
All 2,000 75 56 32 13
Gender:
Male 1,000 59 41 18 10
Female 1,000 91 72 45 15
Age:
16-24 344 82 62 31 16
25-34 381 85 66 34 17
35-44 379 76 59 34 13
45-54 370 70 51 33 9
55-64 266 67 46 30 10
65+ 260 63 47 28 11
Region:
Inner and Greater London 271 87 64 36 15
South East/East Anglia 496 73 55 34 11
South West and Wales 267 74 54 28 15
East and West Midlands 326 71 54 29 14
North West 204 74 56 29 12
Yorkshire and Humberside 172 72 58 30 14
North and Scotland 264 72 53 33 9
Area:
Urban location (ie living in a town/city) 831 78 59 31 16
Suburban location (ie close to 801 75 56 33 10
town/city but living outside a
town/city)
Village/Rural location/Other 368 68 50 31 10
AB 578 78 61 35 15
C1 577 77 58 34 12
C2 414 77 54 31 11
D 290 69 52 27 13
E 141 59 42 23 9
Gross annual household income:

Under £9,500 145 73 52 28 13
£9,500-15,499 259 69 50 26 13
£15,500-24,999 437 73 53 29 12
£25,000-49,999 709 76 58 34 13
£50,000 or over 288 82 66 40 13
Don’t know/Refused 162 69 51 27 14

Housing situation:
My home is being bought on a 734 75 57 32 13
mortgage
My home is owned outright 566 74 55 32 11
My home is rented from a local 156 69 49 24 12
authority
My home is rented from a private 390 78 60 35 14
landlord
My home is rented from a housing 154 71 51 29 14
association/Others
Presence of own children:

Aged 0-4 207 76 60 30 15
Aged 5-9 252 82 64 38 15
Aged 10-15 360 81 66 39 13
Aged 16-18 284 77 60 37 10
Any children 751 79 62 34 14
No children in household 1,249 72 52 30 12
Household size:
1 315 67 49 29 10
2 660 74 53 31 13
3 434 77 60 31 14
4 378 78 59 33 14
5 or more 213 79 61 37 12
Current marital status:

Single 611 76 56 30 13
Married/Civil partnership/Living as 1,181 74 56 33 13
married
Separated, divorced or widowed 208 73 55 33 12
Financial situation:
Healthy – I have money left at the 515 76 60 38 12
end of the month for a few luxuries or
to add to my savings
OK – I get by, but there’s not a lot left 871 76 56 29 14
by the time the basics are taken care
of
Tight – I’m making ends meet, but 448 73 51 30 10
only just
Struggling – I’m in danger of falling 166 70 53 29 12
behind with bills or loan
repayments/In Trouble – I’ve missed
loan repayments or household bills
* small sub-sample (75-100)
SOURCE: GMI/MINTEL

FIGURE 148: NEXT MOST POPULAR HOW OFTEN THEY USE SKINCARE PRODUCTS – HOW OFTEN THEY USE ANY SKINCARE
Sample At least At least Less than I do not use

size once a week once a once a this product
month month
% % % %
All 2,000 12 10 9 25
Gender:
Male 1,000 12 9 9 41
Female 1,000 11 10 9 9
Age:
16-24 344 16 13 7 18
25-34 381 15 12 7 15
35-44 379 13 9 8 24
45-54 370 9 9 11 30
55-64 266 6 7 13 33
65+ 260 8 6 10 37
Region:
North West 204 15 6 12 26
Area:
Urban location (ie living in a 831 11 11 7 22
town/city)
town/city)
AB 578 11 8 8 22
C1 577 12 11 9 23
C2 414 12 13 10 23
D 290 12 9 9 31
E 141 10 4 13 41

Under £9,500 145 10 10 11 27
£9,500-15,499 259 11 12 8 31
£15,500-24,999 437 12 10 11 27
£25,000-49,999 709 12 9 8 24
£50,000 or over 288 13 9 8 18

Housing situation:
My home is being bought on a 734 12 9 9 25
mortgage
My home is owned outright 566 12 9 10 26
My home is rented from a local 156 13 12 9 31
authority
My home is rented from a private 390 11 11 7 22
landlord
My home is rented from a housing 154 8 9 12 29
association/Others

Aged 0-4 207 15 10 6 24
Aged 5-9 252 10 12 6 18
Aged 10-15 360 14 8 7 19
Aged 16-18 284 13 10 7 23
Any children 751 14 10 7 21
Household size:
1 315 10 8 10 33
2 660 9 9 11 26
3 434 15 10 7 23
4 378 12 12 6 22
5 or more 213 12 8 10 21

Single 611 13 11 9 24
married
of
only just
SOURCE: GMI/MINTEL

FIGURE 149: MOST POPULAR HOW OFTEN THEY USE SKINCARE PRODUCTS – STORE OWN BRAND SKINCARE, BY
DEMOGRAPHICS, NOVEMBER 2013

or more times a
week
% % % %
All 2,000 54 30 14 8
Gender:
Male 1,000 40 21 8 5
Female 1,000 68 39 20 10
Age:
16-24 344 65 36 15 10
25-34 381 66 39 14 12
35-44 379 55 31 13 7
45-54 370 51 26 14 5
55-64 266 39 21 13 4
65+ 260 41 25 15 6
Region:
North West 204 53 30 13 8
Area:
town/city)
AB 578 55 34 16 9
C1 577 56 31 14 7
C2 414 59 31 14 7
D 290 50 26 10 7
E 141 38 21 12 5

Under £9,500 145 54 34 14 11
£9,500-15,499 259 53 28 12 9
£15,500-24,999 437 51 26 11 7
£25,000-49,999 709 58 33 16 7
£50,000 or over 288 59 36 15 8

Aged 0-4 207 64 37 13 14
Aged 5-9 252 67 43 18 13
Aged 10-15 360 66 43 18 11
Aged 16-18 284 59 34 20 6
Any children 751 63 38 16 11

Household size:
1 315 45 27 16 6
2 660 50 26 12 7
3 434 60 34 15 8
4 378 59 34 12 11
5 or more 213 61 36 19 8

Single 611 54 30 13 7
married
Healthy – I have money left at the end 515 54 33 17 7
of the month for a few luxuries or to
add to my savings
of
only just
SOURCE: GMI/MINTEL

FIGURE 150: NEXT MOST POPULAR HOW OFTEN THEY USE SKINCARE PRODUCTS – STORE OWN BRAND SKINCARE, BY

month month
% % % %
All 2,000 9 10 13 46
Gender:
Male 1,000 8 10 9 60
Female 1,000 10 11 18 32
Age:
16-24 344 12 17 12 35
25-34 381 13 13 14 34
35-44 379 10 10 14 45
45-54 370 8 10 14 49
55-64 266 4 5 14 61
65+ 260 4 5 12 59
Region:
North West 204 9 7 16 47
Area:
town/city)
AB 578 9 10 12 45
C1 577 9 11 14 44
C2 414 10 12 15 41
D 290 10 11 14 50
E 141 4 4 12 62

Under £9,500 145 8 10 10 46
£9,500-15,499 259 8 11 14 47
£15,500-24,999 437 8 11 15 49
£25,000-49,999 709 10 11 14 42
£50,000 or over 288 13 11 11 41

Aged 0-4 207 10 14 13 36
Aged 5-9 252 12 14 10 33
Aged 10-15 360 14 11 13 34
Aged 16-18 284 8 12 14 41
Any children 751 11 13 12 37

Household size:
1 315 6 5 14 55
2 660 7 9 15 50
3 434 12 15 11 40
4 378 11 11 14 41
5 or more 213 9 11 14 39

Single 611 10 12 12 46
married
add to my savings
of
only just
SOURCE: GMI/MINTEL
FIGURE 151: MOST POPULAR HOW OFTEN THEY USE SKINCARE PRODUCTS – STANDARD SKINCARE BRAND, BY
Sample Use this At least At least At least two to

size product once a week once a day three times a
or more week
% % % %
All 2,000 68 44 20 12
Gender:
Male 1,000 55 33 13 10
Female 1,000 80 56 28 14
Age:
16-24 344 78 53 18 17
25-34 381 80 54 24 13
35-44 379 68 46 20 12
45-54 370 65 40 20 11
55-64 266 54 36 20 8
65+ 260 52 32 16 9
Region:
North West 204 67 47 18 13

Area:
town/city)
town/city)
AB 578 70 49 22 15
C1 577 69 46 21 12
C2 414 71 43 18 10
D 290 65 43 17 12
E 141 47 28 16 5

Under £9,500 145 66 44 17 12
£9,500-15,499 259 63 40 16 10
£15,500-24,999 437 66 40 17 12
£25,000-49,999 709 69 47 23 12
£50,000 or over 288 75 51 24 14

Aged 0-4 207 73 49 20 14
Aged 5-9 252 77 52 25 15
Aged 10-15 360 76 56 23 16
Aged 16-18 284 72 50 21 13
Any children 751 74 50 21 14
Household size:
1 315 58 38 19 8
2 660 65 41 20 11
3 434 71 47 19 14
4 378 72 48 21 15
5 or more 213 75 52 22 13

Single 611 71 49 20 13
married
of
only just
SOURCE: GMI/MINTEL

FIGURE 152: NEXT MOST POPULAR HOW OFTEN THEY USE SKINCARE PRODUCTS – STANDARD SKINCARE BRAND, BY

month month
% % % %
All 2,000 12 11 12 33
Gender:
Male 1,000 10 10 11 45
Female 1,000 14 11 14 20
Age:
16-24 344 18 13 13 22
25-34 381 17 14 11 20
35-44 379 14 11 11 32
45-54 370 9 11 14 35
55-64 266 8 5 13 46
65+ 260 6 6 14 48
Region:
North West 204 16 6 14 33
Area:
town/city)
town/city)
AB 578 11 11 10 30
C1 577 13 10 13 31
C2 414 14 14 14 29
D 290 13 10 12 35
E 141 8 5 13 53

Under £9,500 145 16 9 13 34
£9,500-15,499 259 14 14 10 37
£15,500-24,999 437 12 11 15 34
£25,000-49,999 709 12 10 11 31
£50,000 or over 288 14 12 13 25

Aged 0-4 207 15 14 11 27
Aged 5-9 252 12 12 13 23
Aged 10-15 360 16 11 10 24
Aged 16-18 284 15 12 11 28
Any children 751 15 13 11 26

Household size:
1 315 12 7 13 42
2 660 10 10 14 35
3 434 15 12 11 29
4 378 12 14 10 28
5 or more 213 17 10 13 25

Single 611 16 11 11 29
married
end of the month for a few luxuries
or to add to my savings
OK – I get by, but there’s not a lot 871 14 11 11 32
left by the time the basics are taken
care of
only just
repayments/In Trouble – I’ve
missed loan repayments or
household bills
SOURCE: GMI/MINTEL

FIGURE 153: MOST POPULAR HOW OFTEN THEY USE SKINCARE PRODUCTS – PREMIUM BRAND SKINCARE, BY DEMOGRAPHICS,
NOVEMBER 2013
Sampl Use this At least At least At least two to

e size product once a week once a day three times a
or more week
% % % %
All 2,000 37 19 8 5
Gender:
Male 1,000 29 14 4 4
Female 1,000 45 24 12 6
Age:
16-24 344 48 25 8 6
25-34 381 51 28 12 9
35-44 379 43 22 9 6
45-54 370 29 13 6 4
55-64 266 24 14 7 5
65+ 260 18 7 3 1
Region:
North West 204 35 15 5 4
Area:
town/city)
town/city)
AB 578 44 27 11 8
C1 577 38 18 8 4
C2 414 39 18 8 5
D 290 28 12 3 3
E 141 17 9 3 2

Under £9,500 145 36 19 8 5
£9,500-15,499 259 26 12 3 3
£15,500-24,999 437 33 15 6 4
£25,000-49,999 709 39 20 8 6
£50,000 or over 288 55 34 16 9

Aged 0-4 207 54 28 13 6
Aged 5-9 252 58 35 14 11
Aged 10-15 360 49 29 11 8
Aged 16-18 284 42 23 9 5

Household size:
1 315 29 13 5 3
2 660 32 16 8 5
3 434 41 17 7 6
4 378 44 24 9 6
5 or more 213 47 31 13 7

Single 611 41 19 7 4
married
of
only just
SOURCE: GMI/MINTEL

FIGURE 154: NEXT MOST POPULAR HOW OFTEN THEY USE SKINCARE PRODUCTS – PREMIUM BRAND SKINCARE, BY
Sample At least At least once Less than I do not use

size once a week a month once a this product
month
% % % %
All 2,000 6 7 11 63
Gender:
Male 1,000 6 7 8 71
Female 1,000 6 8 14 55
Age:
16-24 344 11 10 13 52
25-34 381 7 12 12 49
35-44 379 7 9 12 57
45-54 370 3 5 11 71
55-64 266 3 2 8 76
65+ 260 3 3 8 82
Region:
North West 204 6 9 12 65
Area:
town/city)
town/city)
AB 578 7 7 11 56
C1 577 6 8 12 62
C2 414 5 8 13 61
D 290 5 7 8 72
E 141 4 4 4 83
Gross annual household

income:
Under £9,500 145 6 8 9 64
£9,500-15,499 259 5 5 9 74
£15,500-24,999 437 5 9 9 67
£25,000-49,999 709 6 7 13 61
£50,000 or over 288 9 10 12 45


Aged 0-4 207 10 15 11 46
Aged 5-9 252 10 10 14 42
Aged 10-15 360 9 9 10 51
Aged 16-18 284 9 7 13 58
Household size:
1 315 4 6 10 71
2 660 4 6 9 68
3 434 4 11 12 59
4 378 9 7 13 56
5 or more 213 11 7 9 53

Single 611 8 9 13 59
married
end of the month for a few
luxuries or to add to my savings
OK – I get by, but there’s not a lot 871 7 8 12 61
left by the time the basics are
taken care of
only just
Struggling – I’m in danger of 166 7 4 8 74
falling behind with bills or loan
household bills
SOURCE: GMI/MINTEL

FIGURE 155: MOST POPULAR HOW OFTEN THEY USE MAKE-UP PRODUCTS – HOW OFTEN THEY USE ANY MAKE-UP PRODUCTS,
BY DEMOGRAPHICS, NOVEMBER 2013

or more times a
week
% % % %
All 2,000 53 39 20 11
Gender:
Male 1,000 22 15 5 4
Female 1,000 84 64 36 18
Age:
16-24 344 63 50 26 14
25-34 381 64 48 24 13
35-44 379 55 40 19 13
45-54 370 48 32 18 8
55-64 266 44 32 18 9
65+ 260 38 28 13 9
Region:
North West 204 46 38 22 9
Area:
Suburban location (ie close to town/city 801 52 38 20 10
but living outside a town/city)
AB 578 54 43 21 13
C1 577 55 42 22 12
C2 414 56 40 21 10
D 290 51 33 17 10
E 141 40 25 13 8

Under £9,500 145 50 37 19 10
£9,500-15,499 259 54 37 19 11
£15,500-24,999 437 49 34 16 9
£25,000-49,999 709 55 42 23 13
£50,000 or over 288 54 42 21 12

Aged 0-4 207 68 51 25 16
Aged 5-9 252 69 52 25 15
Aged 10-15 360 64 49 26 13
Aged 16-18 284 59 44 25 11
Any children 751 64 48 24 14

Household size:
1 315 38 30 17 8
2 660 51 36 19 11
3 434 59 44 21 13
4 378 57 42 21 12
5 or more 213 62 49 25 12

Single 611 49 38 20 9
married
add to my savings
by the time the basics are taken care of
Tight – I’m making ends meet, but only 448 52 38 18 11
just
behind with bills or loan repayments/In
Trouble – I’ve missed loan repayments
or household bills
SOURCE: GMI/MINTEL
FIGURE 156: NEXT MOST POPULAR HOW OFTEN THEY USE MAKE-UP PRODUCTS – HOW OFTEN THEY USE ANY MAKE-UP

size once a once a once a this product
week month month
% % % %
All 2,000 8 8 6 47
Gender:
Male 1,000 6 4 3 78
Female 1,000 10 11 10 16
Age:
16-24 344 10 8 4 38
25-34 381 11 9 7 36
35-44 379 8 6 8 45
45-54 370 6 9 7 52
55-64 266 6 8 4 56
65+ 260 5 4 6 62
Region:
North West 204 7 4 4 54

Area:
AB 578 9 6 5 46
C1 577 7 8 5 45
C2 414 10 8 7 44
D 290 6 8 10 49
E 141 4 9 6 60

Under £9,500 145 8 9 4 50
£9,500-15,499 259 8 10 6 46
£15,500-24,999 437 9 7 7 51
£25,000-49,999 709 7 6 6 45
£50,000 or over 288 9 8 4 46

Aged 0-4 207 10 10 7 32
Aged 5-9 252 12 8 9 31
Aged 10-15 360 11 7 7 36
Aged 16-18 284 8 9 6 41
Household size:
1 315 5 4 4 62
2 660 7 7 7 49
3 434 9 11 5 41
4 378 9 8 7 43
5 or more 213 12 6 8 38

Single 611 9 7 4 51
married
add to my savings
just
or household bills
SOURCE: GMI/MINTEL

FIGURE 157: MOST POPULAR HOW OFTEN THEY USE MAKE-UP PRODUCTS – STORE OWN BRAND MAKE-UP, BY DEMOGRAPHICS,
NOVEMBER 2013
Sample Use this At least once a At least At least two

size product week or more once a day to three
times a
week
% % % %
All 2,000 43 25 10 7
Gender:
Male 1,000 20 11 3 3
Female 1,000 66 40 17 11
Age:
16-24 344 51 30 10 7
25-34 381 57 34 13 10
35-44 379 43 24 9 7
45-54 370 41 22 9 6
55-64 266 32 21 9 5
65+ 260 27 18 8 6
Region:
North West 204 33 25 12 7
Area:
AB 578 44 29 9 10
C1 577 44 25 11 7
C2 414 46 26 11 3
D 290 43 24 9 8
E 141 28 13 8 4

Under £9,500 145 37 22 12 5
£9,500-15,499 259 45 26 10 9
£15,500-24,999 437 39 24 7 6
£25,000-49,999 709 45 27 11 7
£50,000 or over 288 45 28 9 10

Aged 0-4 207 59 34 14 10
Aged 5-9 252 61 36 13 12
Aged 10-15 360 54 33 13 11
Aged 16-18 284 50 34 16 8
Any children 751 54 33 13 10

Household size:
1 315 29 19 9 6
2 660 40 22 8 6
3 434 50 30 11 7
4 378 48 29 11 9
5 or more 213 52 31 12 8

Single 611 39 23 8 5
married
add to my savings
just
or household bills
SOURCE: GMI/MINTEL
FIGURE 158: NEXT MOST POPULAR HOW OFTEN THEY USE MAKE-UP PRODUCTS – STORE OWN BRAND MAKE-UP, BY

size once a once a once a this
week month month product
% % % %
All 2,000 9 8 9 57
Gender:
Male 1,000 5 5 4 80
Female 1,000 12 12 15 34
Age:
16-24 344 13 11 10 49
25-34 381 11 10 13 43
35-44 379 8 9 9 57
45-54 370 7 9 10 59
55-64 266 7 5 7 68
65+ 260 3 3 5 73
Region:
North West 204 6 5 3 67

Area:
town/city)
town/city)
AB 578 10 7 8 56
C1 577 7 9 10 56
C2 414 12 10 10 54
D 290 7 8 11 57
E 141 2 6 8 72

Under £9,500 145 6 8 7 63
£9,500-15,499 259 7 10 9 55
£15,500-24,999 437 11 6 9 61
£25,000-49,999 709 8 9 10 55
£50,000 or over 288 10 9 8 55

Aged 0-4 207 11 11 14 41
Aged 5-9 252 10 13 12 39
Aged 10-15 360 9 10 10 46
Aged 16-18 284 9 10 6 50
Household size:
1 315 5 3 6 71
2 660 7 7 10 60
3 434 12 12 8 50
4 378 9 9 10 52
5 or more 213 10 9 12 48

Single 611 9 9 7 61
married
of
only just
SOURCE: GMI/MINTEL

FIGURE 159: MOST POPULAR HOW OFTEN THEY USE MAKE-UP PRODUCTS – STANDARD BRAND MAKE-UP, BY DEMOGRAPHICS,
NOVEMBER 2013
Sample Use this At least once At least At least two

size product a week or once a to three times
more day a week
% % % %
All 2,000 48 31 13 10
Gender:
Male 1,000 20 10 2 3
Female 1,000 76 52 23 16
Age:
16-24 344 58 42 18 12
25-34 381 59 37 14 12
35-44 379 51 32 14 10
45-54 370 44 25 9 9
55-64 266 37 24 11 7
65+ 260 31 19 8 6
Region:
North West 204 41 29 10 11
Area:
AB 578 47 34 12 12
C1 577 49 31 15 9
C2 414 53 32 13 8
D 290 45 27 11 9
E 141 35 17 9 6

Under £9,500 145 46 28 12 11
£9,500-15,499 259 47 28 10 9
£15,500-24,999 437 45 26 12 7
£25,000-49,999 709 50 34 14 11
£50,000 or over 288 48 32 12 10

Aged 0-4 207 64 39 19 11
Aged 5-9 252 63 42 17 13
Aged 10-15 360 59 39 17 12
Aged 16-18 284 56 35 14 13
Any children 751 60 38 16 12

Household size:
1 315 32 21 8 8
2 660 44 27 11 9
3 434 56 35 14 12
4 378 52 34 14 8
5 or more 213 59 41 16 14

Single 611 44 31 13 9
married
add to my savings
just
or household bills
SOURCE: GMI/MINTEL
FIGURE 160: NEXT MOST POPULAR HOW OFTEN THEY USE MAKE-UP PRODUCTS – STANDARD BRAND MAKE-UP, BY

week month month
% % % %
All 2,000 8 9 9 52
Gender:
Male 1,000 4 5 4 81
Female 1,000 12 12 13 24
Age:
16-24 344 12 9 7 42
25-34 381 11 12 10 41
35-44 379 8 9 9 49
45-54 370 7 10 9 56
55-64 266 6 6 7 63
65+ 260 5 4 8 69
Region:
North West 204 8 5 7 59

Area:
AB 578 10 7 6 53
C1 577 7 9 9 51
C2 414 11 12 9 47
D 290 7 7 11 55
E 141 2 9 9 65

Under £9,500 145 5 10 7 54
£9,500-15,499 259 8 11 8 53
£15,500-24,999 437 8 9 10 55
£25,000-49,999 709 9 8 8 50
£50,000 or over 288 10 9 6 52

Aged 0-4 207 10 15 10 36
Aged 5-9 252 12 11 11 37
Aged 10-15 360 10 10 10 41
Aged 16-18 284 8 11 10 44
Household size:
1 315 6 6 5 68
2 660 7 7 10 56
3 434 9 12 9 44
4 378 11 11 8 48
5 or more 213 11 8 10 41

Single 611 9 7 6 56
married
add to my savings
of
just
or household bills
SOURCE: GMI/MINTEL

FIGURE 161: MOST POPULAR HOW OFTEN THEY USE MAKE-UP PRODUCTS – PREMIUM BRAND MAKE UP, BY DEMOGRAPHICS,
NOVEMBER 2013

size product a week or once a day to three
more times a
week
% % % %
All 2,000 31 16 6 6
Gender:
Male 1,000 18 10 2 3
Female 1,000 44 23 9 8
Age:
16-24 344 44 23 8 7
25-34 381 48 26 9 10
35-44 379 34 18 5 7
45-54 370 22 10 4 4
55-64 266 20 9 4 2
65+ 260 12 7 2 2
Region:
North West 204 29 17 7 4
Area:
AB 578 38 22 8 8
C1 577 32 17 5 6
C2 414 33 15 6 5
D 290 24 11 3 3
E 141 11 5 1 3

Under £9,500 145 26 12 3 3
£9,500-15,499 259 26 12 3 3
£15,500-24,999 437 27 12 3 5
£25,000-49,999 709 35 18 6 7
£50,000 or over 288 41 28 10 9

Aged 0-4 207 52 29 9 11
Aged 5-9 252 51 31 9 12
Aged 10-15 360 40 24 8 9
Aged 16-18 284 35 19 7 7

Household size:
1 315 21 11 5 3
2 660 26 13 5 4
3 434 37 17 4 8
4 378 37 19 6 6
5 or more 213 42 27 9 9

Single 611 34 17 5 6
married
add to my savings
of
just
or household bills
SOURCE: GMI/MINTEL
FIGURE 162: NEXT MOST POPULAR HOW OFTEN THEY USE MAKE-UP PRODUCTS – PREMIUM BRAND MAKE UP, BY

week month month
% % % %
All 2,000 5 6 9 69
Gender:
Male 1,000 4 4 4 82
Female 1,000 6 8 13 56
Age:
16-24 344 8 9 12 56
25-34 381 7 11 10 52
35-44 379 6 6 10 66
45-54 370 2 3 9 78
55-64 266 3 6 5 80
65+ 260 3 1 5 88
Region:
North West 204 5 5 7 71

Area:
AB 578 6 7 8 62
C1 577 6 7 9 68
C2 414 4 7 12 67
D 290 4 5 9 76
E 141 1 1 4 89

Under £9,500 145 6 6 8 74
£9,500-15,499 259 5 8 6 74
£15,500-24,999 437 4 7 8 73
£25,000-49,999 709 5 6 11 65
£50,000 or over 288 9 6 7 59

Aged 0-4 207 10 12 10 48
Aged 5-9 252 11 9 11 49
Aged 10-15 360 7 7 10 60
Aged 16-18 284 5 6 10 65
Household size:
1 315 3 4 5 79
2 660 4 5 7 74
3 434 6 10 10 63
4 378 6 6 12 63
5 or more 213 9 5 9 58

Single 611 5 8 10 66
married
add to my savings
of
just
or household bills
SOURCE: GMI/MINTEL

FIGURE 163: MOST POPULAR HOW OFTEN THEY USE FRAGRANCE AND/OR AFTERSHAVE PRODUCTS – HOW OFTEN THEY USE
ANY FRAGRANCES AND/OR AFTERSHAVE, BY DEMOGRAPHICS, NOVEMBER 2013

more times a
week
% % % %
All 2,000 78 58 24 20
Gender:
Male 1,000 73 54 20 20
Female 1,000 83 63 29 21
Age:
16-24 344 83 67 28 26
25-34 381 87 66 29 21
35-44 379 82 61 26 20
45-54 370 79 57 26 18
55-64 266 67 50 17 20
65+ 260 60 41 15 17
Region:
North West 204 76 57 26 19
Area:
AB 578 77 59 27 20
C1 577 79 61 26 22
C2 414 83 60 23 21
D 290 77 54 20 21
E 141 60 42 16 14

Under £9,500 145 70 47 15 17
£9,500-15,499 259 71 49 20 20
£15,500-24,999 437 77 56 20 22
£25,000-49,999 709 82 62 27 21
£50,000 or over 288 84 68 30 24

Aged 0-4 207 88 65 25 28
Aged 5-9 252 89 67 32 23
Aged 10-15 360 87 69 33 21
Aged 16-18 284 86 66 33 20
Any children 751 86 65 29 23

Household size:
1 315 70 49 16 20
2 660 72 55 22 18
3 434 79 60 26 19
4 378 87 64 28 24
5 or more 213 87 69 32 23

Single 611 78 59 25 17
married
add to my savings
just
or household bills
SOURCE: GMI/MINTEL
FIGURE 164: NEXT MOST POPULAR HOW OFTEN THEY USE FRAGRANCE AND/OR AFTERSHAVE PRODUCTS – HOW OFTEN THEY
USE ANY FRAGRANCES AND/OR AFTERSHAVE, BY DEMOGRAPHICS, NOVEMBER 2013

week month month
% % % %
All 2,000 13 10 10 22
Gender:
Male 1,000 14 10 9 27
Female 1,000 13 10 11 17
Age:
16-24 344 14 8 8 17
25-34 381 16 12 9 13
35-44 379 14 11 9 18
45-54 370 13 9 13 21
55-64 266 13 9 8 33
65+ 260 9 8 11 40
Region:
North West 204 12 10 9 24

Area:
AB 578 12 9 9 23
C1 577 13 9 9 21
C2 414 16 13 9 17
D 290 13 10 12 23
E 141 11 6 12 40

Under £9,500 145 15 9 14 30
£9,500-15,499 259 10 12 10 29
£15,500-24,999 437 14 10 12 23
£25,000-49,999 709 14 10 10 18
£50,000 or over 288 15 9 6 16

Aged 0-4 207 13 13 10 12
Aged 5-9 252 12 14 9 11
Aged 10-15 360 15 10 8 13
Aged 16-18 284 13 12 7 14
Household size:
1 315 13 10 12 30
2 660 14 8 10 28
3 434 14 11 8 21
4 378 12 13 10 13
5 or more 213 14 8 10 13

Single 611 16 9 11 22
married
add to my savings
just
or household bills
SOURCE: GMI/MINTEL

FIGURE 165: MOST POPULAR HOW OFTEN THEY USE FRAGRANCE AND/OR AFTERSHAVE PRODUCTS – STANDARD BRAND
FRAGRANCE/PERFUME, BY DEMOGRAPHICS, NOVEMBER 2013

more times a
week
% % % %
All 2,000 50 31 12 9
Gender:
Male 1,000 38 24 7 7
Female 1,000 61 38 16 11
Age:
16-24 344 64 40 13 13
25-34 381 69 43 15 12
35-44 379 51 33 12 8
45-54 370 44 26 12 7
55-64 266 32 21 7 7
65+ 260 27 17 7 6
Region:
North West 204 48 32 13 6
Area:
town/city)
town/city)
AB 578 47 32 12 10
C1 577 51 31 11 9
C2 414 54 33 12 8
D 290 51 30 11 9
E 141 37 22 11 6

Under £9,500 145 45 26 7 10
£9,500-15,499 259 50 29 13 8
£15,500-24,999 437 49 28 8 10
£25,000-49,999 709 51 32 13 9
£50,000 or over 288 52 36 12 10


Aged 0-4 207 69 42 15 15
Aged 5-9 252 66 42 15 14
Aged 10-15 360 61 41 16 10
Aged 16-18 284 55 36 16 8
Any children 751 61 38 14 11
Household size:
1 315 37 23 6 8
2 660 41 25 10 8
3 434 57 35 14 8
4 378 60 38 13 12
5 or more 213 60 40 15 13

Single 611 52 32 11 8
married
of
only just
SOURCE: GMI/MINTEL

FIGURE 166: NEXT MOST POPULAR HOW OFTEN THEY USE FRAGRANCE AND/OR AFTERSHAVE PRODUCTS – STANDARD BRAND

week month month
% % % %
All 2,000 10 8 10 50
Gender:
Male 1,000 10 8 6 62
Female 1,000 10 9 14 39
Age:
16-24 344 13 12 12 36
25-34 381 16 15 11 31
35-44 379 12 8 11 49
45-54 370 7 5 12 56
55-64 266 6 5 6 68
65+ 260 3 3 7 73
Region:
North West 204 13 8 8 52
Area:
Suburban location (ie close to town/city but 801 11 8 10 50
living outside a town/city)
AB 578 10 7 8 53
C1 577 10 10 11 49
C2 414 13 9 12 46
D 290 9 10 12 49
E 141 5 5 10 63

Under £9,500 145 9 8 11 55
£9,500-15,499 259 8 12 9 50
£15,500-24,999 437 10 9 11 51
£25,000-49,999 709 10 8 11 49
£50,000 or over 288 14 6 10 48

Aged 0-4 207 12 14 13 31
Aged 5-9 252 13 12 12 34
Aged 10-15 360 15 11 10 39
Aged 16-18 284 11 10 10 45
Any children 751 13 12 11 39

Household size:
1 315 9 7 7 63
2 660 7 6 10 59
3 434 12 11 11 43
4 378 13 10 13 40
5 or more 213 12 9 11 40

Single 611 13 10 10 48
Married/Civil partnership/Living as married 1,181 9 8 11 50
Healthy – I have money left at the end of 515 10 8 7 52
the month for a few luxuries or to add to
my savings
OK – I get by, but there’s not a lot left by 871 11 8 11 49
the time the basics are taken care of
Tight – I’m making ends meet, but only just 448 11 10 12 52
Struggling – I’m in danger of falling behind 166 7 8 11 49
with bills or loan repayments/In Trouble –
I’ve missed loan repayments or household
bills
SOURCE: GMI/MINTEL
FIGURE 167: MOST POPULAR HOW OFTEN THEY USE FRAGRANCE AND/OR AFTERSHAVE PRODUCTS – STANDARD BRAND
AFTERSHAVE, BY DEMOGRAPHICS, NOVEMBER 2013

size product a week or once a to three
more day times a
week
% % % %
All 2,000 39 24 7 8
Gender:
Male 1,000 57 38 11 14
Female 1,000 20 9 3 3
Age:
16-24 344 51 34 9 12
25-34 381 48 29 9 8
35-44 379 40 25 8 8
45-54 370 35 21 6 7
55-64 266 25 13 3 5
65+ 260 27 16 4 8
Region:
North West 204 38 23 8 6

Area:
Suburban location (ie close to town/city but 801 36 21 5 7
Working status:
Employee full-time (30+ hours/week) 835 51 32 10 11
Employee part-time (less than 30 hours/week) 290 31 16 5 4
Any self-employed 135 31 15 4 5
In full-time education 174 43 28 7 10
Retired 325 24 14 3 7
Not working for any other reason 241 28 16 6 5
AB 578 40 26 8 9
C1 577 36 21 7 6
C2 414 43 27 6 9
D 290 40 22 8 8
E 141 31 18 3 9

Under £9,500 145 30 17 6 5
£9,500-15,499 259 38 22 5 7
£15,500-24,999 437 39 22 5 9
£25,000-49,999 709 41 25 7 8
£50,000 or over 288 44 32 9 10

Aged 0-4 207 55 32 10 9
Aged 5-9 252 54 36 15 10
Aged 10-15 360 51 34 11 10
Aged 16-18 284 45 30 12 8
Household size:
1 315 30 17 4 7
2 660 31 18 4 7
3 434 44 26 7 9
4 378 47 30 10 11
5 or more 213 50 33 11 9

Single 611 44 28 8 9
Married/Civil partnership/Living as married 1,181 39 23 7 8
Healthy – I have money left at the end of the 515 39 27 8 10
month for a few luxuries or to add to my
savings
OK – I get by, but there’s not a lot left by the 871 41 24 7 8
time the basics are taken care of
Tight – I’m making ends meet, but only just 448 35 19 6 6
Struggling – I’m in danger of falling behind 166 36 21 5 7
with bills or loan repayments/In Trouble – I’ve
missed loan repayments or household bills
SOURCE: GMI/MINTEL

FIGURE 168: NEXT MOST POPULAR HOW OFTEN THEY USE FRAGRANCE AND/OR AFTERSHAVE PRODUCTS – STANDARD BRAND

week month month
% % % %
All 2,000 9 7 9 61
Gender:
Male 1,000 13 10 10 43
Female 1,000 4 4 7 80
Age:
16-24 344 13 9 9 49
25-34 381 12 9 10 52
35-44 379 9 8 7 60
45-54 370 8 5 10 65
55-64 266 5 5 7 75
65+ 260 3 4 8 73
Region:
North West 204 9 4 11 62
Area:
AB 578 9 6 8 60
C1 577 8 7 8 64
C2 414 11 7 9 57
D 290 7 8 10 60
E 141 6 5 8 69

Under £9,500 145 6 6 8 70
£9,500-15,499 259 9 10 7 62
£15,500-24,999 437 8 7 11 61
£25,000-49,999 709 9 7 9 59
£50,000 or over 288 13 6 7 56

Aged 0-4 207 13 10 13 45
Aged 5-9 252 12 8 9 46
Aged 10-15 360 13 8 9 49
Aged 16-18 284 11 7 8 55

Household size:
1 315 6 5 9 70
2 660 7 5 8 69
3 434 10 10 8 56
4 378 10 8 10 53
5 or more 213 13 8 9 50

Single 611 12 7 9 56
married
add to my savings
just
or household bills
SOURCE: GMI/MINTEL
FIGURE 169: MOST POPULAR HOW OFTEN THEY USE FRAGRANCE AND/OR AFTERSHAVE PRODUCTS – PREMIUM BRAND

more times a
week
% % % %
All 2,000 56 35 11 13
Gender:
Male 1,000 48 29 7 10
Female 1,000 65 42 14 15
Age:
16-24 344 63 41 10 16
25-34 381 72 45 15 14
35-44 379 61 38 11 14
45-54 370 55 34 12 12
55-64 266 44 27 8 9
65+ 260 33 18 5 8
Region:
North West 204 58 34 11 14

Area:
town/city)
town/city)
AB 578 60 38 12 14
C1 577 60 40 14 13
C2 414 60 35 10 11
D 290 49 30 6 14
E 141 29 15 4 6

Under £9,500 145 37 21 5 6
£9,500-15,499 259 43 22 5 11
£15,500-24,999 437 54 32 9 12
£25,000-49,999 709 64 40 12 14
£50,000 or over 288 70 52 17 18

Aged 0-4 207 72 45 13 16
Aged 5-9 252 72 48 13 18
Aged 10-15 360 68 42 14 14
Aged 16-18 284 62 40 12 14
Any children 751 66 42 13 15
Household size:
1 315 44 25 7 9
2 660 52 34 10 12
3 434 59 36 11 12
4 378 65 40 11 16
5 or more 213 65 45 15 16

Single 611 57 34 10 10
married
of
only just
SOURCE: GMI/MINTEL

FIGURE 170: NEXT MOST POPULAR HOW OFTEN THEY USE FRAGRANCE AND/OR AFTERSHAVE PRODUCTS – PREMIUM BRAND

size once a once a once a this
week month month product
% % % %
All 2,000 12 11 11 44
Gender:
Male 1,000 12 10 9 52
Female 1,000 13 12 12 35
Age:
16-24 344 15 10 11 38
25-34 381 16 15 12 28
35-44 379 13 13 10 39
45-54 370 10 9 12 45
55-64 266 11 9 8 56
65+ 260 6 6 8 67
Region:
North West 204 9 14 10 42
Area:
AB 578 12 11 10 40
C1 577 13 10 11 40
C2 414 14 14 12 40
D 290 10 10 10 51
E 141 5 4 10 71

Under £9,500 145 10 6 9 63
£9,500-15,499 259 5 12 10 57
£15,500-24,999 437 11 12 10 46
£25,000-49,999 709 14 12 12 36
£50,000 or over 288 17 10 8 30

Aged 0-4 207 16 17 10 28
Aged 5-9 252 17 13 11 28
Aged 10-15 360 14 13 13 33
Aged 16-18 284 14 11 11 38
Any children 751 14 13 11 34

Household size:
1 315 9 10 10 56
2 660 12 9 10 48
3 434 13 13 11 41
4 378 13 12 13 35
5 or more 213 14 11 9 35

Single 611 13 11 12 43
married
Healthy – I have money left at the end of 515 16 10 8 40
the month for a few luxuries or to add to
my savings
OK – I get by, but there’s not a lot left by 871 12 10 12 44
the time the basics are taken care of
just
Trouble – I’ve missed loan repayments or
household bills
SOURCE: GMI/MINTEL
FIGURE 171: MOST POPULAR HOW OFTEN THEY USE FRAGRANCE AND/OR AFTERSHAVE PRODUCTS – PREMIUM BRAND

more times a
week
% % % %
All 2,000 33 18 5 6
Gender:
Male 1,000 47 27 7 9
Female 1,000 20 10 3 4
Age:
16-24 344 40 22 6 7
25-34 381 48 29 9 11
35-44 379 37 21 4 8
45-54 370 30 16 4 6
55-64 266 19 8 3 3
65+ 260 16 7 2 1
Region:
North West 204 36 20 8 6

Area:
town/city)
town/city)
AB 578 39 23 7 7
C1 577 31 19 5 7
C2 414 36 17 3 5
D 290 30 16 4 6
E 141 16 9 1 4

Under £9,500 145 23 12 3 3
£9,500-15,499 259 25 10 2 3
£15,500-24,999 437 32 16 3 6
£25,000-49,999 709 36 20 6 6
£50,000 or over 288 50 33 9 14

Aged 0-4 207 54 33 8 14
Aged 5-9 252 53 31 6 13
Aged 10-15 360 46 26 9 8
Aged 16-18 284 38 24 7 8
Household size:
1 315 24 13 3 4
2 660 26 14 3 4
3 434 38 20 6 6
4 378 43 24 5 11
5 or more 213 41 26 8 7

Single 611 34 18 5 5
married
of
only just
SOURCE: GMI/MINTEL

FIGURE 172: NEXT MOST POPULAR HOW OFTEN THEY USE FRAGRANCE AND/OR AFTERSHAVE PRODUCTS – PREMIUM BRAND

month month
% % % %
All 2,000 7 7 8 67
Gender:
Male 1,000 11 10 10 53
Female 1,000 4 4 6 80
Age:
16-24 344 9 8 10 60
25-34 381 10 11 8 52
35-44 379 9 9 7 63
45-54 370 6 5 9 70
55-64 266 3 3 7 81
65+ 260 3 3 6 84
Region:
North West 204 6 9 6 64
Area:
town/city but living outside a town/city)
AB 578 8 9 8 61
C1 577 7 6 7 69
C2 414 9 8 10 64
D 290 6 7 8 70
E 141 4 1 6 84

Under £9,500 145 6 3 8 77
£9,500-15,499 259 5 8 7 75
£15,500-24,999 437 8 8 8 68
£25,000-49,999 709 8 7 9 64
£50,000 or over 288 10 10 7 50

Aged 0-4 207 11 10 11 46
Aged 5-9 252 12 12 10 47
Aged 10-15 360 9 11 9 54
Aged 16-18 284 9 7 8 62

Household size:
1 315 6 5 6 76
2 660 6 5 7 74
3 434 7 10 8 62
4 378 8 10 9 57
5 or more 213 11 5 10 59

Single 611 9 7 9 66
married
add to my savings
of
only just
SOURCE: GMI/MINTEL

Appendix – Consumer – What They Buy Where Beauty Retailing
UK, January 2014
Appendix – Consumer – What They Buy Where

FIGURE 173: NEXT MOST POPULAR WHERE THEY BUY ANY BEAUTY PRODUCT, BY DEMOGRAPHICS, NOVEMBER 2013
Sample Asda Debenhams John Discount store Internet

size Lewis (eg specialist (eg
Wilkinsons, Amazon,
Savers, Feelunique,
Poundland, Mankind)
Aldi)
% % % % %
All 2,000 19 17 12 23 17
Gender:
Male 1,000 20 12 11 19 16
Female 1,000 19 22 13 28 19
Age:
16-24 344 28 24 18 29 24
25-34 381 28 22 20 25 25
35-44 379 21 18 11 25 17
45-54 370 15 14 8 22 15
55-64 266 14 11 8 19 10
65+ 260 5 8 5 17 8
Region:
North West 204 26 19 12 23 15
Yorkshire and Humberside 172 30 17 12 24 21
Area:
Urban location (ie living in 831 24 22 17 28 20
a town/city)
Suburban location (ie 801 19 15 10 21 16
close to town/city but living
outside a town/city)
Village/Rural 368 9 10 5 17 13
location/Other
AB 578 18 18 18 21 21
C1 577 21 19 12 22 17
C2 414 25 18 12 27 18
D 290 16 12 5 26 14
E 141 9 7 2 24 8

income:
Under £9,500 145 17 15 8 25 15
£9,500-15,499 259 15 13 7 25 10
£15,500-24,999 437 21 14 10 27 16
£25,000-49,999 709 21 18 14 24 20
£50,000 or over 288 21 23 20 16 23
Don’t know/Refused 162 17 14 9 22 12

UK, January 2014
Presence of own
children:
Aged 0-4 207 31 29 24 30 24
Aged 5-9 252 33 30 22 29 26
Aged 10-15 360 33 24 20 31 22
Aged 16-18 284 25 22 17 31 23
Any children 751 28 23 18 28 23
No children in household 1,249 14 13 8 20 14
Household size:
1 315 8 12 7 19 10
2 660 14 13 9 22 16
3 434 26 18 13 23 19
4 378 26 21 15 24 20
5 or more 213 28 25 21 31 24

Single 611 20 18 12 24 18
Married/Civil partnership/ 1,181 20 17 12 23 18
Living as married
Separated, divorced or 208 12 15 10 21 13
widowed
Healthy – I have money 515 20 21 18 23 23
left at the end of the month
for a few luxuries or to add
to my savings
OK – I get by, but there’s 871 20 16 11 22 17
not a lot left by the time
the basics are taken care
of
Tight – I’m making ends 448 17 16 8 25 14
meet, but only just
Struggling – I’m in danger 166 19 10 5 27 14
of falling behind with bills
or loan repayments/In
Trouble – I’ve missed loan
repayments or household
bills
SOURCE: GMI/MINTEL

UK, January 2014
FIGURE 174: OTHER WHERE THEY BUY ANY BEAUTY PRODUCT, BY DEMOGRAPHICS, NOVEMBER 2013
Sample Other Other beauty Other Other (eg I have not

size chemist (eg specialist departme duty free, bought
Lloyds shop (eg The nt store direct any of
Pharmacy, Fragrance (eg House sales, these
Independent Shop, Space of Fraser) clothing products
chemist) NK, retailers) in the last
L’Occitane) 12 months
% % % % %
All 2,000 12 16 12 17 17
Gender:
Male 1,000 11 12 10 15 28
Female 1,000 14 21 14 20 7
Age:
16-24 344 21 26 18 23 12
25-34 381 18 22 17 22 10
35-44 379 10 13 11 16 18
45-54 370 11 15 11 16 16
55-64 266 6 11 5 14 26
65+ 260 7 8 6 12 27
Region:
North West 204 11 14 11 19 16
Area:
Urban location (ie living in a 831 16 21 16 20 14
town/city)
Suburban location (ie close 801 11 15 10 17 20
to town/city but living outside
a town/city)
Village/Rural location/Other 368 7 10 7 13 19
AB 578 13 21 16 20 16
C1 577 14 16 14 19 16
C2 414 13 17 10 17 14
D 290 10 12 9 12 21
E 141 7 6 4 9 31

income:
Under £9,500 145 13 12 10 17 23
£9,500-15,499 259 12 11 10 12 20
£15,500-24,999 437 11 16 11 17 20
£25,000-49,999 709 13 17 13 19 14
£50,000 or over 288 14 26 18 23 10

UK, January 2014

Aged 0-4 207 23 27 21 30 15
Aged 5-9 252 21 27 23 28 10
Aged 10-15 360 18 24 18 22 13
Aged 16-18 284 17 27 18 20 12
Any children 751 17 24 17 22 13
Household size:
1 315 6 9 8 12 25
2 660 9 12 10 15 19
3 434 16 20 13 18 15
4 378 16 21 14 22 13
5 or more 213 18 26 20 24 12

Single 611 15 18 14 18 17
Living as married
widowed
Healthy – I have money left 515 15 21 16 22 16
at the end of the month for a
few luxuries or to add to my
savings
OK – I get by, but there’s not 871 11 16 11 16 17
a lot left by the time the
basics are taken care of
meet, but only just
Struggling – I’m in danger of 166 11 9 7 11 25
falling behind with bills or
loan repayments/In Trouble
– I’ve missed loan
bills
SOURCE: GMI/MINTEL

UK, January 2014
FIGURE 175: MOST POPULAR WHERE THEY BUY SKINCARE, BY DEMOGRAPHICS, NOVEMBER 2013
Sample Boots Superdrug The Body Tesco Sainsbury’s

size Shop
% % % % %
All 2,000 44 22 13 22 11
Gender:
Male 1,000 33 15 7 18 10
Female 1,000 54 30 18 25 13
Age:
16-24 344 53 29 20 24 16
25-34 381 54 22 17 26 16
35-44 379 42 21 14 22 11
45-54 370 38 27 10 24 12
55-64 266 36 16 6 17 6
65+ 260 33 15 3 13 5
Region:
North West 204 42 21 13 21 9
Area:
town/city)
Suburban location (ie close to 801 42 21 12 20 10
town/city)
AB 578 50 23 13 23 13
C1 577 44 24 14 21 12
C2 414 46 25 14 24 12
D 290 35 21 11 21 9
E 141 26 9 5 13 4

income:
Under £9,500 145 37 20 13 19 10
£9,500-15,499 259 39 24 8 17 8
£15,500-24,999 437 37 20 12 22 10
£25,000-49,999 709 47 23 14 23 13
£50,000 or over 288 56 25 16 23 13

Aged 0-4 207 54 22 21 31 17
Aged 5-9 252 56 19 18 29 18
Aged 10-15 360 52 27 17 29 17
Aged 16-18 284 48 29 14 26 13
Any children 751 50 24 16 27 15

UK, January 2014
Household size:
1 315 34 18 7 15 9
2 660 40 21 11 21 9
3 434 46 28 14 24 13
4 378 48 20 15 21 12
5 or more 213 55 28 18 29 18

Single 611 47 26 15 19 13
Married/Civil partnership/Living 1,181 43 21 13 24 11
as married
Separated, divorced or widowed 208 35 21 6 14 8
Healthy – I have money left at the 515 45 21 12 23 14
OK – I get by, but there’s not a lot 871 45 22 13 21 11
taken care of
Tight – I’m making ends meet, 448 41 25 13 23 9
but only just
household bills
SOURCE: GMI/MINTEL

UK, January 2014
FIGURE 176: NEXT MOST POPULAR WHERE THEY BUY SKINCARE, BY DEMOGRAPHICS, NOVEMBER 2013
Sample Asda Debenhams John Discount Internet

size Lewis store (eg specialist (eg
Wilkinsons, Amazon,
Savers, Feelunique,
Poundland, Mankind)
Aldi)
% % % % %
All 2,000 13 7 5 15 7
Gender:
Male 1,000 13 5 4 10 6
Female 1,000 14 8 6 21 9
Age:
16-24 344 17 9 8 16 11
25-34 381 19 10 9 15 11
35-44 379 16 6 3 18 6
45-54 370 11 7 4 16 7
55-64 266 9 5 3 13 3
65+ 260 3 3 2 12 3
Region:
North West 204 18 6 5 15 6
Area:
a town/city)
location/Other
AB 578 12 9 8 11 10
C1 577 15 7 6 14 6
C2 414 18 7 5 20 8
D 290 10 4 1 20 6
E 141 6 5 - 19 3

income:
Under £9,500 145 12 6 1 19 6
£9,500-15,499 259 11 7 3 17 6
£15,500-24,999 437 14 4 4 18 6
£25,000-49,999 709 15 8 6 16 8
£50,000 or over 288 13 10 11 8 10

UK, January 2014
Presence of own
children:
Aged 0-4 207 20 14 12 19 12
Aged 5-9 252 22 15 9 19 14
Aged 10-15 360 24 10 7 20 10
Aged 16-18 284 17 9 8 19 8
Any children 751 19 10 8 17 10
Household size:
1 315 5 6 3 13 5
2 660 10 4 4 17 7
3 434 17 7 6 14 7
4 378 18 8 5 14 8
5 or more 213 20 12 9 20 11

Single 611 13 7 5 16 8
Living as married
widowed
to my savings
of
meet, but only just
bills
SOURCE: GMI/MINTEL

UK, January 2014
FIGURE 177: OTHER WHERE THEY BUY SKINCARE, BY DEMOGRAPHICS, NOVEMBER 2013
Sample Other Other Other Other (eg I have not

size chemist beauty departme duty free, bought
(eg Lloyds specialist nt store direct any of
Pharmacy, shop (eg (eg House sales, these
Independe The of Fraser) clothing products
nt Fragrance retailers) in the last
chemist) Shop, Space 12 months
NK,
L’Occitane)
% % % % %
All 2,000 7 6 5 6 28
Gender:
Male 1,000 6 5 4 4 45
Female 1,000 8 8 6 7 12
Age:
16-24 344 11 9 7 8 21
25-34 381 9 10 9 7 18
35-44 379 7 4 5 5 28
45-54 370 6 6 5 6 31
55-64 266 3 4 2 4 38
65+ 260 4 3 2 3 41
Region:
North West 204 6 4 3 6 31
Area:
town/city)
a town/city)
AB 578 8 10 7 6 25
C1 577 7 7 5 6 27
C2 414 7 5 5 6 25
D 290 6 3 5 3 34
E 141 2 1 1 6 45

income:
Under £9,500 145 6 3 3 6 33
£9,500-15,499 259 5 5 3 4 32
£15,500-24,999 437 6 4 4 5 33
£25,000-49,999 709 9 7 6 7 26
£50,000 or over 288 7 12 8 6 18

UK, January 2014

Aged 0-4 207 14 13 10 10 21
Aged 5-9 252 11 12 12 10 15
Aged 10-15 360 10 9 11 8 19
Aged 16-18 284 11 9 8 6 23
Any children 751 10 9 8 7 21
Household size:
1 315 3 5 3 4 41
2 660 5 5 4 5 30
3 434 9 6 5 6 25
4 378 8 8 6 6 22
5 or more 213 11 11 11 9 21

Single 611 9 7 5 7 28
Living as married
widowed
savings
meet, but only just
bills
SOURCE: GMI/MINTEL

UK, January 2014
FIGURE 178: MOST POPULAR WHERE THEY BUY MAKE-UP, BY DEMOGRAPHICS, NOVEMBER 2013

size Shop
% % % % %
All 2,000 30 18 6 9 5
Gender:
Male 1,000 9 7 4 6 5
Female 1,000 51 30 7 12 5
Age:
16-24 344 36 32 10 12 7
25-34 381 36 21 10 14 8
35-44 379 31 17 6 9 4
45-54 370 27 18 3 8 4
55-64 266 26 10 2 6 2
65+ 260 21 7 1 5 1
Region:
North West 204 28 16 3 7 3
Area:
town/city)
town/city)
AB 578 32 18 7 12 7
C1 577 32 19 6 10 4
C2 414 33 21 5 9 5
D 290 26 19 4 7 3
E 141 19 10 2 6 -

income:
Under £9,500 145 24 17 2 8 3
£9,500-15,499 259 30 20 3 8 5
£15,500-24,999 437 24 16 5 9 3
£25,000-49,999 709 34 19 7 10 5
£50,000 or over 288 33 19 7 12 8

Aged 0-4 207 37 27 13 18 10
Aged 5-9 252 37 25 12 17 12
Aged 10-15 360 38 24 8 13 8
Aged 16-18 284 33 27 7 13 7
Any children 751 35 25 9 14 8

UK, January 2014
Household size:
1 315 18 9 1 5 1
2 660 31 16 4 8 3
3 434 32 22 8 11 6
4 378 33 22 6 10 5
5 or more 213 38 26 9 15 10

Single 611 28 20 6 7 5
Married/Civil partnership/Living 1,181 32 19 5 11 5
as married
widowed
Healthy – I have money left at 515 28 18 7 11 6
the end of the month for a few
luxuries or to add to my
savings
OK – I get by, but there’s not a 871 31 19 5 10 5
lot left by the time the basics
are taken care of
but only just
household bills
SOURCE: GMI/MINTEL

UK, January 2014
FIGURE 179: NEXT MOST POPULAR WHERE THEY BUY MAKE-UP, BY DEMOGRAPHICS, NOVEMBER 2013
Sample Asda Debenhams John Discount store Internet

size Lewis (eg Wilkinsons, specialist (eg
Savers, Amazon,
Poundland, Feelunique,
Aldi) Mankind)
% % % % %
All 2,000 6 7 6 7 7
Gender:
Male 1,000 5 4 4 4 4
Female 1,000 8 10 7 11 9
Age:
16-24 344 8 10 8 12 12
25-34 381 9 11 8 8 10
35-44 379 6 6 5 7 6
45-54 370 4 5 4 8 5
55-64 266 7 6 4 4 2
65+ 260 2 4 3 3 2
Region:
North West 204 9 8 6 7 4
Area:
a town/city)
location/Other
AB 578 7 9 9 7 9
C1 577 6 8 5 7 7
C2 414 7 8 4 9 7
D 290 6 3 2 8 3
E 141 1 2 2 5 1

income:
Under £9,500 145 1 4 4 7 9
£9,500-15,499 259 7 5 3 6 3
£15,500-24,999 437 6 7 4 8 6
£25,000-49,999 709 7 7 6 8 8
£50,000 or over 288 8 9 10 6 7

UK, January 2014
Presence of own
children:
Aged 0-4 207 13 14 13 11 12
Aged 5-9 252 11 10 12 9 12
Aged 10-15 360 11 9 10 12 10
Aged 16-18 284 8 9 8 13 8
Any children 751 9 9 9 11 10
Household size:
1 315 2 5 2 3 3
2 660 6 7 5 6 6
3 434 7 6 6 8 8
4 378 8 7 7 10 7
5 or more 213 10 12 9 11 10

Single 611 5 8 5 7 7
Married/Civil 1,181 7 7 6 8 6
partnership/Living as
married
widowed
to my savings
of
meet, but only just
bills
SOURCE: GMI/MINTEL

UK, January 2014
FIGURE 180: OTHER WHERE THEY BUY MAKE-UP, BY DEMOGRAPHICS, NOVEMBER 2013

size chemist (eg specialist departme duty free, bought
Lloyds shop (eg The nt store direct any of
Pharmacy, Fragrance (eg sales, these
Independent Shop, Space House of clothing products
chemist) NK, Fraser) retailers) in the last
L’Occitane) 12 months
% % % % %
All 2,000 5 4 5 6 49
Gender:
Male 1,000 3 3 2 4 77
Female 1,000 6 5 7 9 21
Age:
16-24 344 7 8 9 10 40
25-34 381 7 6 6 8 37
35-44 379 4 3 4 6 49
45-54 370 5 3 4 4 53
55-64 266 2 - 1 5 57
65+ 260 1 2 2 3 64
Region:
North West 204 4 3 5 6 51
Area:
a town/city)
location/Other
Working status:
Employee full-time (30+ 835 5 5 5 7 50
hours/week)
Employee part-time (less 290 6 3 4 7 36
than 30 hours/week)
Any self-employed 135 5 5 6 4 59
In full-time education 174 3 5 6 6 47
Retired 325 1 1 2 4 61
Not working for any other 241 5 2 4 10 40
reason
AB 578 4 5 7 8 48
C1 577 5 4 5 6 47
C2 414 6 4 3 7 47
D 290 3 1 3 5 52
E 141 1 1 1 6 62

UK, January 2014

income:
Under £9,500 145 4 6 3 6 54
£9,500-15,499 259 6 2 3 6 49
£15,500-24,999 437 4 3 3 5 54
£25,000-49,999 709 4 4 6 7 44
£50,000 or over 288 5 5 7 8 46
Presence of own
children:
Aged 0-4 207 10 8 11 17 35
Aged 5-9 252 10 8 8 14 36
Aged 10-15 360 8 4 5 10 36
Aged 16-18 284 8 6 6 6 39
Any children 751 8 5 7 10 37
Household size:
1 315 2 3 4 3 68
2 660 3 2 4 5 51
3 434 6 4 5 8 43
4 378 7 4 4 9 42
5 or more 213 8 7 8 11 38

Single 611 4 4 6 6 54
Living as married
widowed
to my savings
of
meet, but only just
bills
SOURCE: GMI/MINTEL

UK, January 2014
FIGURE 181: MOST POPULAR WHERE THEY BUY FRAGRANCES/AFTERSHAVE, BY DEMOGRAPHICS, NOVEMBER 2013

size Shop
% % % % %
All 2,000 28 12 7 10 5
Gender:
Male 1,000 26 13 6 14 7
Female 1,000 30 12 8 6 3
Age:
16-24 344 32 15 13 15 7
25-34 381 30 12 7 12 7
35-44 379 29 12 8 9 4
45-54 370 31 14 5 7 3
55-64 266 24 10 3 6 4
65+ 260 20 8 3 9 1
Region:
North West 204 28 12 5 8 5
Area:
town/city)
town/city)
AB 578 29 11 7 10 5
C1 577 29 12 8 10 5
C2 414 31 16 8 12 4
D 290 25 12 4 10 4
E 141 22 7 4 6 1

income:
Under £9,500 145 17 8 8 9 6
£9,500-15,499 259 26 15 7 11 3
£15,500-24,999 437 24 12 6 11 4
£25,000-49,999 709 31 14 7 9 4
£50,000 or over 288 37 11 8 12 8

Aged 0-4 207 29 16 10 14 8
Aged 5-9 252 36 14 10 15 8
Aged 10-15 360 36 18 10 14 7
Aged 16-18 284 33 17 10 11 5
Any children 751 32 15 9 13 6

UK, January 2014
Household size:
1 315 19 11 4 7 3
2 660 27 10 5 9 3
3 434 29 13 8 11 6
4 378 34 13 7 9 5
5 or more 213 36 19 13 17 8

Single 611 30 15 8 11 6
Married/Civil partnership/Living as 1,181 29 12 6 10 4
married
taken care of
Tight – I’m making ends meet, but 448 26 12 8 9 4
only just
Struggling – I’m in danger of falling 166 30 13 5 9 2
household bills
SOURCE: GMI/MINTEL

UK, January 2014
FIGURE 182: NEXT MOST POPULAR WHERE THEY BUY FRAGRANCES/AFTERSHAVE, BY DEMOGRAPHICS, NOVEMBER 2013

size Lewis store (eg specialist (eg
Wilkinsons, Amazon,
Savers, Feelunique,
Poundland, Mankind)
Aldi)
% % % % %
All 2,000 6 10 6 8 10
Gender:
Male 1,000 9 7 6 10 10
Female 1,000 4 12 6 7 10
Age:
16-24 344 9 14 7 10 10
25-34 381 8 11 10 8 14
35-44 379 8 12 6 10 9
45-54 370 5 9 4 7 9
55-64 266 5 5 3 8 7
65+ 260 1 5 3 6 5
Region:
North West 204 11 12 8 7 9
Area:
town/city)
a town/city)
AB 578 7 10 10 8 12
C1 577 5 11 5 8 10
C2 414 9 9 6 7 9
D 290 4 8 3 10 8
E 141 2 4 1 10 5

income:
Under £9,500 145 6 7 3 7 5
£9,500-15,499 259 3 6 3 12 7
£15,500-24,999 437 8 9 5 9 8
£25,000-49,999 709 7 10 7 8 11
£50,000 or over 288 6 15 11 6 13

UK, January 2014

Aged 0-4 207 12 15 12 12 11
Aged 5-9 252 12 15 9 11 11
Aged 10-15 360 10 15 11 10 11
Aged 16-18 284 7 11 8 10 14
Any children 751 10 13 9 10 11
Household size:
1 315 3 8 5 8 6
2 660 4 8 4 8 10
3 434 9 9 6 9 10
4 378 8 13 8 7 9
5 or more 213 8 14 10 12 14

Single 611 8 10 6 9 9
Married/Civil 1,181 6 9 6 8 10
married
widowed
savings
meet, but only just
bills
SOURCE: GMI/MINTEL

UK, January 2014
FIGURE 183: OTHER WHERE THEY BUY FRAGRANCES/AFTERSHAVE, BY DEMOGRAPHICS, NOVEMBER 2013

size chemist specialist departme duty free, bought
(eg Lloyds shop (eg The nt store direct any of
Pharmacy, Fragrance (eg sales, these
Independe Shop, Space House of clothing products
nt NK, Fraser) retailers) in the last
chemist) L’Occitane) 12 months
% % % % %
All 2,000 4 10 6 11 33
Gender:
Male 1,000 5 7 6 10 37
Female 1,000 4 14 6 13 29
Age:
16-24 344 7 16 9 10 24
25-34 381 6 12 8 12 26
35-44 379 5 9 5 11 32
45-54 370 2 11 6 12 32
55-64 266 2 8 4 12 42
65+ 260 2 6 4 10 48
Region:
North West 204 3 10 5 13 31
Area:
town/city)
town/city)
AB 578 5 13 9 14 32
C1 577 5 10 7 12 30
C2 414 4 11 4 11 30
D 290 3 9 4 8 38
E 141 4 5 2 4 50

income:
Under £9,500 145 5 8 5 10 46
£9,500-15,499 259 4 6 5 8 41
£15,500-24,999 437 4 12 5 11 35
£25,000-49,999 709 5 11 6 12 29
£50,000 or over 288 5 15 12 16 22

UK, January 2014

Aged 0-4 207 9 14 10 17 28
Aged 5-9 252 6 15 11 16 22
Aged 10-15 360 6 15 8 12 24
Aged 16-18 284 5 18 8 13 25
Any children 751 6 15 8 13 26
Household size:
1 315 2 5 3 9 43
2 660 4 8 5 11 37
3 434 5 14 7 11 29
4 378 5 13 7 13 27
5 or more 213 8 16 11 13 23

Single 611 5 12 8 10 31
Living as married
widowed
savings
are taken care of
but only just
household bills
SOURCE: GMI/MINTEL

Appendix – Consumer – Where They Buy In-store and Online Beauty Retailing
UK, January 2014
Appendix – Consumer – Where They Buy In-store and

Online
FIGURE 184: MOST POPULAR WHERE THEY BUY INSTORE AND ON-LINE, BY DEMOGRAPHICS, NOVEMBER 2013
last 12 months

size Shop
% % % % %
All 1,654 68 42 23 35 19
Gender:
Male 723 62 35 19 37 21
Female 931 73 47 26 33 18
Age:
16-24 303 75 54 36 40 25
25-34 341 74 41 29 39 26
35-44 312 65 40 24 36 17
45-54 311 63 44 17 33 18
55-64 197 65 35 14 29 14
65+ 190 62 31 7 26 9
Region:
North West 171 66 39 19 32 17
Area:
town/city)
town/city)
Working status:
Employee full-time (30+ 713 69 43 26 40 23
hours/week)
Employee part-time (less than 30 252 71 48 23 33 20
hours/week)
Retired 241 62 26 8 28 9
Not working for any other reason 194 64 42 21 32 14
AB 484 73 43 25 37 22
C1 486 69 43 23 34 20
C2 357 69 45 24 35 18
D 230 60 40 19 35 18
E* 97 57 27 12 27 6

UK, January 2014

income:
Under £9,500 111 61 42 25 36 22
£9,500-15,499 206 64 47 16 32 16
£15,500-24,999 348 64 40 22 36 17
£25,000-49,999 609 71 42 24 34 20
£50,000 or over 258 74 41 27 38 24

Aged 0-4 175 78 49 35 49 30
Aged 5-9 227 74 43 33 45 32
Aged 10-15 315 76 52 30 44 28
Aged 16-18 250 70 53 26 42 21
Any children 654 73 49 30 44 25
Household size:
1 235 60 34 13 29 15
2 534 66 37 19 31 15
3 368 70 50 27 39 21
4 330 70 41 25 35 21
5 or more 187 79 52 33 45 30

Single 509 70 47 27 33 21
Married/Civil partnership/Living 981 68 40 22 38 19
as married
taken care of
but only just
household bills
SOURCE: GMI/MINTEL

UK, January 2014
FIGURE 185: NEXT MOST POPULAR WHERE THEY BUY INSTORE AND ON-LINE, BY DEMOGRAPHICS, NOVEMBER 2013
last 12 months

size Lewis store (eg specialist
Wilkinsons, (eg
Savers, Amazon,
Aldi) Mankind)
% % % % %
All 1,654 22 20 14 27 19
Gender:
Male 723 26 15 14 25 20
Female 931 19 23 13 29 18
Age:
16-24 303 30 26 19 32 25
25-34 341 29 23 21 26 24
35-44 312 25 21 12 29 19
45-54 311 18 16 8 25 17
55-64 197 18 15 10 25 13
65+ 190 6 11 6 22 9
Region:
North West 171 32 22 13 26 17
Area:
town/city)
town/city)
AB 484 20 21 21 24 23
C1 486 24 21 13 26 18
C2 357 28 21 12 30 18
D 230 20 15 6 31 16
E* 97 13 10 3 34 10

income:
Under £9,500 111 21 19 10 32 18
£9,500-15,499 206 18 16 8 30 12
£15,500-24,999 348 25 18 11 32 18
£25,000-49,999 609 23 21 15 27 21
£50,000 or over 258 22 24 22 17 24

UK, January 2014
Housing situation:
My home is being bought on a 601 24 19 15 26 19
mortgage
My home is owned outright 462 18 19 14 27 19
My home is rented from a 131 30 21 13 35 15
local authority
private landlord
housing association/Others

Aged 0-4 175 34 32 25 33 23
Aged 5-9 227 34 33 25 30 23
Aged 10-15 315 37 27 22 34 23
Aged 16-18 250 28 24 18 34 24
Any children 654 31 25 20 31 23
Household size:
1 235 10 16 9 26 14
2 534 17 16 10 26 18
3 368 28 18 14 26 18
4 330 29 24 17 27 21
5 or more 187 30 28 22 35 25

Single 509 23 20 14 28 19
Married/Civil 981 23 19 14 27 19
partnership/Living as married
widowed
savings
are taken care of
but only just
household bills
SOURCE: GMI/MINTEL

UK, January 2014
FIGURE 186: OTHER WHERE THEY BUY INSTORE AND ON-LINE, BY DEMOGRAPHICS, NOVEMBER 2013
last 12 months
Sample Other Other beauty Other Other (eg

size chemist (eg specialist shop department duty free,
Lloyds (eg The store (eg direct sales,
Pharmacy, Fragrance Shop, House of clothing
Independent Space NK, Fraser) retailers)
chemist) L’Occitane)
% % % %
All 1,654 14 18 14 19
Gender:
Male 723 13 15 13 18
Female 931 14 21 14 20
Age:
16-24 303 20 26 20 22
25-34 341 18 22 17 22
35-44 312 11 15 12 17
45-54 311 12 16 13 18
55-64 197 8 14 7 18
65+ 190 9 11 8 16
Region:
North West 171 12 15 13 22
Area:
town/city)
town/city)
AB 484 15 24 18 23
C1 486 15 17 14 20
C2 357 13 17 11 18
D 230 11 14 10 14
E* 97 9 8 5 13

income:
Under £9,500 111 15 15 14 23
£9,500-15,499 206 14 13 12 14
£15,500-24,999 348 11 18 12 19
£25,000-49,999 609 14 18 13 19
£50,000 or over 258 14 27 20 24

UK, January 2014

Aged 0-4 175 22 30 24 31
Aged 5-9 227 21 28 24 28
Aged 10-15 315 18 26 19 23
Aged 16-18 250 17 28 18 21
Any children 654 17 25 18 23
Household size:
1 235 8 11 10 15
2 534 10 14 12 18
3 368 17 20 13 18
4 330 17 22 16 23
5 or more 187 18 28 21 25

Single 509 17 20 15 19
Married/Civil 981 13 18 13 19
Separated, divorced or 164 10 13 12 21
widowed
Healthy – I have money left at 432 17 22 17 23
savings
OK – I get by, but there’s not a 727 12 17 12 18
are taken care of
Tight – I’m making ends meet, 370 14 18 14 19
but only just
household bills
SOURCE: GMI/MINTEL

UK, January 2014
FIGURE 187: MOST POPULAR WHERE THEY BUY IN-STORE, BY DEMOGRAPHICS, NOVEMBER 2013
last 12 months

size Shop
% % % % %
All 1,654 65 38 19 31 16
Gender:
Male 723 58 29 13 32 17
Female 931 70 45 23 30 15
Age:
16-24 303 70 45 29 33 20
25-34 341 69 34 23 31 19
35-44 312 62 38 20 33 16
45-54 311 61 42 15 31 16
55-64 197 64 35 12 27 12
65+ 190 62 31 6 24 9
Region:
North West 171 63 35 17 27 14
Area:
town/city)
town/city)
AB 484 69 37 20 32 19
C1 486 65 38 20 29 16
C2 357 66 42 19 31 16
D 230 57 38 17 33 14
E* 97 54 26 10 24 5

income:
Under £9,500 111 59 40 21 31 18
£9,500-15,499 206 61 44 13 28 14
£15,500-24,999 348 59 36 16 32 13
£25,000-49,999 609 68 37 20 30 16
£50,000 or over 258 69 36 22 31 21

Aged 0-4 175 69 41 29 38 22
Aged 5-9 227 69 34 26 37 23
Aged 10-15 315 70 43 23 39 22
Aged 16-18 250 66 46 21 36 16
Any children 654 67 42 23 36 20

UK, January 2014
Household size:
1 235 59 34 11 25 14
2 534 63 35 16 29 14
3 368 65 44 21 32 18
4 330 66 36 21 31 18
5 or more 187 73 42 27 37 21

Single 509 66 42 23 29 18
Married/Civil partnership/Living as 981 65 36 18 33 16
married
taken care of
Tight – I’m making ends meet, but 370 62 39 19 32 12
only just
Struggling – I’m in danger of falling 125 70 44 16 28 18
household bills
SOURCE: GMI/MINTEL

UK, January 2014
FIGURE 188: NEXT MOST POPULAR WHERE THEY BUY IN-STORE, BY DEMOGRAPHICS, NOVEMBER 2013
last 12 months

Wilkinsons, (eg
Savers, Amazon,
Aldi) Mankind)
% % % % %
All 1,654 19 16 10 24 -
Gender:
Male 723 21 12 9 20 -
Female 931 18 20 11 27 -
Age:
16-24 303 26 21 12 25 -
25-34 341 23 18 15 22 -
35-44 312 21 18 10 28 -
45-54 311 17 14 6 24 -
55-64 197 18 14 10 25 -
65+ 190 6 9 6 22 -
Region:
Inner and Greater London 242 18 23 19 22 -
South East/East Anglia 399 15 15 10 20 -
South West and Wales 209 14 15 8 25 -
East and West Midlands 266 19 14 6 31 -
North West 171 30 17 10 23 -
Yorkshire and Humberside 148 29 18 8 25 -
North and Scotland 219 20 15 8 26 -
Area:
Urban location (ie living in a 717 23 20 13 27 -
town/city)
Suburban location (ie close 640 20 15 9 23 -
a town/city)
Village/Rural location/Other 297 11 10 5 20 -
AB 484 18 17 15 20 -
C1 486 19 18 9 23 -
C2 357 26 17 10 28 -
D 230 18 12 5 29 -
E* 97 11 9 2 32 -

income:
Under £9,500 111 18 14 6 25 -
£9,500-15,499 206 17 14 5 28 -
£15,500-24,999 348 21 16 8 29 -
£25,000-49,999 609 20 17 11 24 -
£50,000 or over 258 18 20 16 13 -
Don’t know/Refused 122 20 16 8 28 -

UK, January 2014

Aged 0-4 175 27 22 18 26 -
Aged 5-9 227 26 26 17 23 -
Aged 10-15 315 32 22 16 29 -
Aged 16-18 250 25 20 13 31 -
Any children 654 26 20 13 26 -
No children in household 1,000 15 14 8 23 -
Household size:
1 235 9 15 7 25 -
2 534 15 14 9 25 -
3 368 25 15 9 23 -
4 330 25 19 12 22 -
5 or more 187 25 21 15 29 -

Single 509 20 17 10 25 -
Married/Civil 981 20 16 10 24 -
married
Separated, divorced or 164 13 18 10 24 -
widowed
Healthy – I have money left 432 19 19 15 21 -
savings
OK – I get by, but there’s not 727 20 16 9 23 -
Tight – I’m making ends 370 18 16 7 28 -
meet, but only just
Struggling – I’m in danger of 125 22 10 6 32 -
bills
SOURCE: GMI/MINTEL

UK, January 2014
FIGURE 189: OTHER WHERE THEY BUY IN-STORE, BY DEMOGRAPHICS, NOVEMBER 2013
last 12 months

Pharmacy, Fragrance House of clothing
Independent Shop, Space Fraser) retailers)
chemist) NK, L’Occitane)
% % % %
All 1,654 11 12 11 15
Gender:
Male 723 9 8 9 13
Female 931 12 16 12 16
Age:
16-24 303 14 18 15 15
25-34 341 13 14 13 16
35-44 312 9 11 10 14
45-54 311 11 11 11 15
55-64 197 8 10 7 17
65+ 190 8 7 8 12
Region:
North West 171 8 13 12 18
Area:
town/city)
town/city)
AB 484 11 14 14 18
C1 486 12 13 12 15
C2 357 11 11 9 15
D 230 9 10 8 11
E* 97 9 8 5 9

income:
Under £9,500 111 11 12 8 14
£9,500-15,499 206 12 10 9 9
£15,500-24,999 348 9 12 10 14
£25,000-49,999 609 11 12 11 15
£50,000 or over 258 12 17 15 21

UK, January 2014

Aged 0-4 175 16 19 15 22
Aged 5-9 227 14 19 15 19
Aged 10-15 315 14 18 14 17
Aged 16-18 250 13 21 15 15
Any children 654 12 17 14 16
Household size:
1 235 6 9 9 10
2 534 10 10 10 16
3 368 12 12 11 12
4 330 14 14 14 18
5 or more 187 13 20 13 18

Single 509 13 15 13 14
Married/Civil 981 10 12 10 15
Separated, divorced or 164 9 9 10 15
widowed
savings
are taken care of
but only just
household bills
SOURCE: GMI/MINTEL

UK, January 2014
FIGURE 190: MOST POPULAR WHERE THEY BUY ON-LINE, BY DEMOGRAPHICS, NOVEMBER 2013
last 12 months
Sample Boots Superdrug The Body Tesco Sainsbur

size Shop y’s
% % % % %
All 1,654 9 6 6 8 4
Gender:
Male 723 8 8 7 10 6
Female 931 10 5 6 7 3
Age:
16-24 303 13 14 10 12 6
25-34 341 16 11 10 15 9
35-44 312 10 4 7 8 3
45-54 311 6 4 4 5 3
55-64 197 4 1 2 3 2
65+ 190 2 - 2 2 1
Region:
North West 171 11 6 5 9 4
Area:
town/city)
town/city)
AB 484 11 8 8 11 6
C1 486 9 8 6 7 4
C2 357 9 4 7 8 3
D 230 8 4 3 6 5
E* 97 3 1 2 3 1

income:
Under £9,500 111 5 5 7 9 5
£9,500-15,499 206 9 5 6 8 3
£15,500-24,999 348 9 5 7 7 5
£25,000-49,999 609 9 7 5 8 4
£50,000 or over 258 16 9 10 13 7
Don’t know/Refused 122 2 3 - 3 -

Aged 0-4 175 22 14 14 21 11
Aged 5-9 227 13 13 13 18 14
Aged 10-15 315 14 13 11 14 10
Aged 16-18 250 9 10 8 11 6
Any children 654 13 11 11 14 8

UK, January 2014
Household size:
1 235 5 1 3 4 2
2 534 7 3 4 5 2
3 368 11 8 10 12 4
4 330 11 8 6 8 5
5 or more 187 15 16 10 16 12

Single 509 9 7 6 7 4
Married/Civil partnership/Living 981 10 7 7 9 5
as married
lot left by the time the basics are
taken care of
but only just
household bills
SOURCE: GMI/MINTEL

UK, January 2014
FIGURE 191: NEXT MOST POPULAR WHERE THEY BUY ON-LINE, BY DEMOGRAPHICS, NOVEMBER 2013
last 12 months

Wilkinsons, (eg
Savers, Amazon,
Aldi) Mankind)
% % % % %
All 1,654 4 5 5 3 19
Gender:
Male 723 7 5 7 5 20
Female 931 2 5 4 2 18
Age:
16-24 303 6 9 8 9 25
25-34 341 9 7 11 6 24
35-44 312 5 4 3 2 19
45-54 311 2 4 4 1 17
55-64 197 1 2 1 - 13
65+ 190 1 2 1 1 9
Region:
North West 171 2 6 5 3 17
Area:
town/city)
town/city)
Village/Rural location/Other 297 1 2 2 - 14
AB 484 5 6 9 5 23
C1 486 5 5 5 4 18
C2 357 4 5 4 2 18
D 230 3 5 2 2 16
E* 97 2 2 1 2 10

income:
Under £9,500 111 4 6 4 6 18
£9,500-15,499 206 2 4 3 2 12
£15,500-24,999 348 6 4 4 3 18
£25,000-49,999 609 4 6 5 3 21
£50,000 or over 258 6 7 10 6 24
Don’t know/Refused 122 1 1 2 - 13

UK, January 2014

Aged 0-4 175 11 17 12 11 23
Aged 5-9 227 10 12 11 9 23
Aged 10-15 315 9 9 9 7 23
Aged 16-18 250 6 7 7 4 24
Any children 654 8 8 9 6 23
Household size:
1 235 1 2 1 1 14
2 534 2 4 3 1 18
3 368 5 5 7 4 18
4 330 6 6 7 5 21
5 or more 187 10 12 9 8 25

Single 509 4 5 5 4 19
Married/Civil 981 5 5 5 3 19
widowed
savings
are taken care of
but only just
household bills
SOURCE: GMI/MINTEL

UK, January 2014
FIGURE 192: OTHER WHERE THEY BUY ON-LINE, BY DEMOGRAPHICS, NOVEMBER 2013
last 12 months

Pharmacy, Fragrance House of clothing
Independent Shop, Space Fraser) retailers)
chemist) NK, L’Occitane)
% % % %
All 1,654 4 8 4 5
Gender:
Male 723 5 8 5 6
Female 931 3 7 3 4
Age:
16-24 303 8 10 7 9
25-34 341 7 11 7 9
35-44 312 3 6 3 3
45-54 311 2 6 3 4
55-64 197 - 5 1 2
65+ 190 1 4 1 4
Region:
North West 171 4 5 2 5
Area:
town/city)
town/city)
AB 484 6 12 6 6
C1 486 3 6 4 6
C2 357 3 7 3 4
D 230 3 5 2 4
E* 97 - 1 1 4

income:
Under £9,500 111 5 6 5 10
£9,500-15,499 206 3 4 3 6
£15,500-24,999 348 3 7 4 5
£25,000-49,999 609 4 8 3 5
£50,000 or over 258 5 13 8 5
Don’t know/Refused 122 1 5 - 2

UK, January 2014

Aged 0-4 175 11 15 13 12
Aged 5-9 227 9 13 12 11
Aged 10-15 315 6 11 8 8
Aged 16-18 250 5 11 5 7
Household size:
1 235 2 4 1 5
2 534 1 5 3 2
3 368 7 10 3 7
4 330 4 9 4 6
5 or more 187 9 12 11 9

Single 509 4 7 3 6
Married/Civil partnership/Living 981 4 8 4 5
as married
lot left by the time the basics are
taken care of
but only just
household bills
SOURCE: GMI/MINTEL

UK, January 2014
FIGURE 193: REPERTOIRE OF WHERE THEY BUY INSTORE AND ON-LINE, BY DEMOGRAPHICS, NOVEMBER 2013
last 12 months
Sample 1 type of 2 types of 3-4 types 5+ types None of

size retailer retailers of retailers of retailers these
% % % % %
All 1,654 23 22 28 25 1
Gender:
Male 723 28 26 24 21 1
Female 931 20 19 32 28 -
Age:
16-24 303 17 17 30 36 1
25-34 341 19 22 26 32 -
35-44 312 23 24 27 26 -
45-54 311 27 22 26 23 1
55-64 197 24 25 36 14 1
65+ 190 34 26 30 8 2
Region:
East and West Midlands 266 24 21 34 21 -
North West 171 23 23 27 25 1
Yorkshire and Humberside 148 22 24 27 27 -
Area:
Urban location (ie living in a town/city) 717 21 22 26 30 1
Suburban location (ie close to town/city 640 23 22 31 24 -
Working status:
Employee full-time (30+ hours/week) 713 21 23 26 29 1
Employee part-time (less than 30 252 23 16 36 25 1
hours/week)
Retired 241 33 27 31 8 1
Not working for any other reason 194 25 26 26 23 -
AB 484 20 21 28 29 1
C1 486 23 23 27 26 -
C2 357 20 22 30 27 1
D 230 29 20 33 18 -
E* 97 38 30 18 12 2

Under £9,500 111 30 14 35 21 1
£9,500-15,499 206 21 28 33 17 1
£15,500-24,999 348 22 24 31 22 1
£25,000-49,999 609 25 22 24 29 -
£50,000 or over 258 18 21 29 31 1

UK, January 2014

Aged 0-4 175 17 17 23 42 1
Aged 5-9 227 20 20 20 40 -
Aged 10-15 315 14 19 30 37 -
Aged 16-18 250 18 18 27 36 1
Any children 654 17 20 26 36 -
Household size:
1 235 31 29 28 13 -
2 534 26 22 32 19 1
3 368 19 24 26 31 -
4 330 22 20 27 30 1
5 or more 187 15 18 28 39 1

Single 509 22 21 28 28 1
Married/Civil partnership/Living as 981 24 22 29 25 1
married
Healthy – I have money left at the end 432 23 20 28 28 1
add to my savings
OK – I get by, but there’s not a lot left 727 23 23 28 25 1
Tight – I’m making ends meet, but only 370 25 24 27 23 1
just
Struggling – I’m in danger of falling 125 24 22 33 22 -
or household bills
SOURCE: GMI/MINTEL

Appendix – Consumer – Key Drivers Beauty Retailing
UK, January 2014
Appendix – Consumer – Key Drivers

FIGURE 194: MOST POPULAR WHAT FACTORS DRIVE THE DECISION WHERE TO SHOP, BY DEMOGRAPHICS, NOVEMBER 2013
last 12 months
Sample Premium Range of Low Special New ways Convenient

size branded beauty prices offers to test location
beauty treatments (eg 3 for products
counters/ available 2, loyalty (eg skin
advisors (eg nail point testing,
(eg Clarins) bars, offers) virtual
threading) makeovers)
% % % % % %
All 1,654 12 8 64 48 9 52
Gender:
Male 723 9 7 63 39 8 49
Female 931 15 8 65 55 10 54
Age:
16-24 303 11 12 62 54 11 43
25-34 341 12 11 60 43 13 45
35-44 312 11 5 66 47 13 52
45-54 311 12 6 71 52 7 53
55-64 197 18 6 63 48 4 63
65+ 190 13 3 60 42 3 64
Region:
Inner and Greater 242 17 12 49 39 14 44
London
South East/East 399 13 6 67 52 8 56
Anglia
South West and 209 9 8 69 52 6 53
Wales
East and West 266 9 8 65 50 8 51
Midlands
North West 171 16 8 65 46 8 58
Yorkshire and 148 11 7 68 45 7 52
Humberside
North and Scotland 219 11 7 67 49 13 48
Area:
Urban location (ie 717 13 9 61 48 12 50
living in a town/city)
Suburban location (ie 640 13 8 66 48 8 51
close to town/city but
living outside a
town/city)
Village/Rural 297 9 5 67 48 6 58
location/Other

UK, January 2014
Working status:
Employee full-time 713 12 9 61 44 12 48
(30+ hours/week)
Employee part-time 252 12 10 65 51 6 54
(less than 30
hours/week)
Any self-employed 104 18 6 66 53 8 59
In full-time education 150 8 9 67 55 11 43
Retired 241 16 2 58 46 3 62
Not working for any 194 8 9 78 51 10 53
other reason
Socio-economic
group:
AB 484 16 10 57 44 11 53
C1 486 12 6 66 51 7 51
C2 357 12 9 64 49 10 50
D 230 7 6 74 49 11 50
E* 97 9 6 69 47 4 60
Gross annual
household income:
Under £9,500 111 11 5 68 52 8 50
£9,500-15,499 206 10 7 70 48 7 54
£15,500-24,999 348 11 10 66 45 9 53
£25,000-49,999 609 12 8 63 50 10 52
£50,000 or over 258 18 8 55 41 10 51
Don’t know/Refused 122 9 4 67 57 10 49
Presence of own
children:
Aged 0-4 175 13 11 51 41 17 41
Aged 5-9 227 13 9 59 46 19 45
Aged 10-15 315 14 10 65 45 17 51
Aged 16-18 250 10 10 68 48 12 48
Any children 654 12 10 63 46 14 47
No children in 1,000 12 6 65 49 7 55
household
Household size:
1 235 12 4 65 47 5 57
2 534 13 6 62 49 7 55
3 368 13 11 69 46 12 48
4 330 12 9 61 49 10 48
5 or more 187 10 9 65 49 17 48
Current marital
status:
Single 509 12 8 66 51 11 49
Married/Civil 981 12 8 64 46 9 53
married
Separated, divorced 164 14 4 59 49 4 55
or widowed

UK, January 2014
Healthy – I have 432 18 6 54 45 9 49
money left at the end
of the month for a
few luxuries or to add
to my savings
OK – I get by, but 727 11 9 64 46 11 52
there’s not a lot left
by the time the
basics are taken care
of
Tight – I’m making 370 11 9 72 51 7 56
ends meet, but only
just
Struggling – I’m in 125 8 6 77 57 8 49
danger of falling
behind with bills or
loan repayments/In
Trouble – I’ve missed
loan repayments or
household bills
SOURCE: GMI/MINTEL
FIGURE 195: NEXT MOST POPULAR WHAT FACTORS DRIVE THE DECISION WHERE TO SHOP, BY DEMOGRAPHICS, NOVEMBER
2013
last 12 months
Sample Click Premium store Natural Self- A wide None of

size and environment product service range of these
collect (eg range (ie checkout brands
service cleanliness, made from available available
available impressive natural
displays) ingredients)
% % % % % %
All 1,654 5 15 16 6 44 3
Gender:
Male 723 7 14 12 9 41 3
Female 931 4 16 20 4 47 3
Age:
16-24 303 9 14 17 8 44 3
25-34 341 10 14 18 10 36 2
35-44 312 4 14 15 5 44 2
45-54 311 3 12 15 4 46 5
55-64 197 2 22 15 4 51 3
65+ 190 2 17 15 5 51 5
Region:
London
South East/East Anglia 399 4 15 18 6 45 3
South West and Wales 209 3 15 18 3 47 2
East and West 266 7 14 14 5 45 2
Midlands
North West 171 4 13 11 8 46 4
Yorkshire and 148 6 16 21 7 45 5

UK, January 2014
Humberside
Area:
Urban location (ie living 717 8 16 17 9 47 3
in a town/city)
living outside a
town/city)
Village/Rural 297 2 11 14 4 43 4
location/Other
Working status:
(30+ hours/week)
(less than 30
hours/week)
Any self-employed 104 - 21 21 4 50 1
Retired 241 1 20 15 5 51 5
other reason
Socio-economic
group:
AB 484 7 21 18 8 46 2
C1 486 6 12 17 5 41 3
C2 357 5 13 16 8 45 5
D 230 5 11 15 4 47 1
E* 97 2 12 8 3 46 5
Gross annual
household income:
Under £9,500 111 6 9 21 5 49 4
£9,500-15,499 206 3 13 16 6 41 4
£15,500-24,999 348 5 12 16 5 43 1
£25,000-49,999 609 4 16 17 7 46 2
£50,000 or over 258 11 19 17 7 44 4
Housing situation:
My home is being 601 7 14 14 7 41 2
bought on a mortgage
My home is owned 462 4 16 17 6 46 4
outright
My home is rented 131 5 17 15 7 47 1
from a local authority
My home is rented 334 6 14 20 5 44 3
from a private landlord
My home is rented 126 2 13 17 8 52 4
from a housing
association/Others

UK, January 2014
Presence of own
children:
Aged 0-4 175 19 17 18 12 33 3
Aged 5-9 227 11 17 20 9 39 3
Aged 10-15 315 7 19 19 7 47 2
Aged 16-18 250 6 16 18 6 46 2
Any children 654 9 16 18 7 43 2
No children in 1,000 3 14 15 6 45 4
household
Household size:
1 235 3 14 13 6 45 3
2 534 3 15 17 5 46 3
3 368 7 13 17 6 45 2
4 330 7 17 16 5 42 2
5 or more 187 10 16 19 10 44 4
Current marital
status:
Single 509 5 13 17 7 46 2
Married/Civil 981 6 16 17 6 44 3
married
Separated, divorced or 164 4 16 11 5 44 4
widowed
Healthy – I have 432 7 19 19 9 46 3
of the month for a few
savings
OK – I get by, but 727 6 15 16 6 44 3
there’s not a lot left by
the time the basics are
taken care of
Tight – I’m making 370 4 11 17 5 42 5
ends meet, but only
just
Struggling – I’m in 125 2 13 11 6 50 2
danger of falling behind
with bills or loan
repayments/In Trouble
repayments or
household bills
SOURCE: GMI/MINTEL

Appendix – Consumer – Attitudes Towards Beauty Gifting Beauty Retailing
UK, January 2014
Appendix – Consumer – Attitudes Towards Beauty

Gifting
FIGURE 196: MOST POPULAR ATTITUDES TOWARDS GIFT BUYING, BY DEMOGRAPHICS, NOVEMBER 2013
last 12 months
Sample I would I like to I would Beauty I would I would

size like buy prefer to gift sets like gift like
beauty gift beauty buy a are wrapping more
sets to be products beauty gift good services beauty
more as a gift card/ value to be retailers
widely for voucher for made to
available someone than buy a money more provide
at other else gift set for widely a gift list
times in someone available service
the year
than
Christmas
% % % % % %
All 1,654 22 33 14 28 15 8
Gender:
Male 723 14 29 15 20 16 8
Female 931 28 37 14 33 14 8
Age:
16-24 303 25 31 13 28 20 13
25-34 341 21 32 15 26 14 12
35-44 312 24 35 9 34 15 5
45-54 311 25 36 14 28 13 7
55-64 197 18 38 16 26 15 5
65+ 190 14 28 21 19 13 4
Region:
London
East and West 266 26 35 11 27 19 8
Midlands
North West 171 20 38 15 28 15 6
Yorkshire and 148 21 30 14 27 14 11
Humberside
Area:
in a town/city)
living outside a
town/city)
Village/Rural 297 21 34 13 24 12 5
location/Other

UK, January 2014
Working status:
(30+ hours/week)
(less than 30
hours/week)
Retired 241 16 32 18 24 13 5
other reason
Socio-economic
group:
AB 484 20 34 16 24 19 11
C1 486 21 30 12 27 13 8
C2 357 24 35 15 31 14 6
D 230 24 36 11 33 15 7
E* 97 25 35 19 25 9 5
Highest level of
education:
GCSE/O-level or 359 22 38 12 27 14 7
equivalent
AS/A-level or 280 27 29 15 28 14 8
equivalent
Vocational qualification 217 24 31 13 31 15 8
(eg NVQs, BTEC)
Further qualification 122 24 40 17 26 14 7
(HNCs, HNDs)
University degree 528 20 33 14 27 15 9
(including
undergraduate and
masters degrees)
Gross annual
household income:
Under £9,500 111 26 29 14 24 15 9
£9,500-15,499 206 19 31 12 29 17 7
£15,500-24,999 348 22 32 15 28 14 8
£25,000-49,999 609 22 35 14 28 14 8
£50,000 or over 258 21 36 15 27 18 10
Housing situation:
My home is being 601 21 35 14 27 17 9
bought on a mortgage
My home is owned 462 19 31 15 24 15 7
outright
My home is rented 131 32 36 11 34 14 6
from a local authority
My home is rented 334 23 32 12 32 11 9
from a private landlord
My home is rented 126 27 33 17 25 16 9
from a housing
association/Others

UK, January 2014
Presence of own
children:
Aged 0-4 175 24 38 17 31 19 13
Aged 5-9 227 25 38 18 31 20 11
Aged 10-15 315 27 40 13 31 16 9
Aged 16-18 250 30 38 12 31 15 8
Any children 654 25 37 13 30 16 10
No children in 1,000 20 31 15 26 15 7
household
Household size:
1 235 17 27 17 21 14 6
2 534 19 30 14 27 13 7
3 368 23 35 12 30 17 12
4 330 25 38 12 28 15 7
5 or more 187 29 40 17 33 18 11
Current marital
status:
Single 509 23 32 15 26 17 10
Married/Civil 981 22 35 13 29 14 8
married
widowed
Healthy – I have 432 21 35 14 28 18 10
of the month for a few
savings
OK – I get by, but 727 20 32 14 27 14 9
there’s not a lot left by
the time the basics are
taken care of
Tight – I’m making 370 24 34 14 29 14 5
ends meet, but only
just
Struggling – I’m in 125 26 34 14 25 13 6
with bills or loan
repayments/In Trouble
repayments or
household bills
SOURCE: GMI/MINTEL

UK, January 2014
FIGURE 197: NEXT MOST POPULAR ATTITUDES TOWARDS GIFT BUYING, BY DEMOGRAPHICS, NOVEMBER 2013
last 12 months
Sample I like the I like to I like to buy In store I prefer None of

size idea of buy beauty beauty to shop these
receiving a beauty gift treatment advisors online
monthly sets vouchers/ provide for
beauty gift which gift cards useful beauty
box offer free as a gift (eg gift gifts
(including samples spa ideas
new when you treatment,
product make a manicure)
samples) purchase
% % % % % %
All 1,654 18 23 14 12 14 22
Gender:
Male 723 11 15 11 13 14 26
Female 931 24 29 16 11 13 19
Age:
16-24 303 26 26 18 18 17 16
25-34 341 22 23 16 13 18 15
35-44 312 21 23 11 10 12 17
45-54 311 14 23 13 12 13 28
55-64 197 10 23 15 9 9 27
65+ 190 10 16 9 9 9 37
Region:
London
East and West Midlands 266 17 22 17 12 15 26
North West 171 18 21 13 16 12 18
Yorkshire and 148 21 23 12 11 18 22
Humberside
Area:
in a town/city)
Village/Rural 297 13 20 11 9 13 28
location/Other
Working status:
Employee full-time (30+ 713 18 21 14 13 17 19
hours/week)
Employee part-time (less 252 21 31 17 12 10 19
than 30 hours/week)
Retired 241 10 18 11 9 9 37
Not working for any other 194 24 21 10 8 12 22
reason

UK, January 2014
AB 484 18 24 15 13 18 20
C1 486 17 21 14 13 14 22
C2 357 19 23 15 13 13 22
D 230 18 23 10 8 8 22
E* 97 21 23 12 11 6 30
Highest level of
education:
GCSE/O-level or 359 16 20 10 8 12 22
equivalent
AS/A-level or equivalent 280 23 26 13 11 13 21
Vocational qualification 217 17 19 14 12 15 28
(eg NVQs, BTEC)
Further qualification 122 20 31 16 14 14 20
(HNCs, HNDs)
University degree 528 18 23 17 14 15 19
(including undergraduate
and masters degrees)
Gross annual
household income:
Under £9,500 111 22 25 14 16 14 24
£9,500-15,499 206 23 26 13 11 13 23
£15,500-24,999 348 16 22 14 11 12 21
£25,000-49,999 609 17 22 14 13 15 21
£50,000 or over 258 17 22 15 14 18 20
Housing situation:
My home is being bought 601 17 24 14 12 14 18
on a mortgage
My home is owned 462 13 21 13 13 12 27
outright
My home is rented from 131 29 27 14 16 9 24
a local authority
a private landlord
a housing
association/Others
Presence of own
children:
Aged 0-4 175 25 22 20 22 21 10
Aged 5-9 227 25 25 20 17 15 11
Aged 10-15 315 25 25 17 15 15 14
Aged 16-18 250 22 26 15 14 12 17
Any children 654 22 24 16 15 16 14
No children in household 1,000 15 22 13 11 12 27
Household size:
1 235 14 20 10 10 11 30
2 534 16 20 13 9 13 28
3 368 18 27 15 15 16 15
4 330 20 23 14 14 12 18
5 or more 187 28 25 21 17 16 14

UK, January 2014

Single 509 21 26 16 14 14 21
Married/Civil partnership/ 981 18 22 13 12 14 21
Living as married
widowed
Healthy – I have money 432 16 23 15 14 16 21
left at the end of the
month for a few luxuries
OK – I get by, but there’s 727 17 21 14 13 12 22
of
Tight – I’m making ends 370 21 26 13 10 16 22
meet, but only just
Struggling – I’m in 125 24 21 14 8 12 23
with bills or loan
repayments/In Trouble –
I’ve missed loan
repayments or
household bills
SOURCE: GMI/MINTEL

Appendix: Research methodology
UK Research Methodology Beauty Retailing
UK, January 2014
UK Research Methodology
Mintel is an independent market analysis company that prides itself on supplying objective
information on a whole range of markets and marketing issues.
There are five main sources of research that are used in the compilation of Mintel reports:
 Consumer research
 Desk Research
 Trade research
 Statistical forecasting.
 Mintel’s exclusive archive of over 40 years of analysis and expertise
Mintel reports are written and managed by analysts with experience in the relevant markets.
Consumer research
Exclusive and original quantitative consumer research is commissioned for almost all Mintel reports.
In addition, qualitative research is also undertaken for a large proportion of reports in the form of
online focus groups. Mintel invests a considerable sum each year in consumer research, and the
purchaser of a Mintel report benefits, as the price of an individual report is less than the cost of the
original research alone. The research brings an up-to-date and unique insight into topical issues of
importance.
Consumer research is conducted among a nationally representative sample of either adults or internet
users and is generally carried out by GMI (online), Ipsos Mori (face to face), while other suppliers are
used on an ad hoc basis as required. The results are only available in Mintel reports.
Sampling and weighting
Face to Face Surveys
Ipsos Mori
Ipsos MORI Capibus uses a two-stage random location sample design which generates a very high
quality sample representative of the Great Britain adult population. Interviews are sampled from 145
Output Areas, randomly selected every week, and MOSAIC is employed to set interlocking quota
controls specific to each interviewer location. This ensures consistent accurate representation of the
locations interviewed every week. By using this proven sample design, all sub-sectors of the
population are represented – at a national and regional level.
All information collected on Capibus is then weighted to reflect the known profile of the adult
population in Great Britain. Capibus uses a rim weighting system which weights to mid-2010 census
and NRS defined profiles for age, social grade, region and working status - within gender. Additional
profiles used include tenure and car in household, for example.
Because the sampling process is repeated every week, the Capibus sample is matched wave on wave,
making it ideal for taking successive measurements on the same issue.

UK, January 2014
Online Surveys
GMI
Founded in 1999, GMI’s double opt-in online consumer panel has reach to approximately 350,000
consumers in the UK. GMI delivers uniquely identified online respondents via extensive use of fraud
detection and location-verification technology at multiple points in the research cycle, from initial
registration through survey fielding and incentive redemption. GMI panelists are profiled on a wide
variety of attributes to deliver the specific hard-to-reach demographics.
TGI data
Additional quantitative data are taken from Kantar Media UK Ltd.’s Target Group Index surveys. The
main TGI survey used is a continuous self-completion survey among a representative sample of
around 25,000 adults throughout Great Britain.
Unless otherwise stated, consumer research data is presented as penetration, ie as a percentage of

demographic sub-groups (usually in rows) such as age.
Population profile
GB population profile, by demographic group, 2012 Q2
Base: adults aged 15+
All 100.0
Gender:
Men 48.8
Women 51.2
Age group:
15-24 15.7
25-34 16.1
35-44 16.8
45-54 16.9
55-64 14.2
65+ 20.3
AB 26.4
C1 28.0
C2 21.7
D 15.4
E 8.5
Presence of children:
Under 1 year 2.4
1-4 years 10.4
5-9 years 11.2
10-15 years 14.4
No children in household 71.1
Marital status:
Single 25.7
Married/living as married 60.6
Separated/divorced/widowed 13.7
Working status:
Full-time 37.7
Part-time 14.4
Not working 47.9

UK, January 2014
Household size:
1 person 19.1
2 persons 36.0
3 persons 19.4
4 persons 16.5
5 persons+ 9.0
Region:
Greater London 12.8
South East/East Anglia 23.7
South West 8.9
Wales 5.0
East & West Midlands 16.4
North West 10.6
Yorkshire & Humberside 8.8
North 5.2
Scotland 8.6
SOURCE: TGI /MINTEL
Definitions
Socio-economic group
Socio-economic groups are based on the head of household or chief income earner and are defined as
follows:
Socio-economic group Occupation of chief income earner
A Higher managerial, administrative or professional

B Intermediate managerial, administrative or professional
C1 Supervisory or clerical, and junior managerial, administrative or professional
C2 Skilled manual workers
D Semi and unskilled manual workers
E All those entirely dependent on the state long term, through sickness, unemployment,
old age or other reasons
Retired persons who have a company pension or private pension, or who have private means are
graded on their previous occupation.
Students in higher education living at home are graded on the occupation of the head of the
household. Students living away from home are graded C1 (no account is taken of casual or vacation
jobs).
Lifestage and Special Groups
In addition to the standard breaks, Mintel also analyses consumer research in the following manner.
Lifestage
Lifestages are derived from analysis of consumer research and are split into four main groups, as
follows. The following percentages are nationally representative. An internet representative would
differ slightly.
% of
population
Pre-family/no family aged under 45 who are not parents 29.1

Family any age with at least one child aged under 16 still at home 24.6
Third age aged 45-64 with no children aged under 16 still at home 26.0
Retired aged over 65 with no children aged under 16 still at home 20.3

UK, January 2014
Special Groups
As part of an on-going policy to find new ways of analysing data, Mintel has created of consumers to
typify consumer habits in the early years of the 21st Century. Unlike the lifestage groups, these groups
represent only sections of the population and do not account for all adults.
% of
population
ABC1 Pre/no family ABC1 Socio-economic group and in the pre/no 16.7
family lifestage
ABC1 Families ABC1 Socio-economic group and in the family 12.7
lifestage
ABC1 Third Age ABC1 Socio-economic group and in the third age 13.5
lifestage
ABC1 Retired ABC1 Socio-economic group and in the retired 11.1
(65+) lifestage
Two full-time earners couples where both partners work full-time 16.1
One person households under 65 aged under 65 and living alone 11.2
SOURCE: TGI / MINTEL
ACORN
Some reports also use consumer research analysed by ACORN category. ACORN is a geo-
demographic segmentation method, using census data to classify consumers according to the type of
residential area in which they live. Each postcode in the country can, therefore, be allocated an
ACORN category.
The classification is a more powerful differentiator of consumer behaviour than traditional socio-
economic and demographic indicators. The categories, and their components, are as follows:
ACORN category ACORN group % of population
19.3
Wealthy Achievers – Category 1 A – Wealthy Executives 5.7
B – Affluent Greys 6.2
C – Flourishing Families 7.4
10.4
Urban Prosperity – Category 2 D – Prosperous Professionals 1.9
E – Educated Urbanites 4.6
F – Aspiring Singles 3.9
29.7
Comfortably Off – Category 3 G – Starting Out 5.1
H – Secure Families 15.9
I – Settled Suburbia 6.8
J – Prudent Pensioners 1.9
16.8
Moderate Means – Category 4 K – Asian Communities 1.9
L – Post Industrial Families 5.4
M – Blue Collar Roots 9.5
23.3
Hard Pressed – Category 5 N – Struggling Families 15.0
O – Burdened Singles 4.5
P – High Rise Hardship 1.6
Q – Inner City Adversity 2.2
SOURCE: TGI / MINTEL

UK, January 2014
Confidence levels
Statistical confidence levels of + or – 2% or 3% can be applied to the data, depending on sample size
and percentage of respondents. For example, if 20% of a total sample of 1,000 adults say that they do
something, you can be 95% certain that the figure for the population lies between 17% and 23%. For a
sample of 2,000 adults, you can be 95% certain that the figure lies between 18% and 22%.
Consumer research is stored in a database supervised by Mintel’s statisticians. Additional analysis of

information too abundant to be included in published reports may be available for an additional
charge.
Qualitative Research
Toluna/ 2020 Research

Toluna in partnership with 20/20 Research provide Mintel with qualitative bulletin board software.
This allows the creation of Internet-based, ‘virtual’ venues where participants recruited from Mintel’s
online surveys gather and engage in interactive, text-based discussions lead by Mintel moderators.
Trade research
Informal
Trade research is undertaken for all reports. This involves contacting relevant players in the trade, not
only to gain information concerning their own operations, but also to obtain explanations and views of
the strategic issues pertinent to the market being researched. Such is Mintel’s concern with accuracy
that draft copies of reports are sent to industry representatives, to get their feedback and avoid any
misrepresentation of the market. These comments are incorporated into reports prior to final
publication.
Formal
Internally, Mintel’s analysts undertake extensive trade interviews with selected key experts in the field
for the majority of reports. The purpose of these interviews is to assess key issues in the market place
in order to ensure that any research undertaken takes these into account.
In addition, using experienced external researchers, trade research is undertaken for some reports. This
takes the form of full trade interview questionnaires and direct quotes are included in the report and
analysed by experts in the field. This gives a valuable insight into a range of trade views of topical
issues.
Desk research
Mintel has an internal team of desk researchers who monitor: government statistics, consumer and
trade association statistics, manufacturer sponsored reports, annual company reports and accounts,
directories, press articles from around the world and online databases. The latter are extracted from
hundreds of publications and websites, both British and overseas. All information is cross-referenced
for immediate access.
Data from other published sources are the latest available at the time of writing the report.
This information is supplemented by an extensive library of Mintel’s reports produced since 1972 and
added to each year by the 500+ reports which are produced annually.

UK, January 2014
In addition to in-house sources, researchers also occasionally use outside libraries such as the British
Library or the Department of Trade and Industry. Other information is also gathered from store and
exhibition visits across Europe, as well as using other databases within the Mintel Group, such as the
Global New Product Database (GNPD), which monitors FMCG sales promotions.
All analysts have access to Mintel ’s Market Size and Economic Database – a database containing all
areas of consumer spend and retail sales as well as macroeconomic and demographic factors which
impinge on consumer spending patterns, going back some 20 years.
The database is used in conjunction with an SPSS forecasting program which uses weighted historical
correlations of market dynamics, with independent variables, to produce future spending scenarios.
Statistical Forecasting
Statistical modelling
For the majority of reports, Mintel produces five-year forecasts based on an advanced
statistical technique known as ‘multivariate time series auto-regression’ using the statistical
software package SPSS.
Historical market size data feeding into each forecast are collated in Mintel’s own market size
database and supplemented by macro- and socio-economic data sourced from organisations
such as the Office for National Statistics, HM Treasury and the Bank of England.
Within the forecasting process, the model searches for, and analyses relationships between,
actual market sizes and a selection of key economic and demographic determinants
(independent variables) in order to identify those predictors having the most influence on the
market.
Factors used in a forecast are stated in the relevant report section alongside an interpretation
of their role in explaining the development in demand for the product or market in question.
Qualitative insight
At Mintel we understand that historic data is limited in its capacity to act as the only force
behind the future state of markets. Thus, rich qualitative insights from industry experts
regarding future events that might impact upon various markets play an invaluable role in our
post statistical modeling evaluation process.
As a result, the Mintel forecast complements a rigorous statistical process with in-depth
market knowledge and expertise to allow for additional factors or market conditions outside of
the capacity of the statistical forecast.

UK, January 2014
The Mintel fan chart

Forecasts of future economic outcomes are always subject to uncertainty. In order to raise
awareness amongst our clients and to illustrate this uncertainty, Mintel has introduced a new
way of displaying market size forecasts in the form of a fan-chart.
Next to historical market sizes and a current year estimate, the fan chart illustrates the
probability of various outcomes for the market value/volume over the next five years.
At a 95% confidence interval, we are saying that 95 out of 100 times the forecast will fall
within these outer limits, which we call the best and worst case forecasts. These, based on the
statistically driven forecast, are the highest (best case) and lowest (worst case) market sizes
the market is expected to achieve.
Over the next five years, the widening bands successively show the developments that occur
within 95%, 90%, 70% and 50% probability intervals. Statistical processes predict the central
forecast to fall within the darker shaded area which illustrates 50% probability, i.e. a 5 in 10
chance.
A general conclusion: Based on our current knowledge of given historic market size data as
well as projections for key macro- and socio-economic measures that were used to create the
forecast, we can assume that in 95% of the time the actual market size will fall within the
purple shaded fan. In 5% of all cases this model might not be correct due to random errors and
the actual market size will fall out of these boundaries.
Weather analogy
To illustrate uncertainty in forecasting in an everyday example, let us assume the following
weather forecast was produced based on the meteorologists’ current knowledge of the
previous weather condition during the last few days, atmospheric observations, incoming
weather fronts etc.

UK, January 2014
Now, how accurate is this forecast and how certain can we be that the temperature on
Saturday will indeed be 15°C?
To state that the temperature in central London on Saturday will rise to exactly 15°C is
possible but one can’t be 100% certain about that fact.
To say the temperature on Saturday will be between 13°C and 17°C is a broader statement
and much more probable.
In general, we can say that based on the existing statistical model, one can be 95% certain that
the temperature on Saturday will be between 13°C and 17°C, and respectively 50% certain it
will be between about 14.5°C and 15.5°C. Again, only in 5% of all cases this model might not
be correct due to random errors and the actual temperature on Saturday will fall out of these
boundaries and thus will be below 13°C or above 17°C.
( To learn more about uncertainty in weather forecasts visit:
http://research.metoffice.gov.uk/research/nwp/ensemble/uncertainty.html )

UK, January 2014
European Research Methodology

Mintel surveys the four major European markets - France, Germany, Spain and Italy - with varying
samples of 1,000 and 2,000 adults aged 16+. The surveys are conducted online, via GMI, spanning ten
waves of research a year and all are representative of the online population in each country with quotas
on age, gender and region.
GMI
Founded in 1999, GMI’s double opt-in online consumer panel has reach of approximately 240,000
consumers in Germany, 210,000 consumers in France, 110,000 consumers in Italy and 90,000
consumers in Spain. GMI delivers uniquely identified online respondents via extensive use of fraud
detection and location-verification technology at multiple points in the research cycle, from initial
registration through survey fielding and incentive redemption. GMI panelists are profiled on a wide
variety of attributes to deliver the specific hard-to-reach demographics.

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EXECUTIVE SUMMARY ....................................................................................................................... 15

© Mintel Group Ltd. All rights reserved. iii

STRENGTHS AND WEAKNESSES ..................................................................................................... 43

© Mintel Group Ltd. All rights reserved. iv

Shopping repertoire ...................................................................................................................... 58

THE CONSUMER – KEY DRIVERS ..................................................................................................... 86

© Mintel Group Ltd. All rights reserved. v

Key drivers by age and affluence ................................................................................................. 87

THE CONSUMER – ATTITUDES TOWARDS BEAUTY GIFTING ...................................................... 94

WHO’S INNOVATING? ....................................................................................................................... 100

SPACE ALLOCATION SUMMARY .................................................................................................... 107

© Mintel Group Ltd. All rights reserved. vi

Operating profits and margins..................................................................................................... 118

LEADING RETAILERS’ NEW PRODUCT LAUNCHES..................................................................... 121

THE NON-SPECIALIST RETAILERS................................................................................................. 126

© Mintel Group Ltd. All rights reserved. vii

Amazon ....................................................................................................................................... 140

BRAND COMMUNICATION AND PROMOTION ............................................................................... 146

© Mintel Group Ltd. All rights reserved. viii

Retail offering .............................................................................................................................. 175

© Mintel Group Ltd. All rights reserved. ix

APPENDIX – CONSUMER – WHAT THEY BUY WHERE................................................................. 241

APPENDIX – CONSUMER – KEY DRIVERS ..................................................................................... 283

APPENDIX – CONSUMER – ATTITUDES TOWARDS BEAUTY GIFTING...................................... 288

© Mintel Group Ltd. All rights reserved. x

UK RESEARCH METHODOLOGY..................................................................................................... 295

© Mintel Group Ltd. All rights reserved. xi

Our consumer research this year asked:

 Whether beauty purchases were in-store or online.

 Attitudes towards beauty gifting.

© Mintel Group Ltd. All rights reserved. 12

National statistics data

12.1 Personal care All personal care goods and services

© Mintel Group Ltd. All rights reserved. 13

Retail sector size

All retail sales data in the UK report is quoted including VAT.

 Sales: Turnover as reported by the company, excluding VAT.

 Operating margin: operating profits as a percentage of sales.

 Pre-tax margin: pre-tax profits as a percentage of sales.

© Mintel Group Ltd. All rights reserved. 14

12,000 Best case (£m)

© Mintel Group Ltd. All rights reserved. 15

Best case (£m)

5,000 4,466 Worst case (£m)

© Mintel Group Ltd. All rights reserved. 16

Companies, brands and innovation

How often they use beauty products

© Mintel Group Ltd. All rights reserved. 17

Base: 2,000 internet users aged 16+

Fragrances/aftershave Skincare Make-up

* Netted total of any frequency of use.

Where they buy

© Mintel Group Ltd. All rights reserved. 18

Discount store (eg Wilkinsons, Aldi) 27

The Body Shop 23

Internet specialist (eg Amazon) 19

Other chemist (eg Lloyds) 14

Other (eg duty free) 19

What factors are important