Channel Review in Beauty and Personal Care

Steady performance driven by premium beauty

Premium beauty continues to grow significantly faster, at 4% year-on-year, driven by high-value brands and the greater uptake of premium products. Shifts in consumer lifestyle, such as rising health awareness and ethical consumption of fmcg continue to drive category sophistication and value-added growth in global beauty.

Store-based retailing continues to dominate the landscape

Despite the rapid growth of e-commerce over the last decade, store-based retailing continues to dominate the distribution landscape, accounting for 83% of global sales in beauty and personal care in 2016. However, non-store retailing is expanding faster.

Specialist stores reinvent the shopping experience to maintain momentum

The physical selling space is constantly being reinvented via in-store digital initiatives and by offering more holistic health and beauty services and consultations. These initiatives are becoming mainstream across the range, from premium brands’ own label stand-alone boutiques to mass merchandising outlets.

Growth of internet retailing dominates distribution

The growth of internet retailing has been fuelled by the large range of products available online; by the wider choice in terms of prices, brands and delivery options. While some consumers visit stores to test products, many turn to websites to buy such products in order to take advantage of online offers and convenience.

Technology-enabled online beauty

Personalisation initiatives enable consumers to make even better purchasing decisions online than in a shop. Apps and online platforms have been developed to advise consumers both via trusted computerised algorithms and virtual communities, bloggers and vloggers to choose the products best-suited for them.