Premium Beauty and Personal Care in the Netherlands

PROSPECTS

Consumers are willing to pay a higher price for luxury, comfort and convenience

Sales of premium beauty and personal care products are likely to be influenced by the growing demand for products with functional attributes as a solution or for prevention; as in the case of sun care, with products containing skin-nourishing ingredients. In skin care, there is higher demand for formats that offer clean dispensing, absorb faster and provide a pleasant fragrance.

A shift towards internet retailing in search of lower prices

As in the mass segment, premium beauty personal care is witnessing a shift in distribution, with internet retailing having a stronger impact. Considering the current trends, it is likely that that the Dutch retail map will continue to experience more distribution channel competition.

Further competition expected

Retailing in the Netherlands is expected to witness further consolidation and competition in the forecast period. Traditional distribution channels for premium beauty and personal care products will face more competition from internet retailing.

COMPETITIVE LANDSCAPE

L’Oréal seeks to expand its consumer base

L’Oréal is the largest manufacturer in premium beauty and personal care in GBO terms, due to its strong position in large categories including skin care, colour cosmetics and fragrances. The company further increased its value sales and share in 2017, with a presence with top-selling brands such as Lancôme and Biotherm, and also held a strong and growing position with medicinal-positioned brands such as Vichy and La Roche-Posay.

Promotional activities to fuel brand sales

Manufacturers have pursued promotional activities in premium and luxury distribution channels in order to enhance and increase brand awareness, with actions aimed at triggering curiosity and providing samples, advice and discounts for first purchases. In skin care, the brand La Mer launched a promotional campaign in late 2017 at department store De Bijenkorf to promote its best-selling and new lines.

Product development and in-store promotion from Estée Lauder

Estée Lauder invested further in new product development and in-store promotion in 2017. In 2017, the company introduced innovative products such as EE Enlighten Cream, which is marketed as a recovery complex that corrects the skin tone and contains SPF30.

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