Strategy Briefing

Redefining Premium Beauty

Nov 2019

US$1,325

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About This Report

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If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE!

As new consumer values shift towards more meaningful consumption, priorities are being reassessed, paving the way for new “luxury” attributes beyond a higher price tag and other traditional premium perceptions. With both mass and premium brands looking to adopt new aspirations for ethical, experiential and authentic qualities, the lines between the two segments continue to blur and the “masstige” space is further reinforced.

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Overview

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Gain competitive intelligence about market leaders. Track key industry trends, opportunities and threats. Inform your marketing, brand, strategy and market development, sales and supply functions.

Key Findings

Premium continues on growth trajectory but mass regains relevance

Although premium beauty outpaced the mass segment in growth terms for the fourth consecutive year in 2018, a significant narrowing of the growth gap between the mass and premium segments occurred.

The gap between value and price widens

Technology lowered manufacturing costs, while the advent of the internet, and more specifically social media, diluted the power of the brand. Barriers to entry have fallen and allowed small brands and mass products with low margins to improve their value offer.

Efficacy is the height of luxury; ingredient-led stories win

More than any other trait, when consumers define what makes a beauty product “premium”, they cite proven efficacy and benefits. Indeed, for many consumers the brand name itself matters less than not only efficacy, but also natural and premium ingredients when categorising a “premium” product.

Regional nuances in consumer values

In North America, Australia, Western Europe and parts of Asia, the premium beauty industries are undergoing the most visible shake-ups. In Eastern Europe, the Middle East and Africa, and Latin America, the luxury codes remain largely more fixed.

How to build premium strategies of the future?

For brands both mass and premium, a 3-pronged strategy focusing on product performance, services that help and evocative story-telling has the best shot at success, especially if seeking to charge a premium in an era where luxury is less defined by price.

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Introduction

Scope

Key findings

Premiumisation: a global consumer megatrend

The meaning gap between value and price widens

Consumer perceptions of premium fragments

The luxury beauty brand loses its allure

Direct-to-consumer brands indulge diverse priorities

Efficacy is the height of luxury

A willingness to pay for tailored results

Ingredient-led stories pay dividends

Interplay Between Premium and Mass

Both volume and value experience notable growth in 2018

Premium share of the beauty market remains unchanged

Large low-income emerging economies prevent a global shift

Online sharing culture put premium purchases in the spotlight

Timeline of shift towards premium make-up reflects social boom

New solution-orientated priorities create opportunities in mass

Mass market fragmentation hastening

Skin care is fertile ground for burgeoning masstige segment

Blurring of pricing spectrum greater in products linked to health

The decline in the power of the brand

Who are the winners and losers?

Premiumisation in Context

Certain beauty strongholds embody new values more than others

E-commerce levels the playing field

The US is leading the redefinition of premiumisation in beauty

Social media pressure breeds a new luxury in the West

but Asia remains more steadfast in its luxury codes

Chinese consumers most prepared to trade off with price

Is the “ Skintellectual ” the new luxury seeker?

Diverse premium perceptions in other beauty strongholds

Colour cosmetics most rooted in traditional premium perceptions

Youngest generations are the catalysts for change

The young redefine ethics as a luxury benchmark

Building New Premium Strategies

Premiumisation strategies must be consumer centric

Smarter, more personal, more meaningful

Products that perform: skin health is wealth

Atolla : skin health system

Stories that evoke: tapping into private moments and taboo topics

WooWoo : care down there

Services that help: a connected consumer is a premium consumer

MAC: Shanghai Experience Center

The next frontier: mapping a new path to premium

Why buy this report?

Want to find out more about this report?

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Megatrends

Strategy Briefing

Redefining Premium Beauty

New Report Guarantee

About This Report

New Report Guarantee

Overview

Why buy this report?

Key Findings

Premium continues on growth trajectory but mass regains relevance

The gap between value and price widens

Efficacy is the height of luxury; ingredient-led stories win

Regional nuances in consumer values

How to build premium strategies of the future?

Want to find out more about this report?

Table of Contents

Introduction

Scope

Key findings

Premiumisation: a global consumer megatrend

The meaning gap between value and price widens

Consumer perceptions of premium fragments

The luxury beauty brand loses its allure

Direct-to-consumer brands indulge diverse priorities

Efficacy is the height of luxury

A willingness to pay for tailored results

Ingredient-led stories pay dividends

Interplay Between Premium and Mass

Both volume and value experience notable growth in 2018

Premium share of the beauty market remains unchanged

Large low-income emerging economies prevent a global shift

Online sharing culture put premium purchases in the spotlight

Timeline of shift towards premium make-up reflects social boom

New solution-orientated priorities create opportunities in mass

Mass market fragmentation hastening

Skin care is fertile ground for burgeoning masstige segment

Blurring of pricing spectrum greater in products linked to health

The decline in the power of the brand

Who are the winners and losers?

Premiumisation in Context

Certain beauty strongholds embody new values more than others

E-commerce levels the playing field

The US is leading the redefinition of premiumisation in beauty

Social media pressure breeds a new luxury in the West

but Asia remains more steadfast in its luxury codes

Chinese consumers most prepared to trade off with price

Is the “ Skintellectual ” the new luxury seeker?

Diverse premium perceptions in other beauty strongholds

Colour cosmetics most rooted in traditional premium perceptions

Youngest generations are the catalysts for change

The young redefine ethics as a luxury benchmark

Building New Premium Strategies

Premiumisation strategies must be consumer centric

Smarter, more personal, more meaningful

Products that perform: skin health is wealth

Atolla : skin health system

Stories that evoke: tapping into private moments and taboo topics

WooWoo : care down there

Services that help: a connected consumer is a premium consumer

MAC: Shanghai Experience Center

The next frontier: mapping a new path to premium

Why buy this report?

Want to find out more about this report?

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