Super Premium Beauty and Personal Care in Canada

PROSPECTS

Steady growth is forecast for super premium beauty and personal care

Super premium beauty and personal care recorded a strong current value performance in 2017, which moderated only slightly in 2018. Consumers are more informed about and interested in ingredients and product formulations, leading them to seek out higher-end beauty solutions.

Luxury brands continue to focus on super premium fragrances

Beauty and luxury brands continue to invest in super premium fragrances. Luxury brands have expanded to fragrances not only because of their high margins and to diversify their product portfolios, but also because the relatively low price points of such products (even super premium fragrances) means they are an accessible way for aspirational customers to engage with luxury brands, and fragrances also support their brand image.

Skin care products containing natural ingredients are starting to become popular

Skin care products based on natural ingredients are not a recent innovation – La Prairie’s Skin Caviar line has been in the market for over 30 years – but health and wellness trends are making consumers more aware of and knowledgeable about ingredients than ever, and celebrities such as actress Jessica Alba have embraced natural ingredients. Luxury brands have responded to consumers’ demands.

COMPETITIVE LANDSCAPE

Coty (Canada) and Chanel lead super premium beauty and personal care

Coty (Canada) maintained its lead in super premium beauty and personal care in value terms in 2017. The company’s Luxury division focuses on prestige fragrances and skin care products.

Luxury department stores remains the key retail channel

Rather than open direct-to-consumer boutiques, most luxury brands use luxury department stores as the major channel for the distribution of beauty and personal care products in Canada. Canadian consumers are used to shopping for luxury beauty and personal care brands at luxury department stores such as Holt Renfrew or at mid-tier retailer Hudson Bay.

The launch of new super premium fragrances

As fragrances support a brand’s image, numerous launches were seen in recent years. In 2018, Gucci launched Gucci Bloom Acqua di Fiori, as well as Guilty Absolute Pour Femme, the female version of 2017’s Gucci Guilty Absolute Pour Homme.

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