Euromonitor reveals the elements that are reshaping the beauty industry
The four key elements identified are driving sales with mergers and acquisitions; looking at new product positioning that take a holistic approach to cater the needs of consumers; capitalizing on high-tech claims; and exploring new retail concepts to combat an increasingly competitive retail environment.
"Companies will continue to build a flexible product portfolio to respond to differing consumer needs,” explained senior personal care company analyst, Oru Mohiuddin at a press briefing at the in-cosmetics trade show in Barcelona.
“One objective will be to introduce products from emerging markets to western markets while driving growth in western markets through high-tech innovations and more sophisticated product offerings," she added.
Joining her at the presentation, Euromonitor's global head of beauty and personal care research Irina Barbalova explained that the beauty and personal care (BPC) industry, which saw 5 per cent overall global growth, is continuing its upward curve in 2011 mainly due to the strong performance of premium market products.
Premium cosmetics outperformed mass cosmetics across Western Europe, North America and Asia Pacific in 2011, with 4.7 per cent growth, according to Euromonitor’s figures.
Premium over mass
"The resilience of the BPC industry and the rise of premium products over mass products illustrate one of these global shifts we witnessed last year," said Barbalova.
"As companies compete for lower consumer budgets, they explore new ways of engaging with consumers."
Euromonitor's latest research shows that leading BPC companies are seeing growth in emerging markets, but the recession in western markets is challenging their business model, leading them to re-consider their approach to retail, mergers and acquisition, innovation and new products positioning in order to remain successful and relevant.
"We see more leading BPC companies engaging in, for example, streamlined commitment to sustainability, as they see themselves taking on a broader role of improving consumer lives" added Mohiuddin.