The beauty industry is transforming in terms of product diversification and exploration of novel growth concepts. Saturation in certain categories is prompting brands to look beyond traditional formats and products, turning to high-potential segments and niche areas. With emerging markets slowing down, attention turns to core businesses and untapped markets such as Saudi Arabia, Turkey and Indonesia. In addition to political and economic instability, international beauty firms are faced with the consolidating power of local and regional players, as well as rapid expansion of smaller players with exclusive offerings.

1. THE GLOBAL BEAUTY CONTEXT AND GROWTH
OPPORTUNITIES

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0
1
2
3
4
5
6
7
2008 2009 2010 2011 2012 2013 2014
%ValueGrowth
Total / Premium / Mass Growth
Total Beauty Premium Beauty Mass Beauty
Beauty Industry Growth Sustained
THE GLOBAL BEAUTY CONTEXT
Premium vs Mass Proportion
Historic vs Forecast
Premium Beauty Mass Beauty
Note: Inner circle 2009-14, outer circle 2014-19
Global Beauty
US$465bn in 2014, up by US$23bn

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Power Shift to Emerging Markets Continues Despite Slowdown
THE GLOBAL BEAUTY CONTEXT
41%
51%
-1
0
1
2
3
4
5
6
7
0
100,000
200,000
300,000
400,000
500,000
600,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
%Growth
US$million
Developed vs. Emerging Markets in Total Beauty
Developed Emerging % Growth Developed markets % Growth Emerging Markets

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New Prospective Markets Beyond China and Brazil
THE GLOBAL BEAUTY CONTEXT
Beauty Forecast Growth by Country

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Further Scope for Premium in Emerging Markets
THE GLOBAL BEAUTY CONTEXT

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Skin Care and Hair Care Largely Dominate Future Potential
THE GLOBAL BEAUTY CONTEXT
Top Category by Country

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Top Growth Segments Bring New Lucrative Opportunities
THE GLOBAL BEAUTY CONTEXT
Top Growth Beauty Categories

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Face Masks Offer a New Potential Revenue Stream
THE GLOBAL BEAUTY CONTEXT
0 20 40 60 80
China
Russia
Turkey
Japan
Mexico
US
UK
France
% of respondents
Ratio of Consumers Using
Face Masks at Least Weekly
86%Of face masks in China are mass
products
2XSpending on face masks in Asia Pacific vs
North America in 2014
40%Sales growth for premium face masks in
the US in 2014

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21,052
10,144
4,052
3,711
2,228
2,112
20,097
China Brazil USA
India Saudi Arabia Indonesia
Others
20,115
7,568
7,317
5,820
5,780
5,212
4,001
3,675
3,457
Skin Care Colour Cosmetics
Hair Care Fragrances
Oral Care Men's Grooming
Baby BPC Deodorants
Bath and Shower
Future Growth Highlights
THE GLOBAL BEAUTY CONTEXT
Absolute Beauty Market Value Growth
by Country and Category - 2014-2019
Categories/Markets marked in orange are forecast to exceed
global beauty growth of 2.6% real CAGR 2014-2019

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10THE GLOBAL BEAUTY CONTEXT
BALANCED
Presence
FOCUSED
Investment
REINVENTION
Ready
Key to Sustained Revenue Gains