This is Beauty & Health | True North

Keep up with today’s consumer:
“This is Beauty & Health”
COMEOS | FEBRUARY 15, 2017 .COMEOS | FEBRUARY 15, 2017.

“Beyond the perfume bottle…”
Valentine insight in the press

30.000 stores will
disappear the
coming years.

Many initiatives
support the impact
of retail. Every day.

A bright future ahead
Digital opportunities for offline shopping experience
“brick and mortar retailers
will need to react to
changing consumer
preferences”
changing consumer
preferences”
changing consumer
preferences”

The best source?
Your consumers.
Clients and non-clients.

We help retail brands
understand & act on
ever-changing
consumer behaviour.
understand & act on
ever-changing
consumer behaviour.
understand & act on
ever-changing
consumer behaviour.

aWe allow brands to obtain
oaptimal customer insightsss
and aurn this knowledge insto
livaaaing customer stories
We allow brands to obtain
optimal customer insights
and turn this knowledge into
living customer stories.

Bringing brands &
consumers
closer together.

From understanding
to impact for
many retailers.

3.600+ CONSUMERS3.500+ CONSUMERS OVER 40 BRANDSOVER 50 BRANDS 11.000 EVALUATIONS11.000 EVALUATIONS 500.000+ DATA POINTS900.000+ DATA POINTS

Different
categories
polled.
Body care
Hair care
Makeup
Health
Skin care
Perfume

Insights,
tailored
for your brand.
A custom insights report
tailored to your brand
Interactive dashboard with
all industry & brand results
A comprehensive report
tailored to your brand
Interactive dashboard with
all industry & brand results
A custom workshop about
challenges & opportunities
A custom report with
tailored insights
A tailored brand report with
(personal) results for the 10
insights shared
The event presentation with
industry results shared
6 free category reports with
generic insights
INCLUDED FOR ALL VISITORS
6

What are you here for?
Who is your consumer?.

.18.
.feeling.
.€765.
Uses perfume
on a daily basis.daily.
Buys make-up
from 4.2 stores .4.2.
Chance of buying
beauty & health online .50%.
Prefers Kruidvat for
her hair care needs
Goes shopping +12 times
a year for hair care .12.6x.
Spends €765
per year
Knows 18 stores for
her body care needs
Prefers stores for their
‘good feeling’
.staff.Considers your staff as the
2nd best persuasive channel

.offering.
Uses perfume
on a daily basis.daily.
Buys make-up
from 3.4 stores .3.4.
Chance of buying
beauty & health online .48%.
Prefers Planet Parfum
for her make-up needs
Goes shopping 14+ times
a year for hair care .14.2x.
Spends €860
per year
Knows 16 stores for
her body care needs
Prefers stores for their
allergy focused offering
.staff.Considers your staff as the
2nd best persuasive channel
.Louise.
.Allergic shopper.
.€860.
.16.

Michèlle
34, Charleroi
ased non-client
Elise
27, Bruges
Brand loyal
Linda
47, Antwerp
Big spender
Louise
22, Marche
Allergic shopper
Maarten
38, Sint-Niklaas
Traditional shopper
Iris
29, Ledeberg
Hoarder
Understanding
the needs of all
shopper segments.

Interested in more? Questions?
Subscribe for our regular updates on www.true-north.be/this/beautyandhealth
Or contact our Sector Lead Beauty & Fashion: elize@true-north.be

1KEY TAKEAWAYS
FRO M
THIS IS BEAUT Y &
HEALTH .
KEY TAKEAWAYS
FROM
THIS IS BEAUTY &
HEALTH.

20+ FILTERS BRAND-SELECTIONBRAND SELECTION6 SUB-DOMAINS6 SUB-DOMAINS 20+ FILTERS20+ FILTERS 500.000+ DATA POINTSFREE EXTRA REPORTS20+ FILTERS

Beauty & health, a market.
of daily habits..
#1

We are all beauty & health consumers
Market of daily habits
+80%
of shoppers
use perfume,
hair care,
body care
and skin care
products
% of categories used by the average shopper

Very often on a daily basis
When used, most
categories are
part of
a daily habit :
perfume,
make-up, skin &
body care are
used daily by
over 70%.
Usage frequency for different categories

Care as a traffic booster
70%
buys hair care
products at
least monthly
50%
buys perfume
two times or
less a year
Buying frequency for different categories

Yearly beauty & health budget of € 765
Price-sensitive
buyers buy less
than half of the
average shopper
Big spenders
spend over
€ 1.400 and
overperform on
care & institutes
mainly
Budget per category for different segments

The end of category.
leadership..
#2

Kruidvat as an overall strong leader
Category leadership
Retailers with highest market penetration per category

What is category leadership?
Category leadership
‘Category leadership’ applies for those
brands that have a significant benefit over
its competitors for a specific category,
like perfumes, make-up ...

second most
bought brand
for perfume
ICI PARIS XL as the only category leader
Category leadership
Retail brands ranked by % of market penetration
Significant
benefit of 34%
compared to
the 2nd most
bought brand marketpenetration
Only 5 brands of
+15% market
penetration,
compared to 10
for bodycare
Market penetration for all brands in perfume & bodycare category

Category leaders demonstrate leadership in every way
Category leadership
scores
best-in-class
for every step
in the funnel
Marketing funnel for ICI PARIS XL compared to the top 5 for perfumes & the market (of 50 stores)

Focus on segment leadership instead
Category leadership
Marketpenetration
#1
#5#5
#1
has an
advantage of
10% over the
2nd player for a
specific
segment and
switches places
with the leader
for the category
Market penetration for Planet Parfum & Kruidvat for 2 different segments for make-up

A fragmented landscape.
of price players..
#3

Price players as the biggest threat
Price players
Price players
take
considerable
market share
for most
categories
Estimated market share for different categories of retailers for all categories

Understand who your relevant competitors are
Price players
Remarkable:
Price players are strong
competitors, also in the broader
‘health’ category
% of shoppers buying at other retailers for health category - case for Newpharma.be
% of Newpharma.be shoppers that
shop at a competitor
% of shoppers from a competitor
that also shop at Newpharma.be
Vice versa, only
1 in 8
Di clients buys at
Newpharma
Almost
1 in 4
clients of
Newpharma
buys from
Di or Colruyt

Omni-channel as the.
new normal..
#4

Online impact for beauty & health significant
Omnichannel
About
70%
buys products
online.
Beauty & health
are bought by
50%
of Belgians,
yet not
dominated by
pure players.
% of shoppers that shop online for all products & beauty and health

1 in 5
online shoppers
shop at
YvesRocher.be.
Digital players interesting for ‘online shoppers’
Omnichannel
Online players
show high
penetration for
‘online
shoppers’, up
with 230% on
average.
Remarkable:
Yves-Rocher’s online impact is
online-driven, whereas most
brands are omnichannel-driven.
Market penetration for e-stores for ‘online shopper’ segment

Online impact on multiple levels
Omnichannel
10% share their
opinion about
beauty & health
products, 26%
read them
Google search
strong impact
for online
players, not for
offline retailers
Offline
retailers
Online
retailers
Influenced via Google search
Influencedviathestore
40% searches
for broad
category topics
rather than
brands
90% check
Dr. Google for
symptoms before
seeing
a doctor

The (offline) answer to Dr. Google?
Omnichannel

Impulse drives media spent,.
not shoppers..
#5

Media spent is impulse gifting related
Impulse buying
Valentine’s Day
Mother’s Day
Father’s Day
Summer sales
End-of-year
Draft estimate of budget spent over one year for the average beauty & health retailer

70%
buys beauty &
health gifts,
but men buy on
the safe side:
80% buys
perfumes
It matches the gifting focus of beauty & health
Impulse buying
Categories most bought by men & women as a gift

Yet, most Belgians stock up on supplies
Impulse buying
+60%
stocks up on
supplies, it is
by far the
largest
behavioural
segment
How others
“plan” their
shopping trip:
promotions,
rebates,
novelties.
% of specific behavioural segment in the average market

Price & promotions drive.
smart buying trend..
#6

Promotions as a winning argument to attract hoarders
Price & promotions

1 in 4
buys mainly
or only when
a promotion
applies
1 in 4 mainly buys when a promotion applies
Price & promotions
ZEEMAN
attracts
45% promo
buyers, in
contrast with
Mac Cosmetics
that attracts
only 9%
45% 9%
% of promotion-sensitive buyers for ZEEMAN buyers & Mac Cosmetics buyers

Price awareness in health rising
Price & promotions
6 in 10
is unaware
that prices
for medication
without
subscription
differ between
pharmacies.
“The aware” are
14% more
online-savvy
shoppers
compared to
the unaware.
% of shoppers that are aware vs unaware about price differences for pharmaceutical products

Offering & ‘good feeling’.
drive buying decisions..
#7

Expectations center around offering over identity
Drivers for purchase
Identity
Offering
Thought
Leadership
Customer
Experience
Customer
Centricity
Value
Proposition
Pricing
Strategy
Channel
Approach
Soft indicators
Hard indicators

Beauty & health: offering-driven, identity-supported
Beauty & health
store
preference is
based on
offering mostly,
secondly on
“good feeling”.
(top 10) % of derived importance for selection of 22 aspects that drive retail preference
Remarkable:
Although 1 in 4 is promo-sensitive,
promotions are only the 8th most
important driver for store preference.
Drivers for retail preference for average shopper

Different segments, different reasons
Drivers for the average shopper Drivers for allergy-sensitive
1 Quality of the offering Quality of the offering
2 The shop gives me a “good feeling” Offering for specific allergies
3 Offering for different skin types Price / quality ratio
4 Price / quality ratio The shop gives me a “good feeling”
5 The size of the offering Respect for people & planet
#2
#5#4#2#1
#18
#5#3 #3#4
#15
#8
#5
Allergy-sensitive
shoppers have
different
expectations:
allergic-focused
offering & more
sustainability-
minded
(top 5) % of derived importance for aspects that drive preference for 2 segments (average & allergy-sensitive)
Drivers for retail preference for average shopper vs. allergy-sensitive buyer

Working areas as a result of relevant benchmarking
EXPECTED MORE
EXPECTED LESS
UNDER
DELIVERED
OVER
PERFORMS
Brand underdelivers on
aspect, yet shoppers don’t
expect them to offer it.
Advise: FOLLOW UP
Brand underdelivers on
aspect and shoppers have
high expectations.
Advise: IMPROVE
Brand overperforms on
aspect, yet shoppers don’t
expect them to offer it.
Advise: COMMUNICATE
Brand overperforms on
aspect and shoppers have
high expectations.
Advise: KEEP

Working areas as a result of relevant benchmarking
EXPECTED MORE
EXPECTED LESS
UNDER
DELIVERED
KEEP
IMPROVE
COMMUNICATE
FOLLOW UP
?
working areas for 4 brands for ‘good advice’
OVER
PERFORMS

From purchase to.
brand & store loyalty..
#8

Brand loyalty is high, 20% never switches product brands
60-75%
is loyal to one
or a limited #
of brands,
depending on
the category
% of loyalty for product brands

In contrast, store loyalty is a challenge
A mere
25-45%
is loyal to one
or a limited #
of stores,
except for
perfumes (+60%).
% of loyalty for retail brands

Calculate brand equity to know your loyalty potential
equity = (% of lovers) x (1 - % of ‘nevers’)
Brand
guarantee for high retention leaves potential for acquisition

Store loyalty - or preference - is rarely “just average”
39%
of clients
considers their
perfume store a
‘favorite’, yet most
brands are not
average
Lover - hater graph for perfume
LOW % OF HATERS
HIGH % OF HATERS
LOW%OFLOVERS
HIGH%OFLOVERS

Services as an.
opportunity..
#9

60% would buy Institute services from a b&h retailer
Services as an opportunity
60%
shoppers
considers beauty &
health retailers
trustworthy for
beauty treatments
Many other
services such as
tooth bleaching or
dietary advise are
still considered to
require an ‘expert’
% of shoppers that consider a retailer trustworthy to offer a specific service

The upsell potential of Institute services
Services as an opportunity
1 in 4
women
already frequents
Institute
services
today
€ 265/year
is the average
spent for women
that frequent
institutes,
with big spenders
spending over
€ 380 on average.

To differentiate.
as the final goal..
#10

Higher
differentiation
has a positive
impact on
store frequency,
basket size, brand
love & online
conversion
amongst others.
Why differentiation matters?
Differentiation

To become an aspirational brand...
Differentiation
Aspirational
brands are
more known &
different.
They often have
the possibility
to get a price
premium for
their products
Unconvential
brands
are focused or
niche brands
that will NEVER
convince all,
but are very
distinctive
compared to
others
LESS CENTRAL
MORE CENTRAL
MORESIMILAR
MOREDFFERENT

Rituals as a more distinct brand from its competitors
Differentiation
Centrality - differentiation graph for body care
LESS CENTRAL
MORE CENTRAL
MORESIMILAR
MOREDFFERENT
is more distinct,
yet lacks
centrality.
Boosting
centrality
is advised.
as a price
player is more
central for the
body care
category.

Positioning changes for different segments
Differentiation
Centrality - differentiation graph for body care / 55-65 segment
LESS CENTRAL
MORE CENTRAL
MORESIMILAR
MOREDFFERENT
“wins”
centrality &
differentiation
for the older
generation for
body care.
is still very
different, yet
even less
central
for the 55-65.

Associations support differentiating position
Differentiation
ICI PARIS XL
word cloud
shows many
identity-driven
associations
like scents,
zen, delicious,
pleasurable …
Rituals
word cloud for associations for clients of ICI PARIS XL and Rituals

WHAT THIS MEANS
AS AN OVERALL
CONCLUSION?
WHAT THIS MEANS
AS AN OVERALL
CONCLUSION?

Become a LOVE BRAND,
DISTINCTIVE from your competitors.
Choose your SEGMENTS &
OVERDELIVER on expectations.
Let CONSUMER BEHAVIOUR
understanding guide you.

Michèlle
34, Charleroi
ased non-client
Elise
27, Bruges
Brand loyal
Linda
47, Antwerp
Big spender
Louise
22, Marche
Allergic buyer
Manon
38, Sint-Niklaas
Influencer
Iris
29, Ledeberg
Hoarder
What shopper
segments will
you focus on?

This is Beauty & Health | True North

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