Health and Beauty Retailing - Europe - March 2008

Published by: Mintel International Group Ltd.

Published: Mar. 1, 2008 - 87 Pages

Table of Contents

INSIGHTS AND OPPORTUNITIES

A new role for pharmacies

Changing attitudes to beauty

MARKET IN BRIEF

The future

Sales forecasts

Multiples and ageing population provide a boost

Ageing population - opportunity or threat?

Market size and performance

Confident consumers spend on personal care

Food retailers challenge specialists

Specialists rarely buck spending trends

The consumer

Convenience drives health and beauty market

The European competitive landscape

Alliance Boots dominates

Drugstores bring concentration

EUROPEAN SUMMARY AND OUTLOOK

REPORT SCOPE

Retailers

Product markets

Abbreviations

TECHNICAL NOTES

Financial definitions

Currencies

Country codes

Figure 1: Country codes

VAT

Figure 2: Europe: Standard VAT rates, 2006/07

MARKET SIZE AND TRENDS

Sources

‘Beauty’ market

Figure 3: Europe: Consumer spending on cosmetics, fragrances and toiletries, 2002, 2004 and 2006

‘Health’ market

Definitions

Bulk of pharmacy sales come from prescription drugs

Prescription volumes growing

France struggling to contain ballooning costs

Generics being pushed in the Mediterranean markets

Figure 4: Europe: Pharmaceutical products market size, by country, 2002-06

Per capita spending highest in France

Figure 5: Europe: Consumer spending on Health and beauty by country, 2002, 2004 and 2006

Figure 6: Europe: Spend per capita on health and beauty, by country, 2006

CHANNELS OF DISTRIBUTION

Figure 7: European health and beauty retailing: Major channels of distribution for personal care products

only, 2006

Food retailers - dominate through scale and convenience

Drugstores - yesterday’s format?

Pharmacies - good geographic coverage

Perfumeries and beauty specialists popular in the South

SPECIALIST HEALTH AND BEAUTY SECTOR

Retail sales of non-OTC drugs

Sector value and performance

Figure 8: European health and beauty retailing: Sector value by country, 2002 and 2006

Sector relative performance

Figure 9: European health and beauty retailing: Sector share of all retail sales by country, 2002-06

Outlet provision

Figure 10: European health and beauty retailing: Specialist stores relative importance and provision

RETAIL COMPETITOR ANALYSIS

European sales performance

Figure 11: Leading European health and beauty specialists - European sales trends, 2005 and 2006

Company evaluation

Alliance Boots in pole position

German drugstores dominate

AS Watson - a mixed bag

Solid progress from Celesio and Douglas

Mass market beauty players - The Body Shop and Yves Rocher

Outlet trends

Figure 12: Leading European health and beauty specialists - Outlet trends, 2005-07

Figure 13: Leading European health and beauty specialists - Sales and outlet trends, 2002-06

European cross border activity

Internationalisation steps up

Global product brands pave the way for foreign retail expansion

Pharmacy operators constrained by regulatory framework

‘New’ Europe pulls in the drugstores

Figure 14: Leading pharmacies and drugstores - European coverage, 2006/07

Greater internationalisation in the beauty segment

Figure 15: Leading perfumeries and beauty specialists - European coverage, 2006/07

Sector concentration

Figure 16: Leading European health and beauty specialists - Market shares by country, 2006/07

Figure 17: Leading European non-pharmacy specialists - Market shares by country, 2006/07

CONSUMER SUMMARY

Figure 18: Agreements with lifestyle statements relating to health and beauty, by country, 2007

French keen on health, not on beauty

Figure 19: Top five health and beauty lifestyle statements, France, 2007

Vanity in Germany?

Figure 20: Top five health and beauty lifestyle statements, Germany, 2007

Health in focus in Spain

Figure 21: Top five health and beauty lifestyle statements, Spain, 2007

The British want no attention

Figure 22: Top five health and beauty lifestyle statements, GB, 2007

EUROPEAN OUTLOOK

Sector sales forecasts

Figure 23: European health and beauty retailing: Sector sales forecasts, 2007 and 2012

Relative performance

Figure 24: European health and beauty retailing: Sector’s relative importance by country, % point change in

specialists’ share of all retail sales, 2007-12

Actual performance

Figure 25: European health and beauty retailing: Sector sales growth, 2007-12

ISSUES AND TRENDS

Regulatory barriers start to come down

European Commission steps up the pressure

Retailers set themselves up to capitalise on liberalisation

Court judgements could change the competitive landscape

Alliance Boots and Celesio have a competitive advantage

What of the future landscape?

Ageing population

Creating points of difference

Products

Experiences

Online retailing - a mixed bag

Figure 26: Europe: Leading health and beauty retailers - online shopping provision, 2007

Prescription drugs

OTC medicines need a point of difference

Drugstores to department stores

Beauty looks promising

Interactivity

FRANCE

MARKET IN BRIEF

The future

Market size and performance

The competitive landscape

Consumer research

BROADER MARKET ENVIRONMENT

Positive factors

Negative factors

Population

Figure 27: France: Population trends, 2003-07

Figure 28: France: Population by age, 2007

Economy

GDP

Figure 29: France: GDP, 1996-2006

Inflation

Figure 30: France: Consumer price inflation, 2002-06

Employment

Figure 31: France: Unemployment rate (%), 2001-07

Regulatory issues

Highly regulated pharmacy market

Prescription charges

Voluntary groups

Parapharmacies

THE MARKET IN CONTEXT

Steady spending from households

Figure 32: France: Total household expenditure, 1996-2006

Mixed price developments in health and beauty

Figure 33: France: Consumer price indices for selected health products categories, 2002-07

Figure 34: France: Consumer price indices for selected beauty products categories, 2002-07

Health and beauty spending

Figure 35: France: Consumer spending on selected health & beauty goods and all items, Index, 2002-06

Figure 36: France: Consumer spending on health and beauty products, 2002-06

Product market breakdown

Perfumes, cosmetics and toiletries

Figure 37: France: spending on cosmetics, fragrances and toiletries by category, 2002, 2004 and 2006

Figure 38: France: Relative importance of categories vs Western Europe, 2006

Pharmaceutical products

Figure 39: France: Pharmaceuticals market, product breakdown, 2002-06

Figure 40: France: Self-medication market breakdown, 2006

CHANNELS OF DISTRIBUTION

Figure 41: France: Personal care goods spending by channel of distribution, 2002 and 2006

Parapharmacies

Figure 42: France: Parapharmacy operations of non-specialists, September 2003, 2005 and 2006

Home shopping

Figure 43: France: Fev@d specialist health and beauty members, 2006

SECTOR SIZE AND FORECAST

Economic outlook

Retailers’ prospects

Opportunities for beauty retailers?

Subdued growth likely for pharmacies

Figure 44: France: Health and beauty retailers’ sales, 2002-12

Figure 45: France: Health and beauty retailers’ sales as share of all retail sales, 2002-12

Past

Figure 46: France: Health and beauty retailers’ sales, Index, 2002-06

Figure 47: France: Health and beauty retailers’ sales, 2002-06

Outlet and enterprise data

Figure 48: France: Number of H&B retail enterprises and average outlets per enterprise, 2001-05

Figure 49: France: Health and beauty outlet data, 2003-07

Size and ownership

Figure 50: France: Health and beauty outlets by size, 2004

Figure 51: France: Ownership of retail enterprises by type, 2001-05

THE CONSUMER

WHERE THEY SHOP

Grocers dominate, pharmacies strong

Figure 52: France: Retailer where toiletries, cosmetics/skincare, perfumes, healthcare products or

medicines purchased in the last 12 months, November 2007

Who buys where

Figure 53: France: Market positioning of retailers where toiletries, cosmetics/skincare, perfumes, healthcare

products or medicines purchased in the last 12 months, by income and age, November 2007

Detailed consumer demographics

Cheap & cheerful Yves Rocher…

…could learn from Nocibé?

The super- and hypermarkets can do more

Marionnaud - for the grown woman?

Room for others?

Figure 54: France: Detailed demographics of toiletries, cosmetics/skincare, perfumes, healthcare products

or medicines shopper by retailer, November 2007

RETAIL COMPETITOR ANALYSIS

Figure 55: France: Leading health and beauty specialists, 2006

Market shares

Figure 56: France: Leading specialists’ market shares, 2006

Evaluation

Figure 57: France: Health and beauty retailers evaluation, 2006/07

GERMANY

MARKET IN BRIEF

The future

Market size and performance

The competitive landscape

Consumer research

BROADER MARKET ENVIRONMENT

Positive factors

Negative factors

Population

Figure 58: Germany: Population trends, 2002-06

Figure 59: Germany: Population, by age group, 2002, 2006 and 2010

Economy

Figure 60: Germany: Gross domestic product, 1995-2007

Inflation in check

Figure 61: Germany: Consumer prices, 1999-2007

Unemployment falling

Regulatory issues

THE MARKET IN CONTEXT

Subdued consumer spending

Figure 62: Germany: Household consumer expenditure, 1999-2006

Stagnant prices in beauty

Figure 63: Germany: Consumer price indices for selected health and personal care products categories,

2002-06

Market value and trends

Figure 64: Germany: Health and beauty products, relative performance, 2002-06

Healthcare reforms force spend up

Personal care hampered by consumer gloom

Figure 65: Germany: Consumer spending on health and beauty products, 2002-06

Product market breakdown

Perfumes, cosmetics and toiletries

Figure 66: Germany: sales of cosmetics, fragrances and toiletries by category, 2002, 2004 and 2006

Figure 67: Germany: Relative sales importance of categories vs western Europe, 2006

Pharmaceutical products

Figure 68: Germany: Pharmaceuticals market, product breakdown, 2002-06

Figure 69: Germany: Self-medication market breakdown, 2006

CHANNELS OF DISTRIBUTION

Cosmetic and personal care

Figure 70: Germany: Facial care and personal care markets: Distribution by retail channel, 2006

Figure 71: Germany: Facial care and personal care markets: Distribution by retail channel, 2006

OTC medicines

Figure 72: Germany: Over-the-counter medicines: Distribution by retail channel, 2004

SECTOR SIZE AND FORECAST

Economic outlook

Retailers’ prospects

Beauty specialists

Health specialists

Figure 73: Germany: Health and beauty retailers’ sales, 2002-12

Figure 74: Germany: Health and beauty retailers’ sales as share of all retail, 2002-12

Past

Figure 75: Germany: Health and beauty retailers’ sales by specialist type, index, 2003-07

Figure 76: Germany: Health and beauty retailers’ estimated sales by specialist type, 2006

Drugstore sales

Figure 77: Germany: Drugstore sector, sales performance, 2002-06

Outlet and enterprise data

Figure 78: Germany: Number of retail enterprises, 1999, 2000, 2002 and 2005

Figure 79: Germany: Number of retail outlets, 1999, 2000, 2002 and 2005

THE CONSUMER

WHERE THEY SHOP

Schlecker dominates, food discounters strong

Figure 80: Germany: Retailer where toiletries, cosmetics/skincare, perfumes, healthcare products or

medicines purchased in the last 12 months, November 2007

Who buys where

Figure 81: Germany: Market positioning of retailers where toiletries, cosmetics/skincare, perfumes,

healthcare products or medicines purchased in the last 12 months, by income and age, November 2007

Detailed consumer demographics

Figure 82: Germany: Detailed demographics of toiletries, cosmetics/skincare, perfumes, healthcare

products or medicines shopper by specialist retailer, November 2007

Figure 83: Germany: Detailed demographics of toiletries, cosmetics/skincare, perfumes, healthcare

products or medicines shopper by retailer, November 2007

RETAIL COMPETITOR ANALYSIS

Leading specialists

Consolidation

The e-sphere

Budnikowsky

Figure 84: Germany: Leading health and beauty specialists, 2007

Market shares

Figure 85: Germany: Leading specialists’ market shares, 2004 and 2006

Evaluation

Figure 86: Germany: Health and beauty retailers, evaluation, 2006/07

ITALY

MARKET IN BRIEF

A mixed picture for the future

Market size and performance

Specialists’ sector struggles

Channels of distribution

Figure 87: Italy: Health and beauty market, estimated retail channels of distribution, 2006

Leading specialists and market shares

Consumer behaviour

BROADER MARKET ENVIRONMENT

Positive factors

Negative factors

Growing population

Figure 88: Italy: Population trends, 2002-06

But ageing …

Figure 89: Italy: Population by age, 2006

Sluggish economic progress

Figure 90: Italy: GDP, 1996-2006

Consumers lack confidence too

Figure 91: Italy: Consumer spending, 1996-2006

Consumer prices have fallen

Figure 92: Italy: Consumer price inflation, 1999-2006

Pharmacy regulatory issues

THE MARKET IN CONTEXT

Key points

Health and beauty market

Definitions

Health and beauty outperforms other product markets

Figure 93: Italy: Consumer spending on selected categories of goods, 2002-06

Product market breakdown

Perfumes, cosmetics and toiletries

Figure 94: Italy: Sales of cosmetics, fragrances and toiletries by category, 2002, 2004 and 2006

Figure 95: Italy: Relative spending importance of categories vs western Europe, 2006

Pharmaceutical products

Figure 96: Italy: Pharmaceuticals market, product breakdown, 2002-06

Figure 97: Italy: Self-medication market breakdown, 2006

CHANNELS OF DISTRIBUTION

Figure 98: Italy: Health and beauty market, retail channels of distribution, 2006

Figure 99: Italy: Members of the direct selling association, 2006

SECTOR SIZE AND FORECAST

Retail sales forecasts

Figure 100: Italy: Retail sales, 2002-12

Past

Treading water

Medical and orthopaedic enterprises climbing

Figure 101: Italy: Retail enterprises, by sector, 2000-04

Pharmacy outlet numbers

Figure 102: Italy: Number of pharmacies, April 2005 and April 2007

THE CONSUMER

WHERE THEY SHOP

Figure 103: Italy: Retailer where toiletries, cosmetics/skincare, perfumes, healthcare products or medicines

purchased in the last 12 months, November 2007

Who buys where

Figure 104: Italy: Market positioning of retailers where toiletries, cosmetics/skincare, perfumes, healthcare

products or medicines purchased in the last 12 months, by income and age, November 2007

Detailed consumer demographics

The specialists

Figure 105: Italy: Detailed demographics of toiletries, cosmetics/skincare, perfumes, healthcare products or

medicines shopper by specialist retailer, November 2007

Non-specialists

Figure 106: Italy: Detailed demographics of toiletries, cosmetics/skincare, perfumes, healthcare products or

medicines shopper by non-specialist retailer, November 2007

RETAIL COMPETITOR ANALYSIS

Key points

Leading specialists

Figure 107: Italy: Leading health and beauty specialists, 2006

Market shares

Figure 108: Italy: Leading health and beauty specialists’ market shares, 2006

Evaluation

Figure 109: Italy: Health and beauty specialists’ evaluation, 2006/07

THE NETHERLANDS

MARKET IN BRIEF

The future

Market size and performance

Market leaders

BROADER MARKET ENVIRONMENT

Positive factors

Negative factors

Population growing slowly

Figure 110: The Netherlands: Population trends, 2003-07

Figure 111: The Netherlands: Population by age group, 1990, 2000 and 2007

An improving economy

Figure 112: The Netherlands: Gross domestic product, 1996-2006

Inflation under control

Figure 113: The Netherlands: Consumer prices, 2001-07

Unemployment falling

Figure 114: The Netherlands: Unemployment level (seasonally adjusted), 2002-08

Figure 115: The Netherlands: Consumer confidence and willingness to spend, 2002-08

Regulatory issues

Pharmacy regulation

Drug prices

Health insurance

MARKET IN CONTEXT

Consumer spending in the doldrums

Figure 116: The Netherlands: Consumer expenditure, 1995-2007

Negative inflation in beauty and toiletries

Figure 117: The Netherlands: Consumer price index, selected health and beauty goods, 2002-06

Health & beauty lose spending share

Figure 118: The Netherlands: Consumer spending on selected health & beauty goods and all items, Index,

2002-06

Figure 119: The Netherlands: Breakdown of consumer expenditure in health and beauty sectors, 2002-06

Product breakdown

Perfumes, cosmetics and toiletries

Figure 120: The Netherlands: sales of cosmetics, fragrances and toiletries by category, 2002, 2004 and

2006

Figure 121: The Netherlands: Relative sales importance of categories vs western Europe, 2006

Pharmaceutical products

Figure 122: The Netherlands: Pharmaceuticals market, product breakdown, 2002-06

Figure 123: The Netherlands: Self-medication market breakdown, 2006

CHANNELS OF DISTRIBUTION

Figure 124: The Netherlands: Estimated channels of distribution, 2006

Figure 125: The Netherlands: Members of home shopping trade association specialising in health and

beauty products, 2005

Figure 126: The Netherlands: Direct selling companies specialising in health and beauty products, 2006/07 135

SECTOR SIZE AND FORECAST

Future

Economic outlook

Retailers’ prospects

Figure 127: The Netherlands: Health and beauty retail sales, 2002-12

Figure 128: The Netherlands: Health and beauty retail sales as share or all retail sales, 2002-12

Past

Figure 129: The Netherlands: Health and beauty retailers’ sales, 2002-06

Figure 130: European health and beauty retailing: Elements of turnover of community pharmacy in the

Netherlands, 2006

Figure 131: European health and beauty retailing: Turnover of community pharmacies in the Netherlands,

2006

Outlet and enterprise data

Figure 132: The Netherlands: Number of retail enterprises, 2002-06

Figure 133: The Netherlands: Number of retail outlets, 2002-06

Figure 134: The Netherlands: Average retail outlets per enterprise, 2002-06

RETAIL COMPETITOR ANALYSIS

Fresh winds - new formats

Changes in the drugstore arena

Joining forces

Figure 135: The Netherlands: Leading health and beauty specialists, 2006/07

Market shares

Figure 136: The Netherlands: Leading retailers’ shares of health and beauty specialists’ sales, 2004/05 and

2006/07

Evaluation

Figure 137: The Netherlands: Health and beauty retailers evaluation, 2006/07

SPAIN

MARKET IN BRIEF

A mixed picture for the future

Market size and performance

Specialists perform well

Channels of distribution

Figure 138: Spain: Health and beauty market, retail channels of distribution, 2006

Market leaders and market share

Consumer behaviour

BROADER MARKET ENVIRONMENT

Positive factors

Negative factors

Growing population

Figure 139: Spain: Population trends, 2002-06

But ageing too…

Figure 140: Spain: Population, by age group, 2002, 2006 and 2010

Steady economic growth

Figure 141: Spain: Gross domestic product, 1996-2007

Consumer prices

Figure 142: Spain: Consumer prices, 1999-2007

Regulatory issues

THE MARKET IN CONTEXT

Key points

Consumer spending buoyed by booming housing market

Figure 143: Spain: Household consumer expenditure, 1995-2006

Health and beauty market in context

Definitions

Health and beauty outperforms other product markets

Figure 144: Spain: Consumer spending on major categories of goods, 2002-06

Modest inflation in the medical market

Figure 145: Spain: Spending growth on medical products, appliances & equipment, 2001-05

Price rises in personal care buck the European trend

Figure 146: Spain: Spending growth on personal care goods and services, 2001-05

Product market breakdown

Perfumes, cosmetics and toiletries

Figure 147: Spain: Spending on cosmetics, fragrances and toiletries by category, 2002, 2004 and 2006

Figure 148: Spain: Relative spending importance of categories vs western Europe, 2006

Pharmaceutical products

Figure 149: Spain: Pharmaceuticals market, product breakdown, 2002-06

Figure 150: Spain: Self-medication market breakdown, 2006

CHANNELS OF DISTRIBUTION

Figure 151: Spain: Health and beauty market, retail channels of distribution, 2006

Health and beauty specialists hold onto their market share

Department stores benefit from rising disposable income

Grocery retailers

Direct selling

Figure 152: Spain: Personal care market, leading direct selling operators, 2006

SECTOR SIZE AND FORECAST

Economic and consumer spending outlook

Retail sales forecasts

Figure 153: Spain: Retail sales, 2002-12

Past

Decent performance

Enterprise and outlet numbers

Figure 154: Spain: Retail enterprises, 2005-07

Figure 155: Spain: Number of retail outlets, 2005-07

Sector drivers …

…and trends

THE CONSUMER

WHERE THEY SHOP

Figure 156: Spain: Retailer where toiletries, cosmetics/skincare, perfumes, healthcare products or

medicines purchased in the last 12 months, November 2007

Who buys where

Figure 157: Spain: Market positioning of retailers where toiletries, cosmetics/skincare, perfumes, healthcare

products or medicines purchased in the last 12 months, by income and age, November 2007

Detailed consumer demographics

The specialists

Figure 158: Spain: Detailed demographics of toiletries, cosmetics/skincare, perfumes, healthcare products

or medicines shopper by specialist retailer, November 2007

Non-specialists

Figure 159: Spain: Detailed demographics of toiletries, cosmetics/skincare, perfumes, healthcare products

or medicines shopper by non-specialist retailer, November 2007

RETAILER COMPETITOR ANALYSIS

Key points

Leading specialists

El Corte Inglés is market leader

Schlecker heads the specialists

Slowly building greater critical mass

Buying groups

Figure 160: Spain: Leading health & beauty specialists, 2006

Market shares

Figure 161: Spain: Leading health and beauty specialists’ market share, 2006

Evaluation

Figure 162: Spain: Health and beauty specialists, evaluation, 2006/07

UNITED KINGDOM

ISSUES IN THE MARKET

Main themes

Definitions

Abbreviations

INSIGHTS AND OPPORTUNITIES

Convenience is king

Where’s the interactivity?

Ageless or not?

MARKET IN BRIEF

The future

Market sizes, performance and structure

Channels of distribution

Figure 163: UK health and beauty market, channels of distribution, 2006

Market leaders

Consumer behaviour

FAST FORWARD TRENDS

Trend 1: Re-Teching the past

What is it?

Market touchpoints/implications

Trend 2: FSTR and HYPR

What is it?

Market touchpoints/implications

Trend 3: Brand co-operation

What is it?

Market touchpoints/implications

INTERNAL MARKET ENVIRONMENT

Price tactics

Creating points of difference

Loyalty

Customer service

MediSpa treatments

Market repositioning

Own brands

Trading up

Product innovation

Pharmacy consolidation

Healthcare focus

Prescription drugs and pharmacy remuneration

Prescription charges

NHS receipts

The reimbursement element

Figure 164: England: Prescriptions - number dispensed and net ingredient cost, 1998-07

OTC medicines

BROADER MARKET ENVIRONMENT

Key points - negative

Key points - positive

2007 - a year of 2 halves!

Pre-Northern Rock…

Post-Northern Rock…

Growing, greying population

Figure 165: UK: Population trends, 2002-12

Figure 166: UK: Population forecasts, by age band, 2007-12

Population implications

The baby boomers

Increasingly affluent consumer

Figure 167: Forecast adult population trends, by socio-economic group, % change 2002-12

Consumer spending

Figure 168: PDI and consumer expenditure, at current and constant 2002 prices, 2002-12

Consumer implications for the health and beauty market

Interest rates …

…and consumer prices

Figure 169: UK: Consumer prices, percentage change year on year, 2001-07

Consumer price implications for the health and beauty market

THE MARKET IN CONTEXT

Key points

Health and beauty holds up well

Figure 170: UK: Consumer spending on selected categories, 2002-06

Price deflation in beauty market

Figure 171: UK: Consumer spending growth on the beauty market by value and volume, 2003-07

Resilience in the health market

Figure 172: UK: Consumer spending growth on the health market, 2003-07

Product breakdown

Perfumes, cosmetics and toiletries

Figure 173: UK: Sales of cosmetics, fragrances and toiletries by category, 2002, 2004 and 2006

Figure 174: UK: Relative sales importance of categories vs Western Europe, 2006

Pharmaceutical products

Figure 175: UK: Pharmaceuticals market, product breakdown, 2004-06

Figure 176: UK: Self medication market breakdown, 2006

STRENGTHS AND WEAKNESSES IN THE MARKET

Strengths

Weaknesses

WHO’S INNOVATING?

Key Points

Virtual health advice

Beauty goes online

Makeovers on the web

Service provision

Responding to ethnic demand

Open to innovation

Exclusivity is hard currency?

CHANNELS OF DISTRIBUTION

Key Points

Specialists dominate

Figure 177: UK health and beauty market, channels of distribution, 2006

Grocery retailers

Department stores and other mixed goods retailers

Direct sellers

Figure 178: UK: Health and beauty market, leading direct sellers, 2006

SECTOR SIZE AND FORECAST

Key points - future

Key points - past

FUTURE

Retail sales forecasts

Figure 179: UK: Health and beauty retailers’ sales, 2002-12

Past

Figure 180: UK: All health and beauty retailers, all-inclusive sales by sub-sector, 2002-06

Health and beauty specialists lose market share

Figure 181: UK: Health and beauty specialists as a % of health and beauty market, 2002-07

Outlet and enterprise data

Enterprises

Figure 182: UK: Health and beauty retailers, number of enterprises, by sub-sector, 2001-05

Outlets

Figure 183: UK: Health and beauty retailers, number of outlets by sub-sector, 2001-05

THE CONSUMER - TOILETRIES

Key points

TREND DATA

Figure 184: Source of toiletries purchased, percentage change 2002-07

Supermarkets continue to win ground

Health and beauty specialists losing

The Body Shop challenged on its core territory

Masstige pressures department stores

WHERE THEY SHOPPED

Figure 185: Source of toiletries purchased, November 2007

WHO SHOPS WHERE?

Figure 186: Market positioning of major retailers selling toiletries by age and affluence, November 2007

Supermarket sweep

The affluent and old prefer Boots

Superdrug - all about youth

TOILETRIES - DETAILED CONSUMER DEMOGRAPHICS

Figure 187: Source of toiletries purchased by demographic sub-group, November 2007

Figure 188: Source of toiletries purchased in the last three months, by demographic sub-group, November

2007

THE CONSUMER - BEAUTY PRODUCTS

Key Points

TREND DATA

Figure 189: Source of beauty products purchased, 2002-07

Supermarkets steam ahead

Price cuts and own-brand boost Boots’ lead

Green trend hits The Body Shop

Avon efforts show little result

Opportunities for M&S?

WHERE THEY SHOPPED

Figure 190: Source of cosmetics, skincare products or perfumes/fragrances in the last 12 months,

November 2007

WHO SHOPS WHERE?

Figure 191: Market positioning of major retailers selling beauty products, by age and affluence, November

2007

Men still shy of beauty?

Supermarkets win with men

Male environment

A beautiful habit gets dropped with age

Like day and night? The market leaders

Avon calling

Mum’s the word

Tesco & Asda - for families

BEAUTY - DETAILED CONSUMER DEMOGRAPHICS

Figure 192: Source of cosmetics, skincare products or perfumes/fragrances in the last 12 months, by

demographic sub-group, November 2007

THE CONSUMER - OTC PRODUCTS

Key points

TREND DATA

Figure 193: Source of purchase of medicines or healthcare products, such as cough medicines, tablets or

ointments, but not including products on prescription, in the last 6 months, 2002-07

Supermarket expansion gains ground

Lloyds and Co-op on the acquisition path

Boots must lose?

WHERE THEY SHOPPED

Figure 194: Source of purchase of medicines or healthcare products, such as cough medicines, tablets or

ointments, but not including products on prescription, in the last 6 months, November 2007

WHO SHOPS WHERE?

Figure 195: Market positioning of major retailers selling OTC by age and affluence, November 2007

Men aren’t buying it

The young and old get it free

Families hungry for health

Local independents surprisingly strong

OTC - DETAILED CONSUMER DEMOGRAPHICS

Figure 196: Source of purchase of medicines or healthcare products, such as cough medicines, tablets or

ointments, but not including products on prescription, in the last 6 months, by demographic sub-group,

November 2007

Figure 197: Source of purchase of medicines or healthcare products, such as cough medicines, tablets or

ointments, but not including products on prescription, in the last 6 months, by demographic sub-group,

November 2007

CONSUMER SHOPPING BEHAVIOUR AND ATTITUDES

Key points

Beauty & toiletries

OTC

Buy as part of a regular shopping trip

Don’t care where

Figure 198: Consumer shopping behaviour and attitudes, regarding toiletries and beauty goods, November

2007

A special trip

Prices, promotions and points

The apathetic men

Price-savvy women

Hands-on shopping for the young

Help the third-age?

OTC - SHOPPING BEHAVIOUR

Most know what they want

Figure 199: Consumer shopping behaviour and attitudes regarding healthcare products (not including

products on prescription), November 2007

Little demand for help

Loyalty in distress?

Age effects attitudes

Insecure Es?

SHOPPING BEHAVIOUR AND ATTITUDES - DETAILED CONSUMER DEMOGRAPHICS

Figure 200: Consumer shopping behaviour and attitudes regarding OTC products, by demographic subgroup,

November 2007

Figure 201: Consumer shopping behaviour and attitudes, regarding toiletries and beauty goods, by

demographic sub-group, November 2007

Figure 202: Consumer shopping behaviour and attitudes, regarding toiletries and beauty goods, by

demographic sub-group, November 2007

HEALTH AND BEAUTY RETAILING - SHOPPER TYPOLOGIES

Key Points

CONSUMER TYPES

Figure 203: Consumer typologies, November 2007

Pick Up and Go (60%)

Shop Around Skincare-Healthcare Anywhere (16%)

Enthusiastic Information Seekers (24%)

SHOPPER TYPOLOGY GROUPS - DETAILED CONSUMER DEMOGRAPHICS

Figure 204: Health and beauty shopper typologies, by demographic sub-group, November 2007

Figure 205: Health and beauty shopper typologies, by shops where toiletries have been bought in the last 3

months, December 2007

Figure 206: Health and beauty shopper typologies, by shops where cosmetics have been bought in the last

3 months, December 2007

Figure 207: Health and beauty shopper typologies, by shops where medicine and products have been

bought in the last 3 months, December 2007

RETAIL COMPETITOR ANALYSIS

Key points

Leading specialists

Figure 208: UK: Leading health and beauty specialists, 2006

Market shares

Figure 209: UK: Leading specialists’ market shares, 2006

Figure 210: UK: Leading specialists’ market shares, 2006

Evaluation

Figure 211: UK: Health and beauty specialists, evaluation, 2008

ALLIANCE BOOTS

Figure 212: Alliance Boots: Share of UK health and beauty specialists’ sales, 2002-06

Figure 213: Alliance Boots: Share of European health and beauty specialists’ sales, 2002-06

Strategic evaluation

Lowering prices and boosting value perceptions

The bottom line?

Rebadging UK community pharmacies

Distributing Boots own brands in continental Europe

Background

Financial performance

Figure 214: Alliance Boots: Group pro forma financial performance, 2005/06-2006/07

Retail division - 2006/07 performance

Figure 215: Alliance Boots: Retail division pro forma financial performance, 2005/06-2006/07

2007/08

Store portfolio

Historic numbers

Expansion picks up again

Figure 216: Alliance Boots: UK and rest of Europe, company owned outlet numbers, 2006/07

Rebranding Community Pharmacy

Overseas concessions

Figure 217: Alliance Boots: Overseas concession numbers by country, January 2008

Retail offering

International

Market positioning

Brands

Pricing

Product offer

Figure 218: Alliance Boots: UK retail division sales mix by major product category, 2006/07

Customer services

Advertising and marketing

e-commerce and home shopping

Figure 219: Alliance Boots: UK online retail sales, 2003/04-2006/07

A.S. WATSON (EUROPE)

Strategic evaluation

Group

Background

Figure 220: A.S.Watson: European health and beauty chains, 2006

Financial performance

Figure 221: A.S.Watson: Year-on-year growth at European health & beauty business, 2003-06

Store portfolio

Figure 222: A.S.Watson: Group health & beauty outlets in Europe, 2002-07

Group e-commerce

Figure 223: A.S. Watson: European online presence, 2008

Benelux

Background

Financial performance

Figure 224: A.S.Watson: Estimated sales by fascia in Belgium and the Netherlands, 2006

Store portfolio

Figure 225: A.S.Watson: Stores in Belgium and the Netherlands, 2002-07

Retail offering

UK

Figure 226: A.S.Watson: Sales as share of health & beauty specialists’ sales in the UK, 2002-06

Background

Financial performance

Figure 227: A.S. Watson: UK operations’ financial performance, 2002-06

Store portfolio

Figure 228: A.S. Watson: UK operations’ outlets, 2002-07

Retail offering

Figure 229: A.S. Watson: Superdrug own brands, at February 2008

Marionnaud

Figure 230: A.S.Watson: Marionnaud: Sales as share of health & beauty specialists’ sales in France and

Europe, 2003-06

Background

Financial performance

Figure 231: A.S. Watson: Marionnaud: Sales, 2003-06

Store portfolio

Figure 232: A.S. Watson: Marionnaud: Outlets, 2002-07

Figure 233: A.S. Watson: Marionnaud: Store portfolio by country, 2002-07

Retail offering

Other Eastern Europe

Background

Financial and outlet data

Figure 234: A.S. Watson: Other Eastern European operations, 2004-07

AVENIDA (JUAN ALBERTO RECIO)

Figure 235: Avenida: Share of Spanish health and beauty specialists’ sales, 2002-06

Background

Financial performance

Figure 236: Avenida: Sales performance, 2002-06

Store portfolio

Figure 237: Avenida: Outlet data, 2002-06

BEAUTY SUCCESS

Figure 238: Beauty Success: Sales as share of health & beauty specialists’ sales in France, 2002-06

Background

Financial performance

Figure 239: Beauty Success: Financial performance, 2002-07

Store portfolio

Figure 240: Beauty Success: Outlet data, 2002-07

Retail offering

Market positioning

Brands

Product offer

e-commerce and home shopping

BODYBELL (IBÉRICA DE DROGUERÍA Y PERFUMERÍA)

Figure 241: Bodybell: Share of Spanish health and beauty specialists’ sales, 2002-06

Background

Financial performance

Figure 242: Bodybell: Sales performance, 2002-06

Store portfolio

Figure 243: Bodybell: Outlet data, 2002-06

Retail offering

Market positioning

Product offer

Pricing

BROCACEF

Financial performance

Store portfolio

Retail offering

Product offer

Operational issues

Advertising and marketing

e-commerce and home shopping

CELESIO

Figure 244: Celesio (UK): Share of UK health and beauty specialists’ sales, 2002-06

Figure 245: Celesio: Share of European health and beauty specialists’ sales, 2002-06

Strategic evaluation

Background

Financial performance

Figure 246: Celesio Retail: Financial performance, 2002-06

Figure 247: Celesio Retail: Sales by country, 2002-06

Figure 248: Celesio Retail: Sales and outlet growth by country, 2005-06

Figure 249: Celesio Retail: Q1-Q3 sales by country, 2006 and 2007

Store portfolio

Figure 250: Celesio Retail: Outlet data, 2002-Q3 2007

Retail offering

Market positioning

Product offer

Brands

Pricing

Customer services

Advertising and marketing

e-commerce

CO-OP PHARMACY

Figure 251: Co-op Pharmacy: Sales as share of health & beauty retailers in UK, 2002-06

Background

Financial performance

Figure 252: Co-op Pharmacy: Group financial performance, 2002-06

Store portfolio

Figure 253: Co-op Pharmacy: Outlet data, 2003-07

Retail offering

Market positioning

Brands

Product offer

e-commerce and home shopping

DA RETAILGROEP

Background

Financial performance

Store portfolio

Retail offering

Product offer

Pricing

Operational issues

Advertising and marketing

e-commerce and home shopping

DM-DROGERIE MARKT

Figure 254: dm-drogerie-markt: Share of all European health and beauty retailers’ sales, 2003-07

Figure 255: dm-drogerie markt: Share of German health and beauty specialists’ sales, 2003-07

Figure 256: dm-drogerie markt: Share of German drugstore retailers’ sales, 2002-06

Strategic evaluation

Background

Financial performance

Figure 257: dm-drogerie markt: Sales performance, 2002/03-2006/07

Store portfolio

Larger than average stores

Network development

Sales productivity

Figure 258: dm-drogerie markt: Outlet data, 2002/03-2006/07

International stores

Figure 259: dm-drogerie markt: International outlet numbers, 2002/03-2006/07

Retail offering

Market positioning

Brands

Pricing

Product offer

Marketing and loyalty card

Distribution

e-commerce

DOUGLAS

Figure 260: Douglas perfumery division: Share of German health and beauty specialists’ sales, 2003-07

Figure 261: Douglas perfumery division: Share of European health and beauty specialists’ sales, 2003-07

Strategic evaluation

Background

Financial performance

Figure 262: Douglas Holding: Group financial performance, 2002-06/07

Figure 263: Douglas perfumery division: Financial performance, 2002-06/07

Store portfolio

Figure 264: Douglas perfumery division: Outlet data, 2003-07

Figure 265: Douglas perfumery division: Average sales per outlet by country, 2007

Retail offering

Market positioning

Brands and own brand

Product offer

Pricing

Advertising and marketing

e-commerce and home shopping

ETOS

Background

Financial performance

Store portfolio

Retail offering

Market positioning

Product offer

Operational issues

Advertising and marketing

e-commerce and home shopping

IN FARADIS (DAPARGEL S.L)

Figure 266: In Faradis: Share of Spanish health and beauty specialists’ sales, 2002-06

Background

Financial performance

Figure 267: In Faradis: Sales performance, 2002-06

Store portfolio

Figure 268: In Faradis: Outlet data, 2002-06

LIMONI ITALY

Figure 269: Limoni Italy: Sales as share of health & beauty specialists’ sales in Italy, 2002-06

Background

Financial performance

Figure 270: Limoni Italy: Group financial performance, 2002-06

Store portfolio

Figure 271: Limoni Italy: Outlet data, 2002-06

Retail offering

Market positioning

Product offer and brands

e-commerce and home shopping

L ROWLAND

Figure 272: L Rowland: Sales as share of health & beauty specialists’ sales in UK, 2002-06

Background

Financial performance

Figure 273: L Rowland & Co (Retail) Ltd: Group financial performance, 2002-06

Store portfolio

Figure 274: L Rowland & Co (Retail) Ltd: Outlet data, 2002-06

Retail offering

MÜLLER LTD

Figure 275: Müller Ltd: Sales as share of health & beauty retailers’ sales in Europe, 2002-06

Figure 276: Müller Ltd: Estimated sales as share of health & beauty retailers’ sales in Germany, 2002-06

Strategic evaluation

Building scale and a USP

Unconvincing foreign strategy

An unhappy camp?

Background

Financial performance

Figure 277: Müller Ltd: Estimated group sales performance, 2002-06

Store portfolio

Figure 278: Müller Ltd: Outlet data, 2002-07

Retail offering

Market positioning

Brands

Product offer

Pricing

Operational issues

Advertising and marketing

e-commerce and home shopping

NOCIBÉ

Figure 279: Nocibé: Sales as share of health & beauty specialists’ sales in France, 2003-07

Background

Financial performance

Figure 280: Nocibé: Group financial performance, 2003-07

Store portfolio

Figure 281: Nocibé: Outlet data, 2003-07

Retail offering

Market positioning

Product offer and brands

Pricing

e-commerce, home shopping and marketing

ROSSMANN

Figure 282: Rossmann: Sales as share of health & beauty specialists’ sales in Europe, 2002-06

Figure 283: Rossmann: Sales as share of health & beauty specialists’ sales in Germany, 2002-06

Strategic evaluation

Sharp pricing

…needs breadth?

Focused expansion

Competition heats up at home

Background

Financial performance

Figure 284: Rossmann: Group financial performance, 2002-07

Store portfolio

Figure 285: Rossmann: Outlet data, 2002-07

Retail offering

Market positioning

Brands

Product offer

Pricing

Operational issues

e-commerce and home shopping

SCHLECKER

Figure 286: Schlecker: Estimated share of German health and beauty retailers’ sales, 2003-07

Figure 287: Schlecker: Share of European health and beauty specialists’ sales, 2003-07

Strategic evaluation

Background

Financial performance

Figure 288: Schlecker: Estimated sales performance, 2002-07

Store portfolio

Figure 289: Schlecker: Estimated outlet data, 2003-07

Retail offering

Market positioning

Brands

Pricing

Product offer

Logistics

Advertising

e-commerce and home shopping

IHR PLATZ

Figure 290: Ihr Platz: Share of all German health and beauty retailers’ sales, 2002-06

Strategic evaluation

Background

Financial performance

Figure 291: Ihr Platz: Sales performance, 2002-06

Store portfolio

Figure 292: Ihr Platz: Outlet data, 2002-06

Retail offering

Market positioning

Brands

Product offer

Pricing

Operational issues

Advertising and marketing

e-commerce and home shopping

SEPHORA

Strategic evaluation

Background

Financial performance

Figure 293: Sephora: Estimated financial performance, 2002-06

Store portfolio

Figure 294: Sephora: Outlet data, 2002-07

Retail offering

Market positioning

Brands and product offer

Pricing

Advertising and marketing

THE BODY SHOP

Figure 295: The Body Shop: Share of UK health and beauty specialists’ sales, 2002-06

Strategic evaluation

Background

Financial performance

Figure 296: The Body Shop: Financial performance, 2001/02-05/06

Store portfolio

Group outlet data

Figure 297: The Body Shop: Outlet data, 2002-2006

European store numbers

Figure 298: The Body Shop: European outlet numbers, 2002-06

European company-owned stores

Figure 299: The Body Shop: Company-owned outlets, 2002-06

Shop refits

Retail offering

Market positioning

Brands

Pricing

Product offer

Advertising and marketing

Loyalty card

e-commerce and other home shopping

YVES ROCHER GROUP

Figure 300: Yves Rocher Group: Estimated sales as share of health & beauty specialists’ sales in Europe,

2002-06

Strategic evaluation

Background

Figure 301: Yves Rocher Group: Group brands, 2008

Financial performance

Figure 302: Yves Rocher Group: Sales performance, 2002-06

Figure 303: Yves Rocher Group: Turnover by brand, 2000 and 2005

Figure 304: Yves Rocher Group: Turnover by channel (%), 2000 and 2006

Store portfolio

Figure 305: Yves Rocher Group: Outlet data, 2002-06

Figure 306: Yves Rocher brand: Estimated European outlet numbers, 2005-06

Retail offering

Market positioning

Brands

Product offer

Figure 307: Yves Rocher brand: Turnover by product group, 2006

Pricing

Operational issues

e-commerce and home shopping

Figure 308: Yves Rocher brand: Identified group websites, 2008

APPENDIX: RESEARCH METHODOLOGY

Abstract

• background economic and demographic data
• market sizes
• regional retailing trends and issues
• market drivers
• consumer expenditure
• consumer trends
• leading pan-European retailers
• domestic retailers
• market forecasts

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