Online Beauty - US

Published by: Mintel International Group Ltd.

Published: Dec. 1, 2010 - 88 Pages


Table of Contents

SCOPE AND THEMES

What you need to know

Definition

Data sources

Consumer survey data

Trade interviews

Abbreviations and terms

Abbreviations

Terms

EXECUTIVE SUMMARY

Insights and opportunities: the black beauty market

Market parameters

Market trends and factors

Innovation and innovators: Mary Kay adapts to current needs

Digital marketing

Search engine marketing

Mobile sites and apps

Internet beauty purchases

Online retailers used

Initial or repeat purchases?

Reasons for not making online purchases

Online shopping associations

Online shopping this year vs. last year

Race and Hispanic origin

MARKET PARAMETERS

Online beauty sales are fragmented

Figure 1: U.S. e-commerce market

Top five BPC/beauty sites

Figure 2: Top five online beauty sites, May 2010

Eight types of online beauty retailers

Figure 3: Facts about the direct selling industry

Company snapshots

Pureplays

Drugstore.com

Vitacost

Brick/click beauty specialists

Ulta

Sephora

Direct sellers

Consumer direct

Brick/click drug chains

Walgreens

CVS

Rite Aid

Online grocers

FreshDirect

Peapod

Brick/click mass retailers

Other

E-commerce operations costs

Gifts with purchase

Types of product fulfillment

MARKET TRENDS AND FACTORS

Key points

Broadband penetration

Figure 4: U.S. broadband and dial-up penetration, 2003-16

Online beauty research

Figure 5: Frequency of online beauty research—women, June 2010

Figure 6: Frequency of online beauty research versus other categories—women, June 2010

Research paths and directions

Figure 7: How consumers research beauty purchases, by gender, August/September 2010

Figure 8: Reasons women seek and share beauty information

Figure 9: Top five sources women rely on for cosmetics and personal care info.

Social networking and media

Social media give marketers direct feedback

The perfect promotional vehicle

Figure 10: Beauty e-tailers with the highest social media engagement rates, November 2010

Social media ROI

Figure 11: Social media metrics used by B2B & B2C firms, August 2010

Social media strategies by brand

Sephora

AXE

Estée Lauder

Burt’s Bees

P&G’s multi-pronged initiative

Social media, the perfect medium for startups

Specialized social media

Specialty Facebook beauty pages

Beauty blogs impact purchasing decisions

Walmart’s Moms bloggers

INNOVATION AND INNOVATORS

Mary Kay adjusts to changing times

Trusted brands that know me

Top 15 loyalty leaders

Mary Kay online—Hispanic and rural appeal

Figure 12: Unique visitors—Mary Kay vs. Avon, May 2009-May 2010

Recession-savvy products, site functionality

DIGITAL MARKETING

E-COMMERCE MUST-DO’S

Improved site functionality

BEAUTY SITE STRATEGIES BY COMPANY

Brick/click beauty specialists

Ulta

Sephora

Beauty Central and Beauty Talk

Brick/click chain drug

CVS

Figure 13: CVS’ e-commerce beauty query

Walgreens

Direct sellers

Virtual makeover

E-catalog

Match Department Stores Shades

Consumer direct

Search engine marketing

Figure 14: Strategies employed by U.S. online marketers, June 2010

Figure 15: Value of North American search engine marketing industry, 2004-10

Figure 16: Markets’ preferred search engines, April 2010

SEM and beauty

Site-specific ads increase sales

MOBILE SITES AND APPS

Figure 17: Mobile vs. desktop/laptop shopping habits, April 2010

Figure 18: Mobile cross shopping patterns, May 2010

Which app is best?

All age groups use mobile web

Figure 19: Mobile web audience profile, by gender and age, July 2009

Direct m-commerce

Figure 20: E-commerce revenue via web-enabled mobile phones—U.S., 2009-15

Beauty marketers’ apps and mobile sites

Promotional apps/sites

Commerce-enabled apps/mobile sites

INTERNET BEAUTY PURCHASES

Key points

Bath and shower lead online beauty purchases

Men’s grooming grows

Figure 21: Beauty categories purchased online, by gender, August/September 2010

Age of online purchasers vs. offline popularity by category and age

Baby Boomers and beyond

Figure 22: Beauty categories purchased online, by age, August/September 2010

Low household income groups dominate holiday spending

Figure 23: Beauty categories purchased online, by household income, August/September 2010

ONLINE RETAILERS USED

Key points

Women lead prestige purchases

Figure 24: Online retailers where BPC purchases were made, by gender, August/September 2010

Mass and drug lead for all ages

Figure 25: Online retailers where BPC purchases were made, by age, August/September 2010

Households with higher income lead online purchases

Figure 26: Online retailers where BPC purchases were made, by household income, August/September 2010

Online grocery shopping, by income

Figure 27: Online grocery shopping, by household income, 2010

Preferred beauty sites, by region

Figure 28: Online retailers where BPC purchases were made, by rural/urban status, August/September 2010

INITIAL OR REPEAT PURCHASES?

Key points

Replenishment

First-time purchases

Gifts

Figure 29: Initial or repeat purchase, by category, August/September 2010

Facial skincare

Anti-aging

Men’s skincare

Figure 30: Facial skincare purchased online, by gender, August/September 2010

Facial skincare by age

Figure 31: Facial skincare purchased online, by age, August/September 2010

REASONS FOR NOT MAKING ONLINE PURCHASES

Key points

Respondents prefer in-person shopping

Figure 32: Reasons for not making online purchases, by gender, August/September 2010

Don’t want to share credit card information

Figure 33: Reasons for not making online purchases, by level of education, August/September 2010

ONLINE SHOPPING ASSOCIATIONS

Key points

Phrases associated with online shopping

Figure 34: Associations with online shopping, by gender, August/September 2010

ONLINE SHOPPING—THIS YEAR VS. LAST YEAR

Key points

Spend remains the same

Figure 35: Online purchases—this year vs. last year, by gender, August/September 2010

Shoppers aged 18-34 plan to spend more this year

Figure 36: Online attitudes—this year vs. last year, by age, August/September 2010

Buying higher-priced items—this year vs. last year

Figure 37: Attitudes towards buying higher-priced items—this year vs. last year, by gender, August/September 2010

Buying items on sale—this year vs. last year

Figure 38: Buying items on sale—this year vs. last year, by gender, August/September 2010

Younger respondents buy on sale

Figure 39: Buying items on sale—this year vs. last year, by age, August/September 2010

Higher household incomes bought on sale

Figure 40: Buying items on sale, by household income, August/September 2010

RACE AND HISPANIC ORIGIN

Key points

Categories purchased online, by ethnicity

Figure 41: Beauty categories purchased online, by race/Hispanic origin, August/September 2010

Types of online retailers preferred, by ethnicity

Figure 42: Online retailers preferred, by race/Hispanic origin, August/September 2010

Research and purchasing habits

Figure 43: Research and purchasing habits, by race/Hispanic origin, August/September 2010

Hispanics’ online research habits

Figure 44: The internet’s role in Hispanics’ pre-purchasing research, 2010

APPENDIX—TRADE ASSOCIATIONS


Abstract

For a branded e-tailer looking to make a statement in upscale, black beauty products, the market is ripe with opportunity. Outside of a handful of major names, few large, high-end e-commerce companies target this highly fragmented market.

Sally Beauty, Carol’s Daughter, and Sephora are part of the minority that do reach out to black consumers. But the lion’s share of the online ethnic beauty business is done by mass, drug, prestige department store and supermarket sites. Some, like walgreens.com, feature far more products online than in stores (beauty or otherwise). But offerings still do not approach the depth of selection found at an ethnic beauty specialty store. This predominantly mom-and-pop channel comprises 47% of the offline ethnic business in haircare alone, indicates the Mintel report Black Haircare—U.S., August 2010.

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