THE UK BEAUTY mARKET Foreword Executive summary BEAUTY SALES TRENDS IN THE UK Cosmetics and Fragrance Skincare Haircare 1 2

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1 1 .FoREwoRD In April this year. and haircare and styling. the following document outlines the key trends L’oréal anticipates will drive the UK beauty industry in 2010. Drawing on this research. The trends are based on the latest market research. sales information and consumer behavioural analysis. providing factual and empirical evidence of the impact the current economic climate was having on consumer shopping habits in the UK beauty industry. The report splits the trends according to the following categories: cosmetics and fragrance. L’oréal published the first UK Beauty Barometer report. skin care.

pre-purchase advice to ensure they buy products that best meet their needs • Key innovations in beauty in 2010 and beyond will come from advancements in genomics (the study of genes in the skin). discerning consumers will continue to shop around for the best products and therapies and are increasingly seeking specialist. by embracing personal creativity and experimentation. they are outpacing lipstick and lipgloss sales by 13 percent (Source: AC Nielsen. L’oréal found that as the recession took hold. established brands which represent value for money and which offer accountability in terms of product claims • Faced with financial pressure. In 2009. as consumers experiment with their appearance and embrace a bolder. more dramatic look • Conscious of their budgets. However.ExECUTIvE SUmmARY • women will continue to use cosmetics to cheer themselves up and to help them face the pressures of prolonged economic uncertainty • In April 2009. October 2009) • The notion of escapism will drive consumer purchasing habits in 2010. New research indicates that sales of foundation will continue to remain strong in 2010 – at present. research by L’oréal discovered that a “Foundation Factor” had replaced the “Lipstick Index” as a new economic indicator. consumers are choosing trusted. proteomics (the study of proteins in the skin) and stem cell research and their ability to provide highly-tailored products which best respond to individual’s skin age to slow the ageing process • Cost-conscious consumers will look for products which offer integrated application tools to ensure maximum effectiveness • Strong demand in the women’s market for lightened hair will continue to drive the market for hair colourants both in the salon and at home 2 2 . women were four times more likely to choose natural looking make-up than they were to wear brighter colours. as consumers look at ways to escape the pressure of rational consumption. latest research confirms that bolder colours are beginning to replace the nudes. as consumers drive a backlash against recession • The market for false lashes and false lash effect mascaras is also growing rapidly.

14 hour hydration and a dewy finish. This trend became very evident at the start of the economic downturn and is set to continue in 2010 because women are still seeking a groomed. However. **Source: AC Nielsen. this trend is set to continue in 2010 as women opt for foundation that maintains a flawless complexion and hides the effects of stress and money worries on the skin. refined look. resulting in luminous looking skin that controls shine in all the right areas. as consumer confidence begins to improve. (*Source: Internet MR. which unlike mattifying powders. poll of 1000 women in Dec 08 & Feb 09 – Asked which one product women could not live without. L’oréal paris will launch Matte Morphose its first foundation formulated with mati-Crystal technology. Latest research by L’oréal confirms that the market for foundation has since grown six times faster than the overall cosmetics market – sales of foundation are now outpacing lipstick and lipgloss sales by 13 percent in the mass market**. “In times of stress.CoSmETICS AND FRAGRANCE Foundation factor In April 2009. making her feel less vulnerable and more in control. Dream Cream promises to encapsulate Spring/Summer catwalk trends for make-up in 2010. anxiety often manifests itself on the skin. research by L’oréal discovered that a “Foundation Factor” had replaced the “Lipstick Index” as a new economic indicator. In February 2010.” Lucy Beresford. and so a flawless complexion can boost a woman’s confidence. offering 100% baby-smooth perfection. 52 weeks ending October 2009) According to leading psychotherapist Lucy Beresford. L’oréal anticipates growing demand for foundations that provide a more luminous look. The popularity of foundation soared across all sectors and age groups and was considered to be the one “must-have” product that women wanted*. At the end of 2009. 26 percent selected foundation (lipstick 25 percent). maybelline New York launched Dream Cream foundation for women prone to dry skin and for whom a mattifying finish is not an option. allows light to pass through it. leading Pyschotherapist 3 3 .

at shu uemura sales of false eyelashes (prices start from £12) represent more than 30 percent of the brand’s business in Selfridges and is growing at 60 percent like-for-like. L’oréal paris introduced Renewal Lash Serum mascara in 2009. with a focus on personal creativity will return to the top of the agenda in 2010 as women experiment with their style and appearance. Kiehl’s and Biotherm Growing demand for more dramatic looking eyes is also driving the market for false lash effect mascaras and mascaras offering dramatic styling.wgsn. or growth phase. Epos YTD week 50 2009). Based on studies by L’oréal Research on the mechanisms that determine eyelash growth cycles. General Manager shu uemura.CoSmETICS AND FRAGRANCE Personal creativity and false lashes According to a study by wGSN. The lash serum now sells one unit every minute. (www. 4 . Capitalising on the anti-hairloss technology developed by L’oréal’s haircare divisions. and are popular with women and girls alike! Our in-store make-up artists also offer complimentary lash applications. In 2010 maybelline New York will launch Falsies mascara as an extension of the UK’s number 1 selling Volum’ Express range offering the mass market ‘instant false lash glam in a tube’. while Lancôme’s Hypnôse mascaras have experienced a 27 percent sales growth year on year (Source: L’Oréal sales data. making them simple to use and perfect for a quick pre-party fix.” Amandine Ohayon. “False lashes are a fun and easy way to experiment with your look. Sales of Yves Saint Laurent’s False Lash Effect Volumizing mascara are up seven percent (year to date). suitable for every occasion. without breaking the bank. Our lashes come in a variety of styles. confirming that consumers want quality items that will deliver on their promise by drawing on proven scientific research. they could prevent lash loss during the telogen phase (the point at which hair/lashes are shed) and provide optimal conditions for lashes to re-enter the anagen. researchers established that by nourishing the lashes. The market for false eyelashes is one such market which continues to grow. The result is the creation of a thicker ‘fringe’ of lashes.

” Julie McManus. women were tending to opt for more natural looking make-up (Source: Internet MR. despite only being launched in August 2009 (Source: L’Oréal sales data). However. playfulness and freedom of expression. L’Oréal’s Scientific Director in the UK and Ireland Boldness is back In early 2009 L’oréal also found that as the recession took hold. poll of 1000 women in Dec 08 & Feb 09 – over a third (41%) of women opted for a pared-down. while one in eight (12%) experimented with brighter colours). leading Pyschotherapist 5 .CoSmETICS AND FRAGRANCE “For the past twenty years. Since it was launched in october 2009. “In the run up to Christmas women want to enjoy the excitement of the season with a dramatic assertion of their femininity. L’Oréal has been working towards understanding how hair and skin work. Rouge d’Armani has fast become one of the brands top sellers. We were able to establish that scalp hairs and eyelashes are composed of the same proteins. which meant that the technologies that we had developed for hair are transferable to eyelashes. Dark lipsticks are rising in popularity and demand for deeper. L’oréal has observed a resurgence in the demand for more dramatic looks and darker shades.” Lucy Beresford. Our most recent work focused on comparing the hair fibres on the head with those that form the eyelashes. accounting for 12 percent of sales. Sales of Lancôme’s L’Absolu Rouge lipstick have also increased 17 percent over the last year. The Fatal Red shade of maybelline New York’s Color Sensational lipstick is the most popular shade in the range. By accentuating the feminine features of eyes and lips in bold colours. false eyelashes and dramatic mascaras. as economic difficulty became certain and consumer confidence began to plateau. the caution evident during the recession is being trumped by escapism. natural look as a direct result of the economic climate. more dramatic shades are replacing the discreet colours and neutral shades of early 2009.

In the climate we face today. such as two-in-one face washes which experienced a 5. “Consumers will continue to respond to innovation. consumers want to get as much as they can for their money and we are therefore looking to provide what they want. 6 . In 2009 Lancôme introduced its first vibrating mascara Ôscillation which pulsates up to 7. poll of 1000 women in Dec 08 & Feb 09). Managing Director. New Roll on True match combines a high performance foundation with an innovative applicator for perfect coverage.000 times per minute to ensure that lashes are coated through 360°. which include L’oréal’s most advanced skincare technology (including Hyaluronic Acid Collagen and pro-xylane) in a range of tropical shades to meet next season’s trend for statement lips. even on difficult areas like the eyes and the sides of the nose. highlighting consumers’ interest in innovative products. with its ergonomic shape. L’Oréal UK & Ireland Multi-purpose products In 2010.CoSmETICS AND FRAGRANCE Integrated application tools L’oréal is working on a number of revolutionary products which incorporate technology-based application tools and expects the market for cosmetic technology to grow quickly in 2010. consumers wishing to keep a closer eye on their purse-strings will look for multi-purpose products such as L’oréal paris’ Color Riche Serum Inside lipsticks. The trend was first spotted by L’oréal in April 2009. were opting for multi-purpose products.” Grita Loebsack. Pulse Perfection. as more products are introduced both in the mass and luxury markets. which will have a positive effect on the market overall.4% increase in sales in the mass-market (Source: Internet MR. which found that consumers looking for new ways to consolidate their beauty budgets. L’oréal paris also introduced Roll On True Match. an innovative new beauty tool for flawless foundation application. maybelline New York is renowned for offering innovative mascara technology and in 2009 launched its first vibrating mascara. the applicator conforms to facial contours. The powerful motor inside generates a 100 micro-pulsations every second. this combination with a patented waved elastomeric brush ensures lashes are perfectly coated from root to tip.

” Thierry Cheval. over a third of full year fragrance sales are made in the four weeks to Christmas (Source: L’Oréal sales data 2008) and affordable fashion brands offering fragrances to be bought alongside their clothes. are expected to profit most this Christmas and beyond. more than ever. as a way of “buying-in” to the brand at more affordable prices. Only the Brave has become L’oréal’s biggest ever fragrance launch and is now the best-selling fragrance in the men’s portfolio (Source: L’Oréal sales data 09). Yves Saint Laurent and Ralph Lauren. “The success of fragrance brands such as Diesel whose heritage lies in unconventional. Managing Director of L’Oréal Luxury Products UK 7 . are looking to fragrance lines. urban fashion. In the premium fragrance market. as consumers look to fragrances to experiment with and upgrade their style at affordable prices. At L’oréal. The introduction of prestige fragrance brands such as Diesel and Stella mcCartney has also created a new trend amongst consumers. who are purchasing fragrance to complement their wardrobes. affordable luxuries. is indicative of consumers’ appetite for high-fashion. launched Diesel Only the Brave fragrance for men. Diesel. In 2009.CoSmETICS AND FRAGRANCE Fashionable and aspirational brands drive fragrance sales this Christmas The fragrance market is also embracing the notion of escapism. known for its alternative and urban fashions. consumers who aspire to designer brands such as Armani. brands which offer aspirational fashion at accessible prices will be the biggest winners this Christmas and in 2010. rather than upgrade them. viktor and Rolf has grown 48 percent YTD and 19 percent like-for-like (Source: L’Oréal sales data 2009). consumers are considering their spend on gifts more carefully. Fragrances have always been a popular gift choice at Christmas but now.

Group Leader of Life Sciences Department. proteomics (study of proteins in the skin) and stem cell research. with one unit sold every two minutes (Source: UK sales data for Lancôme’s Genifique product which launched in march 2009. 52 weeks ending 3. Experimental Dermatology.10. L’Oréal Research. which we know plays a vital factor in youthful-looking skin. “The discoveries which L’Oréal made available this year. Before September. (For further information see: Large scale study of epidermal recovery after stratum corneum removal: dynamics of genomicresponse.” Bruno Bernard.x) The first of these products were introduced on the market in 2009. Lancôme’s Genifique and Biotherm’s Skin Vivo which sold out within six weeks of launch. for the first time. Genifique is now Lancôme’s biggest selling product in the UK confirming consumer appetite for anti-ageing products based on proven science. particularly genomics (study of the role of genes in the skin). one product sold every five minutes). and their ability to provide highly-tailored products which best respond to individual’s skin age to slow the ageing process. L’oréal has developed a way to identify these genes by monitoring the impact of external influences to the skin (such as skin friction and contact with detergents).1600-0625.2009. This has enabled the company to better understand the processes which take place during epidermal recovery. scientists did not know which genes and proteins are responsible for the youthful characteristics of skin.9). Anti-ageing skin creams represent a third of all facial skincare products (Source: AC Nielsen.SKINCARE Scientific innovation Key innovations in skincare in 2010 will come from advancements in scientific research. mark the start of a new and very exciting era for anti-ageing skincare products. However. 8 . Until recently.00976. Understanding and isolating the gene response of skin to external stresses means we can develop products which are proven to improve and accelerate the process of epidermal recovery.1111/j. (2009) DOI:10. Genifique has fast become one of the top-selling luxury skincare products in the UK.

Garnier confirmed that one product now sells every 15 seconds. L’oréal introduced two major product breakthroughs: Lancôme launched Absolue Precious Cells. In 2009. is stem cell technology. its first anti-ageing cream that helps restore the potential of skin stem cells by providing an optimal environment for the stem cells to function. L’oréal was able to identify new active ingredients which would restore the potential of stem cells to perform as effectively as they did in younger skin. L’Oréal UK & Ireland Integrated application tools In 2010. In 2009.SKINCARE A second area of scientific discovery which is set to lead the market for anti-aging skincare products in 2010. L’oréal became the first company to discover that contrary to previous industry thinking. The roll-on offers instant coverage using tinted mineral pigments in the caffeine enriched formula. it is their performance that diminishes. discerning consumers who want to maximise the efficacy of a product will choose products which offer integrated application tools based on technology. vichy also launched Aqualia Antiox with Citrus Polyphenol™ which helps protect stem cells from oxidative stress so that skin remains fresh and radiant and hydrated.” Thierry Cheval. In its advertising campaign. making scientific innovation and proven results critical to our success. L’oréal is working on a number of revolutionary products which incorporate technological application tools and expects the market for these products to grow heavily in next year and beyond. Garnier introduced the Garnier Eye Roll On. the number of stem cells in skin does not decrease with age. 9 . This integration will be taken one step further in 2010 with the launch of Garnier Tinted Eye Roll On. with this knowledge. “Our customers are discerning and want brands they can trust and which are accountable for product claims. the first ever roll-on applicator to massage the eye area and help reduce the appearance of tired-looking eyes. Managing Director of L’Oréal Luxury Products. a 2-in-1 product offering ‘anti-dark circle care’. Using its reconstructed skin model.

on-year. According to mintel. the Consumer Advisory team (0800 458 4848) has experienced a 16 percent increase in consumer enquiries year. innovation and cosmetics will be a significant driving force in consumer trends over the next decade. (*Average improvement in the clinical score given for ptosis after 4 weeks: -11% for the formula alone. versus the concentrated cream alone*. General Manager. UK and Ireland Specialist advice Faced with greater financial pressure. Inspired by professional lifting techniques. -23% for the tool and formula combined. 10 .” Damien Bertrand. it helps to stimulate the skin and encourage natural drainage of the tissues through its pressing and lifting action.) “We predict that the fusion of technology. with a unique 40 point pressure action. brands must work harder to convince customers that their product is fit-for-purpose. consumers are becoming increasingly interested in the contents of their products and how ingredients work. L’Oréal is working on a number of revolutionary products which incorporate technology-based application tools and expects the market for cosmetic technology to grow quickly in 2010. Garnier and Maybelline New York. At L’oréal. consumers will see a shift in the power balance of brands to consumers. the most frequent callers asking for advice on the best products for them and for education about products. as more products are introduced both in the mass and luxury markets. the dual action treatment combines massage and concentrated care.SKINCARE L’oréal paris also introduced its first facial skincare tool Revitalift Pro Contouring System in September 2009. The massaging tool reinforces and complements the toning benefits of the concentrated anti-wrinkle and tautening cream for twice the improvement on jawline sagging.

L’oréal expects this trend to become more engrained in the purchasing cycle throughout 2010.” Denis Donohoe. L’Oréal UK and Ireland 11 . oil hydration levels. melanin and skin ageing and recommended individual skin prescriptions. Active Cosmetics. so that they can provide a personalised. In 2009 vichy and La Roche posay hosted National Skin Health month in association with Boots. At each vichy Skin Health Centre. The roadshow offered free independent skin health consultations to the public across ten shopping centres around the UK. to ensure that consumers were making the best skincare choices for them. sales of pharmacy skincare products will continue to grow. vichy and La Roche-posay are at the forefront of a new derma skincare category within Boots offering free skin health consultations to meet the demand for accessible. as consumers continue to ensure their money is well spent. added value customer service. independent dermatological nurses analysed skin type. helpful advice and guidance from skin health experts. consumers are demanding more specialist advice before making purchases. Managing Director.SKINCARE In department stores and pharmacies. “The recession has made customers much more conscious of buying the right product for their skin type and by informing and providing derma-skincare advisors with the right diagnosis tools. Customers were also given the opportunity to speak with a Boots derma skincare advisor using the exclusive Dermo Analyzer (digital skin analysis tool).

the success of products such as Garnier Nutrisse (which has experienced over 1. so by going blonde.HAIRCARE Scientific research Key trends in hair care in 2010 will also be driven by scientific research and new product innovation. “Blonde hair suggests youth. Blonde is back L’oréal also anticipates a growing demand for natural-looking highlights. women are experimenting more with their look.March 09) The under 24 category is leading this trend and is the age group most frequently buying home hair colourants (Source: TNS Worldpanel – Salon Survey. In September 2009. after multiple applications. especially in the winter months. Garnier will launch two blonde ranges in 2010. particularly in the first part of the year and in run up to the summer months. by using the product’s innovative oil Delivery System.000 salons in the UK. L’oréal paris will be introducing a new Blonde collection under its Excell 10 brand.000 percent* growth for its Shade of the Nation colour) has led to an increase in the number of who are looking for inexpensive ways to update their look and who are experimenting with home hair colourants (Source: TNS Worldpanel – Salon Survey. permanent hair colour called INOA. playfulness and fertility. (*Source: UK sales data Nov 08. At home. one of the greatest benefits of INoA is its ability to return hair to a “virgin” or pre colour-treated state. in spring. leading Pyschotherapist 12 . L’Oréal Professionnel introduced the first ammonia-free. 6 months to March). The product has already been adopted by 3. highlights suggest attractive sun-kissed health. The softer look of blonde hair emphasizes the feminine and. The absence of ammonia means that the application of the colourant is odourless. women are tapping in to an “I-like-to-have-fun” image. and L’oréal expects consumer demand for the product to take-off in 2010. To meet this demand. However. Belle Color Luminous Blondes and Nutrisse Radiant Blondes.” Lucy Beresford. 6 months to March). as more cost-conscious consumers demand treatments which offer greater long-term benefits for hair.

HAIRCARE Women will not compromise on appearance women will continue to visit hair salons as often as they did pre-credit crunch (Source: TNS Worldpanel – Salon Survey. In the last three months alone. more affordable luxuries. rather than splashing out on expensive holidays. We’re observing that women are using their disposable incomes to “treat” themselves with smaller. L’Oréal Professional Products Division 13 .” “In a competitive market. the 25-34 age group saw a 10 percent increase in the number of women paying to have their hair done in salons and a 43 percent increase in the number of women who wanted colour or a perm (Source:TNS Worldpanel – Salon Survey. Managing Director. 2009). 6 months to March). London. confirming the notion that women will not compromise their appearance despite facing greater financial pressure. 6 months to March 2009). a considerable number of hair salons have adopted INOA –proof that salons are looking to breakthrough and innovative products to drive their businesses in 2010 and beyond.” Vincent Mercier. in an effort to promote customer loyalty. salons who adopt the latest products and who upgrade the salon services will reap the biggest rewards. Customer services However. such as blow dries. “Our research confirms that appearance is one thing that UK women will not neglect in wake of the economic downturn. hair colour and styling. L’Oréal Professionnel for example has increased the number of training courses by 18 percent to provide salons with further business skills in customer retention (Source: L’Oréal International Academy. salons must continue to look at new ways to maximise their services and drive revenue. cars and clothes. In fact in 2009.

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