Abstract
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive
environment
Product coverage
Baby care; Bath and shower products; Colour cosmetics; Deodorants;
Depilatories; Fragrances; Hair care; Men' s grooming products; Oral hygiene;
Oral hygiene excl power toothbrushes; Premium cosmetics; Skin care; Sun care
Executive summary
Good performance in 2008 triggered by demand for innovations
The economic slowdown did not have a major effect in demand for cosmetics and
toiletries. The interest in personal care and image are apparent among the
Dutch, who are more willing to spend more for these products. All categories
experienced a better performance in 2008, because of a marked shift towards
more advanced formulae such as longer-lasting effects in colour cosmetics,
more effective ingredients to enhance dental care and options that provide
solutions such as firming in skin care or preventing hair loss in hair care.
Meanwhile, retail prices increased by approximately 10%, due to higher
distribution and production costs.
Dutch males widening the market
Men' s grooming products was once again the star within cosmetics and
toiletries, increasing at above industry growth. Mass-market manufacturers
such as Beiersdorf and L' Oréal are succeeding in increasing usage of less
developed categories such as skin care, while more products for men in hair
care and deodorants are inducing demand for male-specific products. For
example, new formulae, such as Beiersdorf' s Nivea for Men Hair Recharge
incorporates a shampoo and lotion whose formula helps prevent hair loss, were
supported by heavy advertising, which triggered men' s curiosity to try them.
L' Oréal leads and stimulates demand with innovations
Innovations were responsible for 80% of value growth in 2008. Innovations in
mature categories such as hair care and skin care were the key drivers of
growth overall. L' Oréal continued to consolidate its position as leader in
cosmetics and toiletries by introducing innovative formulae and supporting
them with high-profile television and print advertising. The launch of L' Oréal
Excell ' 10, a colourant that colours the hair in 10 minutes, triggered sales
in the stagnant colourants category in 2008.
Supermarkets grow
Drugstores continue to dominate the distribution of cosmetics and toiletries.
However, supermarkets saw steady growth in sales in 2008, as retailers gave
non-food products more attention in terms of display and promotion. Grocery
stores' main challenge is the limited shelf space available for cosmetics and
toiletries, resulting in a smaller assortment offer in comparison to
drugstores. Non-store sales were driven by internet retailing, as more Dutch
people used the internet not only for product information and to compare
prices, but also to buy online.
Manufacturers committed to boosting volume sales in less mature categories
Future growth in cosmetics and toiletries will be hindered by the high degree
of maturity existing in large categories such as hair care, deodorants and
skin care, where high penetration means that in volume terms the market is
unlikely to achieve much growth. Manufacturers will continue to resort to
innovation in order to build value growth, by inducing Dutch consumers to
shift to more value-added products.
Key attributes to shape future innovation will evolve around convenience,
image and health and will be represented by product improvement which focuses
on enhancing personal healthcare or solving a problem. Within skin care,
anti-ageing formulae incorporating the latest technology and innovations aimed
at maintaining healthy and younger looking skin will continue to drive demand.
In hair care, this will be formulae that solve problems such as hair loss. In
colour cosmetics, Dutch women will be attracted to more variety in colour, but
also to longer-lasting formulae and also products incorporating functional
elements such as anti-ageing.
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