Health and Beauty Retailing - Europe - March 2008

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 2007Figure 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, 2005Figure 126: The Netherlands: Direct selling companies specialising in health and beauty products, 2006/07
• 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, 2005-07Figure 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 2007Figure 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 sub-group, November 2007Figure 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 Droguerí 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