Make-up - Germany - August 2008

Table of Contents

• Issues in the Market
• Definition
• Consumer research
• Abbreviations
• Market in Brief
• Growth continues for a third year
• Efforts to target specific age groups pay off
• The improved economic climate helps higher-margin lines
• L' Oréal powers ahead with a strong media presence
• Although the consumer base is growing, penetration remains comparatively low
• Natural lines to become more prolific
• Internal Market Environment
• Key points
• Strong desire to look attractive
  • Figure 1: Attitudes towards personal appearance and facial skincare in Germany and comparison index, 2007
• Price becoming more important
  • Figure 2: Attitudes towards branding and price in make-up products, 2002-06
• Health and environment take second place to celebrity
  • Figure 3: Attitudes towards cosmetics, 2002-06
• Broader Market Environment
• Key points
• The ageing female population inhibits volume sales
  • Figure 4: Trends in German adult female population, by age, 2003-13
• Increasing female employment drives the market
  • Figure 5: Trends in German female employment, 2002-12
• Favourable economic outlook helps the market grow
  • Figure 6: Trends in German PDI, consumer expenditure and GDP, at current prices, 2003-13
• EU guidelines for product safety
• Who' s Innovating?
• Key points
• France and UK have the highest amount of cosmetics NPD
  • Figure 7: New product launches in make-up, % by country, 2003-07
  • Figure 8: New product launches for make-up in Germany, by top 10 companies, 2007
• Mature beauty
• Targeting teens
• Fuller lips
• Natural and organic...
• ...vs technology
• Bronzing
• Cosmetics on-the-go
• Market Size and Forecast
• Key points
• Sales recovery since 2006
  • Figure 9: German retail value sales of make-up, at current and constant prices, 2003-13
• Sales forecast to grow to 2013
• New formats and caring ingredients
• Minerals
• Anti-ageing crosses over from face care
• Tailored sets
• Designers emerge
• Natural make-up is a growing niche; hi-tech is also a winner
• Prospects
• Anti-ageing trend may not last
• Greater confidence among consumers will help
• Perfumeries will have to adjust
• Natural to continue growth
• Forecast
• Factors used in the forecast
• Segment Performance
• Key points
• Eye make-up takes over a third of cosmetics expenditure
  • Figure 10: German retail value sales of make-up, by type, 2006-08
• Forecast sales by sector
  • Figure 11: Forecast German retail value sales of make-up, by sector, 2009-13
• Eye make-up
  • Figure 12: German retail value sales of eye make-up, by type, 2006-08
• Face make-up
  • Figure 13: German retail value sales of face make-up, by type, 2006-08
• Lip make-up
  • Figure 14: German retail value sales of lip make-up, by type, 2006-08
• Nail make-up
  • Figure 15: German retail value sales of nail make-up, by type, 2006-08
• Market Share
• Key points
• A plethora of make-up brands
  • Figure 16: Brands' value shares of make-up, 2006-08
  • Figure 17: Brands' estimated value shares of make-up, % by segment*, 2007
• L' Oréal Paris increasingly popular, but own-labels now lead
  • Figure 18: Popularity of colour cosmetics brands, 2003-07
• Companies and Products
• Brand map
• Beiersdorf
• Coty/Lancaster
• Dr. Scheller
• L' Oréal
• Procter & Gamble
• Brand Communication and Promotion
• Key points
• Italy devotes the most to advertising make-up
  • Figure 19: Main monitored media advertising expenditure on make-up, by country, 2005-07
  • Figure 20: Share of adspend vs market share, by brand, 2007
  • Figure 21: Main monitored media advertising expenditure on make-up, by brands spending €1 million or more, 2007
  • Figure 22: Top advertised brands, 2007
• Channels to Market
• Key points
• Self-service druggists have the right image
  • Figure 23: German retail value shares of make-up, by outlet type 2006-08
• Grocers revise strategies and bottom out; discounters rise
• Nivea goes it alone
• Naturals go mainstream
• Parties the new trend?
• Perfumeries strong for eye make-up
  • Figure 24: German retail value shares of make-up, by segment, 2007
• The Consumer -- Pan European Overview
• Key points
• Penetration in Germany remains lower than European average ...
• ...as does frequent use
• German women want to be well-groomed
  • Figure 25: Penetration and frequency of using make-up, by women, by country, 2007
• The Consumer -- Who Uses
• Key points
• Loyal users
  • Figure 26: Change in consumer base for make-up in Germany, 2003-07
• Use of make-up strongly dependent on age, employment and higher incomes
  • Figure 27: Use of make-up*, Germany, 2007
• Foundation
  • Figure 28: Most valuable consumers for volume sales of foundation, Germany, 2007
• Blusher/highlighter
  • Figure 29: Most valuable consumers for volume sales of blushers/highlighters, Germany, 2007
• Lipstick/lipgloss
  • Figure 30: Most valuable consumers for volume sales of lipstick/gloss, Germany, 2007
• Eye make-up
  • Figure 31: Most valuable consumers for volume sales of eye make-up, Germany, 2007
• Nail varnish
  • Figure 32: Most valuable consumers for volume sales of eye make-up, Germany, 2007
• Appendix
• Internal Market Environment
  • Figure 33: Attitudes towards appearance and cosmetics, by country, 2007
• The Consumer -- Who Uses
  • Figure 34: Use of make-up*, by demographic sub-group, Germany 2007
• Foundation
  • Figure 35: Penetration and frequency of using foundation, Germany, 2007
• Blushers/highlighters
  • Figure 36: Penetration and frequency of using blushers and highlighters, Germany, 2007
• Lipstick/gloss
  • Figure 37: Penetration and frequency of using lipstick/lipgloss, Germany, 2007
• Eye make-up
  • Figure 38: Penetration and frequency of using eye make-up, Germany, 2007
• Nail varnish
  • Figure 39: Penetration and frequency of using nail varnish, Germany, 2007