E-Commerce: The Transformation of Home Shopping in Personal Care

0.0 HOW TO USE

• 0.1 DEFINITIONS
• 0.2 EXCHANGE RATES
• 0.3 RESEARCH METHODOLOGY

1.0 EXECUTIVE SUMMARY

2.0 OVERVIEW

• The divisions between home shopping and store retail are being transformed
• Home shopping companies have always spread operations across different channels
• Increasing competition has promoted the diversification of retailing
• Many companies now operate both home shopping and store retailing
• The Internet is most widely used for information purposes
• The launch of drugstore.com has raised the profile of e-shopping among competitors
• Manufacturers are beginning to sell directly to consumers via the Internet
• Conventional home shopping operators will face unprecedented competition
• Home shopping companies have potentially global catchment areas
• All home shopping operators need a wider consumer cross-section
• Per head expenditure is consistently higher for store retail than for home shopping

3.0 HOME SHOPPING DISTRIBUTION

• Companies need to broaden and publicise customer services
• Companies do not fully exploit the range of communication channels
• Long-established companies restrict themselves with distributor arrangements
3.1 POINT OF PURCHASE
• The benefits of in-store point of purchase vary between brands and products
• Clear corporate signage is vital to identify and differentiate the brand or product
• In-store three dimensional marketing is popular for global brands
• Packaging remains the most important form of three dimensional marketing
• Sampling is an important factor in product purchase
• Different forms of customer service play a role in all in-store purchases
• The shopping experience is continually changing
• Consumers' service requirements are partially met by home and in-store purchase
• Home Shopping companies need to more closely mirror the in-store buying process
• Home shopping channels already use point of purchase devices
• Home shopping companies offer refunds to attract experimental purchases
• Product sampling could enhance the home shopping buying process
• Product sampling is offered by relatively few home shopping companies
• Prestige brands already rely on home sampling to increase product sales
• Product sampling services would encourage experimentation and add-ons
• Product sampling offers wider marketing benefits
• The costs of improving the purchasing process would be offset by increased sales
3.2 DELIVERY
• Delivery territories restrict the growth of home shopping
• Delivery times must reflect the convenience and internationality of home shopping
• Opening hours also need to reflect the strengths of home shopping
• Twenty-four hour staffing could be exploited for international sales
• Home Shopping cannot fully re-create the social dimension of shopping

4.0 CHANNEL PROFILES

4.1 DOOR TO DOOR
• Door to Door selling is still the largest type of home shopping
• Leading companies are seeking to change the image of door to door sales
• Home shopping development strategies differ between countries
4.2 MAIL ORDER
• Mail order has become a significant global home shopping channel
• Catalogues are widely used to target new consumer groups
• The Internet may restrict the future growth of mail order
4.3 HOME PARTIES
• Home parties provide a cheap form of product distribution
• The coverage of home parties varies significantly between regions
4.4 INTERNET
• Advertising/ branding
• The Internet was valued as a non-sales environment
• The Internet is particularly suited to the dissemination of product information
• Consumers are more receptive to company information on the Internet
• E-commerce is seen to conflict with the information purposes of the Internet
• Corporate
• Market research
• Logging of user information can generate highly specific shopping information
• Stores have traditionally had an advantage in monitoring consumer psychology
• The Internet offers unique market research opportunities for companies
• Personalisation of Internet sites enables companies to track consumers
• Active personalisation generates the most detailed consumer profiles
• Passive personalisation yields subtler information on consumer preferences
4.5 DIGITAL TV
• Digital TV is becoming an important cosmetics and toiletries retail channel
• TV selling necessitates limited product ranges of popular products
• New technology will heighten the interactivity of Digital TV in the future

5.0 E-COMMERCE OPPORTUNITIES

5.1 RETAILING
• Electronic shopping facilities are widely perceived as expensive
• Consumers concern over online security is gradually receding
• Purchasing environments are becoming increasingly advanced
5.2 INTERACTIVITY
• Technology is constantly improving the interactivity opportunities of computers
• Virtual parties and chat rooms could be extended to cosmetics and toiletries sales
• Virtual makeovers are already a feature of advanced cosmetics and toiletries sites
• Virtual salons and spas are a major feature of the Internet
5.3 SERVICE
• Personalised customer details can be accessed for every transaction
• Avatars provide future opportunities for more human virtual sales support
5.4 PROMOTION AND ADVERTISING
• The Internet gives significant opportunities for marketing and signage initiatives
• Banner advertisements an integral part of electronic shopping
• Banner advertisements can also offer immediate purchase
• Mail shots by email are an increasingly popular promotional device
5.5 NEW PRODUCT DEVELOPMENT
• Virtual shopping will exert an increasing influence over New Product
• Development.
• Text is already used as a 'soft sell' device in the design of web sites
• Visual and textual means are used to distinguish cosmetics and toiletries virtually
• Product ranges designed for e-commerce exploit visual and textual selling points
5.6 ONLINE BEAUTY STORES
• The wider coverage of the Internet provides a large market for niche operators
• Professional beauty stores offer discounts to attract consumers
• Drugstore.com has raised the profile of online cosmetics and toiletries retailing
• The regulation of professional beauty stores is currently limited

6.0 WESTERN EUROPE

6.1 FRANCE, OVERALL MARKET VALUES (US$M), 96-98
• France, overall market values (% value), 1996-98
• France, overall market values (US$m), 1999-2003f
• France, overall market values (% value), 1999-2003f
• France, home shopping (US$m), 1996-98
• France, home shopping (% value), 1996-98
• France, home shopping (US$m), 1999-2003f
• France, home shopping (% value), 1999-2003f
• France, home shopping company ranking, 1998
• Markets
• France, fragrance market (US$m), 1996-98
• France, fragrance market (% value), 1996-98
• France, fragrance market (US$m), 1999-2003f
• France, fragrance market (% value), 1999-2003f
• France, fragrance home shopping (US$m), 1996-98
• France, fragrance home shopping (% value), 1996-98
• France, fragrance home shopping (US$m), 1999-2003f
• France, fragrance home shopping (% value), 1999-2003f
• France, haircare market (US$m), 1996-98
• France, haircare market (% value), 1996-98
• France, haircare market (US$m), 1999-2003f
• France, haircare market (% value), 1999-2003f
• France, haircare home shopping (US$m), 1996-98
• France, haircare home shopping (% value), 1996-98
• France, haircare home shopping (US$m), 1999-2003f
• France, haircare home shopping (% value), 1999-2003f
• France, skincare market (US$m), 1996-98
• France, skincare market (% value), 1996-98
• France, skincare market (US$m), 1999-2003f
• France, skincare market (% value), 1999-2003f
• France, skincare home shopping (US$m), 1996-98
• France, skincare home shopping (% value), 1996-98
• France, skincare home shopping (US$m), 1999-2003f
• France, skincare home shopping (% value), 1999-2003f
• France, make-up market (US$m), 1996-98
• France, make-up market (% value), 1996-98
• France, make-up market (US$m), 1999-2003f
• France, make-up market (% value), 1999-2003f
• France, make-up home shopping (US$m), 1996-98
• France, make-up home shopping (% value), 1996-98
• France, make-up home shopping (US$m), 1999-2003f
• France, make-up home shopping (% value), 1999-2003f
• Channels
• France, door to door home shopping (US$m), 1996-98
• France, door to door home shopping (% value), 1996-98
• France, door to door home shopping (US$m), 1999-2003f
• France, door to door home shopping (% value), 1999-2003f
• France, mail order home shopping (US$m), 1996-98
• France, mail order home shopping(% value), 1996-98
• France, mail order home shopping (US$m), 1999-2003f
• France, mail order home shopping(% value), 1999-2003f
• France, Internet home shopping (US$m), 1996-98
• France, Internet home shopping (% value), 1996-98
• France, Internet home shopping (US$m), 1999-2003f
• France, Internet home shopping (% value), 1999-2003f
• France, other home shopping (US$m), 1996-98
• France, other home shopping (% value), 1996-98
• France, other home shopping (US$m), 1999-2003f
• France, other home shopping (% value), 1999-2003f
• As above for:
6.3 GERMANY
6.4 ITALY
6.5 RUSSIA
6.6 SPAIN
6.7 UK

7.0 NORTH AMERICA

• Regional features
7.1 CANADA
7.2 US

8.0 ASIA-PACIFIC

• Regional features
8.1 AUSTRALIA
8.2 CHINA
8.3 JAPAN

9.0 CONCLUSIONS

10.0 FORECASTS

11.0 APPENDIX 1 -CORPORATE PROFILES

11.1 AVON
• Corporate History
• Financial Highlights
• Product Portfolio
• Distribution
• Market Opportunities
11.2 DRUGSTORE.COM
• Corporate history
• Product Portfolio
• Distribution,
• Market Opportunities
11.3 VIRGIN VIE
• Corporate History
• Product Portfolio
• Distribution
• Market Opportunities