Australian women rate value for money as most important feature when buying cosmetics; Product reviews influence 80 per cent of Aussie shoppers; Inter Parfums acquires Kate Spade license; and German beauty market reaches AUD$21.91 billion.
Australian women rate value for money as most important feature when buying cosmetics
It's easy to be misled by hype, especially when it comes to the main reasons Australian women buy cosmetics. According to Roy Morgan Research, 62 per cent of Australian women surveyed tapped value for money as the most important feature during their path to purchase of beauty products. Achieving a natural look came second (49%), followed by not tested on animals (48%), sun protection factor (42%) and quality brand (39%).
The real shock factor emerged via the benefits and claims mentioned by the fewest women who regularly purchase cosmetics. Only 9 per cent rated "achieving a glamorous look", followed by packaging (6%) technologically advanced (5%) and advertising (4%).
Age is a major dividing line for the most sought-after claims and benefits. Among Gen Z respondents aged 18 to 24, over 65 per cent ranked value for money as the number one attribute they looked for. They also placed more significance on quality brands, long-wearing and oil control benefits.
Younger women and girls are more concerned than older age groups about animal testing and proven benefits and were more likely to seek a wider range of colours and glamour look makeup. Because so many Gen Zers are keen to learn new techniques and what suits them best, the research also revealed that that they are more receptive to advertising, recommendations from makeup artists and place a high value on word-of-mouth advice from friends and family.
Older generations have usually achieved cut-through over the years when it comes to beauty advice and know what they want or need. Australian women aged 50 to 64 are the most interested in hypo-allergenic products. While those aged 35 to 49 value sunscreens higher than other age groups. In another surprise, women aged over 65 cared the most about products being made in Australia, in addition to seeking more anti-ageing and moisturising benefits.
Product reviews influence 80 per cent of Aussie shoppers
There's a lot of money in mining data. Early last year, Bazaarvoice, the digital marketing company that bills itself as the world's largest shopper network, was acquired by US investment firm Marlin Equity Partners in a deal worth US$521 million. The company has offices in the US, Europe and Australia and is a major supplier of software to thousands of brands to display product reviews online.
According to a new survey from Bazaarvoice, more than 80 per cent of Australians revealed that they looked for product reviews before making a purchase. A huge 40 per cent said that the most important takeaway was knowing what other customers think of a product. That doesn't mean people are good at spotting fake reviews, though. Only 16 per cent reported feeling confident about their ability to identify a fake review and 22 per cent said they were unable to tell the difference.
Forget those headlines from the UK that claim that a dress or coat sold out after being worn by the Duchesses of Cambridge and Sussex. Only 5 per cent of Australians surveyed said they would buy a product if they saw it on a member of the royal family. Aussie men are most influenced by bloggers and sportspeople, while women are more receptive to bloggers and models. But both sexes paid the most attention to "people like us" rather than influencers.
Inter Parfums acquires Kate Spade license
Back in 2014, Coach - now Tapestry - bought the Kate Spade brand for US$2.4 billion with the goal of turning it into a multi-luxury brand. The stable of Inter Parfums, the international fragrance maker, includes the Jimmy Choo, Guess, Montblanc, Dunhill, Rochas and Coach fragrance licenses. Kate Spade will join the distinguished lineup after the signing of an 11 year exclusive worldwide fragrance license agreement.
The deal gives Inter Parfums the rights to create, produce and distribute Kate Spade fragrances and related products in travel retail, department stores and speciality stores worldwide. The first juice will debut in the Northern Hemisphere Autumn next year. Kate Spade has strong positions in the US and South America as well as a presence in Asia, says Jean Madar, chairman and CEO of Inter Parfums. "We are convinced of its potential as an international brand".
German beauty market reaches AUD$21.91 billion
The German beauty market has been the number one cosmetics market in Europe for years, ahead of France, the UK and Italy. According to a new study from the French trade office, beauty and personal care revenues in the German market have reached 13.563 billion euros (AUD$21.91 billion).
Of particular interest to Australian natural brands is that Germany is also the number one natural and organic beauty market in Europe. Over the past few years, an increasing number of Australian brands, including Nude by Nature, KORA Organics, Lanolips and Evolis Professional, have debuted in Douglas, the German-based cosmetics and perfumery chain that ranks as the largest in Europe with 1900 stores in 19 countries.
Germany is also the second largest producer of cosmetics and skincare in Europe after France with 6.1 billion euros (AUD$9.85 billion) in sales. Apart from the major multinationals such as Beiersdorf (maker of Nivea), Henkel and Schwarzkopf, local producers of natural cosmetics such as Lavera, Dr Hauschka, Weleda and Logocos Naturkosmetik, acquired by L'Oréal last year, have significant market shares. The natural beauty sector in Germany has an 8.5 per cent market share of overall sales worth i.185 billion euros (AUD$1.91 billion).
In spite of its number two status as a manufacturer, Germany imports close to 7 billion euros (AUD$11.3 billion) worth of cosmetics, fragrances and beauty products a year The premium beauty market is growing and has increased to 3.834 billion euros (AUD$6.19 billion), offering Australian niche brands a potentially lucrative opening.
Snippets form the Wires
- J-Beauty first made an assault on overseas markets in the 1970s. Kao Corporation launched the upmarket Sensai skincare brand in Europe 40 years ago. With the prestige skincare market booming in Asia, the Japanese personal care titan is launching Sensai in its home market of Japan later this year and heading to China next year.
- Hong Kong-based Regent Pacific is an investment company which specialises in bio-pharma and life sciences investments. The company has acquired Yooya, the first e-commerce platform to focus on CBD (cannabidiol) products in Asia, for US$15 million. Analysts estimate that the CBD category in China could reach US$15 billion by 2024 and most purchases will be made through e-commerce. Yooya has 1.7 billion monthly page views and is the optimal springboard.
- Chinese tourists are the world's highest spending duty-free shoppers. South Korea has been a major beneficiary, especially in cosmetic sales. The first on-arrival duty-free shops opened in Seoul's Incheon International Airport last week. The strategy will increase the limit an international passenger can purchase in the country's duty-free outlets from US$3000 to US$3600. Korean-made products will have priority in the new on-arrival shops.
