Australians to fork out $48.1 billion in Christmas spending spree, Australia tops global rankings of cross-border shoppers, Mintel fingers six major trends to impact beauty in 2017, and top 10 global pure play beauty and personal care companies.
Australians to fork out $48.1 billion in Christmas spending spree
This week - November 15th, to be precise - marks the start of the traditional Christmas trading period, even though festive decorations have been in the shops for weeks. The Australian Retailers Association (ARA) and Roy Morgan Research estimate that annual Christmas spending will rise 2.3 per cent this year to $48.1 billion.
The two organisations have solid form, accurately predicting last year's Christmas spend of $47 billion. "We have been seeing sales trending up and are hopeful as Christmas approaches to see robust sales over the period, with particular categories expected to go gangbusters," says ARA executive director, Russell Zimmermann.
Food, hospitality, clothing and shoes will be the big ticket items, and the biggest shopping period of the calendar year will be the week before Christmas. NSW is predicted to lead the way with a Christmas spend of $15.49 billion (up 3%), followed by Victoria at $12.03 billion (up 2%) and Queensland at $9.48 billion (up 2.6%).
South Australia is expected to see the biggest spike of 3.7 per cent to $3.15 billion, followed by Tasmania - up 2.8 per cent to $952 million and the ACT - up 2.7 per cent to $870 million. WA is expected to flatline in contrast to the Christmas period last year at $5.34 billion, with only marginal growth of 0.2 per cent in the Northern Territory to $494 million.
Australia tops global rankings of cross-border shoppers
It's a tie between Australia and Singapore for the title of world's most enthusiastic cross-border shoppers. In a global survey across 13 countries by Pitney Bowes, the US e-commerce solutions provider, 86 per cent of Australians and Singaporeans shop on international online sites outside their respective countries. In contrast, only 45 per cent of Americans have pressed "buy" on overseas sites.
Millennials are the most likely to shop across borders, with 90 per cent of those aged 18 to 34 purchasing abroad regularly. But older demographics aren't far behind - 35 to 44 years olds (89%), 45 to 54 year olds (84%) and over-55s (82%).
There's a silver lining for local online retailers though, says Pitney Bowes. Globally, 63 per cent of cross-border shoppers make in-store purchases when they are overseas, and then follow up online with brands and retailers when they return home. More than seven million international travellers visited Australia during the 2015/2016 financial year, and there has been a huge increase in the number of Chinese tourists. In the survey, 84 percent of Chinese cross-border shoppers said they revisit a retailer online after a trip abroad.
Mintel fingers six major trends to impact beauty in 2017
January is the month when a torrent of trend predictions score major headlines in print and online media. Researcher Mintel has got in early with a bit of crystal ball gazing, pinpointing the six major trends that will have a major impact on the global beauty industry next year.
Anti-acne African black soap and the increasing use of shea butter will make consumers more Afro-centric in 2017, says Richard Cope, Senior Trend Consultant at Mintel. The continent is also poised to become a major area of sales growth because of its high percentage of young people and fast-growing middle class, he adds.
Anti-pollution skincare and makeup will also stay top of mind for consumers. "Beauty brands are already in the vanguard of the pollution protection industry, and we can expect an increase in product claims, as well as more campaigns that show just how bad pollution is for hair and skin," adds Cope.
Giving back and sustainability will remain a white-hot trend for consumers and retailers. According to a UK survey, 20 per cent of British consumers now expect major multinationals to play a bigger role in helping under-privileged communities.
Don't expect the pace of life to slow down, says Catherine Cottney, manager of trends at Mintel. The digital revolution will continue to intensify consumer impatience, she says. "Retailers can introduce happy hours and countdown discounts in response to everything from the weather to political or cultural events to engage consumers through some unscheduled serendipity".
Contactless cards, smartphones and wearables will continue to spur sales, says Mintel. Streamlined payment methods will allow brands and retailers to focus on creating a more unique shopping experience for their customers.
Apps such as SnapChat and WhatsApp will be key in improving customer service online, says Cottney. "Brands will be able to instantly deal with complaints and queries using these forms of technology rather than relying on manned social media platforms."
Top 10 global pure play beauty and personal care companies
When you take out haircare and include only cosmetics, fragrance and personal care items, the global top 10 looks marginally different and sales aren't as colossal for many multinationals. Next year will look very different as Coty transitions to a $US10 billion company, and will fly up the list from its current number 14 ranking to number three or four as P&G shifts downwards.
1) L'Oréal - $US27.6 billion
2) Unilever - US$22.3 billion
3) Procter & Gamble - US$18 billion
4) Estée Lauder - US$11.3 billion
5) Colgate-Palmolive - US$10.7 billion
6) Johnson & Johnson - US$7.1 billion
7) Shiseido - US$6.3 billion
8) Beiersdorf (Nivea, La Prairie) - US$6 billion
9) Kao - US$5 billion
10) LVMH - US$5 billion
Snippets from the wires
- Japanese heavyweight Kao (owner of John Frieda, Biore, Molton Brown etc) has opened a new Beauty Research and Innovation Centre near Tokyo. The main goal is to deepen the understanding of the psychological benefits of using cosmetics.
- It comes as no surprise that 46 per cent of Australian shoppers never pay full price for anything. The Commonwealth Bank's third annual Retail Insights Report, also reveals that 77 per cent of consumers are impulse buyers and one of the major triggers are the magic words - 25 per cent off. Of equal importance, shoppers who claim to be brand loyalists really do believe that brands lose their appeal when they are regularly discounted.
- When the term dermo-cosmetic comes up, most people think of major French brands such as La Roche-Posay and Avene. In a bid to grab a slice of the $US16 billion global dermo-cosmetic market, Korean giant LG Household & Health is launching a new brand with a French-sounding name - Dr Belmeur - to be sold through The Face Shop chain which also operates in Australia.
- Beaute Prestige International, Shiseido's major fragrance arm, will change its name to Shiseido Fragrance Centre of Excellence from January 1st. Over the next five years, BPI is looking to nearly double its share of the global fragrance market to 9 per cent, with a lot of help from its new recruit - Dolce & Gabbana.
