November 2015

emma cosmetics and toiletries insights

FACETIME!Image conscious women make the most of their appearance in Australia’s vibrant cosmetics and toiletries market

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Image-conscious Australian women invest heavily in their appearance and personal hygiene. An estimated $4bn is spent on cosmetics, toiletries and personal grooming products in Australia each year,1

contributing to annualised market growth of 2.1 per cent.2

The proliferation of beauty bloggers and YouTube stars has given Australian women more exposure to brands and inspiring looks than ever before. While the cosmetics and toiletries market is still dominated by global mega brands, social media has enabled a host of smaller niche brands to gain attention and market share.

In this extremely fragmented market it’s essential for brands to understand the attitudes of their target customers along with the sources they trust to discover and decide on beauty products.

Interesting trends include:

• Traditional means of information remain important – including magazines and advice from in-store personnel – to young and older women alike.

• The way in which under-30s embrace social media and influencers such as YouTube beauty and style gurus however looks set to become mainstream as this consumer group matures.

• Women under the age of 30 have a comparatively higher interest in beauty products, enjoy shopping for them more and spend more in an average shop on most categories than older women do.

• Better-informed consumers are more discriminating and are responding to the explosion of brand choice.

emmaTM data – which reveals the evolving mindsets, preferences and behaviours of Australians, along with how they respond to trends – sheds light on these developments, the changing face of toiletries and cosmetics users, and how brands can communicate with these consumers.

Hey, good looking!

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1IbisWorld Cosmetic and Toiletry Retailing in Australia Report, July 2015. Annual revenue.2IbisWorld Cosmetic and Toiletry Retailing in Australia Report, July 2015. 2011-16.

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InstaGlam The beauty sector is saturated with information about products, brands and trends. In addition to monthly magazines, now blogs and specialist websites, online videos and social media provide 24/7/365/worldwide news and perspective on the latest beauty and grooming products, style trends and tips for making the most of one’s own assets.

To negotiate this overload, emmaTM data shows women of all ages continue to rely on traditional information sources, though younger consumers are also more open to all forms of communication – provided they feel they can trust the source.

Across the age groups those who use personal or beauty products draw most heavily on advice from family and friends, as the graph on page 4 demonstrates.

Women of all ages also turn to store personnel for credible information. The in-store experience is important because some shoppers need to actually see and sample cosmetics and beauty products before purchasing:

even the most sophisticated website or online tutorial can’t demonstrate how a particular face cream feels on a woman’s own skin or how it smells, or show that a foundation colour is a perfect match.

Once consumers find a product they like however they often look online to repurchase, at which point they can also search out the best price. Younger women are particularly inclined to bargain hunt, as seen in the next section.

In terms of media sources it’s broadly true that older women find traditional channels more useful than social and online in developing their beauty choices, and emmaTM data shows this is particularly so for those aged above 45.

The least attitudinal divergence among women of various ages is in their efforts to keep up to date with the latest developments on beauty products and services. This illustrates the general trend towards looking one’s best.

“...media channels, and the way people use social media in particular, are dramatically affecting

women’s attitudes”

Source: emmaTM conducted by IPSOS Connect (Q4 Partial Database 2014) Sample of all female respondents 14+ who have used any personal/beauty products in the last three months. n=5,508. % of women age groups who agree with the statement. Women who have used any personal/beauty products in the last three months.

When it comes to beauty products Total Women

Age 14-25

Age 26-40

Age 41-55

Age 55+

I keep up to-date on latest developments on products / services

11.7 16.2 11.4 12.0 9.1

I have been influenced by other buyers’ experiences in my purchase decision

22.9 33.6 27.8 21.0 14.3

I encourage others to buy based on my own experiences 18.2 30.1 22.1 16.0 9.9

I like to get information about purchasing experiences of others before I buy

19.7 28.8 20.7 19.1 13.9

I am often asked about my opinions and knowledge on products / services

11.2 17.9 12.2 10.4 7.2

I have posted or shared positive comments about products / services and experiences online in the past

8.5 13.1 7.6 8.3 6.8

I am often the first to buy a new product / service among my family and friends

7.3 11.5 6.8 7.5 5.2

I have posted or shared negative comments about products / services and experiences online in the past

4.5 7.6 3.8 4.4 3.4

% of women age groups who agree with the statementMirror, mirror on the wwwall

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It’s not surprising to see younger women turn to social media and online more than older age groups do, and as these consumers mature, today’s trend looks set to become mainstream as they retain this manner of learning and conversing. The fact that consumers under the age of 30 are particularly likely to be influenced by others; to share their own opinions before purchasing; are still experimenting with new products and looks; and are anxious for feedback and validation certainly feeds into this practice. It also provides an opportunity for brands to reach an inquisitive and open-minded audience.

Online searches are, logically, younger women’s second most-preferred source of information. They are also more inclined to reference product manufacturers’

websites, presumably because researching online is a habit for them. These online searches will often lead to YouTube makeup tutorials and beauty blogs.

Sigourney Cantelo, founder and editor of Beauticate and former beauty director at Vogue Australia, observes: “The proliferation of media channels, and the way people use social media in particular, are dramatically affecting women’s attitudes towards cosmetics, their perceptions of brands, and how they shop for and consume beauty products. With more information immediately available they’re being exposed to more brands more often. As a result women are becoming more savvy about ‘will this product work for me’, along with its ingredients and formulation.”

Advice from family, friends or colleagues

Online searches

Magazines Beauty or personal product manufacturers’

web sites

Television Social Media Information obtained from store personnel either over the phone,

in person or sent by email

Source: Media most useful. emmaTM conducted by Ipsos Connect (August – July 2015). Sample of all female respondents 14+ who have used any personal/beauty products in the last three months. n=36,860

% who agree with the media being most useful

60

50

40

30

20

10

Women 14-29

Women 30-44

Women 45-64

Women 65+

Media most useful for personal or beauty products

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In addition to using a broader range of media to inform themselves and make brand choices, emmaTM data shows women under the age of 30 also have a comparatively higher interest in beauty products, enjoy shopping for them more and spend more on an average visit to the retail counter, too.

This is most likely because they are experimenting and forming their brand choices. Also, many are heavy social media users and the ‘selfie’ culture makes these consumers especially conscious of their appearance.

This may explain why they are 10 per cent more likely than women on average to agree ‘makeup is an essential part of my daily routine’, and claim to care about their appearance more than all other age groups except for women aged 65 and over.

While women under 30 seek out organic products, older women place a higher priority on scientifically proven benefits and are much more inclined to read product labels.

Women of all ages expect value for money from their cosmetics with younger consumers actively seeking out bargains and believing store own-brand products offer equal quality to brand names. Older women – particularly those 65+ – place a higher value on quality than price.

When actually at the retail counter, younger women spend slightly more on an average shopping excursion than their older counterparts on every beauty category aside from fragrances, and spend big on hair care products compared to other age groups too.

Beauticate’s Sigourney Cantelo sees an increasingly well-informed female consumer, describing her as “more aware of trends and out-of-vogue ingredients such as parabens (commonly used as preservatives), sulphates and synthetic fragrances. And because there is so much choice women increasingly look carefully at the ingredients list and choose a product based on it.”

Image is attitude

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Women overall

<25 years

<44 years

30-64 years

45+ years

Seek advice from family and friends

Influenced by others and post online

Online searches is 2nd

highest

Use traditional media, e.g. magazines

Turn to TV and

magazines

Media most useful for personal or beauty products highlights

Source: Media most useful. emmaTM conducted by Ipsos Connect (August – July 2015). Sample of all female respondents 14+ who have used any personal/beauty products in the last three months. n=36,860

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As we have seen there has never been more opportunity to discover and try out new products with the explosive growth in sub-segments of the cosmetics, beauty and toiletries sector: mass market, masstige, ultra-premium, own-label, professional/salon only, natural/organic/sustainable/vegan, Australian-made, artisanal, boutique and cosmeceutical brands are all vying for share of wallet.

emmaTM data shows women are responding to this range of choice and becoming more discerning, establishing brand preferences as they mature.

Essentials rate highly among women of all ages. Everyone shampoos and conditions her hair and takes care of her teeth, although younger women are more inclined to whiten them.

Sunscreen is another must for most women given Australia’s intense sun exposure. While under-30s are most likely to use sunless tanning products older women are more concerned with anti-aging properties.

Hair removal products are particularly popular among women under the age of 25, as are makeup removers and (unsurprisingly) acne wash. Middle-aged women are especially inclined to use serums.

The younger the age group the higher the proportion of women who use any type of makeup, apart from lipstick, which approximately 70 per cent of women use regardless of age.

In terms of brand loyalty, older consumers have always been more so than their younger counterparts who tend to be trialling and establishing their preferences.

Women under the age of 30 are 31 per cent more likely than women on average to experiment with different beauty products and brands. They are also 20 per cent more inclined to agree they like to keep up with the latest trends and 11 per cent more likely to try to look stylish. While brands are important to them, they index slightly lower than older women in this respect.

As Sigourney Cantelo of Beauticate notes: “With age you do settle into what works for you, and that’s cool because there’s a comfort with the brand and, ideally, its performance. Younger women are more experimental, trialling to find out what works best for their skin, and they are more driven by personalities: they follow celebrities, brand ambassadors and influencers and are more open to new things.”

Turn the other cheek

Women 14-29

Skincare $34.77 $29.97 $32.48 $31.39

$38.00 $30.93 $36.57 $35.78

$54.75 $47.58 $55.65 $46.90

$35.90 $28.77 $31.06 $29.46

Make-up

Fragrance

Haircare

Women 30-44

Women 45-64

Women 65+

Average amount spent last visit to chemist

Source: Media most useful. emmaTM conducted by Ipsos Connect (August – July 2015). Sample of all female respondents 14+ who have used any personal/beauty products in the last three months. n=36,860

Source: emmaTM conducted by Ipsos Connect (August – July 2015). Sample of all female respondents 14+ who have used any personal/beauty products in the last three months. n=36,860

Source: emmaTM conducted by Ipsos Connect (August – July 2015). Sample of all female respondents 14+ who have used any personal/beauty products in the last three months. n=36,860

My beauty fix

It’s a habitCategories by age group

Australian women who have used any beauty products in the last three months

Women 14-29

I enjoy shopping for cosmetics 37.5%

53.4%

63.2%

67%

24.7%

58.6%

64.1%

68.8%

20.9%

65.3%

63.3%

73.5%

18.8%

75%

61.6%

76.1%

I always read product labels

Value for money is very important to me regarding cosmetics

Quality is more important than price

Women 30-44

Women 45-64

Women 65+

Bar Soap

NightCream

Lipstick /GlossOral

Floss /pickElectric

Hair Removal

Day FacialMoisturiser

AcneWash

Mascara

Nail Polish

EyeCream

Hair Serum

Women 14-29

Women 30-44

Women 45-64

Women 65+

Hand Cream Hair

Colouring

Sanitary Pad

54.7%57.3%

12.1%

58.5%12%

40.1%80.2%

72.5%

67.7%

33.4%59.3%

15.2%24.8%

39.1%

51.5%

70.6%

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Suncare Make- upRemover

Sources:Ipsos Australia would like to thank Beauticate founder and editor Sigourney Cantelo, whose perspectives helped inform this report.

Australian cosmetics and toiletries consumers are increasingly sophisticated and expect the products they choose to reflect who they are as individuals. Brands that don’t speak clearly to their target audience – both in their positioning and communications channels – will struggle.

“The way media is fragmenting has totally changed the way people are finding those individual products and brands that they see themselves in,” explains Beauticate’s Sigourney Cantelo. “It’s about relating to someone else using a brand in a way that also talks to you and your personality. I don’t think it has to be about pleasing everyone all the time; it’s about pleasing a smaller section of people who become the most devoted fans of the product. More brands are recognising they don’t have to cater to the masses, it’s about being incredibly indispensible to their loyal followers and making sure they reinforce that can’t-live-without feeling through every available communications channel.”

emmaTM data quoted in this short report illustrates women of all ages retain trust in traditional media channels when making their beauty and grooming product choices.

That said, social media will continue to become an increasingly important source of information and inspiration. And as ‘digital natives’ age these new channels will become mainstream, giving brands unprecedented opportunities to engage with a mass market.

Brands also have particular scope to tap into younger women’s relatively higher interest in beauty products, and the fact that they are still establishing their preferences.

Meanwhile, as women become better informed about beauty products they are responding to the range of choice though increasingly discerning.

emmaTM data will continue to track this dynamic sector, providing marketers with current and personal insights as to what drives consideration and purchase of cosmetics and toiletries by Australian women across many age groups and life stages.

My brand

Explore and discoverThe observations and analysis in this short report are based on data from Ipsos’ emmaTM survey. The emmaTM survey is completed by 54,000 Australians per year and is accurately matched to total population across gender, location and demographic variables. Detailed responses are collected across all aspects of consumers’ behaviour online and offline. To find out more or to arrange a tailored presentation for your brand please contact info@emma.com.au or visit emma.com.au.

This report is published by Ipsos Australia. L13, 168 Walker Street, North Sydney, NSW 2060

© Ipsos Pty Limited, 2015. emmaTM is a trademark of The Readership Works. Follow us on @emmainsightsemma insights