Result of the quantitative survey

                         


When it comes to choose its favourite brands among the skincare companies, L'Oréal takes the lead just in front of Nivea with 49% VS 45%. 

44% of voters say that they purchase these brands in mass retailers like Carrefour or Auchan. However selective retailers represent 40% of the overall channel. (for those 2 questions, voters could choose one or several answers)

The category of products where the private labels are the most successul concerns the face-wash goods with 55% of total votes. For this questions voters could also choose several answers. This is why moistorisers and youg skins care are sharing the second position with 41%.

Talking about the monthly average amount spent on skincare product, consumers answered between 11€ and 15€ (38%). Only 9% do spend more than 31% for this kind of products per month.

Among the Internet users that took the survey, 53% of them think that a woman should start using anti-age care not later than 30 years old. Only 3% of them affirm that a woman should never use this kind of skincare.
Last but not least, more than half of the voters (62%) do trust organic cosmetic products VS 37% who are skeptical towards these goods.

[A GREEN BEAUTY]

45% of French households bought a non-food organic product in 2010. 

However, only 26% of French housholds have bought an organic cosmetic product in 2010. This 'green' trend shows that the consumption of these products have high potential for growth. 

The main actors of the skincare market understood this and they all launched a new range: Mixa Bio (June 2010), Garnier Bio Active (September 2010), NIVEA Pure & Natural (November 2010), Diadermine Bio-Expertise (Janvier 2011)

First, let's underline the difference between “Natural” and “Organic”. Many brands always play on the significance of words and use it as a marketing tools.

“The term natural has a broad meaning. According to government labeling requirements, "natural" means that an ingredient has not been significantly altered from its original state, nor has anything been removed from it (with the exception of water), nor have other substances been added to it.”

A product can be called organic if it has certification seals, and eco-labels on its packaging. In France “Ecocert” and “Cosmebio” are the labels you need to certify that your product is really organic. 

You can find below 2 TV ads, one for NIVEA Pure & Natural ( a non-organic product) & one from Garnier Bio-Acitve (an organic product). If this two adds use the same natural background, Garnier emphazises in its certifications.

Diadermine Bio Expertise - the new born of organic face care

The newest range of skincare products is BIO expertise, this is highly effective anti-aging face products based on natural ingredients. The "Laboratoires Diadermine" created this effective anti-wrinkle line with 99% ingredients from natural origin. This skincare line includes the following anti-aging components:

1. Organic Plant Retinyl. This ingredient functions in a similar way as Retinol, it smoothes from inside.  2. Grape Viniferol. Thus substance reinforces the vitality and self-regeneration of cells - for a firmer and younger looking skin.The Bio Expertise range does not contain any paraben, ethanol, synthetic polymers, paraffines, silicones, synthetic colors, synthetic perfumes or any PEG.

So far, Bio Expertise is only available in France.


Source : http://www.ecocert.com/, /www.cosmebio.org/, http://www.cosmebio.org/fr/produit-cosmetique-biologique-ecologique/diadermine-bio-expertise-soin-jour,1922.html , http://www.garnier.fr/_fr/_fr/bio-active/index.aspx?gclid=CKLnqJmij60CFfMntAoduizXXQ, http://www.nivea.fr/Les-Produits/sets/Pure-Natural , http://www.mixa-bio.fr/

[Brands & Social Communities]

Brand community is the term social scientists use to describe like-minded consumers who identify themselves with a particular brand and share significant traits. 

Thomas C. O’Guinn and Albert Muniz  have showed that consumers may organize into these communities to share their experiences of a brand. Consumers who are part of a community demonstrate brand advocacy which is a high level of consumer loyalty, Conversely, consumers in an identifiable brand community represent a cohesive group that reflects the brand’s values.

However, brands also try to organise these communities by enhancing bidirectionnal communication. It's very clear on Facebook or Twitter that the brands are customer-centric and the cusumer is involved. On these sites community managers are asking questions to the brand fans so that they feel heard by their favourite brands. Including consumers in branding leads to value co-creation. 

NIVEA Facebook page

Nivea has their own Facebook page. They have a very interactive page with games, videos and people can put comments on the Facebook page. There is an interaction between customers and the brand. They are also active on twitter but for the their whole product range, not only for Nivea skincare.

L’Oreal also has a facebook page but it’s not only dedicated to skincare products. They  only have a facebook page for L’Oreal revitalift. This website is also quite interactive and proposes some games, offers and gifts for their customers. Vistors also have the possibility to leave comments on the page.

L'Oreal Twitter

Nivea and L’Oreal both enjoy a high brand name awareness. Building a strong brand community is very important in order to create strong customer relationship. That’s why these brands use all the possible mediums to be close to the customer and create deep relationships . With this kind of interaction the customer feel very close to the brand and a link is created. Also via facebook customers exchange tips or comments about the product. 

Garnier Website " Elles en parlent"

Garnier is trying to handle its social image by creating a website dedicated to consumers who want to test their new products. They publish some comments and also several data which are a good publicity for their products. 

 Below you can find some screenshots about the site called "Elles en parlent"

Sources : http://www.terrella.com/bcmarketingwp2.pdf  David M. Kalman (2009)
http://www.garnier.fr
Official Nivéa and L'Oréal Twitter and Facebook pages

[Brand Identity Prisms]

Aaker defines brand identity as: "...a unique set of brand associations that the brand strategist aspires to create or maintain. These associations represent what the brand stands for and imply a promise to customers from the organization members. Brand identity should help establish a relationship between the brand and the customer by generating a value proposition involving functional, emotional, or self-expressive benefits." (Aaker, 1996)

Here are the brand identity prisms of Nivea, L'Oreal and Nivea:

 L'Oreal

 Nivea

Mixa

As a reminder, Kapferer has developed a brand identity prism where he distinguishes a sender and recipient side, plus an externalisation and internalisation side. The 6 identity facets express the tangible and intangible characteristics of the brand:

“Physical facet”: it is the basis of the brand.

“Personality” answers the question: “What happens to this brand when it becomes a person?”

“Culture”: symbolizes the organization and the values it stands for.

“Relationship” is the handshake between the consumer and the organization

“Reflection” is the consumer’s perception for what the brand stands for

“Self-image” is what the consumer thinks of himself

Sources: 

Aaker, 1996

Kapferer, 2007

Brand Stories

2 Brands, 2 Leaders, 2 Stories for one Market.

When it comes to the face care market, plenty of brands come to mind. Two of them, current leaders of the market have written the story of the face care market based on their products, their innovation or their communication strategies. In order to better understand the success of some products, consumer insights and the challenges this market faces we have analysed their stories, their ranges and their strategies. 

Starting from today you can find two new dedicated pages, one for NIVEA & the other one for L'OREAL in order to better understand their histories.

[MANAGING THE RETAIL EXPERIENCE]

[A "DOUCE PARENTHESE"]

When the hygiene & beauty market was still in its golden age in the 2000's, the retail industry didn't want to hear about manufacturer's merchansing operations. After all, why would Carrefour or Auchan have invested more on a market where double-digit growth rates were the rule?

But since the mid 2000's, the market has been weakened by significant rising prices, by complex innovations and a growing lack of clarity of the aisles. Only one or two categories of the hygiene & beauty market are still enjoying a sustainable growth. In a category where 52% of buying acts are decided within the store, something had to be done.

Consequently in mid 2009, NIVEA begun to implement a new merchandising concept called "Douce Parenthèse". According to Jean-François Pascal former marketing director of NIVEA:`

 "Some negative perceptions of the department has appeared thanks to shopper studies such as the assortment complexity. However this department has a real potential as it's one of the only retailer departments where shopper involvment is high" 

The image below shows the original concept and answers according to Véronique Noël (Shopper & Customer Marketing Director) to the main need of skincare shoppers in the retail industry: 

"The main expectation of shoppers is a place where the buying process means pleasure, a place separated from the other departments without being closed, a place that embodies a special athmosphere"

This new merchandising concept is to increase the whole hygiene & beauty business by putting lower volume categories in its centre such as face care (anti-age, moisturisers) compared to shampoos or bathcare. This objective has been reached (+6% of hygiene & beauty sales; +14% for skincare) by creating a clear "well-being" athmosphere where the shopper forgets about its errands and thinks about himself. 


Below you can find some pictures of the Douce Parenthèse concept at Leclerc Osny (95)

Sources: 

http://www.pointsdevente.fr/nivea-ouvre-une-douce-parenth-se-art139716-45.html

http://www.lsa-conso.fr/les-gondoles-se-font-une-beaute,115689

[Touchpoints]

[ When a product meets a woman...]

The expression “Touch-Points” is used by marketers to define the different occasions where consumers interact with a brand and discover what the brand is about. These interactions are collectively known as the customer experience with the brand.

 In shopping for skincare products, touch-points can be grouped into 3 broader occasions: 

Before: press review in a magazine, TV commercials, outdoor communication (billboards…), asking friends with similar needs about their satisfaction with a product, etc.

During: Packaging, POS, asking a sales consultant or professional for advice, using a product tester…

After the shopping experience: using the product, looking for more information on the brand’s webiste… 

Soon: an article on brand community to see another kind of touchpoint: when brands use bidirectional communication to increase thei brand image.

[Customer Insights]

A customer insight represents a deep understanding of customer needs and the drivers of customer behaviour. Customer Insight leads to opportunities for creating solutions that are closely linked to the core drivers of human needs and expectations. They are influenced by factors such as opinions, trends, attitude & values.

The following section displays the customer insights per segment of the skincare market.

Moisturisers:

“ I don’t have much time so I want a moisturizer that hydrates my skin and makes it soft and beautiful ”

Anti-Age:

“ I want my face to look younger,

similar to how I feel ”

Young Skin:

“ I want a facecream that deeply cleanses and softens my skin,

so that I feel more confident”

Face Wash:

“ I want my face wash to protect, clean and purify my skin”

Sources:
avis.sephora.fr
www.beaute-conseils.com
www.testons.com
www.ciao.fr
forum.aufeminin.com
www.journaldesfemmes.com
www.beaute-test.com

[MARKET SEGMENTATION]

There are many way in which the skin care market could be segmented.

In this blog, we have focused on two ways to segment the market:

This first segmentation is based on the relationship women have towards beauty. Does she like to look smart, natural, seductive or is she not that into her looks?

 Another way to segment the market is more focused on another variable, namely the age of consumers. Obsviously the skin needs different treatments & products depending on your age. Here is the classic segmentation based on age.

[MARKET PRESENTATION]

First, let's take a look at the market situation:

As you can see below, the skincare care French market is facing a delicate situation as volumes are still growing while the market value is decreasing, this situation could be explained by decreasing prices.

The face care market doesn't follow the hygiene-beauty market trend: The hygiene-beauty market grew by 1% in 2010, boosted by men care or haircare products. The skincare market however shows a negative trend (-0,9%) but not as much as the bodycare market (-4,2%). The sun care market suffered in 2010 of bad weather conditions but is still growing on a medium-term basis.

 As you can see below, the face care market could be divided in 4 segments, each one answering special needs of French women:

The anti-age segment (most valued segment) represents 43% of market value, followed by washing products (least valued market) that represents 35% of market value

Moisturizing products (13% of MS) & Young Skin products (9% of MS) are the 2 other segments.

Each segment faces different trends: 

Both the anti-age & the washing segments are growing in volume while prices are decreasing; the moisturizing segment is the only one to grow both in value and in volume. Finally the young skin market faces a tough situation with a significant decrease in volume.

Here is a video that summarizes the market description:

All figures are from IRI - 2010 & Datamonitor 

[MARKET INTRODUCTION]

Sometimes, images are more powerful than words.

If you want to know what are the segments our blog is dealing with, just take a look at the video we have shot.

Your Skin Experts

[A SOCIAL MEANING FOR SKINCARE?]

65% of French Women see themselves as pretty 

(79% of 20/24 ; 49% of 60 & +)

62% of French women thinks that in order to be pretty they should be happy first

(69% of 25/34 ; 56% of 60 & +)

25% of French women thinks that in order to be pretty they should first take care of their body

(28% of 15/19 ; 21% of 25/34)

(Ipsos - September 2011)

Body and skincare rituals are expressions of cultural heritage. The habits regarding body and skincare are passed upon generations through childhood socialization. Furthermore, there are several social motivations for the use of skincare products as skincare includes a psychological and social aspect.

The body, and in particular the skin, is regarded as a crucial indicator of oneself in the mind of the contemporary consumer culture. The skin is closely intertwined with the mind as the skin is a representation of the individual. It is a concept of the physical appearance and forms a substantial part of the physical identity. As a result, individuals observe their physical appearance, are conscious about their skin and the reaction of others in their communities.

One of the biggest concerns of consumers, and particularly women, is aging. The concept of aging is increasingly seen as a problematic issue. This is apparent in marketing communications about skincare which present ageing appearances as an issue. These advertisements aim to offer solutions to the ‘problem’ of aging. The target of these communications is primarily focused on women but a newer male market is developing.

All in all, the social meaning of skincare is related to the individual’s body image and the desire to look attractive and be accepted by others. 

Source: http://dcm.sagepub.com/content/1/1/37.short

WELCOME

Dear visitor of askin-experts, 

This blog has been created with the purpose to provide you with up to date information about the skincare market. A special focus has been set on the variety of face care products, their significance and  functionalities for women. We are a team of students aiming to pinpoint crucial success factors when operating in this industry.  

From customer insights to the latest innovations, this blog offers all you need to know. Enjoy!