[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!