Growth opportunities in premium personal care are most apparent in Asia Pacific. In particular, double-digit year-on-year growth has characterized the Chinese and Indian premium personal care market from 2002 to 2007. Though starting from a low base, this is indicative of how the emerging markets can help offset difficulties that are likely to be encountered in the next 12-18 months.

Scope

The first in a series of three sector specific reports designed to help FMCG companies capitalize on consumers' desire to trade up
Asia Pacific, Western European and US consumer wealth group data and premium personal care spend data by category and country
A comprehensive analysis of how consumers form their perceptions of what constitutes a luxury/ premium proposition
NPD analysis and detailed recommendations offering practical strategies based on the trends and insights uncovered throughout the report

Highlights

The rise of the so-called global middle class has been a major factor in facilitating trading up (or premiumization) across the globe. From 2002 to 2007, Hong Kong, China, and India witnessed the highest growth in the number of Mass Affluent Individuals. The latter two nations are also showing the most growth in premium personal care products

Perceptions of what is considered to be a luxury/ premium brand are dependant upon five key factors which make up what Datamonitor refers to as the ' Premium Price Index' . By using this as a reference, personal care manufacturers and retailers can show consumers that their goods represent value for money in more than just price

Consumers will increasingly ask questions about what brands/ products stand for and how they match their own values. Basing a campaign around a strong ideological belief held by a target audience can be effective in building brand relevance and increasing shoppers' willingness to pay (WTP) a price premium

Reasons to Purchase

Mitigate the threats posed by an uncertain economic environment by understanding how consumers perceive and judge upscale beauty brands
Access unique consumer wealth and premium personal care data spanning Asia Pacific, Western Europe and the US
Understand the most pertinent opportunities to drive brand and market growth in the personal care sector

Overview
- Catalyst
- Summary
- CONTENTS
Table of figures
Table of tables
THE FUTURE DECODED
- INTRODUCTION: A number of factors are influencing premiumization in personal care
- TREND: Economic conditions and the growing ' mass class' have a major impact on trading up and luxury purchases in personal care
  - Favorable conditions have led to considerable up-trading in personal care among mass market consumers
  - Many countries have seen economic growth but personal care products have not fully benefited
  - The number of high net worth individuals (HNWI) is growing steadily worldwide and is a driving force behind high-end luxury personal care purchases
  - There are more mass affluent individuals but the rate of growth is slower than among HNWI
  - Higher income shoppers are less likely to shop on a budget
  - It is important to not be complacent even if you are targeting core luxury shoppers
  - Key takeouts and implications: a growing economy has facilitated premiumization in personal care, but the current downturn threatens to limit growth
- TREND: The search for value is widespread especially since luxury/premium products have become more accessible
  - Luxury/premium is becoming more relevant to mass-market consumers leading to higher expectations
  - Additional access to better quality products has created a sense of entitlement among many consumers
  - Price-led value is a hugely important factor in purchase decisions and store selection and will become increasingly influential in personal care
  - Bargain hunting gives consumers a sense of satisfaction and increasingly has status value
  - Rapidly declining consumer confidence will further re-enforce the allure of ' good value' but does not necessarily equate to wholesale changes in FMCG consumption
  - Key takeouts and implications: industry players will have to work harder to convince consumers that price premiums are worth it amid a strong desire for good value and declining consumer confidence
- TREND: The importance of image and appearance is a key premiumization driver in personal care
  - Consumers' considerable interest in looking and feeling good is heavily tied to self-esteem enhancement
  - Consumers' interest in looking good is arguably exacerbated by modern society
  - ' Personal branding' and the growing industry supporting this concept exemplifies the emphasis that individuals place on image
  - The growing proportion of individuals having cosmetic surgery, or considering and having cosmetic surgery, reflects an image conscious society
  - Consumers' interest in glamour has assured the longevity of advertising with ' beautiful people'
  - Attitudes to looking good vary by country across Europe, North America and Asia Pacific
  - Key takeouts and implications: image conscious consumers create premiumization opportunities for manufacturers and retailers even in the context of a difficult economic environment
- TREND: Premiumization in personal care is expected to continue to drive market value especially in the emerging markets
  - The recessionary environment will make mid-market positioning even more precarious
  - Emotionally involving personal care categories will see less down trading if recession occurs because consumers will pay more for a product of service that they are passionate about
  - An increase in private label personal care purchases is also expected in the years ahead
  - Consumers are more likely to revert to home personal care solutions products if recession hits
  - The emerging markets will offer protection against potential weaknesses in market performance in developed western markets
  - Consumers already have established patterns of buying premium fragrances
  - Consumers are looking for multiple benefits from make-up products and this has facilitated additional prestige in the category
  - Consumers' trading up in haircare is influenced the growing popularity of professional products
  - Skincare is an emotionally involving category for many consumers and is becoming synonymous with premiumization
  - Premiumization in personal and oral hygiene is less established than other categories
  - Key takeouts and implications: consumers are still willing to spend premiums for products that make them look and feel better
- INSIGHT: Premiumization is influenced by the consumers' emotional involvement with the product and a number of important product characteristics
  - Premium is still a high price related to extraordinary factors perceived and experienced by consumers
  - Consumers are skeptical of the product quality benefits offered by premium/luxury brands
  - Key takeouts and implications: establishing a luxury/premium positioning involves a strong understanding of how consumers perceive brands according to five key criteria
- INSIGHT: Packaging is the most pertinent extrinsic quality cue and can significantly impact consumers' quality judgments of personal care products
  - Color is an important intrinsic and extrinsic attribute shaping consumers' quality judgments
  - Packaging creates and enhances product positioning and creates preconceptions of quality standards
  - Product appearance judgments can also be influenced by the retail outlet from which it is purchased
  - Consumers' perception of ' premiumness' can also be influenced by the provision of product information including word of mouth
  - Numerous examples illustrate personal care brands leveraging ' intrinsic and extrinsic quality' cues to facilitate a more premium positioning
  - Key takeouts and implications: industry players must establish whether the intrinsic and extrinsic quality attributes of brands/products are perceived favorably, especially in comparison to competition
- INSIGHT: How consumers use and experience personal care products has additional weighting especially as luxury becomes ' experiential'
  - The experience of scent is extremely powerful in shaping perceptions and forging an emotional connection with personal care consumers
  - Product efficacy is a vital route to premiumization in personal care
  - Though consumers expect convenience as a matter of course, it can still be a route to premiumization
  - Consumer trends indicate that more emotional rather than material forms of consumption may be emerging as consumers become more pre-occupied by experiences
  - Numerous examples illustrate personal care brands offering ' experience quality' based benefits to facilitate a premium positioning
  - Key takeouts and implications: experience based quality will become even more important in creating a luxury/premium positioning
- INSIGHT: Credence quality influences trust, involvement and willingness to pay for premium personal care products
  - Details surrounding ingredients and production methods are particularly important because of the crossroads characterizing personal consumption trends more generally
  - ' Professional quality' and ' professionally recommended' credentials are linked to efficacy and therefore an enhanced willingness to pay price premiums
  - Alternatives to cosmetic surgery are becoming increasingly credible to attract luxury/premium consumers
  - Regionalism, origin and authenticity form a basis for premiumization in personal care
  - Socially responsible personal care products have the potential to command price premiums
  - Numerous examples illustrate personal care brands offering added value ' credence quality' benefits to facilitate a premium positioning
  - Key takeouts and implications: ' credence quality' reflects myriad consumer trends impacting consumer markets in general, not just in the personal care industry
- INSIGHT: Many consumers will pay more for products satisfying status needs
  - Product conspicuousness is related to two similar but distinct patterns of consumption: ' status consumption' and ' conspicuous consumption'
  - Ethical/sustainability led consumption behavior increasingly has status value
  - The cult of celebrity has imbued many personal care brands with added status and popularity
  - Numerous examples illustrate personal care brands offering status enhancing benefits for appearance and brand conscious personal care shoppers
  - Key takeouts and implications: status conscious shoppers are more willing to pay premium prices so industry players need to understand what status means to a target consumer
- INSIGHT: Uniqueness and specificity is equated with quality and brand cachet as well as the emerging needs of ' Generation C'
  - Premium personal care consumers want products that are unique and evoke a feeling of individuality
  - ' Premium fatigue' is a threat as consumer expectations continually increase in line with market dynamics
  - A commonplace way to ensure uniqueness in any product market is to raise prices
  - Individuals are looking for more customization possibilities and opportunities for self-expression
  - Numerous examples illustrate personal care brands providing unique benefits, especially through personalization/customization benefits
  - Key takeouts and implications: enhancing the exclusivity of certain premium personal care products is another way to encourage consumers to believe in the value proposition on offer
- INSIGHT: Hedonism is a major driver of trading up which means brands must leverage hedonic benefits of personal care product usage
  - Pleasure is highly linked with emotions and emotions are linked to loyalty and WTP price premiums
  - Satisfying personal care consumers' desire for enjoyment and pleasure is best served through multi-sensory marketing tactics
  - Research indicates that consumers associate higher priced products with additional pleasure
  - Consumers may seek to de-stress from financial pressures with premium personal care products
  - Numerous examples illustrate personal care brands providing added sensual benefits to appeal to hedonistic consumers
  - Key takeouts and implications: linking beauty products with escapism and indulgence adds another dimension to products especially in a recessionary environment
- INSIGHT: Consumers are more likely to pay a premium for brands re-enforcing their self identify
  - Consumers' desire to choose products that reflect their self identity is particularly relevant to personal care
  - A consumers' self concept is multidimensional and will be heavily influenced by cultural differences
  - Consumers use natural and ethical personal care consumption as a means to express their values and beliefs
  - Key takeouts and implications: the health and beauty industry is particularly well placed to capitalize on consumers' desire to choose products reflecting their self identity
- INSIGHT: Aging consumers have become important consumers of premium personal care products but premiumization is a trend with broad demographic reach
  - Older consumers have considerable personal wealth which makes them a potentially important target group for premium products
  - Younger consumers are also an important driver of trading up in personal care
  - Key takeouts and implications: the desire to trade up to premium personal care has broad demographic relevance which creates targeting challenges but broadens the market opportunity
ACTIONS
- ACTION: Research to determine how much of a discretionary purchase your brand is and make preparations in recognition that some people are currently trading down
  - Use Datamonitor' s Premium Price Index to help frame your market and consumer assessment
  - Embrace new strategies in recognition that some beauty consumers are going to trade down
- ACTION: Adopt a ' no-compromises' approach to product quality through formulation and positioning of a premium brand
  - Use the best, most effective ingredients to elevate functionality using natural and technologically advanced formulations
  - Adopt a ' tiered' approach to branding in order to meet demand for both natural and technologically advanced ingredients
  - Protect the long term growth opportunities by making credible functionality claims
  - Source natural ingredients/products from a guaranteed specific area to boost authenticity credentials
  - Leverage heritage and tradition credentials wherever possible
  - Retailers should embrace a more holistic approach to beauty merchandizing and the development of product lines
- ACTION: Ensure that a luxury/premium brand has an identity that is consistent with a target consumers' self concept
  - Embrace the philosophy of ' lifestyle/attitude branding' to empower premium brands and promote the idea of ' expressive beauty' and self confidence
  - Give consumers opportunities to express their self concept through products and services
- ACTION: Emphasize the experience associated with a brand' s premium credentials
  - Encourage consumers to consider a premium personal care product occasion as a special time
  - Sell consumers the idea of time
- ACTION: Continually explore avenues for emphasizing the uniqueness of a premium proposition
- ACTION: Maintain marketing spend, especially in the current recessionary environment, to justify premium prices
  - Maintain advertising efforts to help maintain differentiation of premium branded personal care products
  - The nuance of the premium personal care product advertising message might have to change during this period of economic uncertainty
  - Be wary of over-reliance on price reductions
  - Maintain a strong focus on innovation and R&D during times of economic uncertainty
  - Use Datamonitor' s strategic reports outlining the key innovation opportunities that arise from consumer mega-trends
- ACTION: Look for opportunities to extend pre-existing products or launch new premium products into emerging markets
  - Explore opportunities for basic market entry, store expansion and distribution expansion in the emerging markets
  - Use acquisitions and alliances as a means of improving local market understanding
  - Do not assume emerging market consumers to be a large homogenous group
  - Use local personalities as brand spokespeople when expanding into the emerging markets
  - Release products in smaller sizes with correspondingly smaller price tags to target the lower incomes apparent in the emerging markets
APPENDIX
- Definitions
- Methodology
- Further reading and references
- Ask the analyst
- Datamonitor consulting
- Disclaimer
- List of Tables
  - Table 1: Per capita GDP, constant, ($), 1995 prices by country, Asia Pacific, Europe and US, 2002-2012
  - Table 2: Personal care spending as a percentage of gross domestic product (GDP), by country Asia Pacific, Europe and US, 2002-2012
  - Table 3: Personal care spending as percentage of private final consumption expenditure (PFCE), by country, Asia Pacific, Europe and US, 2002-2012
  - Table 4: High net worth individuals (000s) (HNWI)* by country, Asia Pacific, Europe and the US, 2002-2012
  - Table 5: High net worth individuals (HNWI)* as a proportion of overall population by country, Asia Pacific, Europe and the US, 2002-2012
  - Table 6: Mass affluent individuals (000s) (MAI)* by country, Asia Pacific, Europe and the US, 2002-2012
  - Table 7: Mass affluent individuals (MAI)* as a proportion of overall population by country, Asia Pacific, Europe and the US, 2002-2012
  - Table 8: The percentage of consumers who seek discounts and express satisfaction from value, by country
  - Table 9: Premium fragrance* market ($ millions) in western Europe, Asia Pacific and the US, by country, 2002-2012
  - Table 10: Premium make-up* market ($ millions) in western Europe, Asia Pacific and the US, by country, 2002-2012
  - Table 11: Premium haircare* market ($ millions) in western Europe, Asia Pacific and the US, by country, 2002-2012
  - Table 12: Premium skincare* market ($ millions) in western Europe, Asia Pacific and the US, by country, 2002-2012
  - Table 13: Premium personal hygiene* market ($ millions) in western Europe, Asia Pacific and the US, by country, 2002-2012
  - Table 14: Proportion of consumers (%) who have, "chosen higher quality food/drink/cosmetics or toiletries for extra indulgence and enjoyment" in the preceding 12 months, Europe and US, 2005-2006
- List of Figures
  - Figure 1: There are important drivers and inhibitors impacting premiumization in personal care
  - Figure 2: The ' democratization of luxury' is both an opportunity and a threat for luxury/premium personal care providers
  - Figure 3: Good value for money has become the most important influence over grocery store choice globally while price exerts considerable influence in personal care purchases
  - Figure 4: Consumers use personal care products to feel better about themselves
  - Figure 5: Many women associate a desirable image/appearance with additional opportunities and attention
  - Figure 6: Consumers feel under ever increasing pressure to adopt ' appearance management behaviors'
  - Figure 7: Personal branding is a concept that has built momentum in the last 10 years
  - Figure 8: Glamorous advertising remains pervasive in personal care categories
  - Figure 9: Consumer slowdown should compel personal care brands to reconsider their approach
  - Figure 10: Body odor is a key concern for all consumers
  - Figure 11: Manufacturers looking to capitalize of premiumization in personal care must excel more than their competitors in the provision of factors associated with the Premium Price Index (PPI)
  - Figure 12: Premium products being offered at ' discount prices' is an emerging reality in developed markets
  - Figure 13: Packaging design plays a big part in shaping quality expectations, especially when making personal care purchases
  - Figure 14: Brands can be effective ' curators' of wellness advice with well-designed, informative websites
  - Figure 15: Manufacturers and retailers can manipulate intrinsic and extrinsic attributes to help facilitate a premium positioning and/or achieve differentiation
  - Figure 16: Scent can be classified by its ambience and congruency
  - Figure 17: Offering time and effort saving benefits, combined with science-led and natural ingredient efficacy, can help insulate from the escalating private label threat add value to personal care market growth
  - Figure 18: There are various examples of brands offering added value ' experience quality' through scent, improved performance and convenience to facilitate a premium positioning
  - Figure 19: Beauty innovation is at a crossroads between technologically advanced science led products and natural formulations and there is increasingly a convergence between the two
  - Figure 20: Consumers will pay a premium for authenticity as they seek to ' re-connect with the real'
  - Figure 21: Products offering the combined benefits of natural and technologically advanced ingredients appears to be a growing trend as does the proliferation of professionally positioned products
  - Figure 22: Status and conspicuous consumption are equally valid themes in premiumization but require different approaches
  - Figure 23: Status and conspicuous consumption are equally valid but require different approaches
  - Figure 24: Collaborations with celebrities, fashion designers and co-branding are common routes to inflating the status of personal care brands
  - Figure 25: Four key personal benefits as well as the additional ease of customizing have driven the trend toward more personalized consumer packaged goods
  - Figure 26: Offering consumers additional possibilities by which they can co-create and self-customize will be more commonplace and will come to be an expected product feature by shoppers themselves
  - Figure 27: Sensory attributes have a significant impact on hedonistic positioning
  - Figure 28: Consumers are embracing brands that reflect their self concept while many global women embrace the philosophy that beauty can be achieved through interpersonal factors, not just appearance
  - Figure 29: A consumers' self concept is multidimensional and will be heavily influenced by cultural differences
  - Figure 30: A consumers' self concept is multidimensional and will be heavily influenced by cultural
  - Figure 31: Premium image and high functionality are irresistible propositions
  - Figure 32: Using the best ingredients to elevate functionality involves resolving the crossroads between preferences for natural and technologically advanced ingredients
  - Figure 33: If regional links are used to position a product, the connection should be clear
  - Figure 34: Sunsilk' s ' Life Can' t Wait' campaign helps to establish a stronger personality for the brand
  - Figure 35: Spa treatment-type products offer consumers a relaxing premium personal care experience
  - Figure 36: Convenience can be incorporated into premium personal care
  - Figure 37: Situational and personally adaptive beauty solutions is an emerging area in personal care

簡介
目錄
相關商品

使用指南產品及服務須知網站導覽

星期一到星期五 / 9:30am - 6:00pm
TEL: 02-2729-4219 (+886-2-2729-4219)
E-mail: tw-info@gii.co.jp

高級個人美容護理用品的市場機會

Opportunities in Premium Personal Care: Trading Up Trends

簡介

概要

未來觀察

行動ン

附錄

圖表

目錄

Abstract