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In the eye of the beholder

Great blog post from Jodie at pragma:

The beauty industry, which is estimated at being worth £4.9 billion in 2014, continues to be one of the most resilient and competitive industries in the UK.

With an increasingly celebrity and trend-focused culture, alongside a stronger emphasis upon personal appearance, the beauty industry is set to continue to grow. But it is changing, and we see three key trends:

Buying and Browsing habits
Close to half of people in the UK have interacted with beauty brands online and around a third of promising buyers use social media to research and inform purchasing habits. Digital platforms including Instagram and Pinterest have seen an influx of beauty brands whilst YouTube's vast presence in the market is reshaping consumers' habits.

The rise of independent young beauty bloggers, such as Tanya Burr, who receives around 10 million views per month on her channel, and ‘vloggers' (video bloggers) such as Zoella and Sprinkle of Glitter are influencing younger consumers by reviewing beauty products and identifying monthly favourites. This trend is shaping the future of marketing and advertising and is seen as the key channel to reaching younger audiences.

Online Sales

Not surprisingly, online sales in the UK market are growing rapidly. This is particularly true of ‘prestige' brands (e.g. NARS, Benefit and Bobbi Brown) which accounted for 6.2% (£137m) of sales of the total UK market (£2.2 billion), with a year-on-year growth of 35%. Although these sales are starting from a low base in the market, we see huge growth potential. Bigger brands such as Burberry are developing their online strategies, in order to engage customers around content and offers. On the other hand, the online channel has opened up the market to smaller challenger brands such as Goldfaden M.D. and This Works who have smaller marketing budgets than the big players.

Male Grooming

The influence of the male grooming sector should not be overlooked. This segment of the market continues to grow with UK sales alone forecast to exceed £1.1 billion by 2017. Men are now more accepting of male grooming and we see significant growth here. As Tom Ford says, "Why strive to be anything less than the best we can be just because men are men?"

We anticipate the beauty market will continue to grow, but those beauty brands that want to stand out will have to intensify their marketing activity and cause what is labelled by beauty giant, L'Oreal's CEO as ‘disruption' in the market place.

Jodie Hayes

http://www.pragmauk.com/news/2536