a presentation at the june 8, 2006 - kline & company · a presentation at the june 8, 2006. 1...
TRANSCRIPT
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GLOBAL COLOR COSMETICS MARKET ASSESSMENT
A presentation at the
June 8, 2006
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AGENDA
Kline’s Coverage and Methodology
Market Overview
Outlook to 2010
Q&A
– Sales and growth– Categories– Trends and innovations– Competitive landscape– Regional breakdowns
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KLINE’S COVERAGE AND METHODOLOGY
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Global Cosmetics & Toiletries
Specialty Raw Materials for Cosmetics & Toiletries
Specialty Actives & Active Delivery Systems
Professional Skin Care
Beauty Retailing
Salon Hair Care
Home Fragrances
Household Cleaning Products
Kline Research has world class expertise in cosmetics and toiletries . . .
SYNDICATED STUDIESSYNDICATED STUDIESExtensive series of syndicated research studies
Global management team, who are known to the industry
– Often sought after to present papers at leading industry conferences
Global network of industry experts
Commitment to the personal care industry
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AntimicrobialsConditioning polymersEmollientsHair fixative polymersRheology control agentsSkin whitening agentsSpecialty activesSpecialty delivery systemsSpecialty surfactantsUV absorbers
RAW MATERIALS
FINISHED GOODS
RETAIL OUTLETS
FragrancesHair careMakeupNail careOral careSkin careToiletries
Department storesDirect sales Drug outletsFood stores Mass merchandisers SalonsSpecialty storesPharmacies/perfumeries
Kline covers the entire personal care value chain . . .
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Unstructured interviews with: Marketers/manufacturers
Retailers DistributorsSuppliers
Trade organizationsGovernment agencies
Trade journalsAnalysis of public data
Corporate financial reports and literature Non-confidential data from Kline’s databases
SECONDARY RESEARCH
PRIMARY RESEARCH
RIGOROUS ANAYSIS/CROSS CHECK
Insightful and comprehensive
coverage
Insightful and comprehensive
coverage
Kline’s rigorous research methodology results in high quality and insightful reports . . .
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MARKET OVERVIEW
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120
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2002 2003 2004 2005
$ Billion mfr.
The global cosmetics and toiletries market reached $155 billion in 2005 . . .
$135 $141$148 $155
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Skin care, 27%
Color cosmetics, 15%
Fragrances, 11%
Other toiletries, 16%
Oral care, 9%
Hair care, 21%
Color cosmetics accounts for 15% of industry sales . . .
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0
5
10
15
20
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30
2002 2003 2004 2005
$ Billion mfr.
Sales of color cosmetics totaled nearly $24 billion in 2005 . . .
$20.6$21.7 $22.6
$23.8
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2
3
4
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2003 2004 2005
Makeup Total C&T industry
Change, %
Growth in color cosmetics has been consistent and healthy . . .
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1960’sUsage on rise
Working women
Increase in teens
1970’sDisco era
Heavier usage
More shades
Working women+
1980’sHeavy made-up look
Product forms (oily, long wearing)
Demographic segmentation
1990’sNatural look early onMakeup artist brandsLong lastingLip glossesOne-coat polishes
2000’sLip gloss early on
Transfer-resistant
Shift to eyes
Skin matching
The color cosmetics market has dramatically changed over time . . .
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MAKEUPGROWTH
New shadesMetallicsFashion BoldNaturalColor matchingShimmer
Improved deliveryTransfer-resistantLong lastingNew formsMulti-use One-coatCurl/thicken lashes
The market is driven by color trends and innovation . . .
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Asia is the largest market . . .
Asia, 33%
Europe, 31%
North America, 26%
Latin America, 5%
All other, 4%
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Asia skews stronger in face makeup, while Europe and the Americas are more about color . . .
25.042.7
30.121.2
34.5
25.2
32.041.6
4.47.7
15.3
31.9 24.7 25.917.9
4.2 4.8 4.3
2.6
4.0
0%
20%
40%
60%
80%
100%
Eye makeup Face makeup Lipsticks Nail polishes
Asia Europe Latin America North America All other
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The top five players control 40% of the market; L’Oréal has a distant lead . . .
16%7%7%
6%
4%
Other 60%
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The leaders have achieved their positions through strategic acquisitions . . .
LancômeMaybellineYuesaeMininurseMiss Ylang
MACBobbi Brown
Cover GirlMax Factor
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Marketers are increasingly using celebrity spokesmodels . . .
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Face makeup is the largest category . . .
Face makeup, 40%
Eye makeup,27% Lip makeup, 25%
Nailpolishes, 8%
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-1 0 1 2 3 4 5 6 7
Nail polishes
Lipsticks
Face makeup
Eye makeup
Growth, %
Eye makeup registers the highest growth . . .
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FACE MAKEUPSkin matching and skin care claims drive sales . . .
Skin matching technology
Bronzers popular
More skin care properties
(anti-aging, acne, SPF)
Whitening important in Asia
Luxury slightly larger than
mass
KEY TRENDS
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LEADING PLAYERS
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EYE MAKEUPInnovation and marketer focus propels the category . . .
Current area of focus for most marketers
Simplified merchandising
Technologically advanced mascaras
High growth in developing countries (China, Brazil)
Mass brands 54% of sales
Multifunctional products
New forms of shadow
KEY TRENDS
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12345
LEADING PLAYERS
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EYE MAKEUPAlmay has rolled out a simplified, customized system . . .
Buy based on your eye colorIntroduced first in eye makeupOther marketers responding with products addressing individual needs (e.g., Cover Girl Custom Compacts)
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EYE MAKEUPEvery year, more high-tech mascaras hit shelves . . .
More volumeLash lengtheningNo flaking, clumping, smudgingCurl lashesSubtle to dramaticShaping polymer
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EYE MAKEUPShadows now come in a variety of forms . . .
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EYE MAKEUPFalse eyelashes are back en vogue . . .
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LIPSTICKS AND LIP GLOSSES High gloss and shine; additional benefits . . .
KEY TRENDS
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Focus shifts away to eye and faceContinues to be about glosses and high shine
Additional benefits like firming, SPF protection, and plumping
Moisturization and comfort
More dual-ended products
LEADING PLAYERS
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LIPSTICKS AND LIP GLOSSES Plumpers are gaining in popularity . . .
Celebrity influenceAlternative to cosmetic procedureCan be irritating; creates need for soothing productsHigher pricesFrom mass to prestige
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NAIL POLISHESSuffering for a variety of reasons . . .
Suffers from low-cost nail salonsTrend towards natural looking nailsCutbacks in retail shelf spaceHealth concerns over phthalatesRegulations an issue, esp. in Europe
KEY TRENDS LEADING PLAYERS
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12345
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OUTLOOK
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0
5
10
15
20
25
30
35
2005 2010
$23.8
$29.9$ Billion mfr.
Color cosmetics sales will approach $30 billion by 2010 . . .
CAGR: 4.7%CAGR: 4.7%
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0 1 2 3 4 5 6
Nail polishes
Face makeup
Eye makeup
Lipsticks
Projected CAGR, %, 2005-2010
Lipsticks are projected to advance at the fastest pace . . .
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0 1 2 3 4 5 6 7 8
North America
Asia
Europe
Latin America
Projected CAGR, %, 2005-2010
Latin America will be the fastest growing region . . .
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ModerateGrowth
InnovationHigher price pointsAnti-aging claimsMarketing investmentIncreased penetrationFashion and color trends
Rise in cost of livingStricter legislation on claims and ingredientsMarket saturationFocus on other categories
Growth will depend on various market forces, both positive and negative . . .
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Efforts will focus on two sides of the consumer spectrum . . .
Bold and trendyEmphasis on colorNewness
Anti-agingMoisturizingProducts that don’t settle in creases
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Technologically-advanced mascaras
The market shows no signs of slowing down . . .
Dry Enamel Strips (Avon
Instant Manicure)
High pigment (L’Oréal HIP)
Eyebrow products
Mineral lines
Anti-aging lines
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If you require additional information about the content of this analysis or the services that Kline provides, please contact:
Carrie MellageIndustry Manager, Consumer ProductsPhone: 973-435-3412E-mail: [email protected]
For more information . . .
Discounts available for conference
attendees!
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Questions& Answers