Brands have to compete harder to secure savvy beauty shoppers

By Andrew MCDOUGALL contact

- Last updated on GMT

Brands have to compete harder to secure savvy beauty shoppers

Related tags: Late-2000s recession, Uk

In an age where the recession birthed savvy shoppers that are here to stay, brands have to work harder to secure customer loyalty and meet the needs of demanding consumers in the UK.

According to market researcher Mintel, sales growth continues in the beauty and personal care markets; however the pace is slowing and growth is being driven by innovation in the core beauty markets.

Hygiene-oriented markets in particular have seen sales suppressed by savvy shopping behaviours including brand switching for promotional offers, price comparison searches, and discount store purchases, says the London-based firm.

Although some growth is expected this year, it is more likely to match the slower pace of 2014 thanks to core markets such as skin care and colour cosmetics.

“Continual innovation in the beauty markets is ensuring spending in the category continues to grow, covering the stagnancy of the hygiene-oriented categories. However brands have to compete harder to secure loyalty, as savvy shopping behaviours born in the recession are here to stay,”​ says Charlotte Libby, Senior Beauty Analyst at Mintel.

Globalisation trend

Another influence on the market is globalisation, with trends from around the world appealing to UK consumers.

“Beauty brands are drawing inspiration from global ingredients, with botanical oils and the adoption of other skin care ingredients a continuing trend,”​ continues Libby.

This has been made a lot easier too thanks to the meteoric rise in social media and blogs helping global beauty trends become widespread and easy to replicate.

The booming e-commerce market has also enabled consumers to buy from retailers which do not have the overhead costs of physical stores, and as a result offer products at reduced prices; and it has also helped people pick up popular products from around the globe.

It is not completely plain-sailing though, as consumers also realise the benefits of products designed specifically for the needs of UK residents by comparison, which can see products more tailored to take into account factors such as climate and pollution levels.

“Local products, designed specifically for the weather conditions of the UK, are emerging, presenting women with a targeted product offering to best suit their needs,”​ ends Libby.

Mintel's 'Fifty' tracks 50 markets showing potential for growth in China, UK, USA, Canada and Brazil.

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