Beauty product consumption

Transcription

1 Beauty product consumption

2 Sophia Mind Sophia Mind Research and Market Intelligence is a company belonging to Bolsa de Mulher, the digital media group for women, which focuses on research and market intelligence. Sophia Mind is completely devoted to understanding women in depth and helping its clients to maximize their opportunities for communication with women, by discovering what women want, when they want it, and how they want it. The XIX century was known as the European century; the XX, as the American one. Now, the XXI century will be remembered as the Century of Women. (Tsvi Bisk, Center for Strategic Futurist Thinking, 2008) Sophia Mind believes that the century in which we live will be the century of female progress in every area, and of continuing increase in the power which women wield, be it purchasing power or the power to carry out important social and political changes. Women are going through great social, cultural and behavioral changes, and must be understood in depth in order that a convenient and effective communication be established with them

3 Methodology Our methodology consists of interviews with a sample of Brazilian internet users carried out through an online survey. Amount of women interviewed: 1,311 women Profile: Women between 18 and 60 years of age Market: Brazil Dates of the interviews: December 2009 Margin of error: 2.7% The goal of this survey is to evaluate how satisfied women are with the way they look and to understand how the consumption of beauty products takes place.

4 Executive Summary 79% of women use beauty products regularly - 56% of women are unsatisfied with the way they look. The main reason given for this is being overweight; - 95% of women would change something in their bodies if it were possible. Belly and breasts are the parts that they want to change the most; - The opinion of others is important for them to feel good about themselves; - 79% of women use beauty products. Among these, the products most used are hair care products, moisturizing creams and make-up. The use of some products varies according to age. An increase in family income generates an increase in beauty product consumption of all the mentioned categories; - The average monthly expenses on beauty services and treatments (R$ 97) are higher than the sum spent on beauty products (R$ 80). However, when faced with a financial crisis, the second item to be cut from a woman s budget would be visiting the beauty salon. Buying beauty products was one of the last items to be mentioned; - Top of Mind: the brand Natura is among the most remembered brands in all three categories (hair care products, skin care and make-up);

5 Executive Summary 83% of women claim that they are satisfied with the beauty products available today on the market; however, only 6% of women would not switch the products they use for any other. - Friends and beauty professionals are the main sources from which consumers learn about new product releases and, at the same time, such people recommend the use of specific products; - Online ads and social networks play an important role for women when deciding to buy a product; - Product quality and price are the main attributes which women look for when deciding to buy something. A recommendation from a trusted beauty professional is also very important; - 83% of women are satisfied with the products available today; however, only 6% of them are truly loyal to the products they use and would in no way switch them; - 88% of women access the Internet to look for information on beauty products. Most of them look for tips on how to use them;

6 Personal satisfaction 56% of women are unsatisfied with the way they look. This percentage does not vary according to age, place of living, marital status or whether they are mothers or not. From among those unsatisfied with the way they look, more than half (61%) thinks they are overweight. The second reason for dissatisfaction that was mentioned was their hair (37%). Reasons for being dissatisfied with one s body: Being overweight Hair Face Wishes she was prettier Breasts are too small Looks younger than she is Too short Breasts are too big Underweight Too tall 4% 2% 22% 21% 19% 14% 12% 11% 37% 61%

7 Personal satisfaction If it were possible, 95% of women would change something in their bodies. Even those women who are satisfied with the way they look would not dismiss the chance of changing something. Belly (42%) and breasts (17%) are the body parts most mentioned which women would like to change. This is true both for women who are satisfied and those who are dissatisfied with the way they look. The difference between the two is in the percentage. The belly is the body part which 32% of those who are satisfied with their bodies would like to change, and which 49% of those who are dissatisfied would like to change. If you could change any part of your body, what would it be? Belly Breasts Hair Nose Gluteus Legs Other Arm Foot Face Eyes Ears Nails Mouth Neck Hands 8% 6% 6% 5% 5% 3% 2% 2% 1% 1% 1% 1% 0% 0% 17% 42%

8 Personal satisfaction 49% of women with husbands or boyfriends believe that the latter agree with them on the way they look (that is, they agree with the information given before, with the reason for their women being dissatisfied with the way they look and with the body part which could be changed). In other words, they are of one mind. For women without husbands or boyfriends, 72% of them believe that their family members and closest friends share the same opinion as they do. The opinion of others is relevant for 65% of women to feel good about the way they look. Women who are younger than 25 years old are more sensitive to the opinions of others (75% of them care about what others think of them). From among the country s regions, women from the South are the ones who are most concerned about the opinions of others (68%), while women from the Southeast (except São Paulo) are the least concerned (60%). Women from the other regions were close to the national average. Between married and single women, there is no significant difference on the percentage of women who care about the opinion of other people. Married women are more concerned about what their husbands think, while single women are more concerned about the opinion of family members and close friends.

9 Beauty product consumption 79% of women use hair care products. Moisturizers, make-up and sunscreen are other types of products used by more than half of the women. The consumption of some products varies according to age and income. Consumption of beauty products and buying intention: Hair care products 58% 79% Mois turizer 70% 77% Make-up Suns creen 60% 58% 57% 68% Exfoliant 24% 41% Anti-aging products 18% 30% Anti-acne products 17% 37% Anti-cellulite products 17% 30% Tanning lotion 15% 38% Use Buying intention

10 Beauty product consumption - age The consumption of some beauty products varies according to a woman s age, because these products relate to specific problems encountered at certain phases of life. The consumption of make-up and anti-acne products decrease as age increases. The consumption of sunscreen and anti-age products is higher among older women. Consumption of beauty products that varies according to age: 76% 63% 57% 54% 61% 68% 54% 36% 23% 15% 15% Make-up Sunscreen Anti-acne products Anti-aging products 6% Up to 30 years old years old Over 40 years old

11 Beauty product consumption - income Having one s own income, and the family income, influence the amount of products that are consumed. Regarding all the products presented in the survey, their consumption increases with an increase in the family income. Consumption is also slightly higher for women who have their own income. Products that are more expensive have a higher differential. Anticellulite products are consumed by 9% of women with an income of up to R$ 2,000, while the consumption of the same products by women with a family income higher than R$ 5,000 is 25%. The same happens with anti-aging products, which jump from 21% to 45%. Consumption of some beauty products that varies according to income: 63% 71% 75% 76% 80% 83% 66% 71% 80% 45% 33% 21% 22% 25% 9% Make-up Hair care products Moisturizers Anti-aging products Anti-cellulite products Up to R$ 2,000 From R$ 2,000 to R$ 5,000 Over R$ 5,000

12 Buying intention The percentage of buying intention represents consumers who will buy beauty products in a short period of time. When the buying intention is higher than the percentage of use, it means that women who do not use these products at the moment intend to start consuming them in the near future. 77% of women have the intention of buying a new moisturizing product. Hair care products, make-up and sunscreen are other products that are high on women s buying intentions. Consumption and purchase of beauty products: Hair care products 58% 79% Mois turizer 70% 77% Make-up Suns creen 60% 58% 57% 68% Exfoliant 24% 41% Anti-aging products 18% 30% Anti-acne products 17% 37% Anti-cellulite products 17% 30% Tanning lotion 15% 38% Use Buying intention

13 Recommendations The recommendation of products by the hair stylist is very relevant for 39% of women. When adding to this figure the number of women who feel that the recommendation of such people is important, the percentage rises to 87%. That is, hair stylists are people who may greatly influence the selection of beauty products. The opinion of girlfriends is also very important. For 77% of women, the recommendation of products by girlfriends is important or very relevant. Positive responses by women to recommendations through online ads amount to 38%, against 32% from TV ads. Comments in social networks garnered 45% of positive responses, thus showing the strength of this media and of the exchange of experiences between Internet users. Girlfriends 4% 6% 13% 55% 21% Hair stylist 2% 3% 8% 48% 39% Online ads 8% 17% 36% 33% 5% TV ads 11% 20% 37% 28% 4% Comments on social networks 11% 17% 28% 34% 11% Irrelevant Of little importance Impartial Important Very relevant

14 New releases The biggest sources for women to find out about new beauty product releases are girlfriends (60%) and beauty professionals (45%). Adding to this the fact that these people are also the main influences in recommending which products to buy, their role in a woman s decision of which beauty products to buy is very important. In average, online ads unveil new releases for 42% of women, while this percentage regarding TV ads is 38%. This percentage of TV ads increases greatly with women over 40 years old. In the opinion of the women interviewed, their mothers are only rarely a source for finding out about new releases. Total Up to 30 years old From 30 to 40 years old Over 40 years old Girlfriends Beauty professionals Online ads TV ads Ads in newspapers and magazines I m always looking for them I receive catalogs or s from stores or manufacturers My mother 60% 64% 60% 50% 45% 42% 47% 52% 42% 44% 41% 39% 38% 41% 40% 76% 30% 23% 35% 38% 25% 25% 23% 27% 21% 20% 23% 19% 8% 13% 4% 0%

15 The buying process valued attributes The most important attributes which women look for when buying beauty products are quality perception (87% of women feel it is of utmost importance) and price (51%). The recommendation of a trusted beauty professional is valued by 29% of women, being the third most important attribute. A brand s social responsibility possesses little value for women when choosing beauty products, as does customer service and customer relations. Buying a product simply because of its brand is no longer a common practice among women, despite the fact that the market s most traditional brands already have their images associated to the quality of their products. Quality Price Recommendation from a trusted beauty professional Brand name Recommendation from a girlfriend or family member 13% 9% 29% 51% 87% Obs: Each woman interviewed chose up 2 attributes. Brand s social responsibility 4% Customer service 3% Customer relations 1%

16 Satisfaction with beauty products 83% of women are satisfied with their current beauty products; however, 59% of women are still trying out new products. The main reason for dissatisfaction is the products price. Distribution and customer service are not reasons for complaints by many women Satisfaction with current beauty products: Satisfied They meet my needs This, however, does not prevent me from trying out new products Unsatisfied They do not solve 24% my problems 5% High prices 59% It is hard to find 10% these products in stores Bad customer 1% service 1%

17 Loyalty Only 6% of women are truly loyal to their beauty products. They would in no way switch the products they are accustomed to for any other. A group of women switches products when they do not find their favorite products in stores (23%) or when another product is on sale (6%). However, they go back to using their favorite product when either its distribution or price go back to normal. Half the women interviewed are always trying out new things. I buy a product based on its price 5% I switch products following the recommendation of people 5% I do not switch products at all 6% I switch products when there`s a good sale 6% I m always trying out new things 50% I only switch products when I can t find my favorite ones 23%

18 The role played by the Internet Only 12% of the women interviewed do not use the Internet to look for information on beauty products. For the remaining 88%, the Internet is used in several different ways when looking for information and during the process of purchasing these products. The main activity carried out online is reading about tips on how to use beauty products. Such tips are found in websites with content for women, social networks, manufacturer websites, etc. Price comparison is also relevant for more than half the women interviewed. Activities relating to interaction between people, such as it happens on social networks, are relevant: looking for recommendations by other people (52%), I do not buy products when I read bad comments about them online (33%), and I leave comments regarding my experiences in blogs or social networks (11%). I read tips on how to use products I compare prices I look for information in websites of magazines or specialists I look for information from other people regarding product quality I look for information on where to buy products I look for information in manufacturer websites before I buy their product I look for new releases I do not buy products when I read bad comments about them online I leave complaints on the manufacturer s website I buy beauty products online After I buy a product I ll inquire about it I do not use the Internet for beauty related activities I leave comments regarding my experiences in blogs or social networks 62% 54% 53% 52% 47% 42% 35% 33% 22% 21% 16% 12% 11%

19 The amount spent on beauty products The monthly amount spent on beauty products is approximately R$ Only 9% of women spend less than R$ a month. At the other extreme, 4% of women spend more than R$ a month. Most women spend between R$ and R$ 50.00, a total of 35% of the women interviewed. There are big differences in spending between women of different age groups. 19% of younger women spend more than R$ , while this percentage rises to 37% among older women. Efforts to improve one s looks: Less than R$ 20 From R$ 20 to R$ 50 From R$ 51 to R$ 100 From R$ 101 to R$ 150 From R$ 151 to R$ 200 Over R$ 200 Up to 30 years From 31 to 40 Over 40 years Average old years old old 9% 12% 8% 6% 35% 42% 32% 26% 30% 27% 34% 32% 14% 10% 15% 20% 8% 6% 7% 12% 4% 3% 5% 6% Family income is directly related to the amount of money spent on beauty products. 5% of women with a family income of up to R$ 2,000 spend more than R$ 150 a month on beauty products, against 26% of women with an income over R$ 5,000 who do the same. Despite the social and cultural differences among Brazilian regions, there is no significant difference on the consumption of beauty products and the amount of money spent on them

20 Behavior and consumption During a financial crisis, which would be the first three expenses that a woman would cut from her budget? The first option to be cut during a financial crisis would be going out to restaurants and bars. Even though the second thing to be cut would be the services provided at beauty salons, cutting the purchase of beauty products is at the end of the list, just before more complex changes in a woman s life (such as switching to a cheaper means of transportation, changing address or changes related to her children s education). 1st thing to be cut Going out to restaurants and bars 7th thing to be cut Entertainment 2nd thing to be cut Going to the beauty salon 8th thing to be cut Beauty products 3rd thing to be cut Clothes and accessories 9th thing to be cut 4th thing to be cut Telephone bill 10th thing to be cut I would switch to a cheaper means of transportation I would move to somewhere where the cost of life is cheaper 5th thing to be cut Reduction in expenses for the home 11th thing to be cut The education of my children 6th thing to be cut I would switch from the best brands to more generic brands when shopping at the supermarket

21 Top of mind The brands that were most easily remembered, voluntarily, by the women interviewed, were divided into three categories: skin care products, hair care products and make-up. Skin care products: Natura was the brand most mentioned 23% 13% 7% Hair care products: Seda, L Oréal and Natura are all tied 11% 9% 7% Make-up: Avon and Natura are tied for first place, despite the difference in percentage points 22% 17% 7%

22 Beauty treatments Manicure/pedicure, haircuts and eyebrow modeling are the beauty services which women require the most. The number of women who dye their hair, get hair reflections or highlight their hair jumps to 73% among women who are over 40 years old. Women with an income higher than R$ 5,000 purchase more services at the beauty salon than other women. For example, 94% of them have their nails polished. Nails Haircut Eyebrows Body waxing Deep conditioning treatment Dying, highlighting, or getting hair reflections Straight brushing / hair straightening Facial Lymphatic drainage 12% 36% 87% 81% 77% 65% 56% 55% 54%

23 Beauty treatments The average money spent on services and beauty treatments, approximately R$ 97.00, is more than what is spent on beauty products. Older women spend more. 47% of women over 40 years old spend more than R$ 100 a month. This percentage is only 24% for women who are 30 and younger. Those women who have their own income also have bigger expenses: 38% of them spend more than R$ 100, against 17% of women who do not have their own income. Expenses with beauty treatments: Up to 30 years From 31 to 40 years Over 40 years Total old old old I m not the one who pays for it 4% 5% 2% 1% Less than R$ 20 8% 12% 5% 4% From R$ 20 to R$ 50 25% 29% 23% 20% From R$ 51 to R$ % 30% 30% 28% From R$ 101 to R$ % 13% 21% 18% From R$ 151 to R$ 200 9% 6% 9% 16% Over R$ 200 8% 5% 11% 13%

24 Conclusions The dissatisfaction of women with the way they look, or the simple desire to improve a certain part of their bodies, display the potential that the beauty market has. Products, as well as services and treatments, are very much used by women of all ages, regions, social classes, etc. Some products and services must have their communication directed towards a specific target audience. Another fact which contributes to the beauty market s potential is the amount of money spent monthly by women: an average of R$ 177. Companies should draw up a clear strategy of communication and marketing for their brands, once the competition for a slice of a woman s attention is rather high. The amount of brands of hair care products, skin care products and make-up which were mentioned by the women interviewed was considerably large, so much so that only a few of them really stood out and were able to be considered as being part of Brazilian consumers top of mind. As far as hair care products go, one of the brands that was ranked on the top was mentioned by only 7% of women (which led to a technical tie with other brands due to the sample margin of error). When competing over consumers, companies should be attentive not only to the consumers themselves, but also to those people who may influence purchases. The survey showed that beauty professionals and girlfriends are responsible for showing consumers the new releases in beauty products. Besides this, recommendations from such people are very valuable during the process of choosing and buying a beauty product. This information should be taken into consideration when drawing up the strategy of product communication, and the inclusion of opinion makers when divulging the product is essential.

25 Conclusions In this context, the exchange of buying experiences and of experiences with product use is highly valued by women. The role played by the Internet, and specially, by social networks, will be more and more relevant in divulging and building the image of a product or brand. Any media which allows for the interaction between women and the exchange of information / recommendations / rejections will see its relevance increase greatly. The Internet, besides its worth as an advertising tool, contributes to the consumption process: from the search for information about the product (before the purchase), to providing tips on how to use it (after the purchase). As elaborate and complete as the communication strategy may be, the product will not be successful if the main features which women look for when buying a product are not evident: product quality and a competitive price. Even though they are satisfied with the products that are currently available on the market, women are not loyal to specific brands or products. The amount of options of different products and brands available, and the constant array of new releases, lead women to always want to try out new things. Problems in distribution (it is sometimes difficult to find certain products in stores) and sales by competing brands were also reasons often mentioned by women for trying out new products. Unlike other sectors, concern for social responsibility and care for the environment are not decisive factors for companies in the beauty sector. In the survey, no mention was made about programs of social responsibility or care for the environment as being attributes that consumers look for when deciding between competing products.

26 Conclusions The survey has studied the market of beauty products and strove to reveal information regarding the most relevant attributes for consumers during the process of decision / purchase and consumption. Elements relating to communication and marketing, product quality, price strategy and competitiveness, company image, etc, were mentioned in the research. The matter was not, and it hardly ever will be, completely explored in one single document, due to the complexity and great amount of nuances and particularities of such a competitive sector. However, it is hoped that this research will help to clarify certain aspects and will help companies to position themselves in a stronger and more positive way towards consumers.

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