Overview of Beauty Survey
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1 Overview of Beauty Survey We surveyed a total of 300 consumers that use the web to research and/or purchase Beauty products and information A custom survey instrument (i.e. questionnaire) was developed to measure respondents use of the web, and search engines in particular, for researching and purchasing Beauty products and information The survey was conducted online, through a web-based interviewing process, in May/June 2005 Our sample is evenly distributed across all age groups and genders Respondents were recruited through a variety of methods: web advertising, permission-based databases, public relations, telephone recruitment, partner-recruited panels, and alliances with heavily trafficked portals The survey was designed and administered by Media-Screen, an independent strategic market research firm, with sampling and data collection provided by GMI (Global Market Insite) 1
2 Use of Online for Researching and Purchasing Furniture and Home Appliances Executive Summary The majority of users (80%) use a search engine to learn about and/or purchase Beauty products online. Search engine usage: - 77% of Google users use a search engine to learn more about a Beauty product - 70% of Google users use a search engine to compare prices - 50% of Google users use a search engine to purchase a product online, rather than at a retail or department store 82% of all respondents use Google to learn about and/or purchase Beauty products The vast majority 85% - have used a search engine to locate specific brand websites for Beauty products 87% of Google users say search engines are very/somewhat important for helping them research and/or purchase Beauty products After learning about them online, 81% of Google users ultimately purchased the items offline at a department store location Source: 2 2
3 Online Activities in Beauty go online for a wide variety of Beauty-related activities; most popular: Learn more about a Beauty product (73%), Purchase (67%), and Compare prices (65%) Learned more about a Beauty product Purchased a product at a retail or department store, after researching it online Compared prices of a Beauty product Became aware for the first time of a new Beauty product Purchased a product online 73% 67% 65% 65% 60% Returned to the site where you purchased a product for more product information or customer service 43% Other 1% 0% 10% 20% 30% 40% 50% 60% 70% 80% Have you ever done any of the following online? Please select all that apply. 3
4 Types of Products Researched or Purchased Most popular types of Beauty products researched or purchased: Skin care (78%), Hair care (64%), Fragrances (58%), and Cosmetics (55%) 80% 70% 60% 50% 78% 64% 58% 55% 40% 30% 20% 10% 0% 1% Skin care products Hair care products Fragrances Cosmetics Other Which of the following types of Beauty products have you learned about and/or purchased online? Select all that apply. 4
5 Search Engines and Beauty Products 80% of users have used a search engine to learn about and/or purchase Beauty products online All Respondents No 20% Yes 80% N=300 Do you ever use a search engine (such as Google, Yahoo, AOL or Ask Jeeves) to learn about and/or purchase Beauty products online? N=300 5
6 Popular Search Engines for Beauty Products Google is the most popular search engine for learning about and/or purchasing beauty products 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% All Respondents N=240 82% 53% 30% 27% 19% Google Yahoo MSN Ask Jeeves AOL 10% or less Netscape Alta Vista Lycos iwon Alltheweb Looksmart Infospace Wisenut Other Which of the following search engines do you use to learn about and/or purchase a Beauty product? Select all that apply. N=240 6
7 Search Engine Activities in Beauty Search participates in a wide variety of Beauty-related activities; most popular: Learn more about a Beauty product (77%), Compare prices (70%), and Purchase product online (50%) Learn more about a Beauty product Compare prices of a Beauty product 70% 77% Purchase a product online, rather than at a retail or department store Purchase a product at a retail or department store, after researching it online Become aware for the first time of a new Beauty product 47% 45% 50% Return to the site where you purchased a product for more product information or customer service 32% Other 2% 0% 10% 20% 30% 40% 50% 60% 70% 80% Which of the following activities do you use a search engine to help you do? Please select all that apply. 7
8 Search Engines for Finding Beauty Sites The vast majority 85% have used a search engine to locate specific brand websites for Beauty products No 15% Yes 85% Do you ever use a search engine to help you locate the site for a specific brand of Beauty product, such as Estée Lauder, Chanel or Christian Dior? 8
9 Search and Types of Beauty Sites search for specific brand sites across a variety of Beauty categories; most popular: Skin Care brands (68%), Fragrance brands (59%), Cosmetic brands (58%), and Hair Care brands (56%) 70% 60% 50% 68% 59% 58% 56% 40% 30% 20% 10% 2% 0% N=167 Skin Care Fragrance brand sites Cosmetics brand sites Hair Care brand sites Other For which of the following types of Beauty products have you used a search engine to help find the site of a specific brand of beauty product? Select all that apply. N=167 9
10 Searching For Cosmetics Brand Sites search for a variety of Cosmetics brand sites, but Clinique (67%) and Estée Lauder (59%) lead all others by a wide margin Clinique Estée Lauder MAC Origins Aveda Bobbi Brown Yves Saint Laurent Prescriptives Laura Mercier Stila 31% 29% 28% 23% 22% 18% 13% 10% 59% N=97 67% 0% 10% 20% 30% 40% 50% 60% 70% Which of the following Cosmetics brand sites do you use a search engine to help you find? Select all that apply. N=97 10
11 Searching for Fragrance Brand Sites search for a variety of Fragrance brand sites; most popular: Ralph Lauren (48%), Tommy Hilfiger (45%), and Estée Lauder (45%) Ralph Lauren Tommy Hilfiger Estée Lauder Christian Dior Georgio Armani Donna Karan N=98 Chanel L Oreal Aramis Other 19% 17% Which of the following Fragrance brand sites do you use a search engine to help you find? Select all that apply. 21% 21% 32% 38% 41% 45% 45% 0% 10% 20% 30% 40% 50% 48% N=98 11
12 Searching for Skin Care Brand Sites search for a variety of Skin Care brand sites; most popular: Clinique (51%), Estée Lauder (39%), and L Oreal (37%) Clinique Estée Lauder L Oreal Aveda Origins Chanel Prescriptives Biotherm Kiehl s MAC Christian Dior Rodan & Fields Helena Rubinstein Other 9% 9% 18% 16% 14% 14% 12% 25% 22% 28% 39% 37% 35% 51% N=113 0% 10% 20% 30% 40% 50% 60% Which of the following Skin Care brand sites do you use a search engine to help you find? Select all that apply. N=113 12
13 Searching for Hair Care Brand Sites search for a variety of Hair Care brand sites; most popular: Redken (46%), Garnier (40%), and Matrix (39%) Redken Garnier Matrix Aveda Clinique Kiehl s Bumble and Bumble N=94 Kerastase Other 46% 40% 39% 36% 34% 16% 15% 14% 30% 0% 10% 20% 30% 40% 50% Which of the following Hair Care brand sites do you use a search engine to help you find? Select all that apply. N=94 13
14 Sites Used, In Addition To Search Engines In addition to search engines, 55% of users also use beauty brand sites when looking for information; 48% use portals, 43% use beauty sites Beauty brand sites 55% Portal sites Beauty sites that sell a variety of brands 43% 48% Online pharmacies Beauty/fashion magazine websites 37% 36% Lifestyle sites Other 5% 28% 0% 10% 20% 30% 40% 50% 60% When looking for information on Beauty products online, what kinds of sites do you normally use in addition to search engines? Select all that apply. 14
15 First Stop for Finding Beauty Products Search engines (39%) are the go-to online resource for finding Beauty products; portal sites are a distant second (15%) All Respondents Lifestyle sites, 2% Other, 5% Beauty/fashion magazine websites, 6% Online pharmacies, 8% Beauty sites that sell a variety of brands, 11% Search engines 39% Beauty brand sites, 14% Portal sites, 15% Including search engines, which type of online resource is your FIRST STOP for finding Beauty products online? 15
16 Importance of Search Engine 87% say search engines are Very or Somewhat Important for helping them research and/or purchase beauty products Somewhat unimportant, 1% Neither important nor unimportant, 12% All Respondents Somewhat important 40% Very important 47% Overall, how important is using a search engine for helping you research and/or purchase Beauty products? 16
17 Influential Information Sources for Purchase As expected, Print (49%) and TV (46%) media are most influential resources for purchase of Beauty products; Search engines are also highly-influential (43%) Magazines/newspapers Television Searches on search engines Point-of-sale displays in stores Direct mail pieces Sponsored links on search engines Radio Banner ads 49% 46% 43% 43% 23% 12% 8% 8% 0% 10% 20% 30% 40% 50% From the list below, please select the information resources that most influence the beauty products you buy. Select all that apply. 17
18 Future Channel Usage 52% say they will use online/web more to learn about and/or purchase beauty products (Chart depicts percent saying "More") Direct mail pieces 15% Television 16% Point-of-sale displays in stores 17% Radio 9% Magazines/ newspapers 22% Online/ web 52% In the future, would you say you will be using each of the following information sources More Often, Less Often or About the Same to learn about and/or purchase Beauty products? Select one per each row. 18
19 Frequency of Research and/or Purchase 48% research and/or purchase beauty products online regularly at least once a month Once a week or more, 10% Once every 6 months or longer 10% Once every 4 to 6 months 12% A few times a month, 24% Once every 2 to 3 months 29% Once a month, 14% How often do you research and/or purchase Beauty products online? 19
20 Preferred Shopping Method 36% prefer to shop online for beauty products, while 51% prefer to shop at a department store Not sure 13% Prefer to shop at a department store 51% Prefer to shop online 36% In general, do you prefer to shop for Beauty products online or at a department store? 20
21 Reasons For Preferring Online prefer shopping for Beauty products online for a variety of reasons, including: Convenience (82%) and No Sales Pressure (75%) More convenient 82% No sales pressure 75% Faster Easier to use Broader selection 59% 56% 61% More information 45% N=71 Other 13% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Why do you prefer shopping for Beauty products online as opposed to a department store? Select all that apply. N=71 21
22 Reasons for Preferring Department Stores prefer shopping for Beauty products in a department store primarily because they can Test / Sample products (84%) Can test/sample products No shipping costs Instant gratification Personal attention and/or advice Easier to return Fun and enjoyable Safer Other N=99 84% 68% 66% 52% 51% 28% 27% 4% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Why do you prefer shopping for Beauty products at a department store as opposed to online? Select all that apply. N=99 22
23 Online Beauty Research, Offline Purchase 81% have purchased beauty products at a department store after learning about them online No 19% Yes 81% Have you ever gone online to learn about beauty products, but then made your purchase at a department store? 23
24 Offline Beauty Research, Online Purchase 46% have purchased beauty products online after going to a department store to test or sample them No 54% Yes 46% Have you ever gone to a department store to test or sample beauty products, but then made your purchase online? 24
25 Re-ordering Beauty Products Online 57% have re-ordered online in anticipating of running out of a product No 43% Yes 57% Do you ever re-order a product online when you anticipate that you are going to run out of a product in a certain time? 25
26 Automatic Refills Online 19% of have arranged for automatic refills of beauty products online Yes 19% No 81% Have you ever arranged to have your products automatically refilled online after a certain period of time? 26
27 Automatic Refills Online Future 38% who have not automatically refilled a product online would consider doing so No 62% Yes 38% N=158 Would you consider having your products automatically refilled if this option were available to you? N=158 27
28 Average Order Size 47% spend $20 to $60 each time they order beauty products online Have never purchased online 22% $60 and above 20% Less than $20 11% $40 to $60 26% $20 to $40 21% Approximately how much do you spend each time you place an order for beauty products online? 28
29 Incentives Motivation For Shopping Online Free Shipping (47%) is the most popular incentive, followed by Price Comparison (29%) and Specific Offers (15%) Coupons, 3% Gift with purchase, 7% Specific offers 15% Price Comparison 29% Free Shipping 47% Which one of the following incentives motivates you the most to shop online? 29
30 Methodology and Demographics
31 Background and Methodology We surveyed a total of 300 consumers that use the web to research and/or purchase beauty products and services A custom survey instrument (questionnaire) was developed to measure respondents use of the web, and search engines in particular, for researching and purchasing beauty products and services The survey was conducted online, through a web-based interviewing process, in May and June 2005 Sample consists primarily of women (80%) and represents an even mix of ages Respondents were recruited through a variety of methods: web advertising, permission-based databases, public relations, telephone recruitment, partner-recruited panels, and alliances with heavily trafficked portals The survey was designed and administered by Media-Screen, an independent strategic market research firm, with sample provided by GMI (Global Market Insite) 31
32 Gender Women comprise 79% of the Google users in the sample Male 21% Female 79% Please indicate your gender. 32
33 Age 54% of Google users are between ages of 25 and , 1% 61-64, 3% % % % % % % % % Please indicate your age. 33
34 Education 40% of Google users in the sample have completed some college or higher Completed graduate school, 8% High school or less, 2% Completed some graduate school, but no degree, 6% College graduate 26% High school graduate or equivalent 19% Completed some college, but no degree 40% What is the highest level of education you have completed? 34
35 Household Income 42% of Google users have household incomes between $50K - $125K $250,000 or more, 2% $150,000 to $199,999, 3% $125,000 to $149,999, 2% Decline to answer, 9% Less than $15,000, 6% $15,000 to $24,999, 7% $100,000 to $124,999, 4% $75,000 to $99,999 17% $50,000 to $74,999 21% $25,000 to $34,999 17% $35,000 to $49,999 14% Which of the following income categories best describes your total 2004 household income before taxes? 35
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