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SM L'Oreal
SM L'Oreal
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05/03/2021 Diversity in Beauty - UK - February 2021 - Market Drivers
However, the BLM movement and protests have had reverberations across all industries, not just political institutions. In
BPC, UOMA Beauty founder Sharon Chuter set up the Instagram feed @pullupforchange in summer 2020 challenging
brands to release data on the number of Black employees within their organisations and encouraging them to have at least
10% Black corporate employment. Although some beauty brands chose not to share their numbers, many did, while others
made promises to do better. Johnson & Johnson for example has vowed to add 50% more managers at VP level by 2025 as
part of its initiative to tackle systemic racism.
On a product level, L’Oréal removed words like ‘whitening’, ‘fairness’ and ‘lightening’ from skincare products while the Indian
and Bangladeshi arms of Unilever renamed its Fair & Lovely skin-lightening cream to Glow & Lovely. With the focus firmly
on racism, the cause is top of mind for consumers and brands alike.
Also taking into account undertones, which can vary considerably within a shade range, the skin tone needs of consumers
are complex. Brands can better showcase the visual representation of product shades by showing how the same shade
performs on models from different ethnicities. This could allay concerns of those who are ethnically White but have darker
skin, or those who are ethnically Asian but with lighter skin for example.
Base: 1,953 internet users aged 16+ who described their skin tone
Source: Lightspeed/Mintel
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05/03/2021 Diversity in Beauty - UK - February 2021 - Market Drivers
The UK government announced extra funding in 2020 to improve travel for people with disabilities, including a competition to
find new ways to improve transport accessibility. The extra funding could remove physical barriers, making it easier to
access information or better support travellers. The projects include practical solutions that remove physical barriers, such
as ways for visually impaired travellers to identify buses, and smartphone apps to report inaccessibility.
Mintel’s Diversity in Beauty – UK, November 2019 Report shows that 41% of adults agree that there aren’t enough facilities
for disabled people in stores that sell beauty and grooming products – highlighting the issue of accessibility in BPC.
Retailers can take inspiration from the initiatives that the government introduces for transport, such as creating a more
accessible store environment or making it easier for customers to report issues.
However, data from the ONS shows that, while immigration from the EU has declined since the results of the Brexit
referendum in 2016, immigration from the rest of the world has increased – with a rise in students from China and India
driving this. This could see increased racial diversity in the UK in the coming years, meaning that beauty brands and
manufacturers will have an increasingly racially diverse consumer base to design products for.
COVID-19 has exacerbated the economic gap, with industries where women are predominantly employed such as retail and
hospitality being particularly hard hit while male-dominated sectors such as construction and manufacturing have been less
impacted.
Mintel’s Marketing to Women – UK, March 2020 Report shows that 67% of women agree that more should be done to
ensure women are treated equally in the workplace and 54% think that better gender equality would be beneficial for the UK
economy. While the UK has scrapped tax on sanitary protection products since leaving the EU, the so-called ‘pink tax’ still
exists – meaning that in many personal care categories, women are paying more than men for equivalent products.
FIGURE 8: Financial situations compared with a year ago, by gender, October 2020
"How does your own financial situation compare to how it was a year or so ago?"
Source: Lightspeed/Mintel
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05/03/2021 Diversity in Beauty - UK - February 2021 - Market Drivers
The great economic divide
Data from Mintel’s Finance Tracker shows that those from AB and C1C2 socio-economic backgrounds are more likely to
have extra income to add to their savings and reduce their mortgages, highlighting that saving money and reducing debt are
financial privileges.
The impact of COVID-19 on the economic divide has been masked in 2020 largely due to the government’s furlough
schemes, however, consumers are increasingly worried about their financial status, seeing them cut back on spend when it
comes to BPC (see Impact of COVID-19 on the Beauty Consumer). With UK GDP set to continue to be impacted by both
the pandemic and Brexit, consumers at the lower end of the income bracket will be hardest hit.
Mintel’s Diversity in Beauty – UK, November 2019 Report shows that 39% of adults think that products for minorities are
expensive, highlighting that price inclusivity is an issue for many; especially those who consider their beauty needs to be in
the minority.
FIGURE 9: Adding to savings and reducing mortgage debt in last three months and next three months, by socio-economic
group, October 2020
"Which of the following have you done over the last 3 months? And which do you plan to do over the next 3 months?"
Source: Lightspeed/Mintel
Retailers can look to create a more inclusive in-store environment by hiring sales assistants across the age spectrum, which
would make it easier for over-55s to seek help and trust the advice of sales assistants.
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05/03/2021 Diversity in Beauty - UK - February 2021 - Market Drivers
(000s) (000s) (000s) change change
0-4 3,892 6.2 3,800 5.7 3,637 5.3 -2.4 -4.3
5-9 3,824 6.1 4,152 6.2 3,907 5.7 +8.6 -5.9
10- 3,431 5.4 4,049 6.0 4,231 6.2 +18.0 +4.5
14
15- 3,699 5.9 3,676 5.5 4,154 6.1 -0.6 +13.0
19
20- 4,200 6.6 4,117 6.1 3,907 5.7 -2.0 -5.1
24
25- 8,590 13.6 9,026 13.4 8,824 12.9 +5.1 -2.2
34
35- 8,128 12.9 8,517 12.7 8,967 13.1 +4.8 +5.3
44
45- 8,926 14.1 8,929 13.3 8,395 12.2 - -6.0
54
55- 7,237 11.4 8,376 12.5 8,975 13.1 +15.7 +7.2
64
65+ 11,301 17.9 12,552 18.7 13,674 19.9 +11.1 +8.9
Total 63,228 100 67,194 100 68,671 100 +6.3 +2.2
With high agreement that the lines between masculine and feminine have been blurred in recent years, breaking down
gender barriers could be one way to encourage men to engage in beauty and grooming categories. Mintel’s Men’s Haircare
and Skincare – UK, March 2020 Report shows that 50% of men who buy skincare/haircare are interested in
genderless/unisex products, suggesting that gender-neutral propositions could appeal to them.
FIGURE 11: Attitudes towards gender stereotypes and gender politics in advertising, by gender, October 2019
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05/03/2021 Diversity in Beauty - UK - February 2021 - Market Drivers
Source: Lightspeed/Mintel
If you want more details about this particular report, please contact the Mintel information team on +1 312-932-0400 in the U.S. or
+44 (0)20-7606-6000 in the UK and the rest of the world, or email them to [email protected].
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05/03/2021 Diversity in Beauty - UK - February 2021 - Launch Activity and Innovation
For those with textured hair to feel included by a brand, brands can look to show their expertise on these hair types. Those with textured hair are used to discussing their hair type in
patterns, shapes, kinks and coils – brands can communicate the effectiveness of their products by showing their knowledge in these areas and communicating it using models with diff
hair textures.
Those with textured hair also have different scalp needs due to lower washing frequencies. This creates opportunities for scalp care products, such as co-washes, scalp massages and
As consumers become familiar with seeing previously taboo topics like periods and the menopause openly discussed and designed for in the skincare category, other beauty categorie
follow suit. Hormonal haircare in particular has opportunities, with data from Mintel’s Women’s Haircare – UK, March 2020 Report showing that younger women are more likely to have
hair, which could be due to hormonal fluctuations, while over-55s are more likely to suffer from an itchy scalp which could be related to reduced collagen production triggered by the
menopause.
Indeed Laboratories Me-NO-Pause Restorative Cream (Indeed Laboratories) Womanology Prepare/Repair Elixir (Womanology) _faace Period Mask (Faace)
The Arbonne AgeWell collection is designed to embrace a holistic, mindful approach to ageing, with the range also being gender-neutral, while SUQQU Vialume is described as a luxu
skincare line for ageing skin, to offer care for more beautiful mature skin.
Arbonne AgeWell Silky Cleanser with Vegan Surfactants (Arbonne International) SUQQU Vialume The Serum (Equipe)
2020 also saw the launch of the ARClight initiative, created by suncare brand Ultrasun and skincare brand skinSense to support Black-owned skincare brands in the UK. The initiative
Freya + Bailey as its first recipient, enabling the brand to have support for retail strategy, distribution and warehousing and business advice.
FIGURE 14: Freya + Bailey Natural Skincare and 4.5.6 skincare, 2019 and 2020
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05/03/2021 Diversity in Beauty - UK - February 2021 - Launch Activity and Innovation
Freya + Bailey Quench! Clarifying Face Moisturiser (Freya + Bailey Natural Skincare) 4.5.6 Come Clean Cleansing Oil (4.5.6)
There have also been a number of incubator projects to support Black-owned businesses. Lashify launched a new incubator project in 2020 to help Black-owned beauty grow, investin
brands that are in the early stages of launching or already launched and in need of some help. Glossier also announced grants for Black-owned beauty businesses in the US, while Ph
launched Black Ambition, an accelerator for Black and Latinx entrepreneurs.
Meanwhile MyBeautyBrand allows users to open up their own webstore to showcase the brand’s products, earning commission. The company sells peer-to-peer recommendations and
facilitates its users to open e-stores where looks shared can be shopped, with consumers earning a commission on sales of the brands they show. Such an initiative can drive awarene
a brand or product amongst minority groups, giving brands access to new consumer groups online.
Volition Orangesicle Balancing Daily Glossybox Skincare Exfoliating Clay Scrub Neighbourhood Botanicals X MyBeautyBrand Oil to Milk Makeup Remo
Cleanser (Volition Beauty) (THG Company) Face Cleanser (MyBeautyBrand)
Brands are yet to create stories about bronzer or blusher ranges for darker skin tones, particularly at the mass-market end of the price spectrum. Rimmel’s Radiance Brick bronzer feat
just two shades for example, and women with darker skin tones often find themselves turning to smaller, independent makeup brands or having to buy more premium brands with a wid
shade offering.
Prime Beauty Cosmetics is a US indie brand for women of colour that features highlighter, bronzer and loose powder in its face range rather than foundation. The brand also stocks
‘complexion bundles’ with its face products.
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05/03/2021 Diversity in Beauty - UK - February 2021 - Launch Activity and Innovation
E
Make beauty accessible for all
New brands are entering the colour cosmetics category to make beauty more accessible for all. Guide Beauty, launched in 2020, is created by a former Dior makeup artist after being
opportunity Khorat
diagnosed with Parkinson’s disease. The products are designed to provide comfort and precision, and by easing the makeup application process, they have universal appeal.
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05/03/2021 Diversity in Beauty - UK - February 2021 - Launch Activity and Innovation
Brands are also going beyond product design, with Kohl Kreatives charity Kohl Kares providing free cosmetic technique workshops for people undergoing gender transition and receivi
chemotherapy.
Brands are also innovating in ways to make it easier for visually impaired consumers to use their products, such as L’Occitane which features Braille on 70% of its product line. In the U
skincare brand VictoriaLand Beauty developed a tactile symbol for its range of products to indicate product type, as not everyone reads Braille.
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05/03/2021 Diversity in Beauty - UK - February 2021 - Launch Activity and Innovation
EleVen by Venus Unrivaled Sun Serum SPF 35, CyberDERM Laboratories (US)
If you want more details about this particular report, please contact the Mintel information team on +1 312-932-0400 in the U.S. or +44 (0)20-7606-6000 in the UK and the rest of the world, or email them t
[email protected].
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05/03/2021 Diversity in Beauty - UK - February 2021 - Issues Faced when Buying BPC
The fact that this is true for so many BPC buyers, even across the broader population, highlights just how much room there still is for improvement
across the industry. At the same time, though, it confirms that efforts to better cater for the needs of minority groups will have wider benefits,
increasing the options available to buyers who might not necessarily define themselves as BAME, but whose still struggle to find products suited to
their skin tone.
In-store tools that enable consumers to measure their skin tone/hair type for more personalised recommendations will appeal. With in-store trial
impacted by COVID-19, automated tools using AI/AR technology could be one way to help consumers find products suited to them. Algorithms are
also becoming more sophisticated – Il Makiage’s online algorithm that recommends a shade without using diagnostic tools claims to have a 94%
success rate.
When it comes to online shopping, retailers can also look to improving navigation to enable shoppers to find products/brands suited to their needs,
particularly as those with medium/dark skin tones are more likely to find it difficult to navigate online retailers (see Databook). Classifying products
by hair type in haircare could be one way, or recommending brands known for catering to a wider range of skin tones.
Online shade comparisons across brands can also help consumers try new brands, particularly as try-before-buy has been significantly impacted
by the pandemic. Findation is a global comparison site that enables users to cross-reference their usual shades with an algorithm to find similar
shade options in other brands.
FIGURE 29: Issues faced when purchasing BPC products, December 2020
“Which of the following issues do you have when buying beauty and grooming products? Please select all that apply.”
Base: 1,806 internet users aged 16+ who buy BPC products
Source: Lightspeed/Mintel
Young men are more involved with their BPC routines than older men, and where older male BPC buyers are more influenced by low price when
shopping for skincare/haircare products, younger men also look for things like ethical and environmental considerations (see Mintel’s Men’s
Haircare and Skincare – UK, March 2020 Report). The same Report shows that they’re also more likely to have a range of skincare and haircare
concerns, which may make it difficult for them to find brands that are suited to their ethical considerations as well as meet their skincare/haircare
needs.
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05/03/2021 Diversity in Beauty - UK - February 2021 - Issues Faced when Buying BPC
When it comes to older women, they have often felt excluded from the beauty industry. Data from Mintel’s Diversity in Beauty – UK, November
2019 Report shows that 58% of women aged over 55 think that beauty sales assistants all look the same, suggesting that women in this age group
don’t feel represented in-store.
In-store representation can also go some way to help young men, with data from the same Report showing that 41% of men aged 16-24 agree that
stores that sell beauty and grooming products only cater for women. In Germany, retailer DM re-evaluated the way men’s products were promoted
in stores, creating dedicated shelving with clear direction to help men navigate. The retailer also launched its affordable male grooming line SEINZ.
at the same time as a website dedicated to giving advice to men.
FIGURE 30: Issues finding BPC products suited to their age, by age and gender, December 2020
Base: 1,806 internet users aged 16+ who buy BPC products
Source: Lightspeed/Mintel
Data from Mintel’s Diversity in Beauty – UK, November 2019 Report shows that 52% of 16-24s agree that there aren’t enough facilities for disabled
people in stores to sell beauty and grooming products. As well as improving access for those with different levels of physical abilities, retailers
should also be aware that not all disabilities are visible.
Just as the government and TfL have made it easier for those with hidden disabilities to get access to the Blue Badge and ‘Please offer me a seat’
badge, retailers can also make it easier for shoppers to signal when they may need extra help. Badges that can be offered to shoppers to indicate
that they may need assistance could help those with hidden disabilities feel at ease. In 2019, Sephora introduced coloured baskets in its European
stores that indicate whether a customer wants helps or prefers to be left alone. Such initiatives enable shoppers to indicate what they need without
having to verbalise it.
FIGURE 31: Issues related to reading information or accessing physical stores for BPC shopping, by age, December 2020
Base: 1,806 internet users aged 16+ who buy BPC products
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05/03/2021 Diversity in Beauty - UK - February 2021 - Issues Faced when Buying BPC
Source: Lightspeed/Mintel
Retailers can help those who may struggle with reading in-store information by offering different forms of communication. Images or emojis
alongside signs could be one way, as well as audio descriptors. Brands and retailers can partner to create apps that describe products, ingredients
and claims to make it easier for shoppers to access and understand information while shopping in-store. QR codes on packaging for example can
be used to unlock more information about a product.
With online buying seeing a significant boost in 2020 due to COVID-19 (see Impact of COVID-19 on the Beauty Consumer), retailers will lose
shoppers in the long term unless online shopping is made easier. More filter options could be one way to improve navigation, enabling shoppers to
search for products by their ethical considerations and formula preferences (eg fragrance-free) and not just brand/product preference.
Retailers can also use imagery reflecting shoppers to help them find the products suited to them. On a haircare page for example, showing different
types of hair and then recommending the brands best suited can make it easier to shop. Adapting the homepage based on a shopper’s age,
gender or ethnicity can also make it easier to offer targeted recommendations.
If you want more details about this particular report, please contact the Mintel information team on +1 312-932-0400 in the U.S. or +44 (0)20-7606-6000 in the UK
and the rest of the world, or email them to [email protected].
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05/03/2021 Diversity in Beauty - UK - February 2021 - Issues and Insights
These industries were also highly exposed to the economic disruption caused by COVID-19, and in BPC, the economic
divide will see many consumers trade down and even cut back on non-essential spend, particularly as ongoing
lockdowns and social distancing restrictions simply reduce the need to use beauty products. Indeed 22% of those
describing their financial situations as tight have already spent less on BPC since the pandemic (see Databook)
compared with 18% of average.
Mintel’s Diversity in Beauty – UK, November 2019 Report showed that 39% of adults already thought that BPC products
for minorities are expensive, and the likelihood that the economic turmoil will disproportionately affect some minority
groups means that there’ll be a need for masstige brands to innovate in more inclusive ranges.
In particular, masstige brands have an opportunity to appeal to price-conscious shoppers by offering a more premium
feel to those on budgets. This can drive the accessibility of beauty products for those with tighter finances.
Retailers can also use the increase in shopping online since the start of the pandemic as a way to drive a more inclusive
shopping experience. 14% of BPC buyers have difficulty reading information in-store/on packaging and 13% struggle to
get physical access to stores. Online retailers can take inspiration from brands such as Alterna, which allows shoppers
to see an amended site based on their physical needs, such as larger font sizes, or enhanced compatibility with screen
reader tools.
However, brands need to be careful that such efforts don’t become a quota-filling exercise and that diverse voices within
an organisation are listened to and empowered. Instagram accounts like @influencerpaygap are highlighting the pay
disparities between Black and White influencers, and activist accounts like Estée Laundry are encouraging employees
to share their employment experiences anonymously. As such, consumers will be made aware of inauthentic actions
and shift their loyalty – and spend – to brands that better represent their values. Indeed, 29% of BPC shoppers have
stopped supporting a brand/retailer that was called out for racism/cultural insensitivities, rising to 58% of 16-24s.
As well as inclusive recruitment drives, well-known beauty brands and retailers can support minority-owned businesses
as a way to drive inclusivity. 23% of BPC buyers seek out brands that are minority-owned, suggesting that initiatives like
The 15 Percent’s pledge seeing retailers commit shelf space to Black-owned businesses in the US will have appeal in
the UK.
Projects which offer mentorship and funds to Black-owned businesses, such as Lashify’s incubator project in 2020, can
help bigger brands identify indie brands that are targeting the needs of under-served communities, as well as give them
a platform to grow. Such initiatives help drive the authenticity of inclusivity efforts, challenging consumer scepticism.
Taking a stand doesn’t necessarily have to be political, however. Indeed, consumers may not want beauty brands to be
explicitly political; only 13% of adults consider the taking of a political stand on issues relating to minority groups as a
top three factor for a diverse beauty brand for example.
Consumers are looking to beauty brands and retailers to have an opinion and follow it with action, and this can be as
simple as supporting minority-owned businesses. For example, with 23% of BPC buyers seeking out brands that are
minority-owned, retailers can make it easier for shoppers to spot these brands on shelf.
There is also space for well-known brands to expand their brand attributes – particularly as 35% of adults agree that
well-known beauty and grooming brands don’t do enough to be inclusive. While NIVEA and Dove score highly for being
authentic and age-positive, neither brand scores particularly well for being inspiring or empowering – both of which are
attributes these brands could explore without being political.
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Similarly, L’Oréal Paris has low scores for being gender-inclusive (10%) and open (12%), despite the brand’s efforts to
recruit models and spokespeople from different genders and backgrounds. Having an opinion, supported with consistent
campaigns as well as showcasing what a brand is doing behind the scenes (eg in recruitment drives), could help
consumers see that it is taking a stand on topical issues.
If you want more details about this particular report, please contact the Mintel information team on +1 312-932-0400 in the U.S. or
+44 (0)20-7606-6000 in the UK and the rest of the world, or email them to [email protected].
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05/03/2021 Diversity in Beauty - UK - February 2021 - Impact of COVID-19 on the Beauty Consumer
Although engagement in BPC declines by age, the pandemic has exacerbated this by making it harder for over-65s to access products
and advice in physical stores. Beauty brands and retailers can reach out to over-65s with BPC initiatives to help those stuck at home,
particularly during lockdowns, to have a beauty ‘pick-me-up’.
Beauty care packages that help consumers improve their emotional wellbeing could be a way to appeal to older consumers and drive
interest, repositioning beauty products for more than purely functional needs. Brands can also create online communities for older
consumers to combat loneliness, enabling them to communicate with one another as well as stay in touch with a brand.
Retailers can also ease the online shopping experience by offering telephone services to help guide people through online shopping, or
offering at-home drop-off and pick-up services to enable shoppers to return products easily.
FIGURE 22: Worry and extreme worry related to COVID-19 impacting lifestyles, by age, 8-16 December 2020
“To what extent are you worried about how the outbreak might affect your lifestyle?”
Source: Lightspeed/Mintel
[
Hair colour brands used the first nationwide lockdown to keep in touch with consumers remotely as well as showcase how-to videos and
offer tips and advice. Tailoring communication to the over-55s can drive the use of home hair colour/treatment products, such as showing
grey coverage methods.
For the oldest demographic in particular, visiting a hairdresser/barber may be just as much about connecting with others on a human level
as it is about having a professional treatment done. Stylists can offer online services to connect with regular salon visitors as well as
create remote communities using social media to enable customers to stay in touch.
FIGURE 23: Visited a hairdresser/barber in the last 3 months, by age, December 2019 and December 2020
“Which of the following related to beauty and grooming have you done in the last 3 months?”
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05/03/2021 Diversity in Beauty - UK - February 2021 - Impact of COVID-19 on the Beauty Consumer
Source: Lightspeed/Mintel
BAME groups have been impacted in particular. Industries such as accommodation and foodservice, where BAME people are
overrepresented, have been hard hit with redundancies, while a report published by PHE in June 2020 shows that death rates from
COVID-19 were higher for Black and Asian ethnic groups compared with White ethnic groups. The report suggests that COVID-19 did not
create health inequalities, but rather exposed and exacerbated the inequalities affecting BAME groups. The report also found that ‘historic
racism and poorer experiences of healthcare’ mean that those from BAME groups are less likely to seek help when needed.
This will have long-lasting consequences. Aside from the time it will take to financially recover from the impact of the pandemic, COVID-19
has highlighted the racism and social inequality faced by BAME groups. In a year where the BLM movement has gained more momentum
than ever before (see Market Drivers), the inequalities faced by minority groups in the face of the pandemic only highlight issues of
inequality further.
FIGURE 24: Spend on BPC products compared with before COVID-19/coronavirus, 8-16 December 2020
“Compared to before the COVID-19 outbreak, do you think you are spending more, about the same or less on the following?”
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05/03/2021 Diversity in Beauty - UK - February 2021 - Impact of COVID-19 on the Beauty Consumer
Source: Lightspeed/Mintel
This could give rise to a more inclusive shopping experience. Online retailers can offer curated homepages based on a shopper’s age,
gender or ethnicity, highlighting brands best suited to their demographic profile. They can also link to online magazines and influencers
which offer articles and advice that are tailored to specific demographics.
Online retailers can also cater their sites for people with different abilities. Haircare brand Alterna, for example, features a button on its site
enabling users to adjust settings for different abilities (see Advertising and Marketing Activity).
FIGURE 25: Beauty/grooming purchase behaviours since the start of the COVID-19/coronavirus outbreak, 11-22 June 2020
“Thinking about your beauty/grooming buying habits since the COVID-19/coronavirus outbreak, do the following statements apply to you?”
Base: 1,699 internet users aged 16+ who have bought BPC products since the last of the COVID-19/coronavirus outbreak
Source: Lightspeed/Mintel
If you want more details about this particular report, please contact the Mintel information team on +1 312-932-0400 in the U.S. or +44 (0)20-7606-6000 in
the UK and the rest of the world, or email them to [email protected].
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05/03/2021 Diversity in Beauty - UK - February 2021 - Executive Summary
“The events of summer 2020, which saw the BLM movement gain momentum, have had reverberations across all industries and not just politics. In BPC, brands and retailers c
minority-owned brands and businesses, giving opportunities for well-known brands and retailers to offer a platform and support these smaller businesses.
As diversity is multifaceted, brands can innovate at lifestage rather than age to be more inclusive, particularly as the lines between age groups and genders continue to blur. Th
more inclusive shopping experience, altering the way homepages are shown to reflect the needs of the shopper.”
Areas highlighted in red are expected to be particularly hard hit, yellow reflects an expectation of significant but largely manageable disruption and green shows that we believe the ma
FIGURE 1: Short, medium and long-term impact of COVID-19 on BPC, 18 January 2021
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05/03/2021 Diversity in Beauty - UK - February 2021 - Executive Summary
Source: Mintel
The market
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05/03/2021 Diversity in Beauty - UK - February 2021 - Executive Summary
The BLM movement gained momentum in summer 2020, with an effect that rippled across all industries and not just politics, forcing beauty brands to think long and hard about their in
The @pullupforchange campaign highlighted the lack of representation within organisations. Many companies promised to do better, and high-profile shifts such as the rehiring of Mun
NPD has seen brands innovate in ways to make beauty more accessible for people with different abilities, such as Guide Beauty launched in 2020 created by Terri Bryant after she wa
As BPC shoppers have moved online as a result of COVID-19, retailers can create a more inclusive online shopping experience. Haircare brand Alterna provides one example of how
Skincare has seen brands target products by lifestage rather than age in 2020, such as Indeed Laboratories’ Me-NO-Pause range designed for use during and after the menopause, a
The consumer
When it comes to being inclusive, consumers are looking at both what a brand has to offer in its products as well as its advertising campaigns. However, the events of summer 2020 an
While inclusive campaigns and product ranges are important, they are not enough, and consumers are looking for reassurance that a beauty brand is driving diversity and inclusivity w
Source: Lightspeed/Mintel
Consumers struggle to find products suited to their skin tone regardless of their ethnicity. Indeed, skin tone is not defined into neat ethnicity groups; for example 45% of those describin
Innovating in products across the spectrum of skin/hair type, and showcasing examples from different ethnicities, can help consumers find products that are best suited to them. In-stor
“Which of the following issues do you have when buying beauty and grooming products? Please select all that apply.”
Base: 1,806 internet users aged 16+ who buy BPC products
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05/03/2021 Diversity in Beauty - UK - February 2021 - Executive Summary
Source: Lightspeed/Mintel
{
Beauty consumers are increasingly buying with their ethical considerations in mind, and the events of summer 2020 have bought racial issues firmly to the forefront even when buying
Where in the past staying silent and not causing offence was enough, looking forward brands that don’t take a stand on topical issues could risk losing followers – particularly amongst
FIGURE 4: BPC buying behaviours when it comes to issues relating to minority groups, December 2020
“Do the following statements about diversity in beauty and grooming apply to you?”
-7 How forreal Cen
Base: 1,806 internet users aged 16+ who buy BPC products
take a stand?
Source: Lightspeed/Mintel
Authenticity is essential
Consumers still feel that some groups are being let down by beauty brands, particularly men, those with disabilities and those with different body types. Authenticity is also an issue, w
Many brands increased their DEI efforts in 2020, putting in place long-term plans to drive diversity within their organisations as well as support minority-owned businesses; relaying this
The category can also do more to cater for groups that have traditionally felt ignored, such as innovating in the in-store environment to make it more inclusive. This can help drive auth
“Do you agree or disagree with the following statements about diversity in beauty and grooming?”
https://reports.mintel.com/sinatra/oxygen/print/id=1066143 4/5
05/03/2021 Diversity in Beauty - UK - February 2021 - Executive Summary
Base: 1,982 internet users aged 16+
Source: Lightspeed/Mintel
While well-known brands such as NIVEA and Dove score highly in a number of attributes, such as being authentic and age-positive, there is still space to grow. These brands score low
Despite L’Oréal Paris’ high-profile campaigns with older brand ambassadors or transgender models, the brand scores low for being gender-inclusive and sincere, suggesting room to e
“Which of the following attributes do you associate with each of these brands? Please select all that apply per brand.”
Base: 1,806 internet users aged 16+ who buy BPC products
Source: Lightspeed/Mintel
If you want more details about this particular report, please contact the Mintel information team on +1 312-932-0400 in the U.S. or +44 (0)20-7606-6000 in the UK and the rest of the world, or email them t
https://reports.mintel.com/sinatra/oxygen/print/id=1066143 5/5
As L’Oreal is more considered into Making the World Beauty Universally for everyone
in this whole world.
INTRODUCTION
L’Oreal company was invented in (1907) by “Eugene Schueller” the young French
Chemist, who took a first move by creating the first hair dyes and started his sales by
selling them to the French hairdressers. This move made him focus and concentrate
on researching, starting for his investment to achieve the beauty for consumers and
to look forward with the name L’Oreal. L’Oreal is a listed company, as “Liliane
Bettencourt” and the Swiss food company “Nestle” are the founders as each of them
are controlling 30% (percent) of the shares.
In (1988-2000) the director and the chairman “Lindsay Owen-Jones” in (2006) started
the company with the cosmetic marketing. Therefore today L’Oreal is the 1st
Cosmetic group worldwide it has 27 International brands which is running globally in
almost 130 Countries with €20.3 Billion Euros with more than 68,900 Employees.
L’Oreal company has a setup of 5 key division and activities which is related with
L’Oreal LUXE, CONSUMER Products, PROFESSIONAL Products, ACTIVE Cosmetics and
The BODY SHOP. There are some products which contains the highest growth rates
like Lancôme, Giorgio Armani, Kiehl’s, Kerastase, Maybelline New York and La
Roche-Posay contains a range of exceptionally high quality products that are globally
recognized all over the world.
Therefore, this success accomplished under his leadership Sir “Lindsay” who have
recognized to help the consumers individually by desiring them or getting them to
be beautiful, his mission was to achieve to create the effective growth strategy for
their brands in order for companies success.
PESTEL Analysis
It stands for “Political, Economic, Social, Technological, Environmental and Legal
analysis”. It is a part of the external analysis when conducting a strategic analysis or
doing market research and gives a certain overview of the different macro
environmental factors that the company has to take into consideration.
Political factors The political challenges is that L’Oreal must try to change all the
political leadership styles in many different countries where they are operating it
[
with. Or how and to what degree a government intervenes in the economy.
Specifically, political factors include areas such as tax policy, labour law,
environmental law, trade restrictions, tariffs, and political stability. Political factors
may also include goods and services which the government wants to provide. Also,
futon to consider
L’Oreal is getting effected by the legislation for advertising (demerit goods or merit
what in politics ?
bads). L’Oreal is producing almost all the safe products which doesn’t contain any
harmful substance or any kind of effectiveness. Furthermore, governments have great
influence on the health, education, and infrastructure of a nation.
Economic factors include economic growth, interest rates, exchange rates and the
inflation rate in all the countries which they are operating in. For example in (2004),
L’Oreal was been affected by the continues weakness of the dollar and other
currencies. These factors have major impacts on how businesses operate and make
decisions. For example, interest rates affect a firm’s cost of capital and therefore to
what extent a business grows and expands. Exchange rates affect the costs of
exporting goods and the supply and price of imported goods in an economy.
Social factors Because L’Oreal’s business in exactly at the centre of the people all
over. It is closely involved in the life of the communities where they are located and it
also includes the cultural aspects and include health consciousness, population
growth rate, age distribution, career attitudes and emphasis on safety. Trends in
social factors affect the demand for a company’s products and how that company
operates.
Environmental factors The main factor includes weather, climate, and climate change,
which is especially affects the industries such as tourism, farming, and insurance.
Furthermore, growing awareness to climate change is affecting how companies
operate and the products they offer–it is both creating new markets and diminishing
or destroying existing ones.
Legal factors That include discrimination law, consumer law, antitrust law,
employment law, and health and safety law. These factors can affect how a company
operates, its costs, and the demand for its products.
For Example: –
Raw Materials
Packaging
Point of Sales
Equipments
So that mean L’Oreal has many suppliers in producing their products. So therefore,
their bargaining power is low.
When there are large numbers of customers, no one customer tends to have
bargaining leverage. Limited bargaining leverage helps L’Oreal Paris.
There are multiple international and local brands available for the buyers to buy
from. The switching cost is also not high from one cosmetic brand to another
cosmetic brand although there is a factor of brand loyalty due to skin sensitivity. But
the overall factors are not so impactful that it restricts the buyers to a particular
[
brand so closely. The availability of the same quality brand with the same or even
competitive pricing has increased the bargaining power of the buyers. The cosmetic
companies have to keep in mind the bargaining power buyers while developing the
products and setting the prices for the products (Darabos, 2013).
.com high
in beauty
Are switching
in duty ?
Intensity of Existing Rivalry (External)
Government policies and regulations can dictate the level of competition within the
industry and will have a long term negative impact on this entity, which subtracts
from the entity value.
The competition in the global cosmetics industry is of the highest level because of
the strength of the competitors in the industry. The global cosmetics industry has
earned a revenue of 532 billion USD in 2017 which is expected to increase at the rate
of 7 percent between 2018 and 2024. The major international brands in the
cosmetics industry include L'Oreal, Maybelline, Dior, Chanel, Urban Decay, Lancome,
and Estee Lauder (Zion Market Research, 2019). L'Oreal is leading the market with the
highest market share due to its range of products and brand reliability. The other
brands also have international presence and acceptance which is the reason for fierce
rivalry in the global cosmetics industry. Although the competition is high but the
competition is not negatively impacting the current state due to the massive growth
of the industry. Despite increasing the number of companies, the number of buyers is
also increasing which is neutralizing the negative impact of high competition.
The suppliers have low bargaining power because the raw materials used in the
cosmetics industry are not rare and the suppliers are also available in abundance
which makes it easy for the companies to negotiate. Due to such massive growth and
sales of the cosmetics companies, the suppliers focus on giving the highest value to
get the contract of international brands. This value of the companies for the suppliers
in the cosmetics industry is the reason that the companies negotiate through a
dominant approach (Pereira de Carvalho & Barbieri, 2012). Therefore, the bargaining
power of the suppliers is low due to their high dependence on the companies.
As essentially, whatever toxics to put or use in your mouth toxics on your skin as well.
The skin and beauty care products have become a need and there is no chance that
the people would not be concerned about the beauty, skin, and personal care. This
need requires the beauty, skin, and personal care products in the industry which
keeps the threat of substitutes low. It is important to note that the way and products
have changed and evolved but the need for beauty care products is there and it will
remain there with radical or incremental innovations in the products
The main Threats for L’Oreal is their products are luxuries which could be hurt by an
economic downturn however they are able to be global and act locally. Also it may
affect their distribution system.
The hurdles for the new entrants in the cosmetics industry are there but some of
them are negated due to the exceptional growth of the cosmetics industry. The
expertise is requiring to manufacture the cosmetics products and the testing of the
different products is a complex process requiring skills and capital. The issue of
banning animal testing in the cosmetics industry has further intensified the
complexity of the operations in the cosmetics industry which is a hurdle for the new
entrants. The fast market growth neutralizes the negative intensity of the hurdles
which is the reason that the threat of new entrants in the global cosmetics industry is
moderate (Ulubeyli, 2017).
VIRIN Analysis
It stands for ” Valuable, Rare, Inimitable and Non-substitutable”
L’Oreal corporate reputation is a type of retailing which enables a brand “KIELHS and
THE BODY SHOP” which are the free standing store and developing. This is an
invaluable way of getting the consumers by measuring the success of products and
advertising them in a real time.
S – Strengths
W – Weakness
O – Opportunities
T – Threats
The main act of SWOT analysis is that
Considering the above facts a SWOT analysis has taken place to mark the right
opportunity.
Strengths:
Generally high profit margins
Product Innovation
Consistent quality
Weakness:
Bad communication
Opportunities:
Acquisitions natural product awareness.
Threats:
High competition from foreign brands.
Conclusion
Based on this analysis L’Oreal is trying to focus on the photonics to enhance the
cosmetics colours, with the shop shelves where there are trying to show the world as
the first cosmetic. L’Oreal sales margin in yearly bases is more than 4.6 billion
individually as ever purchase of any consumers choice product like ( beauty salon ).
This is the main reason why the consumer are satisfied and look forward to their
products. L’πOreal seems to give it competitive advantage over its rivals. They are a
dominant player in the market and probably the leading seller of the beauty
products. They also have many opportunities to open them and they should also
take advantage of their strengths in the market they operate with.
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