“Our findings show that the same strategy cannot be applied equally to mature (mainly Europe), emerging (Asia) or specific markets (USA),” says Philippe Jourdan, University Professor and founding partner of Promise Consulting.
The company focused on makeup brands sold in selective retail channels, defined as including brand owned retail networks (Kiko, Body Shop, Yves Rocher, etc.), department stores, beauty chains (Sephora, Marionnaud, Douglas, etc.) and Duty Free stores.
Performances strongly linked to brands’ DNA
A quick ranking of brands according to their “overall business performance” - a composite indicator that takes into account penetration, market share and brand loyalty - shows a strong heterogeneity depending on the country where the products are sold. The performance seems to depend on the brand’s DNA: brands deriving from the fashion industry are predominant in Europe, while in Asia, those deriving from cosmetic brands and (or) from local brands prevail. In the United States two types of players are vying for market: brands deriving from the skin care world (Clinic, Estée Lauder) and those that can be described as “makeup pure player” (MAC) and, more generally, the makeup artists brands.
The haute couture asset
In France and in Korea brands deriving from the haute couture world record a stronger notoriety in makeup than other brands, in particular because of the privileged position occupied by Dior in France and by Chanel in Korea. However, in the United States makeup artist brands (MAC, Bobbi Brown, Nars or Laura Mercier) are resisting to haute couture brands.
As far as image is concerned, brands derived from the haute couture world - because of the prestige and quality associated with their name - sill enjoy a certain advantage over other brands, both in France, in the United States and in Korea. However, the haute couture origin does not guarantee a bigger market share in the make-up market in the United States due to the historical presence of Clinique, the leading beauty and makeup brand.
Image: a key asset
Researches conducted by Promise Consulting also showed a strong correlation between makeup brands’ ability to attract (their image) and their market share, notably in France and in the United States.
In France, makeup brands that have their origin in the fashion industry make the best use of their image in terms of sales. In the United States, the two performance indicators - image and sales - are at their highest level with makeup artist brands (MAC) and with brands derived from the world of skin-care (Clinic). Makeup artists are probably taking advantage of their partnerships with haute couture designers (Peter Philips in backstage of the Chanel fashion show, Pat McGrath with Dior, etc.). As of skin care brands, they have been innovative in bringing the two worlds of care and complexion (CC Cream).
For selective makeup brands, as for perfume or skincare brands, image thus appears as the aggregation of product characteristics (quality) and statutory ("brand used by celebrities", "used by makeup artists”) and symbolic ("an iconic brand") criteria, regardless of the country.
