The luxury market is still thriving in the globally gloomy economic context: according to the statistics published by Bain & Company, the sector grew by +10 % in 2012. Perfumery and personal care have contributed to this growth, whether in emerging or developed countries. The premium beauty market is booming in Asia as well as in countries on the American continent. Year after year, the “upper premium” beauty sector expands its offer and gets more and more diversified, as can be seen with the rise of the number of face care launches between $200 and $400 by +49 % in 2012 [1].
Desire for top-of-the-range beauty products is now more to the fore than ever, according to Rémy Oughdiri, Manager of the Tendances & Insights Department at IPSOS Public Affairs, and Leïla Rochet-Podvin, President and founder of the Cosmetics Inspiration & Creation agency.
Self-image and protection
The World Luxury Tracking study carried out by IPSOS shows that beauty products buyers give more and more value to the most exclusive items: ingredient scarcity, limited editions, personalized brand-customer relationship… And exclusive rhymes with expensive. This trend is confirmed both on more developed markets (Europe, the United States and Japan) and emerging ones (China, Brazil, Russia).
But why are women still ready to spend more when they can easily have access to overabundant, quality products?
The main reason why is the ever-growing influence of self-image in our societies. This influence is enhanced by the unprecedented development of filming devices and ways to take and stage pictures, in particular on social networks.
Within such a context, tools for people to stage themselves are becoming more and more sophisticated, and a growing number of people spend money on various means to show themselves off to advantage, including beauty products. The economic crisis even puts more pressure on this need in some countries.
But beware; it is all about being seen, but not too much! That is the latest tendency: showing but not flaunting oneself, nor being too visible or trying to stand out. Flashiness is no longer in. We still want to be ourselves behind our desire to be seen, with our own style, a style that reflects our personalities. We are still anxious to contribute our bit, yet without being radically different.
Then, beyond image lies protection. This is the other powerful luxury cosmetics lever. Protection against the deleterious effects of pollution, protection against ageing effects… The more people care about their health, the more ready they are to indulge in the best products, even the most expensive ones.
Paradoxically, expanding offer also arouses suspicion. Counterfeited or poor quality products are often seized in emerging countries, which benefits luxury cosmetics brands. Customers are convinced that buying more expensive means buying safe.
New values in the luxury market
The premium beauty sector finds its roots in luxury values that are themselves experiencing a deep change. While still reflecting excellence and refinement, the luxury market is less material and tends to favour experience and values more extensively.
If it used to embody social belonging and economic success, it is getting increasingly committed and tends to adopt a more participative approach to development. Its ability to arouse desire comes to a greater extent from thrill-seeking, whether it be exhilarating, uplifting or fulfilling emotions. “We have shifted from an appearance-focused society to one that praises hedonistic beauty and where a mosaic of people value difference”, highlights Leïla Rocher-Podvin.
At the same time, ethics – emotions from the heart – has become a key value in our world. Thus for consumers seeking meaning, affinity has become essential. And echoing the values they have adopted has become a necessity. The statutory link with the brand has been substituted by an affinity, more human, even humanist relationship. We no longer buy a product, we subscribe to a brand.
Innovations of the future
Given these findings, Cosmetics Inspiration & Creation have presented a prospective segmentation used as the basis upon which to reflect on innovation. The agency encourages brands to add ideas that mirror society and luxury changes to their traditional performance arguments, in particular by reinforcing the brand-customer relationship.
It has thus defined four prospective axes:
– ArtKeting. Upgrading egos by strenghtening the brand’s creative and cultural values, which will both reinforce affinity and experience and awaken a sense of wonder through the beauty of the creation.
– 4Me. Finding a benefit or an experience that will increase the prestige of personal affinity with the brand, whether it be a service, a promise or a new quality to the product.
– Sentstory. Reinforcing sensorial discovery or the discovery of a new story, and positioning the brand as an « escape brand » that brings hedonistic happiness.
– Xhumaniste. Premium beauty’s main feature is to make consumers feel valued when they buy, and to touch their hearts, provoking affinity. Reinforcing the brand’s strong image as a sacred/human brand, and disclosing its ethics when facing societal challenges.
The whole file comprising the cross analysis carried out by IPSOS and Cosmetics Inspiration & Creation was presented as a preview at the Beyond Beauty trade show (September 9 to 11, 2013) as part of a conference entitled “The Irresistible Desire for Premium Beauty”, and is now available from one or the other company:
– IPSOS : Rémy Oudghiri, Directeur du département Tendances et Prospective Ipsos Public Affairs, Tel : +33 1 41 98 95 73 ; (E-mail : remy.oudghiri@ipsos.com)
– Cosmetics Inspiration & Creation: Leila Rochet-Podvin, Fondatrice, Tel : +33 1 82 28 32 82 (E-mail: leila@inspiration-creation.com)
