According to data from the latest study conducted by research firmKline & Company, global beauty brands cannot adopt a single strategy to address the needs and particularities of consumers worldwide.

Rural and urban marketplaces

The takeaway message is that there is no one-size-fits-all strategy for success,” says Carrie Mellage, Director of Consumer Products Research for Kline. “The unique features of each country require marketers to think globally, but act locally,” she adds.

As an example, Carrie Mellage highlights the particularities of Brazil’s rural population, which is a huge potential market but depends heavily on direct person-to-person sales. On the contrary, “the more sophisticated and fickle shoppers in the mature beauty markets must be lured with exclusive offers, steep discounts, cool iPhone apps, and social media connections.

Emerging economies boost direct sales

Growth rates differ widely from one country to another with a huge gap between mature markets and emerging economies. Similarly, the dynamism of the various retail channels is unequally affected. Kline’s research points out that “in the United States, the weak economy has forced department store share of the total market down another two points versus 2003 levels”.

At the global level, the dynamic growth in emerging economies, combined with their relatively important rural population is boosting direct sales operators. Actually, Kline says that direct sales have emerged as the fastest growing retail channel for beauty products, posting a robust 8.6% increase in sales - nearly double that of the overall market.

Chain drugstores

Kline also highlights the successful shift operated by chain drug stores in many countries. They have “dramatically increased floor and shelf space for beauty products and introduced a more posh shopping environment that mimics the feel and service levels of specialty or department stores”.

Kline estimates drugstores grew by 5.4%, ahead of the market’s overall 4.7% growth.

Mixing retail strategies

However, the structure and dynamism of retail channels are linked to historical factors and vary dramatically from one country to the other.

In China, for instance, growth is led by expansion in the number of doors across all channels, including department stores, mass merchandisers, and specialty stores. Meanwhile in India, unlike any other outlet in the world, independent, owner-operated shops (kirinas) remain the mainstay of the personal care market with 78% market share and 9% growth in the past five years.

In such a context, it appears that winning companies are those opting for different retail strategies from one country to another. “Savvy brands are employing a mix of complementary channels,” explains Karen Doskow, industry manager for consumer products research at Kline.