The approach consists in carrying out and regularly updating an analysis of the main beauty players on the main markets. The idea is to analyze their volumes, positioning, prices, assets… and get a global vision of all product segments for each market. The study relies on external sources (Mintel, Euromonitor, Nielsen, etc.), but also on a consumer analysis based on a comparative, qualitative, quantitative, and digital approach that better assesses their needs and behaviours.
This analytical approach results in a map of each market, so that brands can fulfil their objectives.
Focus on the nail varnish market
Let’s take the example of the analytical approach IL Cosmetics applied to the nail varnish market. After several years of rapid growth, and then a drop in sales, the market is now stable. As a reminder, the nail varnish market fell by almost 50% between 2013 and 2018, declining from 6 billion units sold per year to less than 3 billion.
The last fall was even more important due to various factors:
The increase in the market shares of gel varnish, which is also getting more stable.
The ratio of the quantity of products purchased: 1 gel varnish bottle for four standard nail varnish bottles. This is due to the fact that almost all gel solutions are intended for professional use. IL Cosmetics supplies semi-permanent varnish and has been working on a solution better-adapted to the retail channel.
A change in consumption habits. Women no longer change colours that often, plus they can wear the same semi-permanent varnish for several weeks.
The pressure of category and brand management at points of sale. Priority is given to products with a better margin per square meter. The nail varnish category loses presence and visibility, given its low retail prices, compared to other product categories.
Still, it should be said that private labels have either managed to strongly increase their market shares or become leaders on their respective markets. They have chosen a business model based on a partnership with a full-service provider that helps them enter the market with efficient, trendy, more competitive solutions and a much shorter time-to-market.
A systematic analytical approach
By applying this analytical strategy to all their development priorities, IL Cosmetics managed to contribute to the success of private labels in multichannel distribution networks, in the segments of nail varnish, but also makeup, with their Luxcos dedicated entity, whose market shares doubled in three years.
Perfectly aware of the crucial role played by customer insight, the company has adopted a customer-oriented approach coupled with a quantitative assessment. Digital data complete the analysis table to take into account the fast-changing trends and consumer behaviours.
“Market research is at the core of our marketing strategy. It will help us strengthen our leadership on the market and consolidate our business units,” says IL Cosmetics.
A “Long Wear, glossy & care” expertise
The Long Wear technologies developed by IL Cosmetics helped their customer brands gain market shares, despite the current downturn, and reach the first rank in Europe. To consolidate this position, IL Cosmetics went on with their research work: they will introduce new formulas based on a brand new process at the next Cosmoprof show. These Last+Light Catch’R formulas are designed to boost the nail varnish gloss and adherence performance.
Meanwhile, following a rising trend, formulas increasingly offer Long Wear+Care benefits, as they provide both the performance required for a nail varnish and the actives needed to strengthen nails.