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STOREDITS SKIN CARE, MAKE-UP and COSMETICS - A research report by the Shop! Global Network - Shop! Association
STOREDITS
SKIN CARE, MAKE-UP and COSMETICS

A research report by the Shop! Global Network

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STOREDITS SKIN CARE, MAKE-UP and COSMETICS - A research report by the Shop! Global Network - Shop! Association
STOREDITS
SKIN CARE, MAKE-UP and COSMETICS

Storedits Letter from Todd

                                   Our goal at Shop! Environments              We hope you find this comprehensive
                                   Association is to provide retailers and     report helpful as you collaborate and
                                   brands with fresh ideas to meet their       build alliances with retailers in this
                                   customers’ untapped needs by using          competitive market.
                                   Shop! member products and services.
                                   “Collaboration & Alliances” is one of       If you have questions about this or
                                   six vital retail trends we’ve identified    other Shop! research reports, feel
                                   as necessary to thrive in today’s           free to reach out to me (tdittman@
                                   challenging retail environment.             shopassociation.org) or Madeline
                                                                               Baumgartner, Director of Education
                                   This research project underscores           & Research, at mbaumgartner@
                                   how strong alliances among our Shop!        shopassociation.org.
                                   Global Network members can result in
 A special thank you to            the creation of an essential tool for the
 our sponsors WestRock,                                                        Thank you!
                                   industry at large. Storedits (stor-ditz)
 Essentra and Hera Lighting        is an analytical qualitative survey of
 for their ongoing support         retail space conducted by the Shop!
 of the Storedits program.         Global Network. For several years, this
 We also thank the staff           study has been identifying how POP          Todd Dittman,
 at POPAI UK & Ireland             displays are being deployed in different    Executive Director Shop!
 for managing the project,         categories and retail channels across
 providing analysis and            the world. This year, it was expanded
 writing the report, as well       throughout North America and covers
 as other members of the           the explosive market of skin care and
                                   make-up/cosmetics.
 Shop! Global Network who
 conducted the field work.         The total global cosmetic products
 Without their contributions,      market, which includes hair care, oral
 this project would not have       and fragrances, was valued at USD             For more information about this topic,
                                   532.4 billion in 2017. This burgeoning        please visit Shop!
 been possible.
                                   market is expected to reach a market          Website: shopassociation.org
                                   value of USD 805.6 billion by 2023.           Email: welcome@shopassociation.org
                                   The study results reveal contributions        or call Madeline Baumgartner,
                                   from global Shop! members to                  Shop! Director of Education &
                                   the growth of this market through             Research on 312-863-2917.
                                   innovative displays and marketing.

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SKIN CARE, MAKE-UP and COSMETICS

    Contents

    Introduction                                4
    Executive Summary                           5
    The Global Cosmetics and Skin Care Market   6
    Industry Trends                             9
    Display Trends                              11
    Market Data                                 13
    In-store Research                           17
       Display Types and Distribution           18
       Display Characteristics                  23
    Conclusion                                  30
    Recommendations                             31
    Sources                                     31
    Glossary of Terms                           32

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Introduction
The cosmetics and skin care market
is one in which physical stores play
a huge part. When buying these
products, we like to see, touch,
smell and test – something which
we cannot do online. Despite
global economic uncertainty, this
category is consistently resilient,
with a continuing focus on our looks
combining with new and emerging
trends to keep the market buoyant.
Increased disposable income in traditionally
poorer countries, an aging population, the
growing trend for men’s grooming products
and increased innovation offering new ways to
try and buy, all mean that brands and retailers
can find ever more audiences to reach.

Although dominated by the big top ten
players, new entrants are constantly seeking
to join this highly competitive market,
particularly those with a focus on anti-aging
products.

In-store promotional materials have a clear
task and focus.

          Attracting shoppers to the product

    NE
      W   Introducing new products

                                                  Our research
          Increasing product and category         Storedits (stor-ditz) is an analytical            The research set out to identify the following
          sales                                   qualitative survey of retail space conducted      aspects of POP display use in different
                                                  by the Shop! Global Network. It has been          retail environments.
                                                  used for several years to identify how            •    Location in-store of POP display
          Creating impulse purchase and
                                                  POP display is being employed in different
          cross-sell opportunities                                                                  •    Type of POP used
                                                  categories and retail channels across the
                                                  world. It is not, however, a full audit of this   •    Use of digital screens
          Enhancing co-branding                   space and display materials therein; rather, it
                                                                                                    •    Types of messaging and information
                                                  targets specific areas to identify trends and
                                                                                                         being communicated
                                                  understand how displays and promotional
          Offering shoppers a more engaging       messaging are being used by brands and            •    Color
          brand experience                        retailers to appeal to and influence the          •    Single or multiple brand use
                                                  shopper in-store.
                                                                                                    POPAI UK & Ireland also undertook desktop
Our research explored the current and             This research into the cosmetics and skin         research and consulted industry experts
changing global trends, seeking to                care industry follows last year’s consumer        to understand the current position of the
understand the role of POP across the             electronics report, but has been expanded         global cosmetics and skin care market and
world and to discover, when it comes to           to cover 13 countries in Asia, Europe and         to investigate existing and predicted trends
cosmetics and skin care: what does good           North America.                                    that may impact these categories.
really look like?

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Executive Summary

Physical stores are a key aspect of the
global cosmetics and skin care categories,
with shopper demand for ‘try before you
buy’ placing them ahead of online retailers.
Global sales in both categories are forecast
to grow, with this growth driven by a number
of positive consumer trends as well as the
population growth in emerging markets.

Our research explored the current and
changing global trends, seeking to
understand the role of POP across the
world. We covered 13 countries across
Europe, Asia and North America.

The sector has been traditionally resilient,
proving less susceptible to economic
downturns than other fast-moving
consumer goods categories. A continuing
influx of new entrants to the market is
keeping it buoyant and fresh, introducing
new and innovative products. However, the
market remains dominated by the top ten
leading companies.

While communicating product information
is ever more important for new and
innovative products, pressure remains for
displays to hold as much stock as possible.
This often results in challenging design
decisions to determine how best to use
space on display equipment.

The use, type and placement of cosmetics
and skin care displays was fairly consistent
across all the countries surveyed,
generally with just two or three exceptions
in each case.

Cosmetics and skin care POP displays were
widely used across all the retail channels
surveyed, with a varied range of display
types seen.

POP display plays a vital role in helping
shoppers navigate the numerous and varied
products across categories. While a large
amount of display equipment was seen in
most retailers, the vast majority of it was    Tester facilities play a key role in displays, along   displays, often at the expense of clear and
concentrated in the main cosmetics and         with lighting, which has a dual role of attracting     bold branding.
skin care trading areas, with relatively few   shoppers to displays and
displays seen elsewhere in stores.             highlighting products.                                 Digital technology has not yet been widely
                                                                                                      adopted. While it has the potential to address
Permanent display equipment was by far the     Retailers continue to influence the size, design       some of the product information issues, the
most prevalent, proving three times more       and placement of cosmetics and skin care               technical challenges of centrally controlling
popular than temporary display.                                                                       content is restricting its use.

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The Global                                                                                  Breakdown of the cosmetic market worldwide 2011-2017, by geographic zone

Cosmetics and                                                                                                          Asia-Pacific   North America    Western Europe      Latin America      Eastern Europe          Africa & Middle East

Skin Care Market
                                                                                                              100

                                                                                                              80

                                                                                           Market share (%)
                                                                                                              60
Skin care, make-up, hair care, fragrances,
sun care... it seems that looking good
                                                                                                              40
and protecting our skin is something of an
international inclination.
                                                                                                              20

This is reflected in the figures. The global
cosmetic products market looks set to                                                                          0
                                                                                                                     2011             2012            2013              2014               2015                2016               2017
continue to thrive – valued at $532.4bn in 2017,
                                                                                                                                                                   Geographic region
it is expected to reach $805.6bn by 2023.
                                                                                            Source: Statista – Cosmetics Industry Worldwide – 2016

                                                          A predicted 51%                    Annual global growth across the whole
                                                          increase for the global            category since 2004 has varied, from a
                                                          cosmetics and skin                 low of 1% in 2009 to a high of 5% in 2007.
                                               $805.6bn

                                                                                             Growth for 2017 is estimated at 5%, with a
 $532.4bn

                                                          care market by 2023
 2017       2018   2019   2020   2021   2022   2023
                                                                                             4% average for the whole period.

                                                                                             The Asia-Pacific region holds the highest
Worldwide economic events have traditionally                                                 market share, having gradually reinforced
affected categories within the wider cosmetics                                               that position since 2011, as shown in the
and beauty market, with periods of sales                                                     graph above.
growth and decline at country levels.
                                                                                             Skin care is the global top priority, taking
However, skin care, color cosmetics, eye                                                     the highest market share within all beauty
make-up, lipstick and foundation have been                                                   categories, followed by hair care and color
resilient, buoyed by the continuing and growing                                              cosmetics. The graph below details the
use of products by women and, increasingly,                                                  relative shares of the global beauty market
by men across the world.                                                                     by category.

Global beauty market value by category 2016
                                                                        Sales value in US$ billion

 Skin care                                                                                                                                               116.5

 Hair care                                                                                                          72.5

 Color cosmetics                                                                          61.5

 Men’s grooming                                                            48.5

 Fragrances                                                                47

 Oral care                                                          42.5

 Bath & shower                                                     39

 Deodorants                             20.5

Source:
 Baby &Statista
        child – Cosmetics Industry Worldwide – 2016
                                               16

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                                                                                                                                                 This hierarchy looks set to continue. The
    Global skin care market size 2012-2024                                                                                                       global skin care market has experienced
                                                                                                                                                 steady growth since 2012, which is forecast
                                                                                                                                                 to continue to 2024. The color cosmetics
                                                                                                                                        180.3
                                                                                                                               171.7             market has also experienced a sustained,
                                                                                                                       163.5
                                                                                                               155.8                             albeit slower, sales increase. These graphs
Market size (US$ billion)

                                                                                                      148.3
                                                                                             141.3                                               (left) show these increases.
                                                                                    134.5
                                                                            128.1
                                                            116.2   122.0
                                                    110.7
                                    99.6    103.0                                                                                                Mass beauty holds sway in most markets,
                                                                                                                                                 with the premium category far more popular
                                                                                                                                                 in North America and equally important in
                                                                                                                                                 Western Europe and Australia, as shown in
                                                                                                                                                 the graph below.

                                    2012    2013    2014    2015    2016    2017    2018     2019     2020     2021    2022    2023     2024

 Source: Statista – Cosmetics Industry Worldwide – 2016
                                                                                                                                                 Sales growth of premium and mass
     Global make-up market size 2012-2024                                                                                                        beauty products 2016-2021

                                                                                                                                                                         Sales growth (US$ million)
                                                                                                                                          84.5
                                                                                                                                 81.6
        Market size (US$ billion)

                                                                                                                76.2    78.8
                                                                                      68.7     71.1     73.6                                                                             8,600
                                                                     64.1    66.4
                                                     57.4    60.7                                                                                     Asia-
                                     55.0    56.9
                                                                                                                                                     Pacific                                              14,900

                                                                                                                                                                 1,000
                                    2012     2013    2014    2015    2016    2017    2018     2019     2020     2021    2022    2023     2024         Latin
                                                                                                                                                    America                                9,600
    Source: Statista – Cosmetics Industry Worldwide – 2016

                                                                                                                                                                      2,800
                                                                                                                                                    Western
                                                                                                                                                     Europe              2,800
                                                                                                                                                                                         Mass beauty
                                                                                                                                                                                         Premium beauty
                                                                                                                                                                  1,000
                                                                                                                                                 Middle East
                                                                                                                                                    & Africa             2,700

                                                                                                                                                                                 5,700
                                                                                                                                                      North
                                                                                                                                                    America           2,700

                                                                                                                                                                400
                                                                                                                                                    Eastern
                                                                                                                                                    Europe         1,600

                                                                                                                                                                400
                                                                                                                                                 Australasia
                                                                                                                                                                400

                                                                                                                                                 Source: Statista – Cosmetics Industry Worldwide – 2016

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Renowned Market Leaders
The cosmetics market is not as fickle as            Top ten global beauty companies
we might think, with the top ten leading
companies being market leaders for decades.                                     31.2

                                                  Turnover (US$ billion)
These, along with smaller companies across
the globe, are thriving on the diversity of                                               24.8
products and demographics at their disposal.
                                                                                                    13.7        12.4
The top ten cosmetics companies all turn
                                                                                                                        9.4      8.9
over in excess of $5bn and are a mixture of                                                                                                6.9       6.7       6.1      5.6
specialist beauty companies and those with
wider portfolios, including food, household
and luxury products.
                                                   Source: beautypackaging.com – based on 2017 data (sales include only cosmetics, fragrance and personal care items)

  One of world’s largest cosmetics companies
  and top beauty brands, L’Oréal was founded                                                                           Beiersdorf was founded in 1882 and has a wide
  in 1909. Its product range includes color                                                                            range of personal care products, including skin
  cosmetics, skin care, hair care, sun care and                            Procter and Gamble (P&G) holds              care and body care brands. Some of its most high-
  fragrances. As well as its key brands L’Oréal                            a significant position in the skin          profile brands include NIVEA, Eucerin, Labello,
  Paris, Garnier and Maybelline New York, the                              care industry with many well-               Florena and La Prairie. The company operates
  company also sells luxury brands including                               known brands, including Ivory,              across different markets including the mass
  Lancôme, Giorgio Armani and Yves Saint                                   Olay, Safeguard and Secret,                 market, dermocosmetics and premium cosmetics.
  Laurent Beauté.                                                          offering a wide range of beauty
                                                                           and personal care products.

                                                                                                                       LVMH is one of the world’s leading luxury products
                                                                                                                       group, and its cosmetics and perfume business
                                                                                                                       grew by 12% in 2017. Driving the make-up
                                                                           A big player in fragrance and               segment was growth in brands such as Rouge
                                                                           professional hair care as well              Dior, Dior Addict and Guerlain.
   Unilever is one of the largest consumer
                                                                           as color cosmetics, Coty owns
   goods companies in the world. It has also
                                                                           brands such as Adidas, Clairol,
   carved a place for itself in the cosmetics
                                                                           CoverGirl, David Beckham, Katy
   industry, with popular brands such as Axe/
                                                                           Perry, Max Factor, Rimmel London,
   Lynx, Dove, Lifebuoy, Pond’s, Closeup,
                                                                           Sally Hansen and Wella. It also
   TRESemmé, Suave, Sunsilk and Vaseline.
                                                                           owns the luxury brands Marc                 Perhaps best known as a pharmaceutical company
   In 2017, Unilever announced the creation of
                                                                           Jacobs, Calvin Klein, Chloé, Gucci,         with several baby product ranges, Johnson &
   Unilever Cosmetics International to extend
                                                                           Hugo Boss and philosophy.                   Johnson (J&J) has also become known globally for its
   its global portfolio of prestige beauty and
   fragrance brands.                                                                                                   beauty brands, including Neutrogena and Aveeno.

                                                                           Founded in 1872 in Ginza,
                                                                           Tokyo, Shiseido was the first
                                                                           Western-style pharmacy in                   Based in South Korea, Amorepacific focuses primarily
                                                                           Japan, producing personal care              on developing natural beauty products and has
  Estée Lauder was founded in the                                          products including skin care,               benefitted from the recent K-beauty trend – the
  1940s and is one of the world’s leading                                  fragrance, hair care, sun care,             rise of Korean make-up in the West. It launched
  manufacturers and marketers of quality                                   body care and make-up. Its most             its cosmetics brand Amorepacific in 2002 and is
  skin care, make-up, fragrance and hair care                              popular brands include Shiseido,            growing rapidly, with increasing demand for its most
  products. Its diverse portfolio of over 25                               Za, Senka, Anessa, Sea Breeze,              popular brands, which include Sulwhasoo, Laneige,
  brands is sold in 150 countries.                                         NARS, and Bare Escentuals.                  Mamonde, Innisfree, Etude House and Annick Goutal.

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Industry Trends
Forever Young                                        This has been supported by aggressive             Enhanced Technology
An aging world population is a key factor in the     marketing strategies and promotional              Technology is pervading almost every
growth of the cosmetics market, with the global      campaigns aimed at men which, together            area of retail, and the cosmetics industry
population of those aged 60 and over estimated       with the influence of social media and male       is no different. High-tech beauty devices
to reach 2.1bn by 2050.                              grooming magazines, keeps them much               are becoming much more prevalent,
                                                     more informed about the latest trends in the      offering consumers clever new ways to
Life expectancy for women is expected to             cosmetics industry then they have been in         integrate their personal care routines into
increase by three-and-a-half years to 86.3,          the past.                                         their homes using technology.
and for men by over five years, to 83.6. With
an almost universal desire amongst men and           Combination Skin
women to retain their youthful looks, there is       Multifunctional cosmetics, such as products         Developments include:
expected to be a corresponding growth in sales       which combine both skin care properties and
of anti-aging products to reduce wrinkles and        traditional cosmetics color choices, are set to     • The Neutrogena Skin360, a
age spots and to balance uneven skin tone.           be game changers and trendsetters over the             sensor-based skin-scanning
There is also likely to be increased innovation in   coming years. Increasing demand for these              device with an accompanying
new cosmetics products.                              within the premium cosmetics category is               app to monitor skin over a period
                                                     driven by their capacity to give consumers             of time.
The Modern Man                                       maximum value for the most expensive make-          • Lancôme’s Le Teint Particulier
It seems that men across the globe are               up brands.                                             foundation matcher, which uses
becoming more image-conscious. Millennial men                                                               a digital scanner and artificial
in particular are adopting grooming regimes and      These products are being developed by                  intelligence (AI) to identify a
buying into categories traditionally associated      companies which are wise to the growing need           shopper’s exact skin tone and find
with women, such as make-up, facial cleansers,       for convenience in the busy schedules of the           a perfect match.
moisturisers and exfoliation products.               modern consumer.
                                                                                                         • Virtual ‘try on’ apps like Sephora’s
                                                                                                            Virtual Artist, enabling shoppers
                                                                                                            to try thousands of lipstick and
                                                                                                            eye shadow shades using their
                                                                                                            smartphones. The app also hosts
                                                                                                            digital make-up tutorials to help
                                                                                                            match shades to skin color.
                                                                                                         • Smart skin care tools such as
                                                                                                            the HiMirror from New Kinpo
                                                                                                            Group. This scans shoppers’
                                                                                                            faces for wrinkles, spots, pores
                                                                                                            and lines, and then provides
                                                                                                            personalised tips and product
                                                                                                            recommendations.
                                                                                                         • Make-up printers which can scan
                                                                                                            skin for blemishes and apply tiny
                                                                                                            amounts of make-up to hide them.
                                                                                                            P&G’s Opté scanner uses a built-
                                                                                                            in camera to take 200 frames per
                                                                                                            second, while a microprocessor
                                                                                                            analyses the data to differentiate
                                                                                                            between light and dark areas.
                                                                                                            A microprinter then applies
                                                                                                            foundation to the skin.

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Smart Beauty
The ubiquitous smartphone offers consumers
access to ever easier online shopping and
social media platforms, and e-commerce
will play an increasingly important role in the
category, particularly in skin care.

As such, companies will continue to focus on
online marketing, as well as developing brand-
specific Facebook sites and Twitter accounts.

The Middle East and Africa
Cosmetics sales growth is traditionally slow in
these regions, with many populations having
little, or no, disposable income.

However, some countries in these areas are
forecast to grow with the highest annual
compound growth rate in the cosmetics
market. Israel, Saudi Arabia and the United
Arab Emirates (UAE) are expected to lead this
growth, especially in the nail, hair and hair
removal categories.

An increase in the number of women in the
workplace in countries such as the UAE, as
well as a growth in tourism, are also driving
cosmetics sales.

The wealthier Middle Eastern countries have
already been penetrated by luxury brands
such as Dior, Clarins, Clinique, Lancôme and
Estée Lauder. These are now permeating
into developing countries such as Nigeria
and Kenya, where disposable income is
increasing, along with the inclination to spend
more on appearance.

The Rise of Vegan Cosmetics
Although cruelty-free products have been
around for a while, vegan cosmetics products
are now also entering the marketplace, not just
from ethical retailers like Lush but also from
other brands such as Kat Von D, Urban Decay,
Barry M and Black Opal.

Fresh Thinking
The cosmetics market is notoriously
competitive. However, an increasing number
of companies are seeking to enter the
category, particularly those focusing on anti-
aging products.

The cost of gaining a foothold in the market is
high. New product research and development,
manufacturing costs and limited raw materials
are all barriers to entry. Additionally, the cost
of advertising and promoting new brands and
products in an already established market can
be restrictive.

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Display Trends                                      Forms of advertising most likely to influence the purchase of a new
                                                    beauty product

POP display undoubtedly has a key role in                 25%
influencing shoppers’ purchase decisions,
with 17% of shoppers in the United States                                      22%                                                                  22%
citing in-store displays as the most influential
media in encouraging them to buy a new                                                             17%
beauty product.

This is nothing new. Indeed, the role of display
has always been fundamental to the success
of cosmetics and skin care products. Given
                                                                                                                   9%
the intensely personal nature of the relationship
between the individual consumer and the
                                                                                                                                    5%
products, the opportunity to see, engage with,
and compare products, has given the sector a            Television          Magazines            POP display      Online          Coupons           Other
unique place in the world of in-store display.

As a result, there has been continuing and
high-level global investment in displays for
ranges and newly launched or promoted               Source: Videology (Amobee) – Statista 2018
products, as well as displays incorporating
technology – either through the complexity
of manufacturing techniques or, for example,
                                                    Although many of the main brands are global,               Taking Stock
                                                    there is clear significant local influence, both           Competition for space in-store has never
the early adoption of digital screens to
                                                    nationally and regionally, with regard to the              been fiercer. A growing number of brands
assist product choice, usage tips and
                                                    displays produced for national markets.                    and continual new product development are
lifestyle suggestions.
                                                                                                               swelling ranges, and this can mean some
                                                    One of the big surprises in our findings was
                                                                                                               tough decisions in terms of stockholding
                                                    the lack of uniformity amongst the main
                                                                                                               versus product information.
                                                    brands. While the type of display was the
                                                    same, the design and final execution was                   The pressure for displays to accommodate as
                                                    different in the vast majority of cases.                   many different SKUs as possible is intense. But
                                                                                                               this leaves limited space on displays for brand,
                                                    Testing Testing                                            product and promotional messages. The
                                                    Shoppers often visit a store as they can try               irony here is that the wave of new innovative
                                                    and test products, something they cannot                   products, such as multifunctional items,
                                                    do online. It makes sense, therefore, that                 arguably need more detailed explanations.
                                                    incorporating a testing facility, including
                                                    mirrors, on cosmetics fixtures is the current              Creative designers will work to accommodate
                                                    single most important design consideration.                both, although there has been little recent
                                                    While some markets, such as Western                        innovation to more efficiently host the sheer
                                                    Europe, have already fully embraced the                    number and range of products required.
                                                    tester concept, most other markets are not far
                                                    behind, with this requirement being seen in                However, there has been a subtle change in
                                                    ever more design briefs.                                   some imagery. Pictures of people portraying
                                                                                                               brand values are being replaced by close-
                                                                                                               ups of make-up application, such as lips,
                                                                                                               highlighting the product’s attributes instead.

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A Light Touch                                        Digital Signage
Photographers, models and artists have               Digital screens are in short supply in the
long used lighting to highlight or minimise          cosmetics sector. It remains difficult to
certain features. However, some lighting can         update content and troubleshoot equipment
be unflattering, and it is key that cosmetics        remotely, which is the main barrier to adoption,
counters use lighting styles that show off           with unreliable in-store Wi-Fi often also
products in the most complimentary way.              causing issues.

White lights will highlight a product once           Ownership is also unclear, with brands
applied and help shoppers to see its true tones      and retailers unsure who should own the
and textures.                                        technology to provide the screens. All of this
                                                     adds up to a likelihood that digital screens
As such, illumination continues to play an           will not be in wider use until these challenges
important role in cosmetics wall and gondola         are overcome.
fixtures, where it has become the accepted
norm. Indeed, any unit in a run of lit displays
that does not have illumination is likely to be
at a disadvantage. Displays without lighting
around the exterior of the fixture are less
likely to attract shoppers, while those with no
illumination in the internal part of the unit will
struggle to compete with adjacent displays
                                                                                                        The Role of the Retailer
with lighting.
                                                                                                        Retailers in most markets still control carcass
To achieve true standout in-store, displays                                                             dimensions for wall and gondola displays
need to be illuminating to three times the                                                              traditionally used by legacy brands. However,
brightness of their surroundings to draw                                                                many are now more open to newer brands,
attention to a product. However, some                                                                   especially those with innovative products,
retailers are limiting the amount of illumination                                                       utilising secondary placement opportunities for
permitted on displays, as they consider their                                                           displays with smaller footprints such as free-
environmental credentials and energy bills.                                                             standing display units (FSDUs).
Low-energy options such as LED lighting are
likely to benefit from this trend, as such bulbs                                                        In fact, brands with new and trendsetting
can use up to 80% less energy.                                                                          products will often gain display space at
                                                                                                        the expense of more established brands,
                                                                                                        irrespective of the promotional support
                                                                                                        on offer.

                                                                                                        These displays can also more effectively
                                                                                                        convey a brand’s identity, away from the more
                                                                                                        formulaic banks of wall and gondola units.

                                                                                                        Men and Ethnic Groups
                                                                                                        While the male cosmetics market and markets
                                                                                                        in the Middle East and Africa are emerging as
                                                                                                        growth areas, this has yet to be reflected in
                                                                                                        display design. Limited space makes it difficult
                                                                                                        to accommodate a wider range of marketing
                                                                                                        messages without impacting on stockholding,
                                                                                                        so above-the-line marketing is rarely translated
                                                                                                        onto in-store display.

                                                                                                        Many countries in these regions still rely on the
                                                                                                        graphics and display-based communications
                                                                                                        supplied by a brand’s central distribution, and
                                                                                                        there is little adaptation for local markets.

                                                                                                        The exceptions are brands which have been
                                                                                                        created to cater specifically for women of color,
                                                                                                        such as IMAN Cosmetics and Beauty Bakerie,
                                                                                                        whose graphics and imagery reflect their
                                                                                                        target audiences.

12 | STOREDITS | www.shopassociation.org
STOREDITS
SKIN CARE, MAKE-UP and COSMETICS

Market Data                                                                   Dutch sales value and forecast growth

                                                                                                                                 2017 sales
                                                                                                                                 EUR million
Category Sales for Countries Surveyed                                                                                            2022 forecast sales
                                                                                       505        550       539        580       EUR million
In keeping with global trends, the skin care
category has the highest sales value in all the                                                                                  173         180
countries in which our research was conducted.
Irrespective of country, strong sales growth is                                        Cosmetics             Skin care           Deodorants
forecast across the skin care, cosmetics and
deodorant categories between now and 2022.                                    Source: Passport category country reports – May 2018

                                                                              French sales value and forecast growth
Canadian sales value and forecast growth                                                                                 3,800
                                                                                                               3,396
                                      2,750
                                                                                                                                       2017 sales
                2,200        2,199                 2017 sales                                                                          EUR million
                                                   CAD million                                                                         2022 forecast sales
        1,750                                                                                       1,600                              EUR million
                                                   2022 forecast sales
                                                                                          1,456
                                                   CAD million

                                                                                                                                       645         690

                                                  367      440
                                                                                          Cosmetics                 Skin care        Deodorants
                                                                              Source: Passport category country reports – May 2018
         Cosmetics             Skin care          Deodorants
Source: Passport category country reports – May 2018
                                                                              German sales value and forecast growth
Czech Republic sales value and forecast growth                                                                        4,800

                                                                                                            4,048                2017 sales
                                          5,900                                                                                  EUR million
                                                        2017 sales
                                                        CZK million                                                              2022 forecast sales
                     4,800      4,816                                                                                            EUR million
                                                        2022 forecast sales                   2,300
            3,960                                       CZK million                   1,982

                                                                                                                                 883         950
                                                       1,578 1,600

                                                                                       Cosmetics              Skin care          Deodorants
            Cosmetics                Skin care         Deodorants             Source: Passport category country reports – May 2018
Source: Passport category country reports – May 2018

                                                                              Irish sales value and forecast growth
Danish sales value and forecast growth
                                                                                                                       177
                                                                                                                                 2017 sales
                                                                                                             150                 EUR million
                                       1,900
                                                   2017 sales                                  142
                                                   DKK million                                                                   2022 forecast sales
                             1,636                                                     117
                1,400                              2022 forecast sales                                                           EUR million
        1,216                                      DKK million
                                                                                                                                              57
                                                                                                                                  47
                                                  420      460

         Cosmetics             Skin care          Deodorants                           Cosmetics              Skin care          Deodorants
Source: Passport category country reports – May 2018                          Source: Passport category country reports – May 2018

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SKIN CARE, MAKE-UP and COSMETICS

Japanese sales value and forecast growth                                      Spanish sales value and forecast growth

                                                        2017 sales                                                       1,600
                                                        JPY billion                                            1,485                     2017 sales
                                           2,100
                                 1,832                                                                                                   EUR million
                                                        2022 forecast sales
                                                                                         953       1,080                                 2022 forecast sales
                                                        JPY billion
                                                                                                                                         EUR million

                                                                                                                                      321        350
                     850
            747

                                                                                          Cosmetics              Skin care            Deodorants
                                                        50       54
                                                                              Source: Passport category country reports – May 2018
            Cosmetics                 Skin care        Deodorants
Source: Passport category country reports – May 2018                          UK sales value and forecast growth

Russian sales value and forecast growth                                                        3,350                   3,400

                                                                                                                                     2017 sales
                                                                                                             2,808
                                                                                                                                     GBP million
                                          175,000                                      2,399                                       2022 forecast sales
                                                                                                                                   GBP million

                                133,239

                                                         2017 sales                                                                          820
                    104,000                                                                                                        713
                                                         RUB million
           85,610                                       2022 forecast sales
                                                        RUB million
                                                                                        Cosmetics             Skin care            Deodorants
                                                                              Source: Passport category country reports – May 2018
                                                                33,000
                                                       27,295
                                                                              US sales value and forecast growth

                                                                                                                          23,500
            Cosmetics                 Skin care         Deodorants
                                                                                                    22,000
Source: Passport category country reports – May 2018

South African sales value and forecast growth                                                                   18,368
                                                                                          16,794

                                       13,000        2017 sales
                                                     ZAR million
                                                                                                                                          2017 sales
                                                     2022 forecast sales                                                                  USD million
                                                     ZAR million
                              8,309                                                                                                       2022 forecast sales
                  8,300                                      8,100                                                                        USD million
                                                    6,116
        5,585
                                                                                                                                                 5,500
                                                                                                                                         4,524

         Cosmetics             Skin care            Deodorants
                                                                                           Cosmetics             Skin care               Deodorants
Source: Passport category country reports – May 2018
                                                                              Source: Passport category country reports – May 2018

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STOREDITS
SKIN CARE, MAKE-UP and COSMETICS

Category Sales for Other Key and
Developing Territories                                                         Chinese sales value and forecast growth
Skin care is also the best performer in other                                                                           296,232
main and emerging markets across the globe.
Interestingly, only in the UAE do cosmetics come
close to challenging skin care as the leading
category. While continued growth is expected in all
of these countries, sales in developing markets such
Brazil, India and Nigeria are forecast to grow at a                                                           187,413
significantly higher rate than most other markets.

                                                                                                                                      2017 sales
Australian sales value and forecast growth                                                                                            CNY million
                                       3,450                                                                                          2022 forecast sales
                                                                                                71,700
                                                                                                                                      CNY million
                                                   2017 sales
                2,400        2,437                 AUD million                         34,443
                                                   2022 forecast sales
        1,810                                                                                                                        747       962
                                                   AUD million

                                                                                        Cosmetics                Skin care           Deodorants

                                                   418         450             Source: Passport category country reports – May 2018

         Cosmetics             Skin care           Deodorants
                                                                               Indian sales value and forecast growth

Source: Passport category country reports – May 2018
                                                                                                                           180,000
                                                                                                    155,000                                2017 sales
Brazilian sales value and forecast growth                                                                                                  INR million
                                                         2017 sales                                              113,925                   2022 forecast sales
                                                         BRL million                                                                       INR million
                                          17,500
                                                         2022 forecast sales
                                                         BRL million
                                                                                           68,817                                                 67,000
                    13,000                                       13,000
                                11,533
                                                       9,772                                                                           33,827
            8,315

                                                                                           Cosmetics                Skin care              Deodorants

                                                                               Source: Passport category country reports – May 2018

            Cosmetics                Skin care         Deodorants
                                                                               Indonesian sales value and forecast growth
Source: Passport category country reports – May 2018
                                                                                                                        31,900
                                                                                                                                     2017 sales
                                                                                                                                     IDR billion

                                                                                                               19,982                2022 forecast sales
                                                                                                                                     IDR billion
                                                                                                13,000
                                                                                                                                              8,600
                                                                                       6,498
                                                                                                                                     3,433

                                                                                        Cosmetics                Skin care           Deodorants

                                                                               Source: Passport category country reports – May 2018

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STOREDITS
SKIN CARE, MAKE-UP and COSMETICS

Italian sales value and forecast growth                                       Saudi Arabian sales value and forecast growth
                                        2,260
                                2,013
                    1,800                                                                                                            2017 sales
                                                                                                                      2,860
                                                        2017 sales                                2,700                              SAR million
           1,538                                                                                              2,473
                                                        EUR million                                                                  2022 forecast sales
                                                                                          2,161
                                                        2022 forecast sales                                                          SAR million
                                                        EUR million
                                                                                                                                           930
                                                                 440                                                                 760
                                                        402

            Cosmetics             Skin care             Deodorants                        Cosmetics             Skin care            Deodorants

Source: Passport category country reports – May 2018
                                                                              Source: Passport category country reports – May 2018

Mexican sales value and forecast growth
                                                                              UAE sales value and forecast growth
                                        44,800          2017 sales
                    41,700                              MXN million
                               33,428                   2022 forecast sales                       1,300               1,310          2017 sales
           29,464                                       MXN million                                                                  AED million
                                                                                          1,060               1,107
                                                                                                                                     2022 forecast sales
                                                                18,300                                                               AED million
                                                       13,087
                                                                                                                                            490
                                                                                                                                     414

            Cosmetics             Skin care             Deodorants

Source: Passport category country reports – May 2018                                      Cosmetics              Skin care           Deodorants

Nigerian sales value and forecast growth                                      Source: Passport category country reports – May 2018

                                                         2017 sales
                                         212             NGN billion
                                                        2022 forecast sales
                      94                                NGN billion
                                 92
             40                                                   52
                                                        22

            Cosmetics             Skin care             Deodorants

Source: Passport category country reports – May 2018

16 | STOREDITS | www.shopassociation.org
STOREDITS
SKIN CARE, MAKE-UP and COSMETICS

In-store Research                                                    Types of store visited                                        The following display
                                                                                                                                   characteristics were recorded
                                                                                                                                   as part of the research.

Research Methodology                                                                                      15%                      •   Temporary or permanent
The field research, data processing and analysis                                                                                   •   Single or multi branding
was carried out by POPAI UK & Ireland and other                                                                    5%              •   Type of messaging
members of the Shop! Global Network, and                                                                                           •   Brand imagery
covered 177 stores in 13 countries.                                           47%
                                                                                                                                   •   Promotion
The teams visited 152 different retail chains                                                                                      •   Product information
and independent stores, covering drug stores/                                                                      26%
                                                                                                                                   •   Main colors used
pharmacies, department stores, grocery stores
and specialist cosmetic stores.
                                                                                                                                   •   Text color

                                                                                                   7%                              •   Text direction
The researchers took images of a cross section                                                                                     •   Illumination
of POP displays and store fixtures found in each
store visited. They recorded the display type, its                                   Drug store/pharmacy – chain                   •   Mirror incorporation
location and some characteristics and attributes                                     Drug store/pharmacy – independent             •   Digital screen – interactive
of the display, e.g. illumination or video screens.                                  Department store        Grocery store         •   Digital screen – non-
                                                                                     Specialist cosmetic store                         interactive
Further details about the display were then
captured through analysis of the images taken,
                                                                                                                                   •   Testers
                                                                     Source: POPAI
such as font color and branding.                                                                                                   •   Movement
                                                                                                                                   •   Sound
                                                                     The research is a snapshot of a significant selection
                                                                     of the POP display seen in the stores visited, but is
                                                                                                                                   •   Aroma
Number of stores visited in each country
                                                                     not an audit of the all the displays present in each          •   Augmented reality
and number of images captured
                                                                     retailer. As such, the analytical results are indicative      •   Virtual reality (none found)
                                                                     and not finite.
     Canada     5             74                                                                                                   •   Product displayed for
                                                                                                                                       purchase or display used to
                                                                     The research took place from January to March 2019.
      Czech                                                                                                                            just highlight product
                         20                167
    Republic                                                                                                                       •   Product demonstration by
                                                                       Displays with the following product                             store or brand representative
    Denmark          18                                        269     categories were included.

                                                                       Cosmetics               Skin care
      France        15                            200                                                                            The researchers surveyed all areas
                                                                       •    Lipsticks          •    Skin cleansers (toners,      of the stores visited and recorded a
                                            Stores visited
                                                                       •    Mascaras                creams)                      cross section of all the types of POP
    Germany         13        82
                                            Images captured
                                                                       •    Eye shadows        •    Face washes (masks,          display found and their locations.
                                                                                                    exfoliator creams/gels)      They found 4,311 items of cosmetic
      Ireland        17                                      244       •    Foundations                                          and skin care display – a significant
                                                                                               •    Body lotions
                                                                       •    Powders                 (moisturisers, creams)       amount considering not all POP
       Japan    6                  103                                                                                           display in each store was recorded.
                                                                       •    Eyeliners          •    Self-tanning products
                                                                       •    Blushers                (creams, gels)               These were either separate items
 Netherlands        15                     164
                                                                       •    Bronzers           •    Hand creams                  fulfilling a display purpose in their
                                                                       •    Primers and        •    Skin plumpers                own right, or component display
      Russia        13                                 222
                                                                            fixing sprays                                        equipment used in combination to
                                                                                               •    Eye creams/gels              create more complex installations or
 South Africa   7                    125
                                                                       •    Accessories        •    Exfoliation creams/gels      as part of shop-in-shop displays.
                                                                            (brushes,
                                                                            tweezers,          •    Accessories (cotton
       Spain             20                                  250                                    wool, cleansing wipes)       One of the unique aspects of this
                                                                            brush                                                research is the vast number of images
                                                                            cleaners)          •    Men’s care (in relation      taken, with each image capturing one
      United
                    15                           194                                                to the above)                or more display types. Many of the
    Kingdom
                                                                                               •    Deodorants and body          images cover multiple displays, so the
United States
                    13                     167                                                      sprays (roll-ons, sprays)    actual coverage of display items is
  of America
                                                                                                                                 over 3,000.
Source: POPAI
                                                                     To gain access to these images, please contact your local Shop! Global Network or POPAI office.

17 | STOREDITS | www.shopassociation.org
STOREDITS
SKIN CARE, MAKE-UP and COSMETICS

Display types and distribution
240                                                                                                                                                   240
230                                                                                                                                                   230
 220                                                                                                                                                   220
The  research explored the types of display, how             more display equipment in the cosmetics          part of a chain also employed a large number
 210
much   was used and how it was distributed. It               and skin care categories than did other retail   and type of displays, more than twice as 210
 200
was  found that department stores had marginally             channels. Pharmacy/drug stores that were         much as their independent counterparts. 200
190                                                                                                                                                   190
180                                                                                                                                                   180

Types
170
      and numbers of different display types found                                                                                                    170
160                                                                                                                                                   160
150                                                                                                                                                   150
140                                                                                                                                                   140
                                                           Department store
130                                                                                                                                                   130
120
                                                           Grocery store                                                                              120
110                                                        Pharmacy/drug store – chain                                                                110
100                                                                                                                                                   100
                                                           Pharmacy/drug store – independent
 90                                                                                                                                                    90
                                                           Specialist store
 80                                                                                                                                                    80
 70                                                                                                                                                    70
 60                                                                                                                                                    60
 50                                                                                                                                                    50
 40                                                                                                                                                    40
 30                                                                                                                                                    30
 20                                                                                                                                                    20
 10                                                                                                                                                    10
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200                                                        Grocery store                                                                              200
190                                                                                                                                                   190
                                                           Pharmacy/drug store – chain
180                                                                                                                                                   180
170
                                                           Pharmacy/drug store – independent                                                          170
160                                                        Specialist store                                                                           160
150                                                                                                                                                   150
140                                                                                                                                                   140
130                                                                                                                                                   130
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 90                                                                                                                                                   90
 80                                                                                                                                                   80
 70                                                                                                                                                   70
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Source: POPAI

18 | STOREDITS | www.shopassociation.org
STOREDITS
SKIN CARE, MAKE-UP and COSMETICS

This is perhaps surprising, given the similarity                                                     Number of top ten display types used
of the retail format.                                                                                by retail channel
Specialist stores also used a large amount of                                                        520

POP, but grocers used relatively little, possibly                                                    500
due to self-imposed restrictions on display use.                                                                                            Department store
                                                                                                     480                                    Grocery store
Specialist cosmetics stores had, on average, a
third fewer displays than chain pharmacy/drug                                                        460                                    Pharmacy/drug store – chain
stores. However, they used a wider variety of                                                        440                                    Pharmacy/drug store – independent
display types.
                                                                                                     420
                                                                                                                                            Specialist store
The most commonly seen POP types were a
complete mix of three-dimensional display and                                                        400

two-dimensional signage.                                                                             380

Simple, inexpensive posters were the most                                                            360
frequently witnessed display types. However,
                                                                                                     340
more complex and costly cosmetics testing
stations were the second most common, either                                                         320
as stand-alone displays or incorporated into
larger display installations.                                                                        300

                                                                                                     280
The popularity of both tester stations
and smaller tester boxes emphasises the                                                              260
importance of enabling shoppers to try
cosmetics in-store, indeed much more so than                                                         240

in most other fast-moving consumer goods
                                                                                                     220
(FMCG) categories.
                                                                                                     200

                                                                                                     180

                                                                                                     160

                                                                                                     140

                                                                                                     120

                                                                                                     100

                                                                                                      80

                                                                                                      60

                                                                                                      40

                                                                                                      20

                                                                                                       0
                                                                                                           Poster

                                                                                                                                         Fixture Header – Branded
                                                                                                                                                                    Display Card
                                                                                                                                                                                   Free-Standing Display Unit
                                                                                                                                                                                                                Main Fixture – Retailer
                                                                                                                                                                                                                                          Main Fixture – Branded
                                                                                                                                                                                                                                                                   Wall Unit – Retailer
                                                                                                                                                                                                                                                                                          Tester Display Box
                                                                                                                                                                                                                                                                                                               Wall Unit – Branded
                                                                                                                    Tester Bar/Station

                                                    The next most regularly seen POP type was
                                                    more two-dimensional signage in the form
                                                    of branded headers on store fixtures and
                                                    display cards located on different forms of      Source: POPAI
                                                    display units.

                                                    The other top ten most common display types      Digital screens were relatively rare, seen
                                                    were all three-dimensional equipment: FSDUs,     in only a total 3.3% of stores. Likewise,
                                                    branded and retailer generic main fixtures and   interactive POP was seen in only a very small
                                                    wall-based displays, and shelf units.            number of stores.

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STOREDITS
SKIN CARE, MAKE-UP and COSMETICS

Department stores tended to use more of the
most popular displays, compared with other                  Average number of top ten display types used by retail channel
channels for most display types.                                                          0   1   2   3   4   5   6   7    8         9       10     11        12

However, there were some exceptions. FSDUs,                                     Poster
display cards and wall units were more popular in
chain pharmacy/drug stores, along with branded
                                                             Fixture Header – Branded
equipment generally. Meanwhile, generic retail
units were favored by independent pharmacy/
drug retailers.                                                Main Fixture – Retailer

Unsurprisingly, grocery stores led the way with                          Display Card
generic main fixtures.

The average number of displays per store varied             Free-Standing Display Unit
very little by country, with most deviating by only
one or two from the overall average of 25.                          Tester Bar/Station

Only three countries were significantly different:
                                                               Main Fixture – Branded
Germany and the Czech Republic had noticeably                                                                             Department store
less display, while South Africa had much more.
                                                                   Wall Unit – Retailer                                   Grocery store
The lower number in Czech stores was driven by                                                                            Pharmacy/drug store – chain
under-indexing in department stores, where they                   Wall Unit – Branded                                     Pharmacy/drug store – independent
had only a third as many displays as the average,
                                                                                                                          Specialist store
and chain pharmacy/drug stores, where they had
                                                                   Tester Display Box
a quarter fewer displays. Meanwhile, Germany
had significantly less display in all channels.             Source: POPAI

South Africa’s figure was due to much higher
POP placement in chain pharmacy/drug stores.

Average number of displays per store

     Canada                                   28

      Czech
                         15
    Republic

    Denmark                                       29

      France                            25

    Germany         11

      Ireland                                 28

                                   23
                                             AVERAGE

       Japan

 Netherlands                            25

      Russia                                      29

 South Africa                                          34

       Spain                            25

      United
                                    24
    Kingdom
United States
                                             27
  of America

Source: POPAI

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STOREDITS
SKIN CARE, MAKE-UP and COSMETICS

                                                             Display Locations
Number of POP displays found                                 The researchers found POP display in the
outside of the main cosmetics and                            following locations across all the stores
skin care trading areas                                      visited.
                                                             •   Outside the store
                          4                                  •   Store window
                       External
                                                    6        •   Store entrance
                                                             •   In the cosmetics and skin care section
                                                Window
                                                             •   End cap/gondola end
                                                                                                                 Category Display Approach
                         16                                  •   End cap/gondola side
                                                                                                                 Women were clearly the target audience for
                                                             •   Wall                                            display use in the categories surveyed, with
                  Store entrance*                            •   As part of a shop-in-shop display               over half of the displays recorded being for
                                                             •   Outside of the main cosmetics and skin          women’s cosmetics and over a quarter for
                                                                 care section                                    women’s skin care.
                                                             •   At the checkout/till area

                                                             However, the favorite location for POP display      Display use by category
                        19                                   was emphatically the main cosmetics and skin
                                                             care trading areas, with the vast majority of the       0.1%      4.0%
                 Checkout/till area*
                                                             4,311 display items found there.                     1.6%    8.7%
                                                  29         Several shop-in-shop displays were found
                                                                                                                 0.1%
                                                             away from the main trading area, but very few
                                              Out of
                                                             window or external displays were seen.
                                            category
                                                             Within the main trading area, the most popular
                                                             place for display was in, on or immediately               28.2%                                  57.3%
                                                             adjacent to the cosmetics and skin care
    * Where these are not the main cosmetics and skin care   end caps/gondolas. The next most popular
    trading area
                                                             location was in or on wall displays, with 9%
Source: POPAI                                                positioned on end caps/gondola ends, 6% in
                                                             shop-in-shops, and 3% at checkouts.

                                                                                                                                 Women’s cosmetics
                                                                                                                                 Women’s skin care
                                                                                                                                 Men’s cosmetics
                                                                                                                                 Men’s skin care
                                                                                                                                 Women’s & men’s cosmetics
                                                                                                                                 Unisex skin care
                                                                                                                                 Both cosmetics & skin care

                                                                                                                 Source: POPAI

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SKIN CARE, MAKE-UP and COSMETICS

                                                                 The cosmetics and skin care categories both
                                                                 took a very different approach to display by
                                                                 POP type.
                                                                 Cosmetics tended to use branded displays
                                                                                                                         There was a significant variation in the ratio
                                                                 such as on main fixtures, wall units and header
                                                                                                                         of cosmetics displays compared with those
                                                                 boards, while the equivalent retailer-owned
                                                                                                                         for skin care by country.
                                                                 displays were preferred for skin care.
                                                                                                                         In ten of the 13 countries surveyed,
                                                                 Tester equipment also varied. Cosmetics were
The ratio of cosmetics displays to skin care                                                                             cosmetics displays were predominant.
                                                                 much more likely to offer a tester bar or station,
was fairly consistent across the retail channels.                                                                        However, this varied from 81% in Canada
                                                                 with skin care adopting a tester display box.
In fact, only independent pharmacy/drug stores                                                                           to 55% in Spain. In Germany, France and
differed, placing a much greater emphasis on                     Digital screens were also much more popular             the Czech Republic, there was a higher
skin care than the other retailers.                              within the cosmetics category.                          percentage of skin care POP.

Display category use by type (%)                                                          Display category use by country (%)
                                          0                 50                      100
                                                                                                 Canada                                                                81 19
                    Tester Bar/Station
                                                                                                  Czech
            Fixture Header – Branded                                                                                            37    63
                                                                                                Republic
Digital Video Screen – Non-Interactive                                                          Denmark                                       55    45

                                Poster
                                                                                                  France                             42 58
         Shelf Equipment – Shelf Unit
                                                                                                Germany                           40 60
                  Wall Unit – Branded
                                                                                                  Ireland                                           61 39
                            Shelf Strip
              Main Fixture – Branded                                                               Japan                                                    70 30

        End Cap/Gondola End Display                                                          Netherlands                                                  68 32
                    Tester Display Box
                                                                                                  Russia                                                               82   18
           Free-Standing Display Unit
                                                                                             South Africa                                      56 44
                              Wobbler
                          Display Card                                                             Spain                                      55 45

             Fixture Header – Retailer                                                             United
                                                                                                Kingdom                                            60 40
                Main Fixture – Retailer                                                     United States
                                                                                                                                                                  76   24
                                                                                              of America
                   Wall Unit – Retailer
                                                                                                                      Cosmetics displays     Skin care displays
                                              Use by cosmetics   Use by skin care
Source: POPAI                                                                             Source: POPAI

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SKIN CARE, MAKE-UP and COSMETICS

Display characteristics                       Permanent and temporary displays
                                              by category

Permanent Versus Temporary
Three-quarters of the displays seen                           %
were permanent, with an even higher                       18
percentage found in cosmetic displays.                            %
                                                              30
Department stores and specialist
cosmetics and skin care retailers favored
permanent displays slightly more than the
other retail channels.
There was little variation by country. The
only exceptions were Russia and the USA,
with 84% and 85% permanent display
                                                                                    %
respectively, and Japan, which had                                               70
significantly less, with just 55%.
                                                                                           %
                                                                                      82

                                                       Skin care                Permanent display
                                                                                Temporary display
                                                       Cosmetics

                                              Source: POPAI
                                                                                                     Permanent and temporary displays
Permanent and temporary displays by retail channel                                                   by country

                                                                                                          Canada       102         36
   Department store                                   1144            261
                                                                                                           Czech
                                                                                                         Republic
                                                                                                                                   207 87
       Grocery store     154 51
                                                                                                         Denmark                                      413   101
Pharmacy/drug store
                                     559     251                       Permanent display
            – chain
                                                                       Temporary display                   France                        279      99
Pharmacy/drug store
                        84   40
     – independent
                                                                                                         Germany       109         38
     Specialist store                                                  1374                    393
                                                                                                           Ireland                                386       90
Source: POPAI
                                                                                                            Japan      88     71

                                                                                                      Netherlands                        282      92

                                                                                                           Russia                            313 59

                                                                                                      South Africa           168        69

                                                                                                            Spain                                 399       106

                                                                                                           United
                                                                                                                                        267      96
                                                                                                         Kingdom
                                                                                                     United States
                                                                                                                                             302 52
                                                                                                       of America

                                                                                                               Permanent display        Temporary display

                                                                                                     Source: POPAI

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SKIN CARE, MAKE-UP and COSMETICS

Highlighting Brands
Interestingly, 16% of the POP displays did not
feature any actual products for sale. Two-thirds
of these were some form of tester or make-up
application units, with the rest used to highlight
products or for brand or product messaging.
The majority of the displays without product were
in the women’s cosmetics category with some in
women’s skin care. Almost half of these displays
were found in specialist retailers and 45% in
department stores.
There was a significant variation in the use of
display with no product by country, varying from
an average of nine per store in Russia to just one
in Germany.

Average number of displays per store
with no product for sale

     Canada                 5

      Czech
                    2
    Republic

    Denmark                 5

      France            3

    Germany     1

      Ireland               5

       Japan            3

 Netherlands            3

      Russia                         9

 South Africa           3

       Spain            3

      United
                            5
    Kingdom
United States
                        3
  of America

Source: POPAI

24 | STOREDITS | www.shopassociation.org
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SKIN CARE, MAKE-UP and COSMETICS

Digital Displays
Digital displays were scarce. Only 142
examples were seen, of which just 13
were interactive. Department stores
were by far the biggest users of digital
display, with an average of 2.6 screens
per store compared with just 0.8 per
store in specialist retailers and fewer than
0.3 in the other retail channels surveyed.
Ten of the interactive displays were in
department stores and three in
specialist retailers.
Use by country varied quite significantly.
More than two screens per store were
seen in Japan and one or more in Ireland,
Russia, Spain and the UK. No digital
screens were recorded in South Africa.
The average number of digital screens
per store across all countries was 0.8.
Digital screens were mainly used to
communicate product information,
seen on 80% of screens. Just over half
displayed some form of brand imagery,
while 46% performed both functions.
Only four screens were seen to display
promotional messages.

Average number of digital screens per store

     Canada     0.2

      Czech
                            0.4
    Republic

    Denmark                             0.7

      France                0.4

    Germany         0.1

      Ireland                                       1.4

       Japan                                                    2.1

 Netherlands                      0.5

      Russia                                        1.4

 South Africa   0

       Spain                                  1.1

      United
                                                          1.5
    Kingdom
United States
                      0.3
  of America

Source: POPAI

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SKIN CARE, MAKE-UP and COSMETICS

Let There Be Light?
Despite its key role, lighting was seen on
just 31% of the displays.
Backlit illumination was the most popular,
recorded in 1,328 displays. Of these, 52
used flashing lights, 134 shelf illumination,
75 were display with lightboxes and 28
employed Hollywood-style lighting.
Department stores were by far the most
prolific users of display with lighting,
with an average of 20.9 displays per
store. Specialist retailers ranked second,
with 6.8 per store, followed by chain
pharmacy/drug stores with 6.3 and
grocery with 2.2 per store. Independent
pharmacy/drug stores had an average of
only 0.7 illuminated displays per store.
The use of illumination varied by country.
Russian and Danish stores had an
average of 11.7 and 11.4 illuminated
displays respectively, while Japan and
Germany only had 3.7 and 3.2 per store.
The most popular display types with
illumination were backlit posters,
branded fixture headers and tester bars
and stations.

Average number of illuminated displays per store

     Canada                                           8.4

      Czech
                                      4.3
    Republic

    Denmark                                                          11.4

      France                                    7.3

    Germany               3.2

      Ireland                                                9.3

       Japan                    3.7                                          Displays with illumination incorporated

 Netherlands                                           8.7
                                                                                       Backlit Posters                                         248

      Russia                                                          11.7
                                                                              Branded Fixture Headers                                    230

 South Africa                                                  9.7
                                                                                Tester Bars & Stations                             208

       Spain                                          8.6
                                                                                 Branded Main Fixture                        181
      United
                                                       8.7                         Branded Wall Units                  154
    Kingdom
United States
                                                      8.5                           Retailer Wall Units
  of America                                                                                                102

Source: POPAI                                                                Source: POPAI

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                                                                                                                                         11.7
STOREDITS
SKIN CARE, MAKE-UP and COSMETICS

Mirror Mirror
In keeping with shoppers’ desire to try
products, 451 displays incorporated a mirror
and testing facilities. Not surprisingly, the
majority of these were for cosmetics.
Mirror use by retail channel was in line with
the average number of displays seen in each
channel, with the majority in specialist retailers
and department stores.
There was little variation in the use of mirrors
by country, with the exception of Russia
which had nearly twice the average number of
displays with mirrors and the Czech Republic,
which had just a quarter of the average.

Sensory Touch
Very few displays were found to incorporate
sensory elements.
Where it was present, smell was the most
popular, noticed in 18 displays. Five had
movement but none had sound. All those with
smell were for skin care products, as was
one with movement; the rest of those with
movement were for cosmetics.
Most of the 23 displays with a sensory element
were found in specialist retailers, three were
in department stores and just one in a chain
pharmacy/drug store. Sensory displays were
found in the Czech Republic, Denmark,
France, the Netherlands, Russia, Spain, the UK
and the USA.

                                                     Virtual and Augmented Reality
                                                     Seven augmented reality displays were found,
                                                     but interestingly no virtual reality units at all.
                                                     The augmented reality displays – three each
                                                     of cosmetics and skin care and one combined
                                                     unit – were all in department stores and             Product Demonstration
                                                     featured interactive digital screens. Five were in
                                                     the UK, with one each in Ireland and the USA.        Twenty-six displays had a staff member
                                                                                                          present. Twenty of these were in the cosmetics
                                                     Finding Factices                                     category and six in skin care, with six being
                                                                                                          used for product demonstration.
                                                     Just 21 displays were either in the form of,
                                                     or incorporated, a factice (a large display          These were spread across 11 specialist
                                                     version of the product). Fifteen of these were       retailers, seven department stores, seven chain
                                                     in the women’s cosmetics category and six in         pharmacy/drug stores and one independent
                                                     women’s skin care. Eight were there purely to        pharmacy/drug store, and were found in
                                                     highlight the product and had no product for         Canada, France, Ireland, the Netherlands,
                                                     sale. Ten were found in the UK and Ireland.          Russia, South Africa and Spain.

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SKIN CARE, MAKE-UP and COSMETICS

Number of displays seen
 140

         122
                   115          115

                                          88
                                                   79       79            76
                                                                                         72         71         70
                                                                                                                           64         63             63
                                                                                                                                                                    60         58
                                                                                                                                                                                          53
                                                                                                                                                                                               50   50    48     48    47    47    44
                                                                                                                                                                                                                                         41

Source: POPAI

                                                                                          Big Branding                                                                                         Image Conscious
                                                                                          Noting the different types of branding seen, 385                                                     Imagery, either of products or lifestyle
                                                                                          different cosmetic and skin care brands and own                                                      pictures conveying brand values, was the
                                                                                          label brands were found on the displays. The                                                         most common form of messaging. Product
                                                                                          vast majority of displays carried a single brand;                                                    information was also present, closely followed
                                                                                          however, 533 had multiple branding.                                                                  by promotional messaging. Text with some
                                                                                                                                                                                               form of brand message was the least
                                                                                          Excluding own label, 26 of the brands exceeded                                                       common, seen on only 3% of displays.
                                                                                          one percent or more of the total seen.
                                                                                                                                                                                               Multiple messaging was also noted, with
                                                                                                                                                                                               some displays carrying a combination of the
                                                                                                                                                                                               communication types listed above.
                                                                                                                                                                                               Once again, department stores were more
                                                                                                                                                                                               to likely have displays carrying messaging of
                                                                                                                                                                                               some type.

Use of display messaging
                        0   1     2   3   4    5   6    7   8    9   10        11   12    13   14    15   16   17   18     19   20   21    22   23        24   25    26   27    28   29   30

   Department store

       Grocery store

Pharmacy/drug store                                                                                                      Imagery
            – chain
                                                                                                                         Product information
Pharmacy/drug store                                                                                                      Promotional information
     – independent
                                                                                                                         Brand messaging
     Specialist store

Source: POPAI

28 | STOREDITS | www.shopassociation.org
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