SHELTON, Conn., Dec. 18, 2014 /PRNewswire/ -- In the latest
installment of its webinar series, TABS Group has released the
results of its 2014 Beauty Consumer Insights Study.
The study surveyed 1000 women and 250 men between the ages of 18
and 74 on the types of beauty products they purchase, frequency of
purchases, and the outlets they patronize. TABS Group also asked
participants about ongoing trends in the beauty industry, including
the use of BB and CC cream, the popularity of visiting a nail salon
for manicures and pedicures, and the influence of social media on
cosmetic purchase decisions.
Based on their data, TABS Group estimates that cosmetic sales in
the US total over $12 billion
annually (excludes skin care and hair care products), with most
cosmetics shoppers buying more than seven types of products
throughout the year. The majority of cosmetics buyers pay between
$5 and $20 for products, but
millennials are apparently willing to spend more, paying an average
of 25 percent more for cosmetics than other age groups.
While major retailers like Walmart, Target, and Walgreens still
dominate the share of dollars spent on cosmetics, TABS Group's data
shows that cosmetics shoppers don't show loyalty to any specific
outlet.
"The heaviest cosmetics shoppers demonstrate no brand loyalty,
purchasing more than 8 brands, on average, and shopping at many
more outlets than lighter buyers," says TABS Group founder and CEO
Dr. Kurt Jetta. "Consistent with the
data from our Consumer Value study earlier this year, most
consumers say they prefer to shop for cosmetics at stores that
offer good deals. The bottom line is that more deals lead to more
sales, particularly among the heaviest buyers who have no loyalty
to specific brands."
Key Findings:
Online Beauty Gurus are Replacing In-Store Advisors
Only 24 percent of heavy buyers indicated that they prefer to
shop in stores with in-store beauty advisors. It's likely that
buyers are increasingly turning to online beauty advice that they
access through social media. 42 percent of heavy buyers say that
social media is very important in making their purchasing
decisions. Cosmetic blogs (29%) and YouTube (23%) were the most
popular resources among these involved buyers.
'Tis the Season for Cosmetics Shopping
A number of cosmetics segments see a surge in sales around
Christmas. Cosmetic kit sales increase nearly threefold during the
holidays, and sales of both nail polish and lip makeup increase
over 1.5 times more than average. And retailers can be comforted by
the fact that 50 percent of these sales increases occur during the
week of Christmas—further evidence that the gloomy Black Friday
reports were off-base.
Don't Ignore the Men
While women are obviously the primary target demographic for
cosmetics—with 86 percent purchasing cosmetics in the last
year—retailers shouldn't ignore the importance of men. Men are also
active cosmetics buyers: 30 percent of male participants stated
that they had bought cosmetics in the last year. Not surprisingly,
58 percent of those men purchased cosmetics for their spouse.
Millennial Women, $75k to $99k
Income Group, and Hispanics are the Most Involved
Millennial women between the ages of 25 and 34 purchase the most
cosmetic products, an average of between 9 and 10 product types per
year. Hispanic women also show higher involvement than other ethnic
groups, purchasing over 8 product types per year.
Specialty Beauty, Online Retailers, and Department Stores
Attract Heavy Buyers
While mass retailers were the most popular outlets for cosmetics
buyers overall (57 percent of cosmetics buyers reported shopping at
Walmart and 32 percent reported shopping at Target), specialty
beauty stores, online retailers, and department stores are more
successful at attracting heavy buyers (shoppers that regularly
purchase more than 10 segments). Only 39 percent of Walmart's
regular buyers are heavy buyers, while heavy buyers account for 69
percent of Sephora's regular buyers, 61 percent of online cosmetic
retailers' regular buyers, and 58 percent of department stores'
regular buyers.
Don't Count on Loyalty—Attract Heavy Buyers with Good
Deals
While heavy buyers are valuable targets—purchasing 4 times more
brands than light buyers and accounting for 58 percent of all
cosmetics purchases—they don't show any true loyalty to specific
outlets or brands. In fact, most heavy buyers purchase more than 4
brands regularly. The most effective way for retailers to get heavy
buyers through their doors is to offer great deals. 57 percent of
heavy buyers and 59 percent of medium buyers state that good deals
are "very important."
The Economy is Rebounding, One Manicure at a Time
The survey's findings about an increase in women visiting nail
salons could be a sign of increasing consumer confidence. 45
percent of women get their fingernails done at a salon, 42 percent
get their toes done at a salon, and 31 percent said that they visit
the nail salon more frequently this year than last year compared to
26 percent going less often. Furthermore, the more vs. less spread
was even more pronounced with light cosmetics buyers, as twice as
many go more vs. less (42% vs. 19%).
To learn more about TABS Group or to schedule a custom review of
the data, visit their website or email webinar@tabsgroup.com.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/tabs-group-explores-the-relationships-between-millennial-shoppers-social-media-and-cosmetics-in-its-2014-cosmetics-consumer-study-300012196.html
SOURCE TABS Group, Inc.