The beauty market may appear calm on the surface, but underneath there is plenty of turbulence. With sales growing an average of only 0.2 percent a year between 2011 and 2016, no player can rely on today’s apparent state of stability. A deeper look reveals differences in performance across and within different markets.
The variation between regions has been considerable. Asia and North America delivered a growth rate of over 10 percent, while Europe and Latin America struggled. Different categories, too, have varied in their success. Color products have benefited from sustained customer appetite – in particular for BB (blemish base) and CC (color-correcting) creams and lip products –while mass fragrances and body care products are steadily losing revenue.
Exhibit 1: There are six golden principles for beauty brands to develop their own retail networks
Source: Oliver Wyman analysis
Exhibit 2: Nike stores in numbers
Source: Annual Report Noted