Building A $10 Billion Beauty Brand Through Boutiques

Why Physical Retail Is Important In An Online Era

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

Building A $10 Billion Beauty Brand Through Boutiques