Toiletries 2011

Market Report Plus 2011
24th Edition July 2011 Edited by Sarah Walker ISBN 978-1-84729-750-1
Toiletries
Toiletries
Foreword
In todays competitive business environment, knowledge and understanding of your marketplace is essential. With over 30 years experience producing highly respected off-the-shelf publications, Key Note has built a reputation as the number one source of UK market information. Below are just a few of the comments our business partners and clients have made on Key Notes range of reports. "The test of any marketing strategy and plan lies in the quality of information used, upon which marketing judgments and decisions are based. Quality is the key word here. The Key Note reports are an excellent source of such quality information, covering a wide variety of product sectors." The Chartered Institute of Marketing "We have enjoyed a long-standing relationship with Key Note and have always received an excellent service. Key Note reports are well produced and are always in demand by users of the business library. Having subscribed to Market Assessment reports for a number of years, we continue to be impressed by their quality and breadth of coverage." The British Library "Key Note is an invaluable resource which is reliable and easy to use. With a wide range of reports, it is useful for monitoring the outside world. Staff are always very helpful." The National Trust "The US Commercial Service in London has been subscribing to Key Note market research reports for over 5 years. We find the reports an invaluable resource in our business counseling activities to the US companies wishing to enter the UK market with products and services. The reports market data, competition, and forecast sections are especially useful." US Embassy "I regard Key Note as the number one provider of UK market research. The way Key Note content is packaged and presented is appealing and easy to understand and therefore a must for my taught course students. Its products are complemented by remarkably high levels of customer service." University of Cambridge, Judge Business School
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Contents
Contents
Executive Summary 1. Market Definition 1 2
REPORT COVERAGE....................................................................................................................2 MARKET SECTORS.......................................................................................................................2 MARKET TRENDS.........................................................................................................................3

Suppliers Change Promotional Strategies.................................................................................3 Growing Popularity of Social Media..........................................................................................3 Private Labels Benefiting From Changing Consumer Spending Habits..............................3
ECONOMIC TRENDS....................................................................................................................4
Gross Domestic Product ...............................................................................................................4 Table 1.1: UK Gross Domestic Product at Current and Annual Chain-Linked Prices (m), 2006-2010..............................................................................................................................4 Inflation ..........................................................................................................................................4 Table 1.2: UK Rate of Inflation (%), 2006-2010.......................................................................5 Household Disposable Income ...................................................................................................5 Table 1.3: UK Household Disposable Income Per Capita (), 2006-2010............................5 Population ......................................................................................................................................6 Table 1.4: UK Resident Population Estimates by Sex (000), Mid-Years 2006-2010...........6 Unemployment ..............................................................................................................................6 Table 1.5: Actual Number of Unemployed Persons in the UK (million), 2006-2010.........7
MARKET POSITION......................................................................................................................7
The UK..............................................................................................................................................7 Table 1.6: Consumer Expenditure on Miscellaneous Goods and Services for Personal Care (m), 2006-2010....................................................................................................................7 Overseas...........................................................................................................................................8
2. Market Size
THE TOTAL MARKET..................................................................................................................9

Manufacturers Sales ....................................................................................................................9 Retail Sales.......................................................................................................................................9 Table 2.1: The Total UK Market for Toiletries by Sector by Value at Current Prices (m at rsp), 2006-2010...................................................................................................................9
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Figure 2.1: The Total UK Market for Toiletries by Value at Current Prices (m at rsp), 2006-2010.................................................................................................................10
BY MARKET SECTOR.................................................................................................................10
Figure 2.2: The Total UK Toiletries Market by Sector Share (%), 2010.............................11 Personal Wash and Bathroom Toiletries ................................................................................11 Table 2.2: The UK Personal Wash and Bathroom Toiletries Sector by Subsector by Value at Current Prices (m at rsp), 2009 and 2010........................................................12 Skincare Products ........................................................................................................................12 Table 2.3: The UK Skincare Products Sector by Subsector by Value at Current Prices (m at rsp), 2009 and 2010.........................................................................................................12 Hair Care Products.......................................................................................................................13 Table 2.4: The UK Hair Care Products Sector by Subsector by Value at Current Prices (m at rsp), 2009 and 2010.........................................................................................................13 Oral Care Products ......................................................................................................................13 Table 2.5: The UK Oral Care Products Sector by Subsector by Value at Current Prices (m at rsp), 2009 and 2010.........................................................................................................14 Shaving Products .........................................................................................................................14 Table 2.6: The UK Shaving Products Sector by Subsector by Value at Current Prices (m at rsp), 2009 and 2010.........................................................................................................14
OVERSEAS TRADE......................................................................................................................15
Table 2.7: UK Imports and Exports of Toiletries by Value (000), 2008-2010..................15 Imports...........................................................................................................................................15 Table 2.8: UK Intra-EU Arrivals and Extra-EU Imports of Toiletries by Category by Value (000), 2010..................................................................................................................16 Exports............................................................................................................................................16 Table 2.9: UK Intra-EU Despatches and Extra-EU Exports of Toiletries by Category by Value (000), 2010..................................................................................................................17
3. Industry Background
18
RECENT HISTORY.......................................................................................................................18 NUMBER OF COMPANIES.......................................................................................................18

Table 3.1: Number of UK VAT- and/or PAYE-Based Enterprises Engaged in the Manufacture of Perfumes and Toilet Preparations by Turnover Sizeband, 2010................................................................................................................................................18
EMPLOYMENT............................................................................................................................19
Table 3.2: Number of UK VAT- and/or PAYE-Based Enterprises Engaged in the Manufacture of Perfumes and Toilet Preparations by Employment Sizeband, 2010................................................................................................................................................19
REGIONAL VARIATIONS IN THE MARKETPLACE.............................................................20 DISTRIBUTION.............................................................................................................................20

Selective Distribution .................................................................................................................20 Specialist Retailers ......................................................................................................................20
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High-Street Stores........................................................................................................................21 Department Stores ......................................................................................................................21 Supermarkets ...............................................................................................................................21 Direct Selling ................................................................................................................................21
HOW ROBUST IS THE MARKET?...........................................................................................21 LEGISLATION...............................................................................................................................22

Cosmetics Directive 1976............................................................................................................22 Cosmetics Products Regulations................................................................................................22 REACH............................................................................................................................................22
KEY TRADE ASSOCIATIONS....................................................................................................23

Cosmetic, Toiletry and Perfumery Association.......................................................................23 The European Cosmetics Association ......................................................................................23
4. Competitor Analysis
24
THE MARKETPLACE..................................................................................................................24 MARKET LEADERS MANUFACTURERS..........................................................................24

Avon Cosmetics Ltd......................................................................................................................24 Este Lauder Cosmetics Ltd .......................................................................................................25 LOral (UK) Ltd............................................................................................................................25 Procter & Gamble (Health & Beauty Care) Ltd ......................................................................26 PZ Cussons PLC..............................................................................................................................26 Unilever PLC..................................................................................................................................27
MARKET LEADERS RETAILERS ........................................................................................27

Alliance Boots Ltd .......................................................................................................................27 Table 4.1: Alliance Boots Group Revenue and Trading Profit by Division (m), Year Ending 31st March 2011.............................................................................................................28 The Body Shop International PLC ............................................................................................29 Lush Cosmetics Ltd ......................................................................................................................29 Molton Brown Ltd ......................................................................................................................30 Superdrug Stores PLC .................................................................................................................30
OUTSIDE SUPPLIERS..................................................................................................................31
Research and Development ......................................................................................................31 Raw Materials ..............................................................................................................................31 Processing Machinery, Packaging and components ............................................................31 Outsourcing ..................................................................................................................................32
MARKETING ACTIVITY.............................................................................................................32
Main Media Advertising Expenditure .....................................................................................32 Table 4.2: Main Media Advertising Expenditure on Toiletries by Sector (000), Years Ending March 2010 and 2011....................................................................................................32 Table 4.3: Main Media Advertising Expenditure on Deodorants (000), Year Ending March 2011....................................................................................................................................34
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Table 4.4: Main Media Advertising Expenditure on Bath Toiletries and Shower Gels (000), Year Ending March 2011...............................................................................................36 Table 4.5: Main Media Advertising Expenditure on Mass-Market Cleaners and Wipes (000), Year Ending March 2011...............................................................................................37 Table 4.6: Main Media Advertising Expenditure on Liquid Foam Bath and Liquid Hand Soap (000), Year Ending March 2011..........................................................................37 Table 4.7: Main Media Advertising Expenditure on Mass-Market Bath and Beauty Ranges (000), Year Ending March 2011................................................................................38 Table 4.8: Main Media Advertising Expenditure on Skincare by Type (000), Year Ending Marching 2011................................................................................................................38 Table 4.9: Main Media Advertising Expenditure on Mass-Market Womens Facial Skincare (000), Year Ending March 2011..............................................................................39 Table 4.10: Main Media Advertising Expenditure on Mass-Market Womens Body Skincare (000), Year Ending March 2011..............................................................................42 Table 4.11: Main Media Advertising Expenditure on Premium Womens Facial Skincare (000), Year Ending March 2011..............................................................................44 Table 4.12: Main Media Advertising Expenditure on Mass-Market Womens Medicated Facial Skincare (000), Year Ending March 2011..............................................45 Table 4.13: Main Media Advertising Expenditure on Mass-Market Mens Skincare (000), Year Ending March 2011...............................................................................................46 Table 4.14: Main Media Advertising Expenditure on Mass-Market Suncare and Tanning Products (000), Year Ending March 2011......................................................47 Table 4.15: Main Media Advertising Expenditure on Shampoos and Conditioners by Type (000), Year Ending March 2011...............................................................................49 Table 4.16: Main Media Advertising Expenditure on Shampoos and Conditioners (000), Year Ending March 2011...............................................................................................49 Table 4.17: Main Media Advertising Expenditure on Hair Colourants (000), Year Ending March 2011......................................................................................................................51 Table 4.18: Main Media Advertising Expenditure on Hair Product Ranges (000), Year Ending March 2011............................................................................................................52 Table 4.19: Main Media Advertising Expenditure on Hair Styling Aids (000), Year Ending March 2011......................................................................................................................53 Table 4.20: Main Media Advertising Expenditure on Hairsprays (000), Year Ending March 2011....................................................................................................................................53 Table 4.21: Main Media Advertising Expenditure on Toothpastes and Polishes (000), Year Ending March 2011...............................................................................................54 Table 4.22: Main Media Advertising Expenditure on Other Oral Hygiene Products (000), Year Ending March 2011...............................................................................................56 Table 4.23: Main Media Advertising Expenditure on Wet Razors and Blades (000), Year Ending March 2011............................................................................................................58 Table 4.24: Main Media Advertising Expenditure on Shaving Preparations (000), Year Ending March 2011............................................................................................................59 Table 4.25: Main Media Advertising Expenditure on Depilatories and Bleach (000), Year Ending March 2011...............................................................................................59 Exhibitions and Trade Fairs........................................................................................................60
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Contents
5. Brand Strategy
61
INTRODUCTION..........................................................................................................................61 THE WORLDS MOST VALUABLE BRANDS .......................................................................61

Table 5.1: Leading Global Brands of Cosmetics and Toiletries by Rank and Value ($m), 2010......................................................................................................................................61
CEW AWARDS.............................................................................................................................62 LEADING BRANDS BY SECTOR..............................................................................................63

Personal Wash and Bathroom Toiletries ................................................................................63 Skincare Products.........................................................................................................................63 Hair Care Products ......................................................................................................................63 Oral Care Products ......................................................................................................................63 Shaving Products .........................................................................................................................64
6. Strengths, Weaknesses, Opportunities and Threats
65
STRENGTHS..................................................................................................................................65 WEAKNESSES..............................................................................................................................65 OPPORTUNITIES.........................................................................................................................66 THREATS.......................................................................................................................................66
7. Buying Behaviour
67
AVERAGE WEEKLY HOUSEHOLD EXPENDITURE............................................................67

Table 7.1: Average Weekly Household Expenditure on Personal Care (), 2009............67 By Age............................................................................................................................................67 Table 7.2: Average Weekly Household Expenditure on Personal Care by Age of Household Reference Person (), 2009...............................................................................68 By Gross Income Decile Group...................................................................................................68 Table 7.3: Average Weekly Household Expenditure on Personal Care by Gross Income Decile Group (), 2009..................................................................................................69
CUSTOMER PENETRATION.....................................................................................................69
Hair Care Products ......................................................................................................................70 Table 7.4: Usage of Hair Care Products in the Last 12 Months by Sex (% of adults), 2010................................................................................................................................................70 Shampoo........................................................................................................................................70 Table 7.5: Female Usage of Shampoo in the Last 12 Months by Age and Social Grade (% of adults), 2010......................................................................................................................71 Table 7.6: Types of Shampoo Used Most Often by Women in the Last 12 Months (%), 2010........................................................................................................................................71 Conditioner ..................................................................................................................................72
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Table 7.7: FemaIe Usage of Conditioners (Excluding Treatments and Masques) in the Last 12 Months by Age and Social Grade (% of adults), 2010................................72 Hair Styling Products ..................................................................................................................73 Table 7.8: Usage of Hair Styling Products in the Last 12 Months by Sex, Age and Social Grade (% of adults), 2010.......................................................................................73 Hair Colourants ...........................................................................................................................74 Table 7.9: Usage of Hair Colourants in the Last 12 Months by Sex, Age and Social Grade (% of adults), 2010..........................................................................................................74 Other Toiletries ...........................................................................................................................75 Table 7.10: Usage of Other Toiletries Products by Women in the Last 12 Months (%), 2010........................................................................................................................................75 Table 7.11: Usage of Other Toiletries Products by Men in the Last 12 Months (%), 2010................................................................................................................................................76 Toothpaste ...................................................................................................................................76 Table 7.12: Usage of Toothpaste in the Last 12 Months by Age and Social Grade (% of adults), 2010......................................................................................................................76 Deodorants ...................................................................................................................................77 Table 7.13: Usage of Deodorant in the Last 12 Months by Sex, Age and Social Grade (% of adults), 2010......................................................................................................................77 Face Creams and Lotions ...........................................................................................................78 Table 7.14: Usage of Face Cream and Lotions in the Last 12 Months by Sex, Age and Social Grade (% of adults), 2010.......................................................................................78 Hair Removers and Razors ........................................................................................................79 Table 7.15: Usage of Hair Removers and Razors in the Last 12 Months by Sex, Age and Social Grade (% of adults), 2010.......................................................................................79 Shower Gels and Bath Products ...............................................................................................80 Table 7.16: Usage of Shower Gels and Bath Products in the Last 12 Months by Sex, Age and Social Grade (% of adults), 2010..............................................................................80 Cleansing Creams, Lotions and Wipes ....................................................................................81 Table 7.17: Usage of Cleansing Creams, Milks, Lotions, Toner, Wipes and Washes by Women in the Last 12 Months by Age and Social Grade (% of adults), 2010...........81 Liquid Soap/Handwash ..............................................................................................................82 Table 7.18: Usage of Liquid Soap/Handwash in the Last 12 Months by Age and Social Grade (% of adults), 2010..........................................................................................................82 Bars of Soap .................................................................................................................................83 Table 7.19: Usage of Bars of Soap in the Last 12 Months by Age and Social Grade (% of adults), 2010......................................................................................................................83 Suntan and Sun Protection Products ......................................................................................84 Table 7.20: Usage of Suntan and Sun Protection Products in the Last 12 Months by Age and Social Grade (% of adults), 2010.........................................................................84
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8. Current Issues
86
THE ECONOMY...........................................................................................................................86 RETAILERS ARE STRUGGLING................................................................................................86 RISING MATERIALS COSTS CAUSING PRICES HIKES........................................................87 UNILEVER AND P&G IN PRICE FIXING FINE.......................................................................87 NEW PRODUCTS.........................................................................................................................87
NIVEA..............................................................................................................................................87 LOreal ...........................................................................................................................................87 Dove ...............................................................................................................................................88 Sensodyne......................................................................................................................................88 Mandara.........................................................................................................................................88 Sk:n.................................................................................................................................................88
9. The Global Market
89
INTRODUCTION..........................................................................................................................89 EUROPE.........................................................................................................................................89
Table 9.1: Retail Sales of Cosmetics and Toiletries in the Top Five EU Member States by Value (), 2009........................................................................................................................89
THE US...........................................................................................................................................90 SELECTED GLOBAL COMPETITORS .....................................................................................90

AS Watson Group.........................................................................................................................90 Avon Products Inc........................................................................................................................91 Beiersdorf AG................................................................................................................................91 Burts Bees ....................................................................................................................................91 Colgate-Palmolive Company .....................................................................................................92 Crabtree & Evelyn Ltd.................................................................................................................92 Estee Lauder Inc...........................................................................................................................92 Table 9.2: Este Lauder Inc Total Sales by Product Category ($m), Years Ending 30th June 2009 and 2010...........................................................................................................93 LOreal SA......................................................................................................................................93 Mary Kay Inc..................................................................................................................................94 Procter & Gamble Company .....................................................................................................94 PZ Cussons ....................................................................................................................................94 Table 9.3: PZ Cussons Group Revenue by Geographical Region (m), Years Ending 31st May 2009 and 2010.............................................................................................................95 Unilever PLC..................................................................................................................................95 Table 9.4: Unilever PLC Sales by Geographic Region (m), Year Ending 31st December 2009 and 2010..................................................................................................96
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10. Forecasts
97
INTRODUCTION..........................................................................................................................97
Population.....................................................................................................................................97 Table 10.1: Forecast UK Resident Population by Sex (000), Mid-Years 2011-2015.........97 Gross Domestic Product..............................................................................................................97 Table 10.2: Forecast UK Growth in Gross Domestic Product in Real Terms (%), 2011-2015......................................................................................................................................98 Inflation.........................................................................................................................................98 Table 10.3: Forecast UK Rate of Inflation (%), 2011-2015...................................................98 Unemployment.............................................................................................................................98 Table 10.4: Forecast Actual Number of Unemployed Persons in the UK (million), 2011-2015......................................................................................................................................99
FORECASTS 2006-2010.............................................................................................................99
Table 10.5: The Forecast UK Market for Toiletries by Sector by Value at Current Prices (m at rsp), 2011-2015.....................................................................................................99
MARKET GROWTH..................................................................................................................100
Figure 10.1: The Actual and Forecast UK Market for Toiletries by Sector by Value at Current Prices (m at rsp), 2006-2015...............................................................................100
FUTURE TRENDS.......................................................................................................................100
New Product Development......................................................................................................100 Size of Products Set to Shrink..................................................................................................101
11. Company Profiles
102
AVON COSMETICS LTD..........................................................................................................103 ESTEE LAUDER COSMETICS LTD.........................................................................................105 LOREAL (UK) LTD....................................................................................................................107 PROCTER & GAMBLE (HEALTH & BEAUTY CARE) LTD................................................109 PZ CUSSONS PLC......................................................................................................................111 SUPERDRUG STORES PLC......................................................................................................113 UNILEVER PLC...........................................................................................................................115
12. Company Financials 13. Further Sources
117 119
Associations...............................................................................................................................119 Publications...............................................................................................................................119 General Sources.......................................................................................................................120
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Government Publications ....................................................................................................120 Other Sources...........................................................................................................................121 Key Note Sources ....................................................................................................................122
Understanding TGI Data
124
Number, Profile, Penetration..............................................................................................124 Social Grade...............................................................................................................................125 Standard Region......................................................................................................................125
Key Note Research The Key Note Range of Reports
126 127
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Product performance is the key to success as consumers will only purchase brands they can trust and rely on. Staying at the forefront of technology and investing in brands will ensure category growth.
Matt Close, VP Marketing, Unilever (The Grocer, 5th February 2011)
Todays savvy consumers are scrutinising the ingredients in personal care products and driving the demand for natural products that are safe, efficacious and sustainable.
Kerty Levy, Kemin Industries, (www.cosmeticsbusiness.com)
The 2010 figures are consistent with previous years, with personal care still the major driver in the UK. The sector also continues to show resilience overall, despite a difficult economic climate.
Sue Rogers, Director of British Aerosol Manufacturers Association, (www.cosmeticsbusiness.com)
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Toiletries
Executive Summary
Executive Summary
This Key Note Market Report Plus examines the toiletries market in the UK. Characterised by a wide range of product types, the toiletries market is dominated by a small number of large multinational corporations including Procter & Gamble, PZ Cussons, LOreal SA and Unilever. The market itself is divided into five sectors: personal wash and bathroom products, skincare products, hair care products, oral care products and shaving products (for men and women). Key Note estimates that the total UK toiletries market was worth 4.5bn in 2010, with personal wash and bathroom toiletries comprising the largest sector by value (27.3%), followed by skincare products (27.1%) and hair care products (24.8%). Compared with other industries such as the construction and property markets the overall toiletries market weathered the recent economic downturn relatively well. Many items, such as shampoos, soaps and deodorants, etc., are regarded as daily essentials. Nevertheless, the economic downturn did leave its mark on the industry. One manifestation of this has been a change in consumer spending habits, with increasing numbers trading down to value products. On the positive side, some consumers are purchasing more premium products as they cut down on more expensive salon treatments, effectively transferring new business to the toiletries market. Another noticeable impact of the strained economy has been the clear scaling down of some promotional activities, a result of suppliers profit margins being squeezed as commodity prices have risen for almost everything from oil to specialist beauty ingredients. While television and print media remain popular, brands are increasingly experimenting with new digital channels as they seek more effective ways of connecting with their existing and potential clientele. The Internet and social media sites such as Facebook, Twitter, and YouTube, are perceived to be effective avenues for brands to communicate through, especially to both male and younger buyers. Although some sectors are reaching saturation point and discounting continues to restrict value growth outlook for the industry is positive. The necessary nature of its products and a strong sense of brand loyalty among its customers are its strongest assets. The industry also features high levels of investment in new product development (NPD), which continues to drive sales. Significant opportunities exist in the areas of cosmeceuticals and green/ethical products. Key Note forecasts retail sales of toiletries will grow by close to 10% between 2011 and 2015, to reach 5.03m in the latter year. The sectors which are expected to exhibit the strongest growth are skincare products, followed by personal wash and bathroom toiletries.
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Toiletries
Market Definition
1. Market Definition
REPORT COVERAGE
Cosmetic and toiletry products are defined as any substance or preparation intended to be placed in contact with the various external parts of the human body, or with the teeth and the mucous membranes of the oral cavity, with a view exclusively or mainly of cleaning them, perfuming them, changing their appearance and/or correcting body odours, and/or protecting them or keeping them in good condition. This Key Note report looks at the range of toiletry products that are primarily of a functional use. Cosmetics, which are of a purely decorative nature, are not included, although the distinction is becoming increasingly blurred with new types of product.
MARKET SECTORS
For the purpose of this report, the toiletries market will be divided into the following sectors: Personal washing and related bathroom products traditional bar soaps, liquid soaps, shower gels, bath liquids, deodorants, bodysprays and talcum powder Oral care products toothpaste, mouthwash, dental floss, etc. Hair care products shampoos, conditioners, colourants and hair styling aids such as gels, mousses and sprays Skincare products hand, body and facial moisturisers, cleansers and toners, exfoliating scrubs and sun filters/after-sun products Shaving products wet-shave and after-shave products, and razors and blades, including those designed specifically for the womens market; depilatory creams are also included.
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Market Definition
MARKET TRENDS
Suppliers Change Promotional Strategies
In recent years, promotions in the toiletries market have been exerting a strong influence on consumer purchasing behaviour, with supermarkets being one of the most common places to buy toiletry products. The buy one, get one free trend became so wide-spread that consumers rarely needed to buy certain products at full price. In 2010, however, as a result of suppliers being unable to sustain the level of promotions (following the increases in commodity prices, from oil to specialist beauty ingredients including geranium and lavender), deep discount promotion all but disappeared. Many suppliers believe the change is necessary. As one brand manager of Beiersdorf put it: If you promote and promote, there will be no value left. Thats not beneficial to anybody. Not even consumers, because it will stop brands investing in new product development (NPD). There needs to be some value, so thats why were starting to do two for 4 on our deodorants, rather than three for 3.50.
Growing Popularity of Social Media

While television and print media remain popular, social media is the fastest-growing marketing channel. Brands are increasingly experimenting with these new digital channels, from which they are seeking to develop stronger and deeper relationships with their existing and potential clientele. Lynx, for example, launched its Excite variant with a focus on digital activity, including a Facebook game featuring Kelly Brook aimed at male audiences. The Internet and social media sites, such as Facebook, Twitter, YouTube and Flickr, are perceived to be a particularly effective way for brands to reach both male and younger buyers. Social media avenues may be used for direct communication with consumers and for listening exercises, to promote brand awareness or trial new product ideas, and to support larger media campaigns.
Private Labels Benefiting From Changing Consumer Spending Habits

Economic turbulence has undoubtedly accelerated the growth of private-label products, as a significant number of consumers seek out less expensive purchases. This is evident from the number of private-label products that have been launched by retailers in recent years, examples of which are Tescos Vitamin E skincare range and Boots No. 7 range. According to the Private Label Manufacturers Association (PLMA), private-label products now hold their strongest competitive position, accounting for one of every two products sold in the UK and Switzerland. Younger shoppers show particularly strong support for this sector.
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Market Definition
ECONOMIC TRENDS
Gross Domestic Product
Between 2003 and 2008, the UKs gross domestic product (GDP) grew at a year-on-year rate of approximately 5%. This growth was principally driven by consumer spending and low interest rates. In 2008, however, as a result of the financial crisis, growth slowed markedly to 2.9% and dramatically moved to a contraction of 3.5% (at current prices) as the country entered recession in 2009. The UK officially emerged from recession in January 2010, bringing to an end six consecutive quarters of contraction. In 2010, official figures confirmed that the economy had begun to recover, as GDP increased by 4.2% (at current prices) on 2009. However, annual chain-linked figures for 2010 indicate that GDP growth remains well below levels registered prior to the recession.
Table 1.1: UK Gross Domestic Product at Current and Annual Chain-Linked Prices (m), 2006-2010
2006 Current prices % change year-on-year Annual chain-linked GDP % change year-on-year
GDP gross domestic product
2007
2008
2009
2010
1,328,363 1,404,845 1,445,580 1,394,989 1,453,616 5.8 2.9 -3.5 4.2
1,328,363 1,364,029 1,363,139 1,296,689 1,312,911 2.7 -0.1 -4.9 1.3
Source: Economic & Labour Market Review, May 2011, National Statistics website Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queens Printer for Scotland)
Inflation
UK inflation rose gradually in the years leading up to 2007, before dropping by 0.3 percentage points in 2008. By the end of 2009, despite the high price of a number of commodities, including fuel, clothing and certain foods, inflation turned negative. However, it has since started to rise sharply, with the latest National Statistics figures placing it at 4.6%, more than twice that of the Bank of Englands target of 2%. This sharp hike in inflation has been buoyed in part by the rise in VAT which came into effect in January 2011.
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Market Definition
Table 1.2: UK Rate of Inflation (%), 2006-2010

2006 Inflation (%) Percentage point change year-on-year 3.2 2007 4.3 1.1 2008 4.0 -0.3 2009 -0.5 -4.5 2010 4.6 5.1
Note: inflation is at retail price index (RPI).
Source: Focus on Consumer Price Indices Data for April 2011, published May 2011, National Statistics website Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queens Printer for Scotland)
Household Disposable Income

Despite the current economic downturn, household disposable income per capita continued to increase year-on-year of approximately 3% over the review period, although growth in this measure slowed markedly to around 1.7% in 2009. Rising household disposable income should, under normal circumstances, help to encourage consumer spending. However, since the recession, consumer confidence has remained low and is likely to continue to do so as the Governments proposed cuts to the public sector come into force.
Table 1.3: UK Household Disposable Income Per Capita (), 2006-2010

2006 Household disposable income () % change year-on-year 2007 2008 2009 2010
14,080 -
14,453 2.6
14,976 3.6
15,225 1.7
15,676 3.0
Source: Economic & Labour Market Review, May 2011, National Statistics website Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queens Printer for Scotland)
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Market Definition
Population
According to the Office for National Statistics, the UKs population is currently growing at an average annual rate of around 0.6% to 0.7% a year. At this rate, it is expected the 65 million-barrier will be exceeded by 2017. A growing population is likely to contribute to an increase in consumer spending, which in turn, will benefit the toiletries market.
Table 1.4: UK Resident Population Estimates by Sex (000), Mid-Years 2006-2010

2006 Female Male 30,895 29,689 2007 31,068 29,918 2008 31,244 30,154 2009 31,418 30,374
2010
31,614 30,609
Total % change year-on-year
60,584 -
60,986 0.7
61,398 0.7
61,792 0.6
62,222
0.7
taken from Population Projections Database does not sum due to rounding at source
Source: Time Series Data Monthly Digest of Statistics (accessed June 2011)/ Population Projections Database (2008-based projections), National Statistics website Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queens Printer for Scotland)
Unemployment
In 2004, the number of people unemployed in the UK stood at 850,000 its lowest level in over a decade. This remained at a comparable level up until 2007. Starting in March 2008, however, the economic downturn began affecting the labour market, sending UK unemployment figures rising. The claimant count reached 1 million in October 2008 and rose to a 13-year high of 1.53 million in 2009, before decreasing again in 2010. The latest figures published by National Statistics suggest that the number of people unemployed in the UK currently stands at 2.5 million. This figure is likely to increase in the first half of 2011 as public sector cuts come into effect.
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Market Definition
Table 1.5: Actual Number of Unemployed Persons in the UK (million), 2006-2010

2006 Actual number of claimants (million) % change year-on-year 2007 2008 2009 2010
0.95 -
0.86 -9.5
0.91 5.8
1.53 68.1
1.50 -2.0
Source: Time Series Data Monthly Digest of Statistics (accessed June 2011), National Statistics website Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queens Printer for Scotland)
MARKET POSITION
The UK
The Office for National Statistics includes expenditure on cosmetics, fragrances and toiletries in the category for miscellaneous goods and services for personal care. Within this category, expenditure on toiletries is covered under other products for personal care, along with non-electrical grooming appliances (such as combs and hairbrushes). The revised figures show that the overall value of miscellaneous goods and services for personal care declined by 4.3% to 20.87bn in 2009, before increasing again in 2010 by 12.1%, to 23.39bn. At the same time, expenditure for the other products for personal care subsector decreased by 6.7% in 2009, which was followed by an increase of 15% in 2010 to 16.54bn.
Table 1.6: Consumer Expenditure on Miscellaneous Goods and Services for Personal Care (m), 2006-2010
2006 Hairdressing salons and personal grooming establishments Electrical appliances for personal care Other products for personal care 2007 2008 2009 2010
5,065 1,028 14,237
5,273 1,007 15,072
5,500 894 15,410
5,401 1,089 14,378
5,815 1,042 16,535
Table continues...
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Market Definition
Table 1.6: Consumer Expenditure on Miscellaneous Goods and Services for Personal Care (m), 2006-2010
...table continued
2006 Total % change year-on-year 20,330 2007 21,352 5.0 2008 21,804 2.1 2009 20,868 -4.3 2010 23,392 12.1
Source: Consumer Trends 2010, National Statistics Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queens Printer for Scotland)
Overseas
According to the European Cosmetics Association (Colipa), the EU-27 market for cosmetics and fragrances including toiletries covered in this Key Note report represents close to one-third of the global market. At retail prices, the market was valued at 69.5bn in 2009, marginally down by 1.6% from 70.6bn in 2008. The UKs market was valued at 8.9bn, accounting for 12.8% of sales in the EU-27.
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Market Size
2. Market Size
THE TOTAL MARKET
Manufacturers Sales
According to the latest available figures from National Statistics, the value of UK manufacturers sales of perfumes and toilet preparations (which covers cosmetics and perfumes, as well as products for personal care), was worth 2.25bn in 2009, having marginally declined by 0.8% from 2.27bn in 2008. The value of manufacturers sales fell in most personal care product categories, including shaving preparations, oral care, shampoos and skincare products.
Retail Sales
The total market for toiletries, as covered by this report, was valued at 4.53bn in 2010. Personal wash and bathroom toiletries make up the largest sector by value, accounting for 27.3% of the total. This is closely followed by skincare and hair care products, accounting for 27.1% and 24.8%, respectively in 2010.
Table 2.1: The Total UK Market for Toiletries by Sector by Value at Current Prices (m at rsp), 2006-2010
2006 Personal wash and bathroom toiletries Skincare products Hair care products Oral care products Shaving preparations, wet razors and blades, and depilatories Total % change year-on-year
rsp retail selling prices
2007
2008
2009
2010
1170.0 978.0 1100.5 545.0
1172.0 1060.0 1106.5 549.5
1175.0 1140.0 1118.0 557.0
1212.0 1196.9 1120.0 559.0
1237.0 1229.0 1123.0 562.6
378.0 4171.5 -
380.5 4268.5 2.3
385.0 4375.0 2.5
378.0 4465.9 2.1
381.3 4532.9 1.5
Source: Key Note
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Market Size
Figure 2.1: The Total UK Market for Toiletries by Value at Current Prices (m at rsp), 2006-2010
5,000 4,750 4,500 4,250 4,000 3,750 3,500 3,250 3,000
Source: Key Note
20 06
20 07
20 08
20 09
20 10
BY MARKET SECTOR
Figure 2.2 displays the market share percentage attributed to each sector featured in this Key Note Market Report Plus.
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Market Size
Figure 2.2: The Total UK Toiletries Market by Sector Share (%), 2010
Shaving preparations, wet razors and blades, and depilatories 8.4%
Personal wash and bathroom toiletries 27.3%
Oral care products 12.4%
Skincare products 27.1% Hair care products 24.8%
Source: Key Note
Personal Wash and Bathroom Toiletries

As shown in Table 2.2, the total value for personal wash and bathroom toiletries increased by an estimated 2.1% from 1.21bn in 2009 to 1.24bn in 2010. Although household penetration of personal wash and bathroom toiletries remains high, potential value growth is restricted due to the prevalence of discounting. Moreover, retailers own brands are increasingly gaining market share over more expensive brands, as consumers are likely to trade down to less expensive products in the current economic climate. Notably, however, deodorants outperformed the sector as a whole, with sales increasing in value by an estimated 3.8%. Continuing economic recovery, albeit slow, should see less discounting and returning consumer confidence.
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Market Size
Table 2.2: The UK Personal Wash and Bathroom Toiletries Sector by Subsector by Value at Current Prices (m at rsp), 2009 and 2010
% Change 2009-2010
2009 Bath/shower soaps, gels, additives and talcum powder Deodorants Total
2010
690.0 522.0 1,212.0
695.0 542.0 1,237.0
0.7 3.8 2.1
Source: Key Note
Skincare Products
The market for skincare products, including sun care, was valued at 1.23bn in 2010, an increase of 2.7% from the previous year. Growth in this market continues to be driven by premium-priced products with anti-ageing formulations.
Table 2.3: The UK Skincare Products Sector by Subsector by Value at Current Prices (m at rsp), 2009 and 2010
% Change 2009-2010 3.2 2.5 1.0 2.7
2009 Facial skincare Hand and body skincare Suncare Total

2010 702.0 324.0 203.0 1,229.0
680.0 316.0 200.9 1,196.9
Source: Key Note
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Market Size
Hair Care Products

The value of the market for hair care products in 2010 increased by a marginal 0.3%, from 1.12bn in 2009. The colourants and enhancers sector showed the strongest growth with 1.3%, followed by conditioners with 0.8%. By contrast, sales of hairsprays and other styling aids decreased. The largest sector in this market segment is formed by shampoo, which accounts for just under a third (32.5%) of the total value of hair care products. This subsector is, however, another which is subject to heavy discounting, thereby restricting value growth.
Table 2.4: The UK Hair Care Products Sector by Subsector by Value at Current Prices (m at rsp), 2009 and 2010
% Change 2009-2010 0.3 0.8 1.3 -0.8 -1.2 0.3
2009 Shampoo Conditioners Colourants and enhancers Hairsprays Other styling aids Total
2010 365.2 240.0 223.8 130.0 164.0 1,123.0
364.0 238.0 221.0 131.0 166.0 1,120.0
Source: Key Note
Oral Care Products

Oral care products accounted for 12.4% of the toiletries market in 2010, sales having increased in value by a marginal 0.6%, to 562.6m. Household penetration of oral care products is high (see Chapter 7 Buying Behaviour), and volume sales are helped by a growing population. It is, however, another sector in which special price promotions are frequent, thereby keeping a check on value growth.
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Market Size
Table 2.5: The UK Oral Care Products Sector by Subsector by Value at Current Prices (m at rsp), 2009 and 2010
% Change 2009-2010 0.8 0.0 0.6
2009 Toothpaste, mouthwashes, etc. Toothbrushes Total

2010 428.6 134.0 562.6
425.0 134.0 559.0
Source: Key Note
Shaving Products
Shaving products account for the remaining 8.4% of the toiletries market and this sector was worth an estimated 381.3m in 2010. The mens sector has been driven by new product innovation in recent years, although this trend notably reversed during the economic downturn, as cost-conscious consumers increasingly looked for less expensive yet still high quality alternatives. The sector experienced an increase in value of just under 1% in 2010, amounting to 381.3m.
Table 2.6: The UK Shaving Products Sector by Subsector by Value at Current Prices (m at rsp), 2009 and 2010
% Change 2009-2010 1.1 0.8 0.9
2009 Shaving preparations Razors, blades and depilatories Total

2010 89.0 292.3 381.3
88.0 290.0 378.0
Source: Key Note
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Market Size
OVERSEAS TRADE
The UK has had a favourable trade balance in toiletries in the 3 years between 2008 and 201, exporting a greater value than is imported. However, the trade balance for 2010 decreased by 29.3% from 295.3m in 2009 to 208.7m in 2010.
Table 2.7: UK Imports and Exports of Toiletries by Value (000), 2008-2010

2008 Exports Less imports Balance of trade 1,012,512.0 742,723.9 269,788.1 2009 1,097,203.3 801,950.7 295,252.6 2010 1,045,949.3 837,297.4 208,651.9
Source: HM Revenue & Customs Crown copyright material is reproduced with permission of the Controller of HMSO (and the Queens Printer for Scotland)
Imports
Imports of toiletries from within the EU accounted for 76% of the value of total UK imports of toiletries in 2010 (see Table 2.8). Hair care products represented the highest-value category, accounting for 44.4% of total imports. Interestingly, this is one of only two sectors for which the cost of imports exceeded the value of exports, the other sector being perfumed bath salts and other bath preparations. The EU was the biggest source of imports in almost all sectors, with the exception of toilet soap. The UKs main European sources of toiletries are Germany, France and Italy; while non-EU suppliers include North America, the Peoples Republic of China (PRC) and India.
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Market Size
Table 2.8: UK Intra-EU Arrivals and Extra-EU Imports of Toiletries by Category by Value (000), 2010
Intra-EU Preparations for the hair Preparations for oral or dental hygiene Personal deodorants and anti-perspirants Perfumed bath salts and other bath preparations Toilet soap Pre-shave, shaving and after-shave preparations Depilatories and perfumery, cosmetic or toilet preparations not elsewhere specified Total 282,181.8 106,394.7 104,259.5 40,226.4 29,738.0 46,483.8 Extra-EU 94,807.5 26,718.5 11,124.6 15,396.3 31,462.8 6,064.8 Total 376,989.3 133,113.2 115,384.1 55,622.7 61,200.8 52,548.6
26,753.6 636,037.8
15,685.1 201,259.6
42,438.7 837,297.4
Exports
EU countries were the principal destinations for UK exports of toiletries, accounting for 70.1% of total exports in 2010, compared with 74.1% in 2009. The Netherlands, the Republic of Ireland (RoI), Germany, France, and Spain were the most important EU destinations for UK exports of toiletries, while non-EU markets include North America, Russia, Australia and the United Arab Emirates.
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Market Size
Table 2.9: UK Intra-EU Despatches and Extra-EU Exports of Toiletries by Category by Value (000), 2010
Intra-EU Preparations for the hair Preparations for oral or dental hygiene Personal deodorants and anti-perspirants Perfumed bath salts and other bath preparations Toilet soap Pre-shave, shaving and after-shave preparations Depilatories and perfumery, cosmetic or toilet preparations NES Total 208,637.7 170,349 173,600 30,634.6 41,642.0 80,880.7 Extra-EU 62,838.8 57,544.1 45,971.3 14,183.7 33,668.7 47,500.5 Total 271,476.5 227,893.1 219,571.3 44,818.3 75,310.7 128,381.2
27,177.5 732,921.5
51,320.7 313,027.8
78,498.2 1,045,949.3
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Industry Background
3. Industry Background
RECENT HISTORY
The use of some form of personal care products can be traced back thousands of years, and usage is evident in almost every society. Throughout time, people have striven to make the most of their appearance with feature-enhancing pastes and dyes such as henna and perfumed oil, which was frequently used by the wealthy as a means to mask body odours. By the 1970s, mounting pressure from environmentalists and animal-rights activists marked the beginning of closer scrutiny of industry practices. Despite stringent regulation, such as the European Cosmetics Directive of 1976 and the Cosmetic Products (Safety) Regulations of 1996, as well as assurances from industry members, animal testing scandals still arise. Toiletries that are formulated using natural, plant-based ingredients have become the preferred choice of many customers; this trend is exemplified by the success of The Body Shop International over the past couple of decades.
NUMBER OF COMPANIES
In 2010, according to UK Business: Activity, Size and Location, there were 320 VAT- and/or PAYE-based enterprises involved in the manufacturing of perfumes and toilet preparations. 46.9% of these had a turnover of more than 250,000, while nearly one third (29.7%) of these companies turned over 1m or more.
Table 3.1: Number of UK VAT- and/or PAYE-Based Enterprises Engaged in the Manufacture of Perfumes and Toilet Preparations by Turnover Sizeband, 2010
Number of Enterprises Turnover Sizeband (000) 0-49 50-99 100-249 250-499 500-999 55 60 55 30 25
Table continues...
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Industry Background
Table 3.1: Number of UK VAT- and/or PAYE-Based Enterprises Engaged in the Manufacture of Perfumes and Toilet Preparations by Turnover Sizeband, 2010
...table continued
Number of Enterprises Turnover Sizeband (000) 1,000-4,999 5,000+ Total 55 40 320
Source: UK Business: Activity, Size and Location, National Statistics website Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queens Printer for Scotland)
EMPLOYMENT
Table 3.2 shows the same number of UK VAT- and/or PAYE-based enterprises that in 2010 were involved in the manufacturing of perfumes and toilet preparations, this time separated by employment sizeband. As can be seen, most are small enterprises, with nearly two-third (70.3%) of companies employing fewer than ten people and more than half (57.8%) of companies employing fewer than five.
Table 3.2: Number of UK VAT- and/or PAYE-Based Enterprises Engaged in the Manufacture of Perfumes and Toilet Preparations by Employment Sizeband, 2010
Number of Enterprises Employment Sizeband 0-4 5-9 10-19 20-49 50-99 185 40 30 25 15
Table continues...
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Industry Background
Table 3.2: Number of UK VAT- and/or PAYE-Based Enterprises Engaged in the Manufacture of Perfumes and Toilet Preparations by Employment Sizeband, 2010
...table continued
Number of Enterprises Employment Sizeband 100-249 250+ Total 10 15 320
Source: UK Business: Activity, Size and Location, National Statistics website Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queens Printer for Scotland)
REGIONAL VARIATIONS IN THE MARKETPLACE

According to UK Business: Activity, Size and Location 2010, most companies manufacturing perfumes and toilet preparations are concentrated in London (65 units) and the South East (55 units), followed by the East (30) and South West (30).
DISTRIBUTION
Selective Distribution
Toiletry products are often distributed selectively, whereby their sale is limited to certain wholesalers or retailers. This method is used either to give a premium brand the exclusivity crucial to its image, or as a concession to a favoured retailer. However, exclusive distribution agreements are not necessarily permanent. A recent example of selective distribution was the launch of skincare range Naked Truth, by cosmetic surgeon Darren McKeown, in May 2011. The products include a moisturiser, a cleanser, an eye cream and facial rehydration fluid, and are to be sold exclusively at UK Superdrug stores.
Specialist Retailers
Specialist retailers of toiletries include The Body Shop, Lush Cosmetics, Molton Brown, LOccitane, Space NK, Jo Malone and Neals Yard.
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Industry Background
High-Street Stores
Health and beauty chains Boots and Superdrug are the leading high-street stores, both selling a wide range of personal care products. Others include Lloyds Pharmacy, along with a number of smaller chains and independent stores.
Department Stores
Department stores, such as Debenhams, House of Fraser, Harrods, Harvey Nichols, Selfridges and John Lewis, offer a range of branded as well as own-brand cosmetics and toiletries. Many stores also house concessions for brands such as Molton Brown and LOccitane.
Supermarkets
The supermarkets continue their expansion into the health and beauty sector by offering products at discounted prices. Major UK supermarkets such as Tesco, ASDA, Sainsburys, Morrisons and Waitrose also stock their own-brand toiletry ranges, all sold at reasonable prices. It is the involvement of the supermarkets and the price wars between them and other main competitors, that do much to keep down the value of sales of everyday toiletries.
Direct Selling
Avon is a prime example of the direct selling of cosmetics and fragrances, which is carried out both online and through representatives. The Body Shop also started its own Body Shop at Home party plan, which offers 25% commission to its sales representatives. VIE At Home is another company that specialises in direct selling of cosmetics, skincare and body care products in the UK. VIE At Home was launched in 1996 and has more than 10,000 sales representatives.
HOW ROBUST IS THE MARKET?

The toiletries market was not impacted nearly as much by the global recession as, for instance, the construction and property markets. Sales of toiletry products remained strong during the economic downturn as many of these items, such as shampoos, shower gels and deodorants, etc., are regarded as necessities (see Chapter 2 Market Size, and Chapter 7 Buying Behaviour). Nevertheless, there have been considerable changes in consumer behaviour and trends, predominantly in response to the ongoing economic uncertainty, rising energy and commodity prices, and a squeeze in households disposable income. Combined, these factors are prompting consumers to adjust their priorities and spending habits. Consumers today are more likely to trade down to value products in order to save money, while others may view toiletry products as feel good indulgences and stay loyal to their favourite brands. In trading down, some consumers will be selecting premium products as an alternative to salon beauty and spa treatments, effectively bringing new retail custom to the toiletries market.
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Industry Background
LEGISLATION
Cosmetics Directive 1976
All cosmetic, toiletry and perfumery products placed on the market in the UK (and throughout the EU) are regulated by European legislation, namely the Cosmetics Directive (76/768/EEC). The primary purpose of these laws is to protect human safety. The manufacturer or supplier of the cosmetic product is responsible for ensuring it is safe; each cosmetic must be assessed for safety by a duly qualified safety assessor before it can be made available to the public. The Directive covers the composition, manufacturing, safety assessment and labelling of all cosmetics products. The Cosmetics Directive also controls what may or may not be put in a cosmetic. There are lists of substances that must not be present and lists of substances that may be used as ingredients subject to particular restrictions.
Cosmetics Products Regulations

The legislation that regulates cosmetic products in the UK is the Cosmetic Products (Safety) Regulations 2008. The Regulations are based on the Cosmetics Directive (76/768/EEC) and are updated periodically, reflecting changes to prohibitions of, and restrictions on, certain substances, and subsequent amendments to the Cosmetic Products (Safety) Regulations 2008. The Cosmetic Products (Safety) Regulations 2008 came into force on 18th June 2008 and consolidated earlier Regulations, as well as implementing current European Directives. Under the Cosmetic Products (Safety) Regulations 2008, all cosmetic products sold in the EU must display a complete ingredients list. New products are required to undergo a full safety assessment before they are allowed onto the market. Safety assessments need to be carried out by qualified professionals and must cover the finished product, all ingredients and how products will be used. In July 2013, the EU Cosmetics Directive will be replaced by the EU Cosmetics Regulation (1223/2009), which will apply directly in all EU Member States.
REACH
Also relating to the industry is the Registration, Evaluation & Authorisation of Chemicals (REACH), a European regulation concerning the safety of chemicals. In order to ensure a high level of protection, this regulation requires data to be provided concerning human and environmental safety. It applies to all chemicals made in the EU or imported into the EU, including certain natural substances and other substances used in cosmetic products. It is intended to address any public concern about the use of chemicals.
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Industry Background
KEY TRADE ASSOCIATIONS

Cosmetic, Toiletry and Perfumery Association
Founded in 1945, the Cosmetic, Toiletry and Perfumery Association (CTPA) is a trade association providing a voice for the UK cosmetic, toiletry and perfumery industry. Its members vary from small- and medium-sized companies to large multi-nationals and include manufacturers, raw material suppliers and service providers. The Association co-ordinates the industrys viewpoint on key issues, such as science, innovation and safety, and maintains an open dialogue with the Government, both in the UK and in Europe, as well as with international regulatory authorities and key opinion formers.
The European Cosmetics Association

Established in 1962 in Brussels, the European Cosmetics Association (Colipa) aims to be the voice of Europes cosmetic, toiletry and perfumery industry. It represents the interests of more than 2,000 companies, ranging from major international cosmetics manufacturers to small family-run businesses operating in niche markets. Together, these companies employ more than 500,000 people within the EU. The products that fall within the scope of Colipa extend across a diverse range and include essential personal hygiene products, such as deodorant, shampoo and toothpaste, as well as beauty preparations. The Association assists its members with the ongoing development of safe, innovative and effective products, while also meeting the demands of consumers through intensive market research.
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Competitor Analysis
4. Competitor Analysis
THE MARKETPLACE
The manufacture of toiletries is currently dominated by a small number of multinational corporations, such as Unilever and Procter & Gamble (P&G), which also produce a wide range of consumer goods for other markets outside of the toiletry industry. Other specialist companies include LOreal, PZ Cussons, Estee Lauder and number of smaller, niche operations. On the retail side, principle retailers of toiletries include Alliance Boots, Superdrug and the grocery multiples such as Tesco, which sell a much wider range of consumer goods than just toiletries.
MARKET LEADERS MANUFACTURERS

Avon Cosmetics Ltd
Company Structure
Avon Cosmetics Ltd is one of the worlds leading direct sellers of beauty and related products, marketing to women in more than 100 countries through approximately 6.5 million independent sales representatives. Having entered the UK market in 1959, the company claims to be one of the top three beauty brands in the country today. The companys head office is located in Northampton and supports operations in both the UK and European market.
Current and Future Developments

In March 2011, over 5,000 independent Avon representatives joined Avon Chairman and CEO Andrea Jung at a concert in Birmingham to mark Avons 125th anniversary. In May, Avon Cosmetics Ltd was crowned the winner of the Environmental Award at the Direct Selling Association (DSA) Conference.
Financial Results
In the year ending 31st December 2009, Avon Cosmetics Ltd registered a turnover of 316.6m, a decrease of 0.6% from 318.6m in the previous year. Its pre-tax profit dropped significantly, from 20.6m to a loss of 7.1m over the same period.
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Competitor Analysis
Este Lauder Cosmetics Ltd

Company Structure
Este Lauder Cosmetics Ltd is a US-based company, which was established in 1946. The company entered the European market in 1960, after setting up operations in London. Its product range covers skincare, cosmetics, perfume and haircare products, which are sold in more than 135 countries. Its subsidiary operations include Clinique Laboratories, Jo Malone and Bobbi Brown.

In December 2010, the company announced that it had signed Puerto Rican model Joan Smalls as the new face for its cosmetics and skincare advertising campaigns. In March 2011, Estee Lauder launched a new fragrance Adventurous which is exclusive to travel retail. The product is a fragrance designed for the modern jet setter, and is available at all Estee Lauder travel retail locations worldwide.
Financial Results
In the 12 months ending 30th June 2010, turnover at Este Lauder Cosmetics Ltd reached 365.9m, up by 5.9% from 345.6m in the previous year. Its pre-tax profit also improved, increasing by 7.1% from 56.2m in the previous year to 60.2m in 2010.
LOral (UK) Ltd

Company Structure
Based in London, LOral (UK) Ltd is a subsidiary of the French company LOral SA and specialises in womens make-up, skincare, hair care, dermatology and fragrances. In 2006, the company acquired The Body Shop International for 652m.

In March 2010, LOreals YSL Beauty brand and Ermenegildo Zegna agreed to put an early termination to their existing license agreement for the creation and development of fine fragrances under the Ermenegildo Zegna brand. The move was based on LOreals Luxury Division objective to focus its mens perfume business on a number of limited brands which include among others Giorgio Armani, Ralph Lauren, Yves Saint Laurent and Diesel. In May, LOreal was recognised for its innovative reporting on sustainable development by Ethical Corporation, an organisation that promotes debate and discussion about corporate social responsibility.
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Competitor Analysis
Financial Results
In the year ending 31st December 2009, turnover at LOral UK Ltd increased by 2.2% to 745.8m, compared with 730.1m in the previous year. Pre-tax profit increased by 25.8% from 74m to 93.2m.
Procter & Gamble (Health & Beauty Care) Ltd

Company Structure
P&G Ltd was founded in 1837 by William Procter and James Gamble. What started off as a small family-run soap and candle company in the US is now considered to be the worlds largest consumer goods company. It owns many well-known branded products, including Fairy Liquid washing-up liquid, and Gillette. Its UK subsidiary, P&G (Health & Beauty Care) Ltd, is based in Surrey.

In February 2011, P&G announced its Oral-B brand had appointed Dr James Russell as its ambassador, who was known for his work on Channel 4s prime time Embarrassing Bodies series. In April, P&G launched its Proud Sponsor of Mums campaign for Mothers Day, to promote its own corporate brand for the first time in the UK, in addition to the outlay campaigns for its 50-plus household products including Pringles, Pampers and Pantene.
Financial Results
In the year ending 30th June 2010, Procter & Gamble (Health & Beauty Care) Ltd recorded a pre-tax loss of 10.1m, down from a profit of 77.7m in the previous year. Total turnover for the same period is not available from the at the time of writing, July 2011.
PZ Cussons PLC
Company Structure
Known as Paterson Zochonis PLC until 2002, PZ Cussons manufactures personal and household cleaning products in Europe, Asia and Africa. Its origins go back to 1879, when George Paterson and George Zochonis set up a trading post in Sierra Leone. It acquired the soap-making Cussons Group Ltd in 1975.

In February 2011, PZ Cussons announced it would form a new beauty division comprising its premium beauty brands: St Tropez, The Sanctuary and Charles Worthington. The division is based in Covent Garden, London and aims to maximise the three ranges and their presence both in the UK and internationally.
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Competitor Analysis
Financial Results
In the year ending 31st May 2010, PZ Cussons PLC recorded a turnover of 771.6m, a decrease of 7.9% from 838.1m in the previous 12 months. However, its pre-tax profit grew by 20.6%, from 84.4m to 101.8m over the same period.
Unilever PLC
Company Structure
Originally two separate legal entities Unilever NV and Unilever PLC with separate stock-exchange listings, the Unilever Group announced a series of significant changes to streamline its management and leadership in 2005. Unilever is home to brands such as: Knorr, Hellmanns, Lipton, Dove, Vaseline, Persil, Cif and Marmite.

In February 2011, Unilever reported savings of 1.4bn in 2010 through lowering supply chain costs and indirect costs, well ahead of the 1bn the group was targeting at the start of the year. Later in April, Unilever sold Sanex, the multi-category personal care brand, to Colgate for 672m. Sanex was acquired by Unilever from Sara Lee in 2009. In May 2011, Unilever completed the acquisition of Alberto Culver Company, manufacturer and distributor of beauty care and other personal care brands, including TRESemme, Alberto VO5, St. Ives and Simple. Unilever paid $3.7bn in cash for the acquisition.
Financial Results
In the year ending 31st December 2010, turnover at Unilever PLC grew by 11.1%, to 44.26bn, up from 39.82bn in 2009. Over the same period, its pre-tax profit increased by 24.7%, from 4.92bn to 6.13bn.
MARKET LEADERS RETAILERS

Alliance Boots Ltd
Company Structure
Alliance Boots Ltd is a privately owned company and a leading international pharmacy-led health and beauty group. It offers a wide range of products and services to its customers. The company, which employs over 115,000 people, has two core business divisions pharmacy-led health and beauty retailing; and pharmaceutical wholesaling. Its wholesale and distribution network serves over 150,000 pharmacies, doctors, health centres and hospitals from over 360 pharmaceutical wholesale distribution centres in 16 countries. The company was taken over by private-equity firm Kohlberg Kravis Roberts (KKR) in 2007.
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Competitor Analysis

In March 2011, Alliance Boots agreed to produce beauty and skin care products for the worlds second largest supermarket chain, Carrefour. Boots will be making the products, including cosmetics, bathing and hair care, which will be sold under Carrefours own name. Boots also planned to open its next drive-through store at St James Retail Park in Northampton in May 2011, and a further 20 in the next few years. The format aims to allow customers to drive up to a window where they can drop off or pick up prescriptions rather than queuing up in stores. At the time this Key Note Report was published (June 2011), Boots is working on a major upgrade of its Advantage Card programme under a project entitled Advantage Card Futures. The project aims to increase the personalisation of the card with mailings tailored to individuals shopping patterns and personal needs, which is to be completed by the end of 2011.
Financial Results
According to the Alliance Boots 2010/2011 Annual Review (see Table 4.1), the companys revenue for its financial year ending 31st March 2011 was 20.22bn, up 8% from 18.72bn in the previous year.
Table 4.1: Alliance Boots Group Revenue and Trading Profit by Division (m), Year Ending 31st March 2011
Trading Profit (m) 767 320 -36 1,051
Revenue (m) Health and beauty Pharmaceutical wholesale Contract manufacturing and corporate costs Intra-group Total Source: Alliance Boots 2010/2011 Annual Review 7,626 13,942 253 -1,603 20,218
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Competitor Analysis
The Body Shop International PLC

Company Structure
The Body Shop was founded in 1976 by the late entrepreneur Dame Anita Roddick as a single shop in Brighton. The Body Shop chain now comprises more than 2,500 stores worldwide, some of which are company-owned, while others are franchised. The company was bought by the French cosmetic giant LOreal in 2006, but retains a separate identity from the parent company. The Body Shop is widely known for its focus on environmentally-friendly and fairtrade cosmetic products.

In April 2011, the ethical brand launched a petition calling on the Government to improve, and offer greater, protection to young children who are victims of trafficking.
Financial Results
In the 53 weeks ending 2nd January 2010, turnover at The Body Shop International PLC had grown by 10.5% to 320.5m, up from 290m on 27th December 2008. Its pre-tax profit also increased from 25.4m to 34.7m.
Lush Cosmetics Ltd

Company Structure
Lush Cosmetics Ltd began as a manufacturer and supplier of handmade toiletries and cosmetics to The Body Shop in 1978, before opening its own shop on the Kings Road, Chelsea, in 1994. It now operates a chain of more than 600 stores in 40-plus countries, with its own production facilities in the UK, North America and Japan. The company intends to open another factory in Chile to serve the South American market.

In April 2011, Lush decided to pay an hourly rate of 7.85 to its staff at all 11 Lush stores in the capital. The decision was hailed as a breakthrough for the London Citizens group, which launched the living wage campaign back in 2001.
Financial Results
In the year ending 30th June 2010, turnover at Lush Cosmetics Ltd increased by 15.2% to 247.2m from 214.m in 2009. Its pre-tax profit increased by 60.2% to 22.3m, from 13.9m in the previous year.
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Competitor Analysis
Molton Brown Ltd

Company Structure
Molton Brown originated as a hair salon in Londons Mayfair in 1973, but, by the 1980s, it had expanded into retail products with an emphasis on natural, plant-based toiletries. Molton Brown grooming products are now sold in 70 countries worldwide, in its own stores, department-store concessions, spas and online, and in leading luxury hotels and airlines. In July 2005, Molton Brown was acquired by the Kao Corporation of Japan, in a 170m deal.

In April 2011, Molton Brown announced the launch of two new products to its bath, body and fragrance collection. The two products, Vitalising Vitamin AB +C body hydrating gel and Vitalising Vitamin AB+C eau fraiche body spray are new additions to the brands original AB+C bath foam and shower gel.
Financial Results
In the year ending 31st, December 2009, turnover at Molton Brown Ltd decreased marginally (by 2%), to 58.2m from 59.4m in 2009. Its pre-tax profit was reduced by 54.9%, from 9.6m to 4.3m over the same period.
Superdrug Stores PLC

Company Structure
Superdrug was founded in 1964 by the Goldstein family, who developed the business from a single store and eventually sold it to Kingfisher in 1987. A major expansion programme took place in 1988, which included the acquisition of the Tip Top chain. In 1989, the company acquired the Medicare chain which increased its store base to over 650. In 2002, the company became part of the AS Watson family, the worlds largest health and beauty retailer. Today, Superdrug Stores PLC is the UKs second-largest beauty and health retailer, and currently has over 900 stores across the UK.

In May 2011, Superdrug launched its first loyalty card for customers to enable them to earn points online and in-store. The loyalty card will be known as the Beautycard and doubles as a mirror; it offers one point for every pound spent, with 100 points translating into a pound to spend in store. The launch was accompanied by points promotions both in store and online.
Financial Results
Superdrug Stores PLC registered a turnover of 1.07bn in the year ending 26th December 2009, almost unchanged on the previous year. In 2010, this fell slightly to 1.05bn. Pre-tax profit, meanwhile, increased from a loss of 7.4m in 2008 to a loss of 234,000 in 2009, before reaching 9.3m in 2010.
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OUTSIDE SUPPLIERS
Research and Development
The Scientific advisory Committee (SAC), which is part of the Cosmetic Toiletry and Perfumery Association (CTPA), consists of senior scientists form leading cosmetics, fragrances and toiletries companies, who advise and give help on the safety of ingredients and production procedures. Others giving advice and guidance for safety evaluation and risk assessment include the Intertek Group. Founded more than 100 years ago, it is an industry leader in quality, process and systems, employing more than 30,000 people in 1,000 locations in over 100 countries.
Raw Materials
Givaudan is a Swiss manufacturer of flavouring and fragrances. Its Fine Fragrance division has created perfumes that include LAir du Temps by Nina Ricci, Thierry Muglers Angel and Pradas Infusion dIris. Lonza Group Ltd is a leading supplier to the pharmaceutical, healthcare and life science industries. Headquartered in Basel, Switzerland, it is also a leader in the production and support of active pharmaceutical ingredients, both chemically as well as biotechnologically. Sensient Technologies Corporation is a US-based manufacturer and supplier of flavours, fragrances and colours which are used for foods, beverages, pharmaceuticals, cosmetics, home and personal care products and printing and imaging products. The company has operations in more than 30 countries. Treatt PLC is an independent supplier to the flavour and fragrance industries. It also supplies products to food, beverage, soap, perfumery, cosmetic and pharmaceutical companies. Treatt manufactures and supplies a vast range of products, from essential oils and natural fractions to high-impact specialty aroma chemicals. The company is publicly traded and listed on the London Stock Exchange (LSE).
Processing Machinery, Packaging and components

Suppliers of equipment, such as moulds, pumps, mixers, blenders and equipment for processing, packaging, solids/fluids handling and control, include the German company Dieter Bakic, Chesterfield-based Robinson PLC, Harlands Labels, Vetroplas Packaging, Boxes Prestige Ltd, Rio Tinto, and Meason Freer Ltd, among many others.
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Competitor Analysis
Outsourcing
Swallowfield PLC is one of the leading suppliers of contract outsourcing services to the toiletries and cosmetics industry. Founded in 1876, its services include formulating, manufacturing and packaging cosmetics and toiletries for own-label and brand names. In 2009, it worked in collaboration with the clothing store Primark, developing the Beautiful Colour Cosmetics range, which went on sale in 30 Primark stores across the UK.
MARKETING ACTIVITY
Main Media Advertising Expenditure
Total expenditure on the main media advertising of toiletries amounted to 354.3m for the year ending March 2011, up by 3% from 343.9m in the previous year. As can be seen in Table 4.2, hair care products had the largest advertising budget in 2011, accounting for 36.4% of total expenditure, followed by skincare products, which accounted for 29% of the total.
Table 4.2: Main Media Advertising Expenditure on Toiletries by Sector (000), Years Ending March 2010 and 2011
2010 Personal Wash and Bathroom Products Deodorants Bath toiletries, shower gels and wipes Liquid foam bath and liquid soap Bath and beauty ranges Total personal wash and bathroom products Skincare Products Skincare (excluding suncare/tanning) Suncare and tanning Total skincare products 100,956 8,512 109,468 94,060 8,868 102,928 35,199 6,935 5,747 1,924 49,805 36,515 10,579 4,160 2,676 53,930 2011
Table continues...
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Table 4.2: Main Media Advertising Expenditure on Toiletries by Sector (000), Years Ending March 2010 and 2011
...table continued
2010 Hair Care Products Shampoos and conditioners Hair colourants Hair product ranges Hair styling aids Hairsprays Total hair care products Oral Care Products Toothpaste and polishes Other oral hygiene products Total oral care products Shaving Products Wet razors and blades Shaving preparations Depilatories and bleach Total shaving products Total Source: Nielsen Media Research 12,918 4,861 5,246 23,025 343,864 19,580 1,209 2,845 23,634 354,330 28,422 15,346 43,768 25,460 19,259 44,719 50,328 42,515 9,290 9,804 5,861 117,798 57,889 48,111 8,938 7,701 6,480 129,119 2011
Personal Wash and Bathroom Products

Deodorants
As shown in Table 4.3, main media advertising expenditure on deodorants in the year ending March 2011 was 36.5m, up by 3.7% from 35.2m in the previous year. Unilever was the biggest spender in this category, backing its Sure brand with 9.2m and its Dove and Elide Lynx brands by 8m and 6.3m, respectively. Beiersdorf supported its NIVEA deodorant brand with advertising expenditure of 5.4m over the same period.
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Table 4.3: Main Media Advertising Expenditure on Deodorants (000), Year Ending March 2011
LOreal Men Expert 48h Dry Full Power deodorant Men Expert 48h Dry Non Stop deodorant Total LOreal Sure Sure for Men Sure for Men Sport Sure for Men Sport Defence Sure Crystal for Women Sure for Women Sure for Women Cotton Fresh Sure Maximum Protection womens deodorant Sure Natural Minerals women deodorant Total Sure Garnier Garnier Invisi Calm deodorant Mineral 48hr Protection deodorant Mineral 48hr deodorant for women Total Garnier Elida Lynx deodorant range Lynx Dry+Sensitive deodorant Impulse Body Sprays Impulse Generic Impulse Into Glamour Total Elida 1,972 2,624 560 630 492 6,278 401 248 1,445 2,094 603 337 748 823 3,656 624 1,382 1,012 9,185 1,430 217 1,647
Table continues...
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Table 4.3: Main Media Advertising Expenditure on Deodorants (000), Year Ending March 2011
...table continued
Dove Deodorant for women Go Fresh deodorant Hair Minimising anti-perspirant Invisible Dry Deodorant Men+Care Clean Comfort deodorant Total Dove NIVEA Calm & Care deodorant for women Invisible Black & White range Silver Protect deodorant for men Total NIVEA Right Guard Right Guard deodorant spray Right Guard Xtreme deodorant Total Right Guard Sanex deodorant range Gillette Series anti-perspirant Sub-threshold brands Total Source: Nielsen Media Research 203 1,264 1,467 977 772 686 36,515 3,831 1,419 144 5,394 2,656 174 630 1,755 2,800 8,015
Bath Toiletries, Shower Gels and Wipes

Main media advertising expenditure on bath toiletries and shower gels amounted to 6.9m in 2011 (see Table 4.4). Unilever spent a combined 4.6m to promote its Dove, Radox and Elida Lynx brands, while PZ Cussons supported its Imperial Leather brand with 1.1m.
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Table 4.4: Main Media Advertising Expenditure on Bath Toiletries and Shower Gels (000), Year Ending March 2011
Dove Dove Men+Care body & face wash Dove Visible Care Nutrium Moisture Total Dove Imperial Leather Imperial Leather Skin Kind Hydrate Imperial Leather Skin Kind Refresh Imperial Leather Skin Kind Range Total Imperial Leather Radox Radox shower gel and shampoo for men Radox Men shower gel range Radox Shower Smoothies Total Radox Sanex Sanex Dermo Moisturising shower gel Sanex Dermo Protector shower gel Total Sanex Palmolive Naturals Nutra Fruit Elida Lynx Rise shower gel Sub-threshold brands Total Shower Gel Source: Nielsen Media Research 115 554 669 182 893 267 6,886 1,309 202 661 2,172 175 108 837 1,120 659 924 1,583
In the mass-market cleansers and wipes product sector, the brand that received the highest advertising spending was Simples Kind to Skin cleansing wipes, accounting for 46.8% of total category spending in the year ending March 2011 (see Table 4.5).
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Table 4.5: Main Media Advertising Expenditure on Mass-Market Cleaners and Wipes (000), Year Ending March 2011
Clearasil Skin Perfecting wash Loreal Dermo Expertise Perfect Clean gel Loreal Dermo Expertise Perfect Clean scrub Neutrogena Wave Duo Power cleanser NIVEA Visage Daily Essentials wipes Simple Kind to Skin cleansing wipes Sub-threshold brands Total
does not sum due to rounding
146 521 443 593 104 1,728 157 3,693
Source: Nielsen Media Research
Liquid Foam Bath and Liquid Hand Soap

Main media advertising expenditure on liquid foam bath and hand soap amounted to 4.2m in 2011, a decrease from 5.7m in the previous year. The brand that received the strongest backing was Dettols No Touch hand soap system, which accounted for 79.1% of spending in this category.
Table 4.6: Main Media Advertising Expenditure on Liquid Foam Bath and Liquid Hand Soap (000), Year Ending March 2011
Cussons Carex anti-bacterial handwash Cussons Carex handwash Dettol No Touch hand soap system Total liquid foam bath Sub-threshold brands Total Source: Nielsen Media Research
82 722 3,292 26 38 4,160
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Bath and Beauty Ranges

Annual main media advertising expenditure on mass-market bath and beauty ranges increased from 1.9m in March 2010 to 2.7m in the following year. The NIVEA product range received the highest advertising expenditure, accounting for approximately half (50.9%) of total spending in this category.
Table 4.7: Main Media Advertising Expenditure on Mass-Market Bath and Beauty Ranges (000), Year Ending March 2011
Dove product range Johnson & Johnson generic Johnson & Johnson product range NIVEA generic NIVEA product range Space NK beauty range Sub-threshold brands Total Source: Nielsen Media Research
92 686 80 141 1,361 84 232 2,676
Skincare Products
Total expenditure on skincare advertising in the main media amounted to 102.9m in the year ending March 2011, down from 109.5m in the previous year.
Table 4.8: Main Media Advertising Expenditure on Skincare by Type (000), Year Ending Marching 2011
Skincare for Women Mass-market womens facial skincare Mass-market womens body skincare Premium womens facial skincare Mass-market womens medicated facial skincare Premium womens body skincare 52,857 18,552 8,228 7,324 56
Table continues...
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Table 4.8: Main Media Advertising Expenditure on Skincare by Type (000), Year Ending Marching 2011
...table continued
Skincare for Men Mass-market mens facial skincare Premium mens facial skincare Suncare and Tanning Mass-market suncare and tanning Premium suncare and tanning Total Source: Nielsen Media Research 8,739 129 102,928 6,866 177
Womens Skincare
A total of 52.9m was spent on advertising mass-market womens facial skincare in 2011, of which Olay and LOreal were responsible for the lions share. They contributed 32% and 30% of total expenditure, respectively. Garnier was the third biggest spender in this sector, contributing a further 13.9% of the total.
Table 4.9: Main Media Advertising Expenditure on Mass-Market Womens Facial Skincare (000), Year Ending March 2011
Avon Anew Clinical Luminosity Pro Anew Emulsions range Anew Regime Starter Kit Total Avon Garnier Anti-dark circles roll on Nutritionist eye roll on Skin Natural Ultra ProX roll on 5,110 259 162 331 598 610 1,539
Table continues...
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...table continued
Garnier (cont.) Skin Natural Ultra Lift range Skin Natural Ultra Lift roll on Skin Natural Ultra Lift SPF15 Total Garnier Johnsons Daily Essentials facial moisturizer Daily Essentials face care Total Johnsons LOreal Dermo Exage Perfect range Dermo Exage re-perfect Collagen Double act lip Dermo Expertise Collagen Micro-Vibration Eye Dermo Expertise Revitalift Dermo Expertise Revitalift Pro Conturing System Dermo Expertise Youth Code Dermo Expertise Youth Code range Total LOreal NIVEA Visage Q10 plus day cream Visage Q10 plus product range Total NIVEA Olay Anti-wrinkle Aqua Physics serum Anti-wrinkle classic deep wrinkle treatment Anti-wrinkle range 2,014 627 350 1,766 978 2,744 564 110 837 2,187 1,975 2,158 6,184 1,826 15,841 544 320 864 230 84 1,504 7,349
Table continues...
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...table continued
Olay (cont.) Complete Care range Complete Care Touch of Foundation Definity Colour Enhancer Anti-ageing moisturiser Generic Regenerist daily 3 point treatment cream Skincare range Total effects 7x day moisturiser Total Effects range Total Effects Touch of Foundation Total Effects Wake Up Wonder Total Olay Roc Retin Ox Wrinkle Correxion Sublime Energy Eye Total Roc Simple Kind To Skin range Kind To Skin Vital Vitamin moisturiser Kind To Skin Vital Vitamin range Total Simple Vichy Liftactiv Retinol HA Night Normaderm Total Vichy Good Skin Tri-Aktiline Deep Wrinkle Filler Imedeen skincare range 342 389 731 90 989 119 1,198 712 1,412 2,124 576 501 420 171 3,185 1,185 5,008 252 651 1,957 16,897
440 118
Table continues...
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...table continued
Organic Surge skincare range Neutrogena Multi-Defence Moisturiser Sub-threshold brands Total
179 1,409 1,429 52,857
As Table 4.10 shows, main media advertising expenditure on mass-market womens body skincare was valued at 18.6m in 2011. E45 had the largest advertising backing, accounting for 27.4% of the total, followed by NIVEA (14.3%) and Dove (11.1%).
Table 4.10: Main Media Advertising Expenditure on Mass-Market Womens Body Skincare (000), Year Ending March 2011
Aveeno Daily moisturising lotion Skin Relief Total Aveeno Dove Pro Age Advanced Beauty Care Visible Effects range Total Dove 1,050 1,012 2,062 836 880 1,716
Table continues...
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...table continued
E45 Dermatological cream Endless Moisture body lotion Endless Moisture Radiance Endless Moisture range E45 lotion Total E45 Johnsons 24 hour moisture body lotion Daily Essentials range Total Johnsons NIVEA Body moisturiser range Q10 Plus firming lotion Total NIVEA LOreal Body Expertise Perfect Slim Garnier Body Intensive 7 Days Astral Moisturising cream Mama Mio Get Waisted Body Shaping Neutrogena Norwegian Deep Moisture Palmers Cocoa Butter Formula range Sudocrem Skincare cream Union Swiss Bio-oil skincare Vaseline Sheer Infusion body lotion Sub-threshold brands Total
2,283 317 243 1,899 343 5,085
230 394 624
1,018 1,642 2,660 375 1,061 144 214 763 285 339 1,661 711 854 18,552
Table continues...
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...table continued
In the year ending March 2011, 8.2m was spent on advertising premium womens facial skincare. Genifigue by Lancome was the product with the largest promotional budget, accounting for approximately a quarter (25.1%) of the total advertising expenditure in this category.
Table 4.11: Main Media Advertising Expenditure on Premium Womens Facial Skincare (000), Year Ending March 2011
Clarins Beauty Flash Balm Multi-Active day cream Vital Light day cream Total Clarins Clinique All About Eyes Even Better Dark Spot Corrector Total Clinique Estee Lauder Advanced Night Repair range Daywear SPF15 range Time Zone Line moisturiser Total Estee Lauder Lancome Genifique Renergie Lift Volumetry Total Lancome 2,062 92 2,154 1,486 261 103 1,850 101 1,601 1,702 263 184 1,022 1,469
Table continues...
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Table 4.11: Main Media Advertising Expenditure on Premium Womens Facial Skincare (000), Year Ending March 2011
...table continued
Origins Ginzing eye cream Sanctuary Therapists Secret Sub-threshold brands Total
83 95 874 8,228
Main media advertising expenditure on mass-market womens medicated facial skincare was valued at 7.3m in 2011. Garniers Skin Naturals Pure Active and Frederms gel were the two products with the biggest advertising expenditure, accounting for 24% and 23.3% of the total, respectively.
Table 4.12: Main Media Advertising Expenditure on Mass-Market Womens Medicated Facial Skincare (000), Year Ending March 2011
Clearasil Overnight wash Clearasil product range Rapid Action Ultra Overnight lotion Total Clearasil Garnier Skin Naturals Pure Active Skin Natural Pure Active Tinted roll on Total Garnier Doctor Brand Blemish Relief Freederm gel 1,760 307 2,067 121 1,707 889 384 389 140 1,802
Table continues...
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Table 4.12: Main Media Advertising Expenditure on Mass-Market Womens Medicated Facial Skincare (000), Year Ending March 2011
...table continued
Johnsons Clean & Clear spot control Neutrogena Visibly Clear Pink facial Proactiv Solution Acne Treatment Sub-threshold brands Total Source: Nielsen Media Research 575 499 186 367 7,324
Mens Skincare
Main media advertising expenditure on mass-market mens skincare was valued at 6.9m in the year ending March 2011. As can be seen in Table 4.13, LOreal was the biggest spender, backing up its Men Expert Hydra Energetic products with 4.6m, which accounted for 67.3% of the total advertising expenditure in this category.
Table 4.13: Main Media Advertising Expenditure on Mass-Market Mens Skincare (000), Year Ending March 2011
LOreal Men Expert Hydra Energetic eye roll on Men Expert Hydra Energetic Fatigue Men Expert Hydra Energetic Turbo Booster Men Expert Hydra Energetic range Total LOreal Gillette Series Energising moisturiser NIVEA for men Q10 Revitalising gel Sub-threshold brands 2,703 1,601 203 113 4,620 2,148 92 7
Table continues...
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Table 4.13: Main Media Advertising Expenditure on Mass-Market Mens Skincare (000), Year Ending March 2011
...table continued
Total
6,866
Suncare and Tanning Products

In the year ending in March 2011, main media advertising expenditure on mass-market suncare and tanning products increased by 4.2%, to 8.9m. Garnier had the highest advertising expenditure in this category and accounted for 34.3% of the total. It is followed by NIVEA and LOreal, which accounted for 24.7% and 22.5% of the total, respectively.
Table 4.14: Main Media Advertising Expenditure on Mass-Market Suncare and Tanning Products (000), Year Ending March 2011
Garnier Ambre Clear spray Ambre Solaire Golden Protect Ambre Kids Rapido 50 SPF Ambre Light & Silky Milk Ambre Light & Silky range Ambre Sun Protect range Ambre Bronzer Spray Ambre No Streaks Bronzer Total Garnier NIVEA NIVEA Sun Invisible Protection spray NIVEA Sun Protect & Bronze NIVEA Sun Kids Swim & Play lotion 370 1,419 404 167 234 589 1,283 95 83 85 508 3,044
Table continues...
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Table 4.14: Main Media Advertising Expenditure on Mass-Market Suncare and Tanning Products (000), Year Ending March 2011
...table continued
NIVEA (cont.) Total NIVEA LOreal Dermo Expertise Sublime Bronze Sublime Bronze Express Pro Total LOreal Piz Buin Allergy Sun Spray Riemann P10 & P20 Sunfilter Rimmel Sunshimmer Maxi Instant St Tropez Bronzing mousse Sub-threshold brands Total Source: Nielsen Media Research 104 1,889 1,993 398 462 226 85 467 8,868 2,193
Hair Care Products

Total advertising expenditure on hair products increased by 9.6% in 2011 to 129.1m, up from 117.8m in the previous 12 months. This was largely due to sharp increases in main media expenditure on shampoos and conditioners, and hair colourants, which compensated for reduced spending in hair styling aids and hair product ranges.
Shampoos and Conditioners

Total advertising spending on these products was valued at 57.9m in the year ending 2011, an increase of 15% from the previous 12 months. Advertising spending on products that combine shampoo and conditioners was much higher than the spending on products that are solely shampoos or conditioners.
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Table 4.15: Main Media Advertising Expenditure on Shampoos and Conditioners by Type (000), Year Ending March 2011
Shampoo and conditioners Shampoo only Conditioners only Total Source: Nielsen Media Research
45,388 8,215 4,286 57,889
As Table 4.16 shows the brand that received by far the largest spend across the entire shampoo/conditioner category was Pantenes Pro V, supported by 11.7m in 2011 and accounting for 25.7% of total expenditure on shampoos and conditioners. Other products supported by significant promotional budgets were LOreals Elvive (8.7m), Clairols Herbal Essence (7.2m) and Head & Shoulders (6.1m).
Table 4.16: Main Media Advertising Expenditure on Shampoos and Conditioners (000), Year Ending March 2011
Shampoos and Conditioners Alberto VO5 Aussie 3 Minute Miracle Charles Worthington range Clairol Herbal Essences range Head & Shoulders range John Frieda range LOreal Elvive range Pantene Pro V hair product range Schwarzkopf Gliss Hair Repair Timotei range Tresemme range Sub-threshold brands Total 271 2,117 261 7,194 6,147 1,545 8,749 11,658 187 1,381 5,547 329
45,388
Table continues...
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Table 4.16: Main Media Advertising Expenditure on Shampoos and Conditioners (000), Year Ending March 2011
...table continued
Shampoos Only Alpecin Caffeine shampoo Head & Shoulders Classic Clean Head & Shoulders shampoo Loreal Elvive colour protect shampoo Tresemme Instant Refresh Sub-threshold brands Total Conditioners Only Aussie 3 Minute Miracle Aussie Limited Edition Colour Mate Head & Shoulders conditioner John Frieda Frizz Ease serum Kerastase Chroma Sensitive Loreal Elvive Full Restore Sub-threshold brands Total
1,369 869 4,434 766 652 124

8,215
1,364 239 166 840 80 1,515 83

4,286
Hair Colourants
Main media advertising expenditure on hair colourants increased by 13.2% in 2011, to a total of 48.1m. The two brands that received the strongest advertising support were Clairol and LOreal, accounting for a combined 64.5% of the total expenditure in this category. LOreal spent a further 9m backing its Garnier brand, which accounted for 18.7% of the total.
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Table 4.17: Main Media Advertising Expenditure on Hair Colourants (000), Year Ending March 2011
Clairol Nice n Easy Colour Blend Nice n Easy Permanent Nice n Easy Perfect 10 Nice n Easy Non Permanent Total Clairol Garnier Garnier Belle Color Garnier Herbashine Nutrisse colour cream Total Garnier LOreal Excellence 10 Excellence Creme Loreal Feria 3D Loreal Men Expert Excell 5 Recital Preference Casting Creme Gloss Casting Sublime Mousse Total LOreal Schwarzkopf Schwarzkopf Live XXL Schwarzkopf Palette cream colour Total Schwarzkopf Combe Just For Men hair colour Just For Men Touch of Grey Total Combe 1,123 187 1,310 1322 2,497 3,819 3,197 1,547 235 702 1,725 5,902 1,676 14,984 2,432 809 5,734 8,975 3,063 7,405 5,448 109 16,025
Table continues...
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Table 4.17: Main Media Advertising Expenditure on Hair Colourants (000), Year Ending March 2011
...table continued
John Frieda Precision Foam Colour B4 hair colour remover Sub-threshold brands Total Source: Nielsen Media Research
2,467 146 385 48,111
Hair Product Ranges

Total expenditure on hair product ranges declined from 9.3m in 2010 to 8.9m in 2011. With a value of 2.3m, Dove Damage Therapy was the brand supported by the highest advertising expenditure in this category, followed by Pantene Pro V (2.2m) and LOreals Elvive Nutri-Gloss (2m).
Table 4.18: Main Media Advertising Expenditure on Hair Product Ranges (000), Year Ending March 2011
Aussie hair care range Charles Worthington Full Volume range Dove Damage Therapy range John Frieda Frizz Ease product range LOreal Elvive Nutri-Gloss range Pantene Pro V Colour Protect & Smooth Pantene Pro V Smooth & Sleek range Tresemme 24 Hour Body range Sub-threshold brands Total Source: Nielsen Media Research
232 109 2,272 731 1,968 1,702 461 1,138 325 8,938
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Hair Styling Aids

Main media advertising expenditure on hair styling gels, waxes, mousses, etc., was valued at 7.7m in 2011, a decline from 9.8m in the previous 12 months. Alberto Culvers VO5 range received the largest advertising spend in this category, accounting for more than half (50.2%) of the total expenditure.
Table 4.19: Main Media Advertising Expenditure on Hair Styling Aids (000), Year Ending March 2011
Alberto VO5 Extreme Schwarzkopf Got2b range Avon Advance Techniques Lotus Shield Garnier Fructis Style Survivor LOreal Studio Indestructible LOreal Studio Silk & Gloss Volume range Tresemme 24 Hour Body Dramatic Wella Shockwaves range Sub-threshold brands Total Source: Nielsen Media Research
3,686 126 554 631 800 635 556 502 211 7,701
Hairsprays
Total advertising expenditure on hairsprays increased by 10.6%, from 5.9m in 2010 to 6.5m in 2011. In this category, LOreal was the biggest spender in 2011, supporting its Elnett hairspray range with a 3.8m advertising budget.
Table 4.20: Main Media Advertising Expenditure on Hairsprays (000), Year Ending March 2011
LOreal Elnett hairspray Elnett Satin Absolute Extreme Elnett Satin hairspray 2,374 287 382
Table continues...
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Table 4.20: Main Media Advertising Expenditure on Hairsprays (000), Year Ending March 2011
...table continued
LOreal (cont.) Elnett Satin Love Cheryl Total LOreal Alberto VO5 Weather Resist Garnier Fructis Style Bamboo spray Tresemme hairspray Wella Silvikrin hairspray Sub-threshold brands Total Source: Nielsen Media Research 735 3,778 990 268 624 668 152 6,480
Oral Care Products

Total expenditure on toothpastes, polishes, mouthwashes, etc., was valued at 44.7m in 2011, up from 43.8m in preceding 12 months. Toothpastes and polishes accounted for 56.9% of the total spending in this category, a smaller share compared to the previous year (64.9%).
Toothpastes and Polishes

Expenditure on toothpastes and polishes for the year ending March 2011 was valued at 25.5m, a decrease of 10.4% from the previous year. The market leader, Colgate, supported its brand with 9.3m in 2011. GlaxoSmithKline spent a total of 11.8m promoting its Sensodyne and Aquafresh brands.
Table 4.21: Main Media Advertising Expenditure on Toothpastes and Polishes (000), Year Ending March 2011
Aquafresh Big Teeth range Complete Care Fresh & Minty 112 260 201
Table continues...
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...table continued
Aquafresh (cont.) Iso-Active toothpaste Iso-Active Whitening Little Teeth toothpaste Milk Teeth toothpaste Aquafresh toothpaste Triple Protection Total Aquafresh Arm & Hammer Brilliant Sparkle Enamel Care Enamel Care Sensitive Total Arm & Hammer Beverly Hills Natural White range Sensitive Whitening Beverly Hills formula toothpaste Beverly Hills formula Total Enamel Total Beverly Hills Colgate Maxfresh mouthwash beads Sensitive Pro-Relief Total Advanced Clean Total sensitive Total toothpaste Total Colgate 103 3,997 640 609 3,944 9,293 79 85 249 85 498 1,178 134 239 1,551 770 993 133 156 1,269 1,181 5,075
Table continues...
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...table continued
Sensodyne Pronamel Gentle Whitening Pronamel toothpaste Rapid Relief Sensodyne toothpaste Total Sensodyne Corsodyl Daily gum & toothpaste Macleans Whitening ACDO Blanx Whitening toothpaste Sub-threshold brands Total
896 2,032 2,788 1,007 6,723 116 1,406 464 337 25,460
Other Oral Hygiene Products

Advertising expenditure on other oral hygiene products including mouthwashes amounted to 19.3m in 2011, an increase of 25.5% from the previous year. The biggest spender in this category was Johnson & Johnson, which backed its Listerine brand with 7.7m in advertisements, accounting for 40.1% of the total expenditure.
Table 4.22: Main Media Advertising Expenditure on Other Oral Hygiene Products (000), Year Ending March 2011
Mouthwash Aquafresh Extra Care Colgate Plax Dental Rinse Corsodyl mouthwash 2,435 1,431 4,093
Table continues...
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Table 4.22: Main Media Advertising Expenditure on Other Oral Hygiene Products (000), Year Ending March 2011
...table continued
Mouthwash (cont.) Dentyl mouthwash Listerine Antiseptic mouthwash Listerine Smart Rinse Listerine Total Care Enamel Guard Retardent/Retardex Sensodyne Pronamel Daily mouthwash Sub-threshold brands Total mouthwash Multi-Product Aquafresh product range Corsodyl product range Oral-B Dentaid World Wide Smiles Sensodyne Pronamel product range Sub-threshold brands Total multi-product Total
1,039 3,425 931 3,374 227 123 95

17,172
358 1,250 249 129 102

2,087
19,259
Shaving Products
Wet Razors and Blades
Main media advertising expenditure on wet razors and blades was valued at 19.6m in year ending March 2011. The market leader, Gillette, invested a total of 12.1m in its Fusion and Venus ranges, while its competitor, Wilkinson Sword, invested 6.5m in its brand products. The two leading manufacturers together accounted for 94.7% of all main media advertising expenditure in this sector.
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Competitor Analysis
Table 4.23: Main Media Advertising Expenditure on Wet Razors and Blades (000), Year Ending March 2011
Gillette Fusion blades Fusion Power Fusion Proglide razor Fusion razor range Venus Embrace Venus Spa Breeze Total Gillette Wilkinson Sword Hydro 5 razor Wilkinson Sword product range Quattro Titanium Precision Quattro Women Bikini Total Wilkinson Sword Bic razor range Bic Soleil Scent womens razors BNL Microforce razor Sub-threshold brands Total Source: Nielsen Media Research 3,384 444 556 2,081 6,465 76 93 677 187 19,580 253 292 2,688 4,730 2,502 1,617 12,082
Shaving Preparations
Expenditure on advertising for shaving preparations decreased dramatically from 4.9m in 2010 to 1.2m in 2011. Gillette, which spent 3.2m in the previous year on advertising its shaving preparations, has significantly reduced its expenditure in 2011, to 471,000.
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Table 4.24: Main Media Advertising Expenditure on Shaving Preparations (000), Year Ending March 2011
Gillette Generic Gillette series shave care Pitchwell Sheer Skin hair removal Wilkinson Sword Hydro range Sub-threshold brands Total
102 369 203 301 221 1,197
Depilatories and Bleach

Main media advertising expenditure on depilatories and bleach decreased by 45.8% in 2011. The brand receiving the highest spending was Veet by Reckitt Benckiser, which accounted for 82.2% of total expenditure in this category.
Table 4.25: Main Media Advertising Expenditure on Depilatories and Bleach (000), Year Ending March 2011
Nair hair removal range Veet bikini & underarm kit Veet hair remover Veet Suprem Essence range Sub-threshold brands Total Source: Nielsen Media Research
433 178 1,568 592 74 2,845
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Competitor Analysis
Exhibitions and Trade Fairs

Beautyworld
Beautyworld is an international trade fair for the perfumery, drug store, cosmetics and hairdressing trades, organised by Messe Frankfurt GmbH. The next event will take place from 24th to 26th October 2011 in Osaka, Japan.
Beyond Beauty Paris

Beyond Beauty Paris is the umbrella name covering the trade shows Cosmeeting, European Exhibition and Creative. The next event will take place on 12th to 14th of September 2011 in Paris.
Cosmobelleza & Wellness

Cosmobelleza & Wellness is a leading trade event for companies involved in beauty and well-being businesses. The trade event shows world-renowned brands of perfumes, cosmetics, hair care, skincare, toiletries, salon and spa products and equipment, raw materials, components, packaging as well as private label products and services. The next event is scheduled to take place in February 2012.
Cosmoprof
Cosmoprof has been held annually in April in the Italian city of Bologna since 1967, however, there are now three additional events bearing the Cosmoprof brand: Cosmoprof Asia, which is held in Hong Kong; Cosmoprof Shanghai; and Cosmoprof North America, which is held in Las Vegas.
In-Cosmetics
Staged annually in spring in a major European city, In-Cosmetics brings together the worlds leading personal care ingredients suppliers, formulators, research and development (R&D) and marketing specialists.
Luxe Pack
Luxe Pack is an annual trade show dedicated to the packaging of luxury products. It is staged in Monaco, with similar Luxe Pack events taking place in New York and Shanghai. The next event will take place in Monaco on 19th to 21st October 2011.
Natural & Organic Products Europe

Natural & Organic Products Europe is the UKs only trade show for natural and organic products. The show, which runs annually, attracts thousands of trade buyers from across the world. It is dedicated to natural, organic, biodynamic, fairtrade, artisan and sustainable products to be used in the beauty industry, in sports nutrition or as pure ingredients, among other things. The next event will be held in Londons Olympia on 3rd and 4th April 2011.
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Brand Strategy
5. Brand Strategy
INTRODUCTION
Owing to the downturn in the economy and the ensuing changes in customer priorities and spending habits, even the strongest brands are facing a tough trading environment. Consumers may decide to trade down from more expensive brands products to cheaper and private-label brands. On the other hand, product quality, reputation, customer loyalty and trust also have considerable influence on consumer choice. Equally, brands which are more responsive to socioeconomic trends and understand the needs of the customer can be expected to continue to perform well.
THE WORLDS MOST VALUABLE BRANDS

Interbrand, a leading branding consultancy, compiles an annual league table of the worlds most valuable brands. Table 5.1 shows the cosmetics, fragrances and toiletries brands that were included in Interbrands most recent top 100 global brands by rank and value. It should be noted that, in addition to toiletries, a brands value may include other products by the same company. For example, as well as toiletries, Louis Vuitton, Gucci and Giorgio Armani sell a range of products including bags, clothing and fashion accessories. Among these brands, Gillette, Cartier and Louis Vuitton maintained their rank from the previous year, while Gucci, Lancme and Giorgio Armani despite these brands having increasing their total value in 2010 moved down in ranking. Brands that appeared in the 2009 top 100 global brands but disappeared altogether in 2010 include Prada, Chanel and Ralph Lauren.
Table 5.1: Leading Global Brands of Cosmetics and Toiletries by Rank and Value ($m), 2010
Value ($m) Rank 13 16 44 45 64 69 75 Brand Gillette Louis Vuitton Gucci LOral Avon Hermes Johnson & Johnson 23,298 21,860 8,346 7,981 5,072 4,782 4,155
Table continues...
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Table 5.1: Leading Global Brands of Cosmetics and Toiletries by Rank and Value ($m), 2010
...table continued
Value ($m) Rank 77 87 95 96 Brand Cartier NIVEA Giorgio Armani Lancme 4,052 3,734 3,443 3,403
Source: Interbrand Corporation
CEW AWARDS
CEW UK (Cosmetic Executive Women) is a network of 700 beauty industry insiders, such as beauty editors, buyers and brand directors. Each year, they judge the CEW Awards, having first tested the products. First launched in 2006, the CEW Beauty Awards were created to drive brands awareness as well as helping consumers find the best products in the market. Title-sponsored by Superdrug, there were 304 products that entered the award in 2011 and votes were cast by over 600 CEW members. The winners of the 2011 CEW Beauty Awards relevant to this report are as follows: Best New Bath and Body Product (mass) The Sanctuary Ultra Rich Body Butter by The Sanctuary Best New Haircare/Styling/Colouring Product (mass) Batiste Dry Shampoo Fresh by Batiste Best New Everyday Facial Skincare Product (mass) Dr Organics Organic Rose Otto Facial Serum by Dr Organic Best New Mens Grooming Product (mass) Q10 Revitalising Gel by NIVEA For Men Best New Bath and Body Product (prestige) Rose Otto Body Wash by Balance Me Best New Haircare/Styling Product (prestige) Botanical Shine Shampoo by Liz Earle Best New Everyday Facial Skincare Product (prestige) Clarins Multi-Active Day Early Wrinkle Correction Cream by Clarins Best New Mens Grooming Product (prestige) Shiseido for Men Skin Empowering Cream by Shiseido
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Brand Strategy
Best New Certified Organic Skincare Product (mass or prestige) Balance Me Super Oil with juniper and bergamot by Balance Me Best New Self Tan or Sun Care Product (mass or prestige) Eight Hour Cream Sun Defense for Face SPF 50 by Elizabeth Arden
LEADING BRANDS BY SECTOR

Personal Wash and Bathroom Toiletries
PZ Cussons is a major manufacturer of personal wash products in the UK. Its brands include numerous British household names such as Imperial Leather, Carex and Original Source. Other major brands in the personal wash sector include NIVEA, Johnson & Johnson, Radox, and Dove and Lux soap, owned by the British-Dutch company Unilever. Unilever also dominates the deodorants and bodysprays market, its biggest brands there being Lynx, Impulse, Dove and Sure.
Skincare Products
Procter & Gambles Olay is the UKs leading mass-market skincare brand, along with LOrals Garnier. Olays successful sub-brands include Regenerist, Total Effects and Olay Pro-X. Other leading brands in the skincare market include Boots No7 and Beiersdorfs NIVEA. Simple is another best-selling womens skincare brand in the UK, with its Kind To Skin range winning many beauty awards.
Hair Care Products

Leading mass market hair care brands include Procter & Gambles Head & Shoulders, Pantene, Wella, Herbal Essences, Aussie, Clairol Nice n Easy, and Silvikrin. Its rival Unilever owns everyday hair care brands Dove and Sunsilk, as well as premium brand TIGI. LOreal is market leader in hair colour and is also prominent in other hair product categories with brands that include Elvive, Elnett, Garnier Fructis, Redken and Krastase. Alberto Culver is another major contender in hair care, with, among others, the TRESemm and VO5 brand. Alberto Culver was acquired by Unilever in May 2011.
Oral Care Products

The diversified, US company Colgate-Palmolive is a market leader in the oral care sector. GlaxoSmithKlines rate of market growth, however, is increasingly challenging its lead with brands such as Macleans, Aquafresh and Sensodyne. Other oral hygiene ranges of significance include Procter & Gambles Crest and Oral-B toothpaste.
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Brand Strategy
Shaving Products
Procter & Gambles Gillette is the UKs leading brand in the shaving products sector. Gillette offers a variety of razors for men and women, as well as shaving cream for men. Its shaving product range includes Gillette Fusion and the Venus range for women. Wilkinson Sword is another major brand in the shaving product sector. Wilkinson Sword is owned by Energizer Holdings and its razors are produced in Germany.
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Strengths, Weaknesses, Opportunities and Threats
6. Strengths, Weaknesses, Opportunities and Threats

STRENGTHS
Many toiletry products, such as shower gels, deodorants, shaving creams, etc., are considered to be essentials. Some toiletry products, such as bath salts or body spray, are perceived to have the effect of enhancing well-being and potentially self-esteem. There is strong brand loyalty, as well a willingness to try new products. Luxury toiletries make a good choice for gifts, especially for women. The common human traits of vanity and insecurity make many consumers susceptible to marketing strategies. The toiletries and cosmetics industry has high levels of investment in new product development (NPD). For example, a lot of activity has recently been focused on cosmeceuticals cosmetics with medical benefits. Toiletry products are sold in most supermarket stores and can be easily picked up by consumers when doing their weekly grocery shopping.
WEAKNESSES
In times of prolonged economic hardship, consumers may trade down their choices of toiletries, opting for value or discounted ranges instead of the more usual brands. Some categories of toiletries are reaching saturation levels, leaving little opportunity to increase consumer penetration. Competition in the marketplace is fierce for both manufacturers and retailers, as well as in the premium and mass-market sectors. Discounting is common, especially in the middle range and mass-market range, limiting overall opportunity for value growth. Brand loyalty makes it difficult for new brands to break through successfully. The market is, to some extent, seasonal, peaking around Christmas, Valentines Day and Mothers Day. The perceived safety and efficacy of toiletry products is under constant scrutiny and is vulnerable to scaremongering.
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Strengths, Weaknesses, Opportunities and Threats
OPPORTUNITIES
UKs aging population will increase the demand for cosmeceutical products products containing ingredients that claim to influence the biological performance of the skin. The baby-boomer generation has a relatively high disposable income and is more often willing to pay premium prices for products that promise to hold back the effects of time. A fall in the strength of the Sterling, as witnessed currently in the UK, has made British manufactured products more competitive in the global market. Green and ethical products are becoming increasingly popular, presenting opportunities for brands to expand in this sector of the market. Sales of toiletries may benefit from discounting and promotional activities, especially in times of economic hardship.
THREATS
Rising inflation and high unemployment rates are forcing people to cut back on spending and/or trade down to cheaper brands or retailers own labels. The involvement of the grocery chains in the toiletries market is continuing to exert downward pressure on prices. A decline in the value of Sterling makes the purchasing of raw materials and components sourced from outside the UK more expensive. With a wide range of toiletry brands available, and constant new product launches, retailers are ruthless about removing underperforming brands from their shelves.
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Buying Behaviour
7. Buying Behaviour
AVERAGE WEEKLY HOUSEHOLD EXPENDITURE
According to figures published by the Office for National Statistics (Family Spending 2010), average weekly household expenditure on personal care, including cosmetics and toiletries, amounted to 10.60 in 2009, up from 9.90 per week in 2008. As Table 7.1 shows, average weekly spending on toiletries and soap was 2.20 in 2009, up from 2.00 in 2008. Average weekly household expenditure on hairdressing and beauty treatments also increased, up from 3.10 in 2008 to 3.40 in 2009. Expenditure on hair products, cosmetics and related electrical appliances rose from 3.40 to 3.50 over the same period.
Table 7.1: Average Weekly Household Expenditure on Personal Care (), 2009
Hairdressing, beauty treatments Toilet paper Toiletries and soap Baby toiletries and accessories Hair products, cosmetics and related electrical appliances Total
3.40 0.80 2.20 0.70 3.50 10.60
Source: Family Spending, 2010, National Statistics Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queens Printer for Scotland)
By Age
Table 7.2 shows average weekly household expenditure on personal care products by age group. Those aged between 30 and 49 spent the most on hair products, cosmetics and related electrical appliances, as well as on toiletries and soap. People over 75 generally had the lowest level of expenditure on all types of personal care products, with the exception of hairdressing and beauty treatments, on which they spent an average of 3.00 per week. People in the youngest age group were more likely to spend their money on hair products, cosmetics and related electrical appliances. However, the same age group was least likely to spend money on hairdressing and beauty treatments.
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Table 7.2: Average Weekly Household Expenditure on Personal Care by Age of Household Reference Person (), 2009
Under 30 30-49 50-64 65-74 Hairdressing, beauty treatment Toilet paper Toiletries and soap Baby toiletries and accessories Hair products, cosmetics and related electrical appliances Total 1.90 0.50 1.70 1.70 3.10 3.60 0.90 2.60 1.00 4.40 3.90 0.80 2.50 0.30 4.10 3.00 0.80 1.70 0.10 2.50 8.10
75+ 3.00 0.50 1.10 0.10 1.30 6.00
8.90 12.50 11.60
By Gross Income Decile Group

As one might expect, households with a higher gross income were inclined to spend more on personal care products than households with lower gross incomes. This is reflected in data from the Office for National Statistics, as shown in Table 7.3, listing average weekly household expenditure on personal care by gross income decile group. Households in the highest gross income decile group spent more than six times as much on personal care items than those in the lowest income decile, including a weekly average of 9.10 on hair products, cosmetics and related electrical equipment and 8.40 on hairdressing and beauty treatments. This contrasts with just 2.10 spent on the same items by households in the lowest income decile.
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Table 7.3: Average Weekly Household Expenditure on Personal Care by Gross Income Decile Group (), 2009
Hair Products, Cosmetics and Related Electrical Appliances
Baby Toiletries and Accessories (Disposable)
Hairdressing, Beauty Treatment
Toilet Paper
Toiletries and Soap
Lowest 10% 2nd decile group 3rd decile group 4th decile group 5th decile group 6th decile group 7th decile group 8th decile group 9th decile group Highest 10% All households
1.20 1.80 2.00 2.60 2.60 2.40 3.40 4.20 4.80 8.40 3.40
0.40 0.50 0.60 0.70 0.70 0.80 0.90 1.00 1.10 1.10 0.80
1.00 1.10 1.40 1.50 2.00 2.00 2.30 2.60 3.20 4.70 2.20
0.20 0.40 0.50 0.50 0.60 0.70 0.70 0.80 1.50 1.00 0.70
0.90 1.20 1.90 2.00 3.20 3.00 4.10 4.80 5.30 9.10 3.50
3.70 5.00 6.40 7.30 9.10 8.90 11.40 13.40 15.90 24.30 10.60
Total
CUSTOMER PENETRATION
To gauge consumer penetration on toiletries, Key Note has analysed relevant Target Group Index (TGI) survey data. The survey was conducted in January 2011 among a nationally representative sample of adults in Great Britain, all of whom were asked about their usage of various toiletries products in the previous 12 months.
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Hair Care Products

Table 7.4 shows the usage of hair care products by both men and women in 2010. Unsurprisingly, shampoo and conditioner are the most commonly used hair care products among both sexes.
Table 7.4: Usage of Hair Care Products in the Last 12 Months by Sex (% of adults), 2010
Women Shampoo Conditioner (excluding treatments and masques) Conditioning treatments and masques 2 in 1 combined shampoo/conditioner Hair styling and finishing products (including hairsprays) Hair colourants, bleaches and lighteners Men Shampoos and conditioners Hair styling products Hair colourants, lighteners and bleach 89.2 29.1 3.4 96.8 75.7 26.1 14.6 63.2 35.9
Source: Target Group Index (TGI) Kantar Media, Quarter 2 (January 2010-December 2010), 2011
Shampoo
49.6% of total respondents using shampoo were women, while percentage penetration among female respondents alone was as high as 96.8%. Table 7.5 shows the use of shampoo among women as a percentage penetration of all respondents by age and social grade. Usage was highest among older women and lowest among 15 to 19 year-olds; 51.6% of those aged 65+ using shampoo were women, while 46.3% of all those aged 15 to 19 were female. In terms of social grade, the usage was highest among those in the E social grade.
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Table 7.5: Female Usage of Shampoo in the Last 12 Months by Age and Social Grade (% of adults), 2010
Age 15-19 20-24 25-34 35-44 45-54 55-64 65+ Social Grade A B C1 C2 D E 43.2 47.8 52.4 44.8 51.5 56.7 46.3 49.6 48.2 49.9 49.7 49.7 51.6
Womens Hair Type

According to the TGI survey, the most common natural hair colours among women respondents were dark brown and light brown. Common hair problems cited were split ends (22.9%) and/or itchy scalps (15.3%). However, the type of shampoo that was used most often was one with a normal formulation, followed by shampoos for coloured/permed hair (see Table 7.6).
Table 7.6: Types of Shampoo Used Most Often by Women in the Last 12 Months (%), 2010
Normal Coloured/permed Dry
38.4 32.5 18.1
Table continues...
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Table 7.6: Types of Shampoo Used Most Often by Women in the Last 12 Months (%), 2010
...table continued
Anti-dandruff Fine Greasy Others 14.0 13.8 11.7 8.5
Conditioner
In 2010, 75.7% of women (or 38.8% of total respondents) responded they had used conditioners (other than treatments and masques). Usage tailed off among older age groups after peaking among 20 to 24 year-olds. In terms of social grade, usage was most prevalent among women in the C1 social grade, followed by Es and Ds.
Table 7.7: FemaIe Usage of Conditioners (Excluding Treatments and Masques) in the Last 12 Months by Age and Social Grade (% of adults), 2010
Age 15-19 20-24 25-34 35-44 45-54 55-64 65+ 39.3 44.6 41.2 41.2 39.4 36.8 32.9
Table continues...
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Table 7.7: FemaIe Usage of Conditioners (Excluding Treatments and Masques) in the Last 12 Months by Age and Social Grade (% of adults), 2010
...table continued
Social Grade A B C1 C2 D E 32.8 38.5 41.8 35.2 39.2 40.6
Hair Styling Products

According to the TGI survey, 63.2% of women (or 32.4% of all respondents) and 29.1% of men (or 14.2% of all respondents) said they had used hair styling products in 2010. Among women, those in the oldest age group were the most likely to use these products. In contrast, among men, those in the youngest age group were the most likely to use hair styling products, and the tendency decreases with age. In terms of social grade, both men and women in the C1 grades were the most likely to use hair styling products.
Table 7.8: Usage of Hair Styling Products in the Last 12 Months by Sex, Age and Social Grade (% of adults), 2010
Women Men
Age 15-19 20-24 25-34 35-44 45-54 55-64 65+ 33.4 33.5 29.4 31.2 28.7 32.2 38.0 30.9 27.6 24.2 14.3 8.8 4.7 5.5
Table continues...
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Table 7.8: Usage of Hair Styling Products in the Last 12 Months by Sex, Age and Social Grade (% of adults), 2010
...table continued
Social Grade A B C1 C2 D E
including hairsprays excluding hairsprays
27.2 32.3 36.4 29.3 30.3 33.5
13.5 13.9 15.3 14.8 13.0 12.4
Hair Colourants
35.9% of women (or 18.4% of all respondents) and 3.4% of men (or 1.7% of all respondents) said they had used hair colourants at home in 2010. For both sexes, usage of hair colourants was most common among those in the youngest age groups, as well as among those in the E social grade.
Table 7.9: Usage of Hair Colourants in the Last 12 Months by Sex, Age and Social Grade (% of adults), 2010
Women Age 15-19 20-24 25-34 35-44 45-54 55-64 65+ 26.6 21.7 18.4 20.7 21.3 16.7 10.6 3.4 2.3 2.2 2.4 1.4 1.0 0.5 Men
Table continues...
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Table 7.9: Usage of Hair Colourants in the Last 12 Months by Sex, Age and Social Grade (% of adults), 2010
...table continued
Social Grade A B C1 C2 D E 9.9 14.2 19.5 18.1 22.9 23.1 0.5 1.8 1.4 1.8 1.5 3.1
Other Toiletries
Other toiletry products such as toothpaste, deodorant, liquid soap and shower gels also had the highest penetration rates among women in 2010 (see Table 7.10). Usage of toothpaste, deodorants and shower gels was almost universal, as might be expected.
Table 7.10: Usage of Other Toiletries Products by Women in the Last 12 Months (%), 2010
Toothpaste Deodorants Face creams and lotions Body creams and lotions Hair removers/razors Shower gels and bath products Cleansing creams, milks, lotions, toners, wipes and washes Liquid soap/handwash Bars of soap Suntan and sun protection products 97.6 94.4 86.0 72.6 79.4 91.0 69.0 88.5 75.9 60.1
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In comparison, percentage penetration of other toiletries tended to be lower among men than women, with the exception of razors and bars of soap.
Table 7.11: Usage of Other Toiletries Products by Men in the Last 12 Months (%), 2010
Toothpaste Deodorants Face creams and lotions (including masks and scrubs) Razors/razor blades and electric shavers Shower gels and bath products Liquid soap/handwash Bars of soap Suntan and sun protection products 96.3 87.8 36.7 93.8 83.5 83.1 79.1 40.6
Toothpaste
Overall penetration of toothpaste among all respondents was high (96.8%). However, usage was notably lower among those aged 65 and over. In terms of social grade, differences in penetration rates were less marked, with usage peaking at 98% among Bs and falling to 94.4% among Es.
Table 7.12: Usage of Toothpaste in the Last 12 Months by Age and Social Grade (% of adults), 2010
Age 15-19 20-24 25-34 35-44 45-54 55-64 65+ 98.1 98.5 98.8 97.3 97.0 96.6 93.6
Table continues...
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Table 7.12: Usage of Toothpaste in the Last 12 Months by Age and Social Grade (% of adults), 2010
...table continued
Deodorants
94.4% of women (or 48.3% of all respondents) and 87.8% of men (or 42.8% of all respondents) said they had used deodorants in 2010. In terms of age, usage generally increases with age among women, but declines with age among men. By social grade, Es had the highest penetration rates among women, but the lowest among men.
Table 7.13: Usage of Deodorant in the Last 12 Months by Sex, Age and Social Grade (% of adults), 2010
Women Age 15-19 20-24 25-34 35-44 45-54 55-64 65+ 45.2 48.3 47.6 48.8 48.9 48.3 49.3 49.4 46.3 47.2 45.3 44.3 42.0 32.7 Men
Table continues...
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Table 7.13: Usage of Deodorant in the Last 12 Months by Sex, Age and Social Grade (% of adults), 2010
...table continued
Face Creams and Lotions

According to TGI, 86% of women (or 44% of all respondents) and 36.7% of men (or 17.9% of all respondents) used face creams and lotions in 2010. Penetration rates were generally higher in the older age groups among women, but among men the reverse is true. There was no clear trend in usage by social grade among men or women.
Table 7.14: Usage of Face Cream and Lotions in the Last 12 Months by Sex, Age and Social Grade (% of adults), 2010
Women Age 15-19 20-24 25-34 35-44 45-54 55-64 65+ 40.3 43.1 42.8 42.4 43.8 44.5 48.1 24.7 23.4 26.9 22.0 16.0 11.9 8.4 Men
Table continues...
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Table 7.14: Usage of Face Cream and Lotions in the Last 12 Months by Sex, Age and Social Grade (% of adults), 2010
...table continued
Hair Removers and Razors

79.4% of women (or 40.6% of all respondents) and 93.8% of men (or 45.8% of all respondents) responded positive to having used razors or depilatories in 2010. Usage of hair removers and razors generally decreases with age among both men and women beyond the middle age group. Trends are not clearly defined by social grade, but As and Es had the lowest penetration rates for women and men, respectively.
Table 7.15: Usage of Hair Removers and Razors in the Last 12 Months by Sex, Age and Social Grade (% of adults), 2010
Women Men
Age 15-19 20-24 25-34 35-44 45-54 55-64 65+ 43.8 47.8 45.7 45.9 43.4 38.9 26.9 45.1 46.5 48.7 47.0 46.4 45.6 42.0
Table continues...
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Table 7.15: Usage of Hair Removers and Razors in the Last 12 Months by Sex, Age and Social Grade (% of adults), 2010
...table continued
Social Grade A B C1 C2 D E
hair removers/razors razors, razor blades and electric shavers
35.0 39.5 44.5 37.1 40.9 42.3
50.3 47.7 43.0 50.9 44.3 37.4
Shower Gels and Bath Products

91% of women (or 46.6% of all respondents) and 83.5% of men (or 40.7% of all respondents) claimed to have used shower gels and bath products in 2010. Interestingly, women in the oldest age groups and those in social grade E were the most likely to use these products, while men from the same age groups and social grade were the least likely to do so (see Table 7.16).
Table 7.16: Usage of Shower Gels and Bath Products in the Last 12 Months by Sex, Age and Social Grade (% of adults), 2010
Women Age 15-19 20-24 25-34 35-44 45-54 55-64 65+ 44.7 46.7 46.1 46.7 46.1 45.0 48.9 46.6 44.7 46.1 43.7 40.1 38.2 32.3 Men
Table continues...
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Table 7.16: Usage of Shower Gels and Bath Products in the Last 12 Months by Sex, Age and Social Grade (% of adults), 2010
...table continued
Cleansing Creams, Lotions and Wipes

According to the TGI survey, 69% of women, representing 35.3% of all respondents, had used cleansing creams, milks, lotions, toner, wipes and/or washes in 2010. Women in younger age groups were more inclined to have used these products, and the trend decreases with age. There was no strong correlation between usage and social grade, with percentage penetration ranging from 31.1% among C2s to 38.9% among C1s.
Table 7.17: Usage of Cleansing Creams, Milks, Lotions, Toner, Wipes and Washes by Women in the Last 12 Months by Age and Social Grade (% of adults), 2010
Age 15-19 20-24 25-34 35-44 45-54 55-64 65+ 40.2 40.6 37.5 35.5 34.1 33.2 31.9
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Table 7.17: Usage of Cleansing Creams, Milks, Lotions, Toner, Wipes and Washes by Women in the Last 12 Months by Age and Social Grade (% of adults), 2010
...table continued
Liquid Soap/Handwash
Percentage penetration of liquid soap among all respondents was high, standing at 85.9%, and ranged from 83.1% of men to 88.5% of women. Penetration was highest among the youngest age group and social grade B, and lowest among the oldest age group and social grade E.
Table 7.18: Usage of Liquid Soap/Handwash in the Last 12 Months by Age and Social Grade (% of adults), 2010
Age 15-19 20-24 25-34 35-44 45-54 55-64 65+ 91.4 89.9 90.0 88.5 84.7 84.5 78.6
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Table 7.18: Usage of Liquid Soap/Handwash in the Last 12 Months by Age and Social Grade (% of adults), 2010
...table continued
Bars of Soap
According to the TGI survey, 77.5% of adults were said to have used bars of soap in 2010, with men being slightly more likely to do so than women. Respondents in older age groups were more inclined to use bars of soap, while penetration among the youngest age group was also fairly high (79.9%). In terms of social grade, penetration was highest among As, and lowest among C1s and Ds.
Table 7.19: Usage of Bars of Soap in the Last 12 Months by Age and Social Grade (% of adults), 2010
Age 15-19 20-24 25-34 35-44 45-54 55-64 65+ 79.9 69.8 69.0 69.8 78.6 84.7 86.8
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Table 7.19: Usage of Bars of Soap in the Last 12 Months by Age and Social Grade (% of adults), 2010
...table continued
Suntan and Sun Protection Products

In 2010, 60.1% of women (or 30.8% of all respondents) and 40.6% of men (or 19.8% of all respondents) used suntan and sun protection products, including self-tanning products. Among both sexes, usage of these products was most likely among 35 to 44 year-olds, and least likely among those aged 65 and over. In terms of social grade, penetration rates were low among C2s, Ds and Es.
Table 7.20: Usage of Suntan and Sun Protection Products in the Last 12 Months by Age and Social Grade (% of adults), 2010
Women Age 15-19 20-24 25-34 35-44 45-54 55-64 65+ 29.4 29.4 31.6 34.9 32.7 32.0 25.2 19.0 15.1 21.9 24.7 22.1 19.9 14.1 Men
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Table 7.20: Usage of Suntan and Sun Protection Products in the Last 12 Months by Age and Social Grade (% of adults), 2010
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8. Current Issues
THE ECONOMY
The UK economy is currently still reeling from the longest recession in recorded history. 2009 saw the economy shrink by 5%, the biggest calendar-year fall since 1921. Although there were hints of recovery in the UK economy during the first half of 2010, in the final quarter of 2010 gross domestic product (GDP) contracted by 0.5%, demonstrating that the economy is still some way off from being back to normality. Encouragingly, in the first 3 months of 2011 the UK economy grew by 0.5%. Inflation rates, however, continue to rise, having been pushed upwards by increasing fuel, energy and commodity prices, as well as the VAT increase introduced in January 2011. In June, Scottish Power, one of the major gas and electricity suppliers in the UK, announced gas tariffs are to rise by 19%, with electricity up by 10%. This is expected to be soon followed by other energy companies. According to official inflation figures, the consumer price index (CPI) currently stands at 4.5% (June 2011), well above the Bank of Englands target rate of 2%. The latest inflation report, published in May 2011 by the Bank of England, predicted that inflation may rise to 5% later in the year, largely due to price hikes in utility bills.
RETAILERS ARE STRUGGLING

The retail sector has been adversely affected by the Governments proposed spending cuts, the increased tax burden and rising commodity costs. Non-food retailers were hit particularly hard, including those selling clothing, footwear and big ticket items. According to British Retail Consortium (BRC), UK retail sales values in May were 2.1% lower on a like-for-like basis than in 2010. The causes are well-known: household disposable incomes continue to be squeezed by high inflation rates and low wage growth, while uncertainty over the effects of Government cuts is weighing down consumer confidence. It is believed that the increase in VAT since January 2011 is flattering the sales figures for most non-food goods.
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RISING MATERIALS COSTS CAUSING PRICES HIKES

Conscious of squeezed household budgets and trading-down trends, brand owners are struggling to pass on the rising costs of raw materials, packaging, and energy costs to consumers. In June, PZ Cussons announced plans to cut its Imperial Leather soap bar by a fifth in weight to 100g as the manufacturer attempts to reduce the product rather than raise the price. PZ Cussons and others are facing steep rises in the cost of raw materials, including palm oil. The company has raised prices by an average of 7% in 2010, and hopes to increase prices by another 2% in 2011. Procter & Gamble (P&G) has increased prices by up to 7% on a wide range of household and personal care products, while Unilever, the maker of Dove soap, expects its commodity costs to rise by 14 to 16% in 2011. In April, market leaders Procter & Gamble, Unilever and PZ Cussons announced that they expect trading for the rest 2011 to be challenging as UK consumers further cut spending on products such as shower gels and handwash.
UNILEVER AND P&G IN PRICE FIXING FINE

In April, 2011, the consumer products giants Unilever and P&G were fined 315m for fixing washing powder prices in 8 European countries. This followed a 3-year investigation by the European Commission following a tip-off by German company Henkel in 2008. The cartel was said to have existed for at least 3 years between 2002 and 2006, fixing prices of powder detergents for washing machines in Belgium, France, Germany, Greece, Portugal, Spain and the Netherlands. The total fine of 315.2m (104m for Unilever and 211.2m for P&G) includes a 10 per cent reduction for acknowledging the facts. The final figures also reflect a 50 per cent reduction for P&G and 25 per cent for Unilever on account of their co-operation with regulators under the EUs leniency notice.
NEW PRODUCTS
NIVEA
In January 2011, Beiersdorf launched a new deodorant Invisible for Black & White for NIVEA. Stephen Byrne from Beiersdorf says the point of difference with this new deodorant is that it prevents stains on light and dark clothes. Available in Boots and major supermarkets, it comes in two fragrances and 4 sizes, and it is backed by an outdoor media campaign.
LOreal
In February 2011, LOreal launched its new hair colour product Sublime Mousse, which was backed with digital investment in order to reach a younger, previously untapped audience. The products innovation removes the need for sectioning hair while colouring, allowing shampoo-like application.
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Dove
In March 2011, Dove launched two post-wash variants Intensive Repair Mask and Overnight Creme to its Intensive Repair hair care range. The new additions were prompted by findings that nearly 30% of UK women consider their hair dry or normal to dry, and are part of their increased investment in the portfolio in 2011.
Sensodyne
In March 2011, GlaxoSmithKline launched Repair & Protect Toothpaste for its Sensodyne brand. The product is designed to repair teeth that have suffered erosion.
Mandara
Luxury spa brand Mandara Spa, part of Steiner Leisure, has created a new range of bath and body products that will be retailed exclusively through 400 Sainsburys supermarkets. The premium own-label, which was launched in May 2011 and will not carry the Sainsburys name, aims to provide affordable luxury. Based on Mandaras Balinese relaxation treatments, the five collections include Tropical Blooms, Honeymilk Dream, Amber Heaven, Island Paradise and Citrus Spice.
Sk:n
In June 2011, UK skin clinic Sk:n created a new range of skin care products, which will be launched in Sk:n clinics and larger Boots stores across the UK in July. The collection is split into five treatment areas include cleansing and exfoliating, anti-aging, anti-blemish, corrective and repair and protect. The intention is to provide a more accessible alternative to doctor brands sold in department stores and through Sk:n clinics.
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The Global Market
9. The Global Market

INTRODUCTION
The diversified, multinational companies Unilever and Proctor & Gamble (P&G) remain the stalwarts of the global toiletries market. LOreal, meanwhile, remains the main player in the make-up and skincare sector.
EUROPE
According to the European Cosmetics Association (Colipa), the retail market for cosmetic and toiletries in the EU-27, as well as Norway and Switzerland, was worth 69.5bn in 2009, having decreased from 70.4bn in the previous year. The five major European cosmetics and toiletries markets are Germany, France, Italy, the UK and Spain. In 2009, the German market accounted for 18.5% of European sales, France for 15.1%, Italy for 13.1%, and the UK and Spain for 12.7% and 6.5%, respectively. As can be seen in Table 9.1, while Germany and France saw the value of their sales increase, Italy, the UK and Spain all experienced a decline in sales. The UKs cosmetics, toiletries and perfumery market shrunk by 3.1% in 2009, while in Italy sales decreased, albeit marginally, by 0.4%. Spain experienced the largest decline, with a drop in cosmetics, toiletries and perfumes sales of 8.5%. It should be noted, however, that these sales figures are not only inclusive of toiletries, but also of cosmetics and fragrances. Therefore, the decrease in total value does not necessarily indicate a drop in the sales value of toiletries.
Table 9.1: Retail Sales of Cosmetics and Toiletries in the Top Five EU Member States by Value (), 2009
% Change 2008-2009 1.8 0.9 -0.4 -3.1 -8.5
Value (m) Germany France Italy UK Spain Source: Colipa Activity Report 2009 12,829 10,517 9,108 8,855 7,203
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According to Industrieverband Kerperpflege und Waschmittel eV (IKW), the German Cosmetic, Toiletry, Perfumery and Detergent Association, the personal care sector in Germany, including decorative cosmetics and perfumes/ fragrances, was worth 12.74bn in 2010. Sales of deodorants rose by 2.3% from 689m in 2009 to 705m in 2010. On the other hand, sales of hair care, skincare, soaps, bath and shower products fell by 2.9%, 0.7%, 1.8% and 2.2%, respectively.
THE US
According to Kline & Company, the research and consultancy firm, sales of cosmetics and toiletries in the US grew by 2.4% in 2010 at the manufacturers level, reaching $36.5bn. Growth was driven by rising consumer confidence, aggressive promotional activity and technological advances.
SELECTED GLOBAL COMPETITORS

AS Watson Group
The AS Watson Group (ASW) dates back to 1828 and has evolved into an international retail and manufacturing business with operations in 33 markets worldwide. Currently owned by Hong Kong-based conglomerate Hutchinson Whampoa, the Group employs 98,000 staff in more than 9,500 retail stores. These stores focus on a range of products from health and beauty goods, luxury perfumeries and cosmetics to food and electronics. The Group is also an established player in the beverage industry, supplying a full range of beverages from bottled water, fruit juices, soft drinks and tea products to premium wine labels via its international wine wholesaler and distributor. The ASW portfolio encompasses popular Asian brands and retail chains. These include the health and beauty specialists Watsons (Your Personal Store); Park n Shop supermarket; the food galleria, Taste; Great Food Halls; Gourmet, a boutique-style fine food hall; Fortress electrical appliance stores; Watsons Wine Cellar; and Nuance-Watson airport duty-free shops. ASW is also a major producer and distributor of water products and beverages in the region, and Watsons Water is the top-selling brand in Hong Kong. In Europe, ASW currently operates stores in more than 20 countries under the health and beauty brands Kruidvat, Trekpleister, Rossmann, Superdrug, Savers, DC, Drogas, Spektr and Watsons (Your Personal Store), as well as luxury perfumeries and cosmetics brands, Marionnaud, ICI Paris XL and The Perfume Shop. In March 2011, ASW announced it would rebrand its 212-store retail network in Ukraine from DC Ukraine to Watsons. DC Ukraine operates retail store of household chemical goods, personal hygiene products, perfumes and cosmetics throughout Ukraine. The rebranding decision followed a successful expansion of DC in the market since the Group acquired the business in 2006.
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Avon Products Inc

The worlds largest direct seller and leading beauty company, Avon Products Inc, had a market capitalisation in excess of $12bn as of January 2011. Its products fall into three categories, namely beauty, fashion and home products. Its beauty products division consists of colour cosmetics, fragrances, skincare and personal care. Avon Products best-recognised brands include Avon Colour, Anew, Skin-So-Soft, Advance Techniques, Avon Naturals and Mark. Avon primarily sells its products through direct-selling channels. It has operations in six regions including Latin America, North America, Central and Eastern Europe, Western Europe, the Middle East and Africa, Asia/Pacific, and the Peoples Republic of China (PRC). In April 2011, beauty company Avon Products, Inc. joined the Roundtable on Sustainable Palm Oil (RSPO) in support of its commitment to 100% certified sustainable palm oil. The company has made a commitment to purchase GreenPalm certificates covering all of its global palm oil use. The certificates aim to help to drive demand for sustainable palm oil, increase the supply for sustainable palm oil, and maintain biodiversity and habitat for endangered species. In June 2011, Avon launched Barbie Loves Avon beauty and lifestyle products across Europe, Middle East and Africa. The collection, in partnership with the US-based toy company, Mattel, includes lip gloss, hair care, sunglasses and handbags, and will be supported by a marketing programme targeting girls and mums via social media and digital advertising.
Beiersdorf AG
The German company Beiersdorf AG is a leading manufacturer in the cosmetics and toiletries, as well as medical and adhesive-tape industries. Its brands include NIVEA, Eucerin and La Prairie. Beiersdorf employs around 20,000 people worldwide. In May 2011, Beiersdorf launched the global campaign 100 Years Skincare for Life for its NIVEA brand. The campaign was centred around the values that it believes have been associated with NIVEA for generations: trust, honesty, reliability, quality and family. In 2010, turnover at Beiersdorf amounted to 6.19bn, up from 5.75bn in 2009. Its pre-tax profit, however, decreased from 583m to 553m.
Burts Bees
Burts Bees is a US company that produces personal care, health, beauty and personal hygiene products. Established in the 1980s, the company manufacturers its products with natural ingredients using minimal processing, including distillation, exaction and hydrolysis. In May 2011, Burts Bees teamed up with Natural Environmental Ecological Management to build three urban gardens in downtown Durham, NC. The gardens were constructed using natural and sustainable agricultural methods.
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Colgate-Palmolive Company
The US-based Colgate-Palmolive Company was founded as a small soap and candle business in 1806. Today it sells its oral care, personal care, household care and pet nutrition products in more than 200 countries. The Palmolive brand is prominent in hair care, but the company is particularly strong in oral care. Colgate is among the 100 most valuable global brands with a market share of 45% in the toothpaste and 30.8% in toothbrush segments. In March 2011, Colgate-Palmolive came to an agreement with Unilever to sell its laundry brands Fab, Lavomatic and Vel in Columbia to Unilever for $215m. In May, Colgate announced it would sponsor the breakfast show across Global Radios Heart network for 4 weeks starting from 9th May, part of its Keep Britain Smiling campaign. The campaign, the stated aim of which was to collect one million smiles during May and June, pledged to donate 100,000 to childrens charity Barnardos when said target was reached.
Crabtree & Evelyn Ltd

Founded in 1972, the British company Crabtree & Evelyn has evolved from a small, family-run business specialising in fine soaps to an international company known for its fragrances, toiletries, gourmet foods and gifts. It was a forerunner in the use of natural ingredients from fruit, plants and flowers in its toiletries, and its products are available in more than 40 countries and through its e-commerce site. In March 2011, Crabtree & Evelyn Ltd launched the first phase of a 5 year marketing strategy in which it would use digital channels to attract new audiences. In April, the company launched a new home fragrance collection which was available in room sprays, scented candles, drawer liners and reed diffusers. The summer scents include single notes of lily, rose, lavender and iris.
Estee Lauder Inc

Founded in New York City in 1946 by a husband-and-wife team, the cosmetics company Este Lauder is a US manufacturer and marketer of skincare, cosmetics, perfume and haircare products. It went international in 1960, with its first overseas concession opening in the London department store Harrods. Its products are now sold in 140 countries and, in its latest financial year (ending 30th June 2010), sales outside the Americas accounted for 55.9% of revenue and 81.5% of operating income. Total sales for the year ending 30th June 2010 amounted to $7.8bn, up from $7.33bn in the previous year. Its operating income increased from $510.1m in 2008/2009 to $874.6m in 2009/2010. In June 2011, Estee Lauder Inc announced the opening of an innovation centre in Shanghai, China. The new centre aims to increase the companys research capabilities in Asia, reinforcing a commitment to local consumers by developing products tailored to the needs of Chinese and Asian skin.
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Table 9.2: Este Lauder Inc Total Sales by Product Category ($m), Years Ending 30th June 2009 and 2010
2009 Skincare Make-up Fragrance Hair care Other Total 2,886.0 2,830.9 1,150.9 402.4 61.7 7,331.9 2010 3,227.1 2,978.2 1,136.9 413.9 55.4 7,811.5
Note: total are before returns associated with restructuring activities.
Source: Estee Lauder Inc
LOreal SA
The French group LOral was founded in 1907 by the chemist, Eugne Schueller, who invented the first synthetic hair colourant, which he called Aurale. The company markets 23 global cosmetic brands under a number of different product ranges, including Consumer Products, which comprise products intended for skincare, haircare, hair colouring, make-up and styling products; its Luxury Products range includes international brand cosmetics, such as Lancme, Ralph Lauren and Cacharel, distributed through selected retail channels; while its Active Cosmetics division consists of the Innov and Vichy brands among others, for sale principally in pharmacies. In 2008, LOral acquired YSL Beaut for 1.15bn. YSL Beaut and its subsidiary, Roger & Gallet, formed part of PPRs Gucci Group luxury division. In October 2010, the company announced plans to review its digital media planning and buying business across Europe and to increase its digital spend. In December, beauty pills manufacturer Innov, which is owned by LOral and Nestl, announced plans to launch in the Peoples Republic of China (PRC) in 2011. As more people in the region are turning to dietary supplements to treat skin and hair conditions, the company sees a huge opportunity in Asia for nutricosmetics. In January 2011, singer Gwen Stefani signed a deal with LOreal and became its latest public face. In May, LOreal picked digital marketing company Gyro to handle its estimated 20m UK customer relationship marketing account. Gyro is to build customer engagement across the Garnier, Maybelline and LOreal beauty brands, and the activity will span direct mail and digital channels.
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Mary Kay Inc

Mary Kay Inc is a US-based direct selling company that sells skincare and cosmetics products in more than 30 global markets through an independent sales force of more than 1.7 million consultants. Founded in 1963 by Mary Kay Ash, the company has headquarters in Dallas, Texas, and manufacturing facilities in Dallas and the PRC.
Procter & Gamble Company

From its origins as a small family-run soap and candle company, established in 1837, Cincinnati-based Procter & Gamble (P&G) now employs around 135,000 people in more than 80 countries worldwide, marketing to consumers in more than 180 countries. It operates in the divisions of Beauty & Grooming, Health & Well-Being and Household Care. 22 of its brands earn more than $1bn in sales each year. The billion-dollar toiletries brands include Gillette, Crest, Head & Shoulders, Olay and Pantene. In April 2011, P&G announced it would sell its Pringles snacks business to Diamond Foods, the owner of Kettle Chips. Under the terms of the deal, a new entity will be formed to hold the Pringles business, which will then be merged into Diamond Foods. P&G shareholders will own about 57% of the new company, with Diamond shareholders owning the rest. In the same month, P&G launched a new monthly digital magazine to drive up its online offering. The magazine is sent to the 1 million customers who are registered on the P&G site, supersavvyme.com. Also in the same month, P&Gs hair brand Pantene started producing its first shampoo and conditioner bottles made primarily from plant-based plastic, derived from sugarcane. In 2010, P&Gs net sales were valued at $78.94bn, up from $76.69bn in 2009. Its operating income increased from $15.37bn to $16.02bn.
PZ Cussons
Following the recent acquisition of St Tropez (September 2010), PZ Cussons formed a new beauty division comprising its premium beauty brands: St Tropez, The Sanctuary and Charles Worthington. The division is based in Covent Garden, London and aims to maximise the three products and their presence both in the UK and internationally. It has been fully operational by June 2011. In the same month, PZ Cussons also announced it would cut its Imperial Leather soap size by 20% to 100g as a result of the rising costs of raw materials. The manufacturers decision to reduce the product quantity rather than raise the price reflects the increased price sensitivity among its customers. Cussons revenue in 2010 for its European and African business decreased by 2.5% and 9.3%, respectively. Sales in Asia, however, grew by a massive 22.7% over the same period.
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Table 9.3: PZ Cussons Group Revenue by Geographical Region (m), Years Ending 31st May 2009 and 2010
2009 Africa Asia Europe Total Source: PZ Cussons Annual Report 2010 358.7 135.0 288.1 781.8 2010 325.2 165.6 280.8 771.6
Unilever PLC
Having sold its fine-fragrance business to Coty Inc in 2005, Unilevers personal care division is now primarily concentrated on toiletries. Its Impulse brand, however, remains a leader in the womens mass-market fragrance sector, while Lynx, which is known as Axe outside of the UK, is an important brand in the mens mass-market fragrance sector. In January 2011, Unilever entered into a partnership with BioLeap a company specialising in molecular design technology with the aim of developing improved consumer products. The first 2 years of partnership will consist of a team of scientists from Unilever and BioLeap working together on the core biology of ageing. The company hopes molecular design technology will enable it to build differentiated, health-enhancing products across several categories. In March, Unilever sold the Sanex brands to Colgate-Palmolive for 672m. The multinational was ordered by the European commission to sell the Sanex portfolio, part of the 1.28bn Sara Lee personal care acquisition in 2009, on competitive grounds. Later in April, the company shut its UK Final-salary pension scheme to the existing members and said the scheme has become increasingly unaffordable and unsustainable. In May 2011, Unilever completed the acquisition of Alberto Culver, the personal care company for brands including Tresemme, nexus, Albert VO5 and St. Ives. Unilever claims the acquisition makes it the world leader in hair conditioning, second largest in shampoo products and third largest in styling. Turnover at Unilever PLC increased from 39.82bn in 2009 to 44.26bn in 2010, a big contribution to which came from sales growth in the US, Asia and Africa.
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Table 9.4: Unilever PLC Sales by Geographic Region (m), Year Ending 31st December 2009 and 2010
2009 Western Europe The Americas Asia Africa Total
does not sum due to rounding at source
2010 12,015 14,562 17,685 44,262
12,067 12,850 14,897

39,823
Source: Unilever PLC, Annual Report 2010
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10. Forecasts
INTRODUCTION
Population
According the latest estimates by the Office for National Statistics, the UK population will increase at an average annual rate of 0.7% over the next few years. At this rate, the UKs population will surpass the 65 million and 70 million marks in 2018 and 2033, respectively. This increase will inevitably boost overall consumer consumption. Although the female population will continue to outnumber the male population, the latter is anticipated to grow at a slightly faster rate. In the long term, this may constitute a potential driver for the male toiletries market.
Table 10.1: Forecast UK Resident Population by Sex (000), Mid-Years 2011-2015

2011 Female Male Total % change year-on-year 31,807 30,842 62,649 0.7 2012 32,001 31,073 63,074 0.7 2013 32,196 31,302 63,498 0.7 2014 32,391 31,530 63,921 0.7 2015 32,587 31,757 64,344 0.7
Source: Population Projections Database (2008-based projections), National Statistics website Crown copyright material is reproduced with the permission of the Controller of HMSO (and the Queens Printer for Scotland)
Gross Domestic Product

In June, HM Treasury released figures to the effect that it expects the UKs economy to grow by 1.5% in 2011, before increasing by a further 2.2% in 2012 (see Table 9.1). It should be noted, however, that these figures represent a downgrade of 0.3 percentage points from February 2011, when GDP was forecast to grow by 1.8%.
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Table 10.2: Forecast UK Growth in Gross Domestic Product in Real Terms (%), 2011-2015
2011 Gross domestic product growth (%) Percentage point change year-on-year 2012 2013 2014 2015
1.5 -
2.2 0.7
2.4 0.2
2.5 0.1
2.5 0.0
Source: Forecasts for the UK Economy, May 2011, Treasury Independent Average Crown copyright
Inflation
The latest official figures place inflation at 5.1%, up from 3.7% in December 2010. It is believed that the rise in fuel, commodity and energy costs, as well as the value-added-tax rise in effect since 4th January 2011, has significantly pushed up the inflation rate. Food, energy and mortgage costs are currently rising well above average inflation levels and are expected to continue to do so in the near future.
Table 10.3: Forecast UK Rate of Inflation (%), 2011-2015

2011 Inflation (%) Percentage point change year-on-year 5.1 0.5 2012 3.6 -1.5 2013 3.4 -0.2 2014 3.4 0.0 2015 3.1 -0.3
Note: inflation is at retail price index (RPI).
Unemployment
Unemployment, already at a 17-year high, is expected to stabilise in 2012 at the 1.51 million mark, before lowering, starting in 2013. It is not until 2015, however, that the number of claimants is predicted to fall below pre-recession levels to 1.28 million.
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Table 10.4: Forecast Actual Number of Unemployed Persons in the UK (million), 2011-2015
2011 Actual number of claimants (million) % change year-on-year 2012 2013 2014 2015
1.51 0.7
1.51 0.0
1.45 -4.0
1.33 -8.3
1.28 -3.8
FORECASTS 2006-2010
Key Note expects growth in the value of retail sales of toiletries to remain moderate in the coming years, particularly in the fragrances sector. During the 5-year forecast period, the total sales value of toiletries is expected to increase by around 9.5%, driven by new product innovations (e.g. the so-called cosmeceuticals), as well as benefiting from a growing population. Key Note forecasts the UK market for toiletries to be worth around 5.03bn by 2015.
Table 10.5: The Forecast UK Market for Toiletries by Sector by Value at Current Prices (m at rsp), 2011-2015
2011 Personal wash and bathroom toiletries Skincare products Hair care products Oral care products Shaving preparations, wet razors and blades, and depilatories Total % change year-on-year
2012
2013
2014
2015
1,267.3 1,230.6 1,134.2 569.4
1,312.7 1,270.5 1,139.2 567.3
1,357.3 1,304.5 1,151.1 575.5
1,398.3 1,344.4 1,162.8 583.9
1,428.2 1,377.9 1,196.9 598.5
390.3
398.5
407.7
417.0
427.5
4,591.8 4,688.2 4,796.1 4,906.4 5,029.0 1.3 2.1 2.3 2.3 2.5
Source: Key Note
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MARKET GROWTH
Figure 10.1 illustrates estimated growth in the value of the UK market for toiletries for the period between 2006 and 2015. Key Note predicts that total growth over this 10-year period will be around 20.5%.
Figure 10.1: The Actual and Forecast UK Market for Toiletries by Sector by Value at Current Prices (m at rsp), 2006-2015
5,000 4,900 4,800 4,700 4,600 4,500 4,400 4,300 4,200 4,100 4,000 3,900
Source: Key Note
20 06
20 07
20 08
20 09
20 10
20 11
20 12
20 13
20 14
20 15
FUTURE TRENDS
New Product Development
New products are essential to sustain growth in the highly competitive cosmetics and toiletries industry. In order to increase brand awareness and drive growth in sales, companies will continue to pour significant resources into developing new products, such as formulating effective beauty treatments that are relevant to consumers needs, or redesigning and reformulating existing products.
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Forecasts
Size of Products Set to Shrink

As the cost of raw materials continues to rise, manufacturers will see their profit margins shrink unless these costs are passed on to the consumer. In a climate of economic uncertainty and price-conscious customers, manufacturers are loathed to raise prices for fear of losing their customer base. An alternative strategy, which has already been adopted by some (e.g. PZ Cussons decision to reduce the size of its Imperial Leather soap from 125g to 100g) and which is likely to become more widespread, is to reduce product sizes instead.
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11. Company Profiles

INTRODUCTION
The following section contains financial profiles of some of the principal companies identified as operating within the market sector discussed in this report. The financial results of some of the important names within the sector may not be reported if: their principal activities are so varied that their results are not considered applicable to the survey they are no longer trading as separate companies their financial data are very out of date.
DEFINITIONS
A company which has a Y consolidated value has filed consolidated accounts for the relevant year. denotes that the growth rate calculation is invalid, because the figures either move from positive to negative or from negative to positive.
Turnover (Sales)
This includes all income derived from the principal activities of the firm, net of VAT. It encompasses UK sales, exports and overseas and intercompany sales.
Pre-Tax Profit
The net trading profit figure after deduction of all operating expenses, including depreciation and finance charges but before deduction of tax, dividends, subventions or group relief, and other appropriations. Where applicable, it will include the share of profits and losses of associated companies. Items described by the company as exceptional are included; extraordinary items are excluded.
Profit Margin
Pre-tax profit expressed as a percentage of sales.
Average Remuneration
Total employee remuneration divided by the number of employees.
Sales per Employee

Sales divided by the number of employees.
FURTHER INFORMATION
For more detailed financial information telephone Key Note on: 0845-504 0452.
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AVON COSMETICS LTD

Registered Office Company Registration Number Date of Incorporation Holding Company Ultimate Holding Company Nunn Mills Road, Northampton, NN1 5PA Telephone: 01604-232 425 00592235 21/10/57 Avon European Holdings Ltd Avon Products Inc
Previous Name(s) and Date(s) of Change

None.
Principal Activities
The distribution and sale of beauty products, gifts and decorative products.
SIC Codes
51450, Wholesale of perfume and cosmetics 51479, Wholesale of other household goods not elsewhere classified
Structure
Avon Cosmetics Ltd is one of the worlds leading direct sellers of beauty and related products, marketing to women in more than 100 countries through approximately 6.5 million independent sales representatives. Avon entered the UK market in 1959.
Brand Information
Avons leading brands of toiletries include Anew, Solutions, Skin So Soft and Senses.
Recent Developments
In May 2011, Avon Cosmetics Ltd was crowned the winner of the Environmental Award at the Direct Selling Association (DSA) conference.
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FINANCIAL PROFILE
Year End Weeks Consolidated 31/12/09 52 N 31/12/08 52 N 31/12/07 52 N 31/12/06 52 N
Sales
Sales (000) % change year-on-year Exports (000) Exports/Sales (%) 316,642 -0.61 25,161 7.95 318,599 6.93 23,502 7.38 297,961 5.00 17,281 5.80 283,772 8,166 2.88
Profits
Pre-Tax Profit (000) % change year-on-year Profit Margin (%) Operating Profit (000) -7,105 -134.42 -2.24 -4,325 20,644 178.18 6.48 20,844 7,421 -25.25 2.49 6,543 9,928 3.50 8,553
Employees
Number of Employees Average Employee Remuneration () Sales per Employee () Profit per Employee () Capital Employed per Employee () 1,766 30,278 179,299 -4,023 43,314 1,599 30,874 199,249 12,911 52,171 1,632 32,604 182,574 4,547 41,224 1,734 33,307 163,652 5,725 45,413
Balance Sheet/Ratios
Capital Employed (000) Return on Capital (%) Net Worth (000) Current Ratio Liquidity Ratio 76,493 -9.29 39,123 0.96 0.78 83,422 24.75 45,811 1.07 0.87 67,277 11.03 61,119 0.94 0.74 78,747 12.61 52,752 0.95 0.71
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ESTEE LAUDER COSMETICS LTD

Registered Office Company Registration Number Date of Incorporation Holding Company Ultimate Holding Company 73 Grosvenor Street, London, W1K 3BQ Telephone: 01730-266 531 00659213 16/05/60 Estee Lauder Europe Inc. Estee Lauder Companies Inc.

None.
A group engaged in the sale of cosmetics to retail outlets in the UK and the Republic of Ireland.
SIC Codes
51450, Wholesale of perfume and cosmetics.
Structure
Este Lauder Cosmetics Ltd is a US-based company, which was established in 1946. The company entered the European market in 1960, after setting up operations in London. Its product range covers skincare, cosmetics, perfume and haircare products, which are sold in more than 135 countries.
Brand Information
Brands include Aveda, Bobbi Brown, Clinique and Jo Malone.
Recent Developments
In March 2011, Estee Lauder launched a new fragrance, Adventurous, which is exclusive to travel retail and available at all Estee Lauder travel retail locations worldwide.
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FINANCIAL PROFILE
Year End Weeks Consolidated 30/06/10 52 Y 30/06/09 52 Y 30/06/08 52 Y 30/06/07 52 Y
Sales
Sales (000) % change year-on-year Exports (000) Exports/Sales (%) 365,899 5.89 23,905 6.53 345,558 5.75 23,904 6.92 326,755 8.49 21,961 6.72 301,195 19,145 6.36
Profits
Pre-Tax Profits (000) % change year-on-year Profit Margin (%) Operating Profit (000) 60,202 7.18 16.45 59,712 56,167 26.53 16.25 53,171 44,390 -8.66 13.59 39,360 48,599 16.14 46,139
Employees
Number of Employees Average Employee Remuneration () Sales per Employee () Profit per Employee () Capital Employed per Employee () 6,236 15,804 58,675 9,654 20,208 6,429 15,440 53,750 8,737 19,358 4,240 21,548 77,065 10,469 21,124 4,008 21,910 75,148 12,126 13,552
Capital Employed (000) Return on Capital (%) Net Worth (000) Current Ratio Liquidity Ratio 126,014 47.77 122,983 2.60 2.35 124,454 45.13 121,454 2.64 2.41 89,564 49.56 85,611 2.05 1.74 54,317 89.47 51,092 1.54 1.24
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LOREAL (UK) LTD

Registered Office Company Registration Number Date of Incorporation Holding Company Ultimate Holding Company 255 Hammersmith Road, London, W6 8AZ Telephone: 01443 234400 00271555 24/12/32 Loreal SA Loreal SA

Golden Ltd (01/01/86)
The manufacture and distribution of hair care, hair colour, perfume, make-up and skincare products.
SIC Codes
24520, Manufacture of perfumes and toilet preparations.
Structure
Based in London, LOral (UK) Ltd is a subsidiary of the French company LOral SA and specialises in womens make-up, skincare, haircare, dermatology and fragrances. In 2006, the company acquired The Body Shop International for 652m.
Brand Information
LOreals leading cosmetics and toiletries brands include Vichy, Biotherm, YSL Beaute, Elvive, Garnier and luxury brand Lancome.
Recent Developments
In May 2011, LOreal picked digital marketing company Gyro to handle its estimated 20m UK customer relationship marketing account. Gyro is to build customer engagement across the Garnier, Maybelline and LOreal beauty brands, and the activity will span direct mail and digital channels.
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FINANCIAL PROFILE
Sales
Sales (000) % change year-on-year Exports (000) Exports/Sales (%) 745,770 2.15 730,066 1.17 721,597 8.74 663,611 -
Profits
Pre-Tax Profits (000) % change year-on-year Profit Margin (%) Operating Profit (000) 93,180 25.85 12.49 95,944 74,042 -22.91 10.14 104,612 96,043 24.79 13.31 94,397 76,961 11.60 76,764
Employees
Capital Employed (000) Return on Capital (%) Net Worth (000) Current Ratio Liquidity Ratio 33,040 282.02 -29,314 1.02 0.93 108,823 68.04 45,160 1.13 0.99 96,033 100.01 65,873 1.18 1.04 80,910 95.12 35,449 1.16 1.02
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PROCTER & GAMBLE (HEALTH & BEAUTY CARE) LTD

Registered Office The Heights, Brooklands, Weybridge, Surrey, KT13 0XP 00436549 06/06/47 Procter & Gamble Ltd Procter & Gamble Co.
Company Registration Number Date of Incorporation Holding Company Ultimate Holding Company

Richardson-Vicks Ltd (01/01/89)
A partner in Procter & Gamble UK.
SIC Codes
65239, Financial intermediation not elsewhere classified.
Structure
Procter & Gamble (P&G) Ltd was founded in 1837 by William Procter and James Gamble. It owns many well-known branded products, including the washing-up liquid, Fairy Liquid, and Gillette. Its UK subsidiary, P&G (Health & Beauty Care) Ltd, is based in Surrey.
Brand Information
Leading Procter & Gamble brands include Olay, Head & Shoulders, Pantene, Herbal Essences, Braun, Gillette, Crest and Oral-B.
Recent Developments
In February, Proctor & Gamble announced one of its brands, Oral-B, had appointed Dr James Russell as its ambassador, who was known for his work on Channel 4s prime time Embarrassing Bodies series.
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FINANCIAL PROFILE
Sales
Sales (000) % change year-on-year Exports (000) Exports/Sales (%) 0 0 0 -100.00 0 19,330 -66.47 57,643 -
Profits
Pre-Tax Profits (000) % change year-on-year Profit Margin (%) Operating Profit (000) -10,110 -10,110 77,716 302.05 30,716 19,330 -66.47 100.00 19,330 57,643 100.00 57,643
Employees
Number of Employees Average Employee Remuneration () Sales per Employee () Profit per Employee () Capital Employed per Employee () -
Capital Employed (000) Return on Capital (%) Net Worth (000) Current Ratio Liquidity Ratio 389,971 -2.59 389,971 1.44 1.44 386,582 20.10 386,582 1.41 1.41 348,436 5.55 348,436 1.09 1.09 322,327 17.88 321,685 0.87 0.87
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PZ CUSSONS PLC
Registered Office Manchester Business Park, 3500 Aviator Way, Manchester, M22 5TG Telephone: 0161-491 8000 00019457 20/02/84 None None

Paterson Zochonis Public Ltd Company (31/05/02)
A group engaged in the manufacture and distribution of soaps, detergents, toiletries, pharmaceuticals, electrical goods, edible oils, fats and spreads and nutritional products.
SIC Codes
24511, Manufacture of soap and detergents. 24520, Manufacture of perfumes and toilet preparations. 24421, Manufacture of medicaments. 29230, Manufacture of non-domestic cooling and ventilation equipment. 15420, Manufacture of refined oils and fats. 15519, Manufacture of other milk products.
Structure
Known as Paterson Zochonis PLC until 2002, PZ Cussons manufactures personal and household cleaning products in Europe, Asia and Africa. Its origins go back to 1879, when George Paterson and George Zochonis set up a trading post in Sierra Leone. It acquired the soap-making Cussons Group Ltd in 1975.
Brand Information
PZ Cussons brands include Imperial Leather, Carex, Sanctuary and Original Source.
Recent Developments
PZ Cussons formed a new beauty division comprising its premium beauty brands: St Tropez, The Sanctuary and Charles Worthington. The division aims to maximise the three products and their presence both in the UK and internationally. It has been fully operational since June 2011.
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FINANCIAL PROFILE
Sales
Sales (000) % change year-on-year Exports (000) Exports/Sales (%) 771,600 -7.93 838,100 26.81 660,900 14.36 577,900 577,900 100.00
Profits
Pre-Tax Profits (000) % change year-on-year Profit Margin (%) Operating Profit (000) 101,800 20.62 13.19 101,400 84,400 10.33 10.07 86,200 76,500 12.67 11.58 76,400 67,900 11.75 65,800
Employees
Number of Employees Average Employee Remuneration () Sales per Employee () Profit per Employee () Capital Employed per Employee () 8,312 11,044 92,830 12,247 77,960 8,596 9,970 97,499 9,819 67,148 8,697 8,221 75,992 8,796 64,402 9,877 58,510 6,875 42,776
Capital Employed (000) Return on Capital (%) Net Worth (000) Current Ratio Liquidity Ratio 648,000 15.71 291,800 1.84 1.19 577,200 14.62 232,300 1.94 1.08 560,100 13.66 196,500 2.26 1.10 422,500 257,600 2.54 1.29
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SUPERDRUG STORES PLC

Registered Office 118 Beddington Lane, Croydon, Surrey, CR0 4TB Telephone: 020-8684 7000 00807043 28/05/64 Kruidvat Uk Ltd Hutchison Whampoa Ltd

Superdrug Stores Ltd (24/07/01) Superdrug Stores PLC (17/07/01)
The retail of health and beauty products.
SIC Codes
52310, Dispensing chemists. 52330, Retail sales of cosmetic and toilet articles.
Structure
Superdrug Stores is a part of AS Watson Group, which also owns the UK chains The Perfume Shop and Savers Health & Beauty. AS Watson, in turn, is owned by the Hong Kong-based company Hutchison Whampoa Ltd.
Brand Information
Superdrug stocks brands of toiletries including NIVEA, Garnier and Olay, as well as selling its own-brand ranges, such as its Naturals Collection.
Recent Developments
In May 2011, Superdrug launched its first loyalty card for customers to enable them to earn pointes online and in store. The launch was accompanied by points promotions both in store and online.
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FINANCIAL PROFILE
Sales
Sales (000) % change year-on-year Exports (000) Exports/Sales (%) 1,074,832 0.00 1,074,863 -2.04 1,097,240 6.80 1,027,417 0 0.00
Profits
Pre-Tax Profits (000) % change year-on-year Profit Margin (%) Operating Profit (000) -234 -0.02 6,033 -7,396 -0.69 -2,419 21,599 -2.76 1.97 26,483 22,211 2.16 27,341
Employees
Number of Employees Average Employee Remuneration () Sales per Employee () Profit per Employee () Capital Employed per Employee () 7,330 20,176 146,635 -32 21,663 7,495 20,025 143,411 -987 21,120 7,537 19,653 145,580 2,866 23,343 6,671 18,817 154,012 3,329 24,987
Capital Employed (000) Return on Capital (%) Net Worth (000) Current Ratio Liquidity Ratio 158,787 -0.15 122,315 1.07 0.62 158,292 -4.67 130,690 1.03 0.51 175,935 12.28 152,089 1.02 0.46 166,686 13.33 137,547 1.04 0.49
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UNILEVER PLC
Registered Office Port Sunlight, Wirral, Merseyside, CH62 4ZD Telephone: 020-7822 5252 00041424 21/06/94 None None

None.
A group engaged in the manufacture and supply of savoury, dressings and spreads, personal care products, ice cream and tea-based beverages and home care and cleaning products.
SIC Codes
24520, Manufacture of perfumes and toilet preparations. 15870, Manufacture of condiments and seasonings. 15430, Manufacture of margarine and similar edible fats. 15891, Manufacture of soups. 15899, Manufacture of other food products not elsewhere classified. 15520, Manufacture of ice cream. 24511, Manufacture of soap and detergents. 24512, Manufacture of cleaning and polishing preparations.
Structure
Unilever is one of the worlds leading suppliers of fast-moving consumer goods (FMCG). Its three global product divisions are Food, Home Care and Personal Care.
Brand Information
Unilevers toiletries brands include Dove, Sure, Pears, Sunsilk and TIGI.
Recent Developments
In April 2011, Unilever sold Sanex, the multi-category personal care brand, to Colgate for 672m.
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FINANCIAL PROFILE
Sales
Sales (000) % change year-on-year Exports (000) Exports/Sales (%) 44,262,000 11.15 39,823,000 -1.73 40,523,000 0.84 40,523,000 100.00 40,187,000 40,187,000 100.00
Profits
Pre-Tax Profits (000) % change year-on-year Profit Margin (%) Operating Profit (000) 6,132,000 24.74 13.85 6,450,000 4,916,000 -31.04 12.34 5,020,000 7,129,000 37.52 17.59 7,167,000 5,184,000 12.90 5,245,000
Employees
Capital Employed (000) Return on Capital (%) Net Worth (000) Current Ratio Liquidity Ratio 27,561,000 22.25 -3,793,000 0.92 0.60 25,417,000 19.34 -4,982,000 0.93 0.62 22,342,000 31.91 -6,143,000 0.81 0.53 23,743,000 21.83 -4,368,000 0.73 0.45
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12. Company Financials

The following companies, listed in alphabetical order, are taken from the Key Note database. Links with Companies House mean that when the latest accounts for a company are made available, they can be incorporated on our database and be ready for inclusion in Key Note Market Report Plus. A short delay occurs at Companies House between receipt of documents and their public release. As this delay can be longer, the availability of accounts can sometimes be affected. It should be noted that the financial results for certain companies are not restricted to sales of the products covered by this report.
Turnover (000) Company Alberto-Culver Group Ltd Alliance Boots Holdings Ltd Avon Cosmetics Ltd Baylis & Harding PLC The Body Shop International PLC The Boots Company PLC Bourjois Ltd Church & Dwight UK Ltd Colgate-Palmolive (UK) Ltd Combe International Ltd Coty UK Ltd Creightons PLC DEB Ltd Gillette UK Ltd
Pre-Tax Profit (000)
Year End
0 0 316,642 18,985 320,500 1,146,000 19,821 53,818 212,040 42,272 228,597 13,590 44,011 30,499
290,146 530,000 -7,105 89 34,700 220,000 505 1,789 21,471 4,012 995 303 9,214 746
30/09/2010 31/03/2010 31/12/2009 31/05/2010 02/01/2010 31/03/2010 31/12/2010 30/11/2009 31/12/2009 31/12/2009 30/06/2010 31/03/2010 31/12/2009 30/06/2010
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Company Financials
Turnover (000) Company GR & MM Blackledge PLC H Bronnley & Co Ltd Johnson & Johnson Ltd LOral (UK) Ltd Mercona (GB) Ltd Milton-Lloyd Ltd Molton Brown Ltd Pfizer Consumer Healthcare Ltd Phyllis Earle Ltd Procter & Gamble Ltd Procter & Gamble (Health & Beauty Care) Ltd PZ Cussons PLC Rayburn Trading Company Ltd Sara Lee UK Finance Ltd Simple Toiletries Ltd Superdrug Stores PLC Unilever PLC Wella (UK) Ltd
accounts express in Euros ()
Pre-Tax Profit (000)
Year End
126,908 7,054 44,701 745,770 10,356 13,802 58,195 35,999 288 0
-330 -1,500 7,461 93,180 269 2,321 4,338 801 72 -43,028
31/12/2009 31/12/2009 02/01/2011 31/12/2009 31/12/2009 31/12/2009 31/12/2009 30/11/2009 31/12/2009 30/06/2010
0 771,600 77,657 0 56,350 1,074,832 44,262,000 94,657
-10,110 101,800 561 0 15,203 -234 6,132,000 687
30/06/2010 31/05/2010 31/08/2010 03/07/2010 30/09/2010 26/12/2009 31/12/2010 30/06/2010
Source: Key Note
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13. Further Sources

Associations
Cosmetic Toiletry and Perfumery Association (CTPA) Josaron House 5/7 John Princes Street London, W1G 0JN Telephone: 020-7491 8891 Fax: 020-7493 8061 E-mail: info@ctpa.org.uk http://www.ctpa.org.uk European Cosmetics Association (COLIPA) Avenue Herrmann Debroux 15A B-1160 Auderghem Brussels Belgium Telephone: +32 2 227 66 10 Fax: +32 2 227 66 27 http://www.colipa.eu Private Label Manufacturers Association (PLMA) 630 Third Avenue New York, NY 10017 US Telephone: +1 212 972 3131 Fax: +1 212 983 1382 E-mail: info@plma.com http://plma.com
Publications
PZ Cussons, Annual Report 2010 Manchester Business Park 3500 Aviator Way Manchester M22 5TG Telephone: 01614-351 000 E-mail: pzweb.general@pzcussons.com http://www.pzcussons.com Unilever PLC, Annual Report 2010 Unilever House 100 Victoria Embankment London, EC4Y 0DY United Kingdom Telephone: 020-7822 5252 Fax: 020-7822 5951 http://www.unilever.co.uk
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Further Sources
General Sources
Kantar Media Ealing Gateway 26-30 Uxbridge Road Ealing London, W5 2BP Telephone: 020-8433 4000 Fax: 020-8433 4001 http://www.kantarmedia.com Nielsen Media Research Atrium Court The Ring Bracknell Berkshire, RG12 1BZ Telephone: 01344-469 100 Fax: 01344-469 102 E-mail: mediacommunicationuk @nielsen.com http://www.nielsenmedia.co.uk
Government Publications
HM Treasury 1 Horse Guards Road London, SW1A 2HQ Telephone: 020-7270 4558 Fax: 020-7270 4861 http://www.hm-treasury.gov.uk Forecasts for the UK Economy-Treasury Independent Average National Statistics 1 Myddelton Street London, EC1R 1UW Telephone: 08456-013 034 Fax: 01633-652 747 E-mail: info@statistics.gov.uk http://www.statistics.gov.uk Annual Business Inquiry Consumer Trends 2010 Economic & Labour Market Review, May 2011 Family Spending 2010 Focus on Consumer Price Indices, April 2011 Times Series Data-Monthly Digest of Statistics, June 2011 UK Business: Activity, Size and Location UK Tradeinfo HM Revenue & Customs 3rd Floor Central Alexander House 21 Victoria Avenue Southend on Sea Essex, SS99 1AA Telephone: 01702-367 485 E-mail: uktradeinfo@hmrc.gsi.gov.uk https://www.uktradeinfo.com
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Further Sources
Other Sources
British Retail Consortium (BRC) 21 Dartmouth Street Westminster London, SW1H 9BP Telephone: 020-7854 8900 Fax: 020-7854 8901 http://www.brc.org.uk CEW UK (Cosmetic Executive Women) Telephone: 020-7940 2900 Fax: 020-7940 2901 http://www.cewuk.co.uk Estee Lauder Inc 767 Fifth Avenue New York, NY 10153 US Telephone: +1 212 572 4200 http://www.esteelauder.com Industrieverband Koerperpflege und Waschmittel eV (IKW) Mainzer Landstrae 55 60329 Frankfurt am Main Germany Telephone: +49 69 25 56 13 23 Fax: +49 69 23 76 31 E-mail: info@ikw.org http://www.ikw.org Interbrand Corporation 85 Strand London, WC2R 0DW Telephone: 020-7554 1000 Fax: 020-7554 1001 http://www.interbrand.com Kline & Company 7200 The Quorum Oxford Business Park North Oxford, OX4 2JZ Telephone: 01865-481 430 Fax: 01865-481 482 http://www.klinegroup.com
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Further Sources
Key Note Sources

Key Note Ltd
5th Floor Harlequin House 7 High Street Teddington Richmond Upon Thames, TW11 8EE Telephone: 0845-504 0452 Fax: 0845-504 0453 E-mail: sales@keynote.co.uk http://www.keynote.co.uk
Key Note Market Reviews

Clothing & Footwear Industry Focusing on the bigger picture, Key Note Market Reviews are designed to inform you of developments and opportunities across entire industry sectors.
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Mens Toiletries & Fragrances Plus-Size Fashion Teenage Fashionwear Providing in-depth strategic analysis and including primary research, these premium reports examine the scope, dynamics and shape of key UK and European markets, with a particular focus on financial services, consumer and lifestyle sectors.
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Bridalwear Childrenswear Clothing Manufacturing Hand Luggage & Leather Goods Household Detergents & Cleaners Jewellery & Watches Lingerie Sports Clothing & Footwear Invaluable aids to anyone needing to gain a highly detailed understanding of a specific market for more informed decision-making.
Key Note UKplc Report

UKplc is an indispensable guide for managers and for those interested in gaining a greater insight into the financial performance of an average company operating in each of the main industries in the UK. Providing up-to-date information and analysis, the publication will allow the reader to gain a greater level of market intelligence as well as a good knowledge of the current state of the UK industry.
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Further Sources
Key Note Bespoke Data Service

As well as choosing the companies you want to analyse, you can also choose exactly what performance information you need on them with our Bespoke Data Service. We will be able to provide you with information covering the companies, sectors, performance figures, ratios and other data items specific to your individual requirements alone. Even historical figures can be provided. Contact us for more information: sales@keynote.co.uk
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TGI tables, produced by Kantar Media, are generally based on one of the following groups: Households a private household consists of either one person living alone or a group of people, usually, but not always, members of one family, who live together and whose food and other household expenses are managed as one unit. Adults any person aged 15 or over. Housewives a member of a private household who is solely or mainly responsible for the household duties.
Number, Profile, Penetration

Tables used in Key Note reports may give figures for the Number, Profile, and/or Penetration. These terms are explained in the following table.
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TGI data used in Key Note reports are broken down by age, social grade and standard region.
Social Grade
This is normally based on the occupation of the Head of the Household, or if the Head of the Household is retired, their former occupation. If this information is not available, social grade is based on environmental factors such as type of dwelling, amenities in the home, presence of domestic help, etc. Social grade is assessed by the interviewer when collecting the information and is, therefore, based on information given personally and verbally by the respondent. Social grade is checked by Kantar Medias coding and editing office. The following table broadly defines the six social grades used. The relationship between social grade and net income of the Head of the Household is a complex one and readers should note that income is not determinant of social grade.
Social Grade A B C1 Social Status Upper middle class Middle class Lower middle class Head of Households Occupation Higher managerial, administrative or professional Intermediate managerial, administrative or professional Supervisory or clerical and junior managerial, administrative or professional Skilled manual workers Semi and unskilled workers State pensioners or widows
C2 D E
Skilled working class Working class Those at lowest levels of subsistence (no other earner)
Standard Region
This is as defined by the Registrar-General.
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Key Note Research
Key Note Research

Key Note is a leading supplier of market information, publishing an extensive range of consumer, industrial, business-to-business and services titles. With over 30 years experience, Key Note represents clear, concise, quality market information. For all reports, Key Note undertakes various types of research: Online searching is carried out by product code or free search method, and covers the period from the last edition of the report to the current day. Trade sources, such as trade associations, trade journals and specific company contacts, are invaluable to the Key Note research process. Secondary data are provided by Kantar Media (TGI) and Nielsen Media Research for consumer/ demographic information and advertising expenditure, respectively. In addition, various official publications published by National Statistics, etc. are used for essential background data and market trends. Interviews are undertaken by Key Note for various reports, either face-to-face or by telephone. This provides qualitative data (industry comment) to enhance the statistics in reports; questionnaires may also be used. Field research is commissioned for various consumer reports and market reviews, and is carried out by NEMS Market Research. Key Note estimates are derived from statistical analysis and trade research carried out by experienced research analysts. Up-to-date figures are inserted where possible, although there will be some instances where a realistic estimate cannot be made or external sources request that we do not update their figures. Key Note Editorial, 2011
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The Key Note Range of Reports

Key Note publishes over 180 titles each year, across both the Key Note and Market Assessment product ranges. The total range covers consumer, lifestyle, financial services and industrial sectors.
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ABC1 Consumer Access Control Accountancy Activity Holidays Advertising Agencies Airlines Airports Update Alternative Healthcare Arts & Media Sponsorship Automatic Vending Automotive Services Autoparts
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Chemical Industry Childcare 6 11 14 4 5 22 15 6 4 25 7 19 2 5 14 23 18 21 4 17 26 15 28 16 5 17 10 14 10 2 14 5 6 18 16 14 21 2010 2011 2010 2009 2011 2011 2011 2010 2011 2011 2010 2009 2011 2010 2009 2010 2011 2011 2010 2010 2011 2011 2011 2010 2010 2010 2009 2011 2010 2008 2009 2008 2010 2011 2009 2011 2009 Childrens Publishing Childrenswear Chilled Foods China & Earthenware Update Cigarettes & Tobacco Closed-Circuit Television Clothing & Footwear Industry Clothing Manufacturing Clothing Retailing Coffee & Sandwich Shops Commercial Dynamics in Financial Services Commercial Insurance for Small Businesses Commercial Vehicles Computer Hardware Computer Services Computer Software Condiments and Sauces Confectionery Construction Industry Consumer Credit & Debt Consumer Magazines Contact Centres Contraception Contract Catering & Foodservice Management Contract Cleaning Cooking & Eating Habits Cooking Sauces & Food Seasonings Corporate & Promotional Giftware Cosmetic Surgery Cosmetics & Fragrances Courier & Express Services Cruise Market Customer Magazines & Contract Publishing
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B2B Marketing Baby Products Baths & Sanitaryware Betting & Gaming Biscuits & Cakes Book Publishing Book Retailing on the Internet Bookselling Bread & Bakery Products Breakfast Cereals Breweries & the Beer Market Bricks & Tiles Bridalwear Builders Merchants Building Contracting Building Materials Bus & Coach Operators Business Postal Services Business Press Business Travel Market
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6 11 4 5 1 6 19 7 7 13 10 11 14 19
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3 1 4 14 20 4 16 8 12 17 25 22 13 6 6 13 6 13 19 15 4 26 5 15 10 6 5 3 20 14 17 5 25 19 11
2010 2009 2009 2010 2010 2009 2009 2010 2010 2009 2011 2011 2010 2010 2009 2009 2011 2010 2010 2009 2008 2010 2009 2010 2010 2008 2009 2008 2011 2011 2008 2009 2011 2011 2008
E-Commerce: The Internet Grocery Market E-Commerce: The Internet Leisure & Entertainment Market Electrical Contracting Electrical Wholesale Electricity Industry Electronic Banking Energy Industry Equipment for the Disabled Estate Agents Estate Agents and Services Ethnic Foods European Long-Term Insurance European Renewable Energy European Short Breaks European Telecommunications European Tourist Attractions European Trends in Food Shoppin Exhibitions & Conferences
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Hand Luggage & Leather Goods Health Clubs & Leisure Centres Healthy Eating Holiday Purchasing Patterns Home Entertainment Home Furnishings Home Shopping Horticultural Retailing Hot Beverages Hotels Housebuilding Household Appliances (Brown Goods)
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Newspapers Non-Food Sales in Supermarkets Non-Metal Recycling Nutraceuticals

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18 5 3 3 9 21 5 17 5 7 15 1 13 6 13 15 15 6 4 4 4 6 1 3 4 9 16 22 7 27 13 8 12 11 11 3 25 17 22 2
2010 2010 2010 2008 2010 2008 2009 2010 2010 2010 2011 2009 2010 2010 2008 2010 2010 2009 2010 2008 2009 2008 2008 2009 2009 2010 2011 2011 2009 2011 2010 2011 2011 2011 2011 2009 2011 2011 2009 2009
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2011
Ice Creams & Frozen Desserts Update Independent Financial Advisers Insurance Companies Insurance Industry Insurance Prospects Internet & Telephone Banking Internet Advertising IT Recruitment IT Security IT Training
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15 4 12 10 2 1 6 5 10 13 26 7 10 3 3 5 10 3 5 3 21 17 5 5 6 24 1 7 4 12 2
2011 2008 2009 2009 2008 2011 2009 2010 2011 2010 2011 2009 2011 2010 2010 2011 2011 2010 2008 2009 2010 2009 2008 2008 2011 2010 2009 2010 2011 2008 2010
Office Equipment Industry Office Furniture Offshore Oil & Gas Industry Ophthalmic Goods & Services Opticians & Optical Goods Organic Food & Drink OTC Pharmaceuticals Over-50s Consumer Own Brands
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Packaging (Food & Drink) Packaging (Glass) Packaging (Paper & Board) Packaging (Plastics) Pensions Personal Lines Insurance Personal Loans Pet Market Pharmaceuticals Industry Planning for Retirement Plus-Size Fashion Poultry Premium Lagers, Beers & Ciders Printing Private Healthcare Protective Clothing & Equipment Public Houses Update Publishing Industry
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Jewellery & Watches

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Kitchenware
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Laboratory Equipment Leisure in the Home Leisure Outside the Home Lifestyle Magazines Lingerie Local Government Services Low-Fat & Reduced-Sugar Foods
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12 6 13 14 3 4 4 2 12 20 1 18 3 1 13 16 13 8 25 4 16 18 4 2 19 24 24 19 17 23 5 5 1 4 6 6 9 1 6
2010 2010 2010 2009 2008 2009 2011 2010 2010 2010 2010 2011 2009 2010 2011 2011 2010 2011 2010 2009 2010 2011 2009 2008 2008 2011 2010 2011 2010 2010 2008 2010 2009 2010 2009 2010 2010 2011 2009
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12 3 2 1 1 11 1 3 1 2 2 2 10 6 16 3 9 1 8 1 4 3 12 6 1 1 3 7 3 2 3 1 4 5
2003 2002 2005 2003 2000 2001 2000 2006 2000 2007 2000 2001 2004 2006 2001 2005 2001 2000 2004 2004 2000 2007 2002 2007 2000 2000 2004 2003 2000 2003 2007 2007 2006 2005
Baby Foods Baths and Showers Bearings Beds, Bedrooms and Upholstered Furniture Bottled Water
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UK Internet Market Utilities

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Vegetarian Foods Vehicle Breakdown Services Vehicle Security Video Gaming Vitamins, Minerals & Supplements
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Leisure & Recreation Market 12 11 4 12 3 1 3 3 2 3 1 2 11 1 4 1 1 3 8 11 8 1 1 2 22 10 9 1 2 8 5 8 2 8 2 2 2002 2002 2003 2003 2006 2002 2007 2007 2007 2007 2005 2003 2000 2000 2006 2004 2004 2007 2006 2007 2004 2007 2002 2070 2003 2005 2002 2000 2005 2001 2000 2001 2005 2005 2002 2006 Lighting Equipment
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15 14 10 3 9 3 2 2 2 3 3 1 2 12 14 5 2 1 1 14 13 2 10 5 1 2 1 3 1 1 2 1 2 1 1 2 4 2 8 1
2005 2002 2003 2003 2001 2007 2002 2007 2007 2002 2004 2007 2005 2003 2002 2007 2004 2002 2003 2005 2007 2005 2003 2007 2001 2001 2000 2007 2001 2003 2006 2000 2000 2001 2003 2002 2001 2004 2000 2001
Management Consultants Marketing to Children 4-11 Mechanical Handling Medical & Health Insurance Millenium Youth Mobile Telecommunications
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Natural Products New Media Marketing

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Factoring & Invoice Discounting Finance Houses Financial Services Marketing to ABC1s Financial Services Marketing to ABs Financial Services Marketing to C1C2DEs Financial Services Marketing to Over 60s Financial Services Marketing to the Retired and Elderly Fire Protection Equipment Fitted Kitchens Free-To-Air TV
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Off-Trade Spirits Organic Baby & Toddler Care Over-40s Consumer

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Packaging (Metals & Aerosols) Paper & Board Manufacturers Passenger Travel in the UK Pay TV Pension Extenders Personal Banking Photocopiers & Fax Machines Plant Hire Plastic Cards in Europe Plastics Processing Power Tools Pre-School Childcare Private-Sector Opportunities in Education Process Plant Industry Public Relations Industry Public Transport
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Generation Y Global Positioning Systems Global Waste management

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Health Foods Healthcare Market Heating, Ventilating & Air Conditioning

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Rail Transport Logistics Railway Industry Recycling and the Environment Retail Credit Retail Development Road Transport Logistics
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In-Car Entertainment Individual Savings Accounts Industrial Fasteners Industrial Pumps Industrial Valves Internet Service Providers Internet Usage in Business Issues and Challenges in the UK Life Assurance Market Issues in Higher Education Funding
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The Newspaper Industry 1 2 3 20 3 21 2 11 4 1 1 1 2001 2000 2007 2003 2007 2007 2003 2004 2002 2001 2005 2000 Tourist Attractions Trends in Leisure Activities Tweenagers
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3 5 4 1 8 4 1 2 1 3
2005 2001 2007 2001 2005 2007 2003 2000 2005 2007
Video & DVD Retail & Hire Videoconferencing

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Teenage Magazines Telecommunications Teleworking The Computer Market The Film Industry The Fish Industry The Legal Services Market The Luggage Market
Water Transport Logistics White Goods White Spirits Women over 45
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Market Report Plus 2011

24th Edition July 2011 Edited by Sarah Walker ISBN 978-1-84729-750-1

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THE TOTAL MARKET..................................................................................................................9

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RECENT HISTORY.......................................................................................................................18 NUMBER OF COMPANIES.......................................................................................................18

REGIONAL VARIATIONS IN THE MARKETPLACE.............................................................20 DISTRIBUTION.............................................................................................................................20

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HOW ROBUST IS THE MARKET?...........................................................................................21 LEGISLATION...............................................................................................................................22

KEY TRADE ASSOCIATIONS....................................................................................................23

THE MARKETPLACE..................................................................................................................24 MARKET LEADERS MANUFACTURERS..........................................................................24

MARKET LEADERS RETAILERS ........................................................................................27

Key Note Ltd 2011

Key Note Ltd 2011

INTRODUCTION..........................................................................................................................61 THE WORLDS MOST VALUABLE BRANDS .......................................................................61

CEW AWARDS.............................................................................................................................62 LEADING BRANDS BY SECTOR..............................................................................................63

6. Strengths, Weaknesses, Opportunities and Threats

AVERAGE WEEKLY HOUSEHOLD EXPENDITURE............................................................67

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Key Note Ltd 2011

9. The Global Market

THE US...........................................................................................................................................90 SELECTED GLOBAL COMPETITORS .....................................................................................90

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11. Company Profiles

12. Company Financials 13. Further Sources

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Understanding TGI Data

Key Note Research The Key Note Range of Reports

Key Note Ltd 2011

Key Note Ltd 2011

Key Note Ltd 2011

Key Note Ltd 2011

Growing Popularity of Social Media

Private Labels Benefiting From Changing Consumer Spending Habits

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1,328,363 1,404,845 1,445,580 1,394,989 1,453,616 5.8 2.9 -3.5 4.2

1,328,363 1,364,029 1,363,139 1,296,689 1,312,911 2.7 -0.1 -4.9 1.3

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Table 1.2: UK Rate of Inflation (%), 2006-2010

Note: inflation is at retail price index (RPI).

Household Disposable Income

Table 1.3: UK Household Disposable Income Per Capita (), 2006-2010

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Table 1.4: UK Resident Population Estimates by Sex (000), Mid-Years 2006-2010

Total % change year-on-year

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Table 1.5: Actual Number of Unemployed Persons in the UK (million), 2006-2010

5,065 1,028 14,237

5,273 1,007 15,072

5,500 894 15,410

5,401 1,089 14,378

5,815 1,042 16,535

Key Note Ltd 2011

Key Note Ltd 2011

1170.0 978.0 1100.5 545.0

1172.0 1060.0 1106.5 549.5

1175.0 1140.0 1118.0 557.0

1212.0 1196.9 1120.0 559.0

1237.0 1229.0 1123.0 562.6

380.5 4268.5 2.3

385.0 4375.0 2.5

378.0 4465.9 2.1

381.3 4532.9 1.5