PRESS PACK AUGUST 2013

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August 2013 ECM 275Simplifyle 6

HAIR CARE MARKET REPORT

UKFull ofbounce

Retail watch: ConcoctionHair care brand Concoction made its debutappearance in Selfridges in July. Alex Epstein,founder of Concoction, talks to ECM about why hedecided to make Concoction an interactiveexperience on the shop floor

“In my opinion, the richest brand experiences arethose that are personal, first hand, high-touch andvery interactive,” he says. “I spend a lot of timelearning about and discovering retail environments.Over the years I have witnessed the joy andexperiential value that consumers can gain. A lot ofbrands these days are really ‘Blands’ – there’snothing special or interesting about them. WithConcoction, I knew that we had to deliver an in-store experience that brought the concept andstory to life.

“Just sat on regular shelves, Concoction could bemistaken for a regular product range. But bycreating a fun, interactive ‘ShampYou Mixology Bar’we are able to immediately focus attention on ourUSP and our uniqueness – the whole bespokecouture customisation piece. Advice from experts iskey and the shop floor approach also ensures our

Mixologists can educate people and deliver apersonal prescriptive consultation. Finally – onlineis key for us. But we want to let consumersexperience us first offline – then continue arelationship with us online too.”

Alex Epstein

UK: Hair care, market value andvolume, 2012-2013

52 w/e 52 w/e %+/-13 May 12 12 May 13

Value (£bn) 1.26 1.28 1.5

Volume (units m) 524.80 512.20 -2.4Source: Kantar Worldpanel

UK: Hair care, % share, 2012-2013

52 w/e 52 w/e %+/-13 May 12 12 May 13

Shampoos 33.0 33.7 2.1

Hair colourants 22.5 22.8 1.3

Conditioners 22.1 22.6 2.3

Styling aids 12.9 11.8 -8.5

Women’s hairsprays 9.3 9.0 -3.2

Home perms 0.1 0.1 0.0

Men’s hairsprays 0.1 0.1 0.0Source: Kantar Worldpanel

UK: Hair colourants, market value andvolume, 2012-2013

52 w/e 52 w/e %+/-13 May 12 12 May 13

Value (£m) 283.578 292.438 3.1

Volume (units m) 65.001 63.242 -2.7Source: Kantar Worldpanel

Following the shining performance put in bythe hair care category in the UK over the pastyear, it might come as little surprise that a numberof industry insiders have singled this sector out asthe one to watch heading into 2014.

For another year, the hair care category shapedup to be full bodied in value, however, it wasslightly lacking in volume. According to KantarWorldpanel, the value of the UK hair care marketgrew 1.5% to £1.28bn in the 52 weeks ending the12 May 2013. But when it came to volume figures,the category experienced a drop of 2.4% to512.20m units. As expected, shampoos accountedfor the majority of the market share, increasingtheir hold by 2.1% on the previous year period.This was followed by hair colourants and thenconditioners, both of which also took a firmer gripon the market up 1.3% and 2.3% on the prioryear.

Embracing individualityThis year in the UK, there was an abundance ofnew launches on the hair care market and thewider C&T trend for personalised products beganto trickle into the sector. New hair care brandConcoction launched its Mixology Technology

professional hair care line in July into retailerSelfridges, inspired by the “art and science” ofcocktail mixology. Uniquely, consumers areinvited to select one from a range of four base-blend products and two of eight Superserums,which are then blended together by trained‘mixologists’ in-store to create a £14 Concoction

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Simplifyle 6278 ECM August 2013

MARKET REPORT HAIR CARE

Retail watch: SelfridgesElizabeth Selvey, Beauty Buying Manager atSelfridges, talks to ECM about the importance ofhair care in Selfridges’ Beauty Workshop andwhat trends she predicts will take off

What hair care products and brands have soldwell for Selfridges over the last 12 months?In the past year we launched our BeautyWorkshop, which really brought in a new offer interms of services; our Hersheson Blow Dry Barwith its signature £15, 15 minute blow dry hasbeen hugely successful. We also have a shopfloor extensions service called Weave Got Stylethat is really taking off – they are no bonds, noglue extensions that can be fitted in 45 minutes.Additionally the Beauty Workshop has allowed usto bring in a wider variety of hair care products for

example Percy & Reed, Bumble & bumble andLeonor Greyl to name a few.

What exclusive launches have there been atSelfridges in this category?In July, we exclusively launched Concoction, arange of bespoke hair care – created for your ownhair’s needs. Show Beauty is interesting as nobodyhas really invested in super luxe hair product onthis scale before.

What do your customers look for in their hair careproducts today?Hair care is a real growth area – we see this asbecoming the new nail category in the next 12months.

What trends have you noticed emerging in thehair care category over the past 12 months?I think there is a huge trend for personalisation ingeneral across all areas of beauty – people want toinvest in products that they feel speak to them orhave some personal resonance. Elizabeth Selvey

to relaunch all 36 shades of its Live Colour XXLhair colourants with a new formula that deliversmore vibrancy, shine and colour.

The new Live Color XXL HD line will berolled out to Schwarzkopf’s Intense Colour,Luminance and Ultra Brights collections thismonth, featuring the brand’s new HD-Vibrantpigment technology. According to the brand, there-engineered formula “saturates each hair strandwith a dose of bold colour, for extra long lastingcolour performance with amazing shine and faderesistance”. Five new shades will also be addedto the Intense Colour collection including:Atomic Blonde, Urban Brown, CherryMahogany, Pure Purple and ScandalousScarlet.

Also playing with colour, L’Oréal Parislaunched its new Féria Chic Pastelscollection, comprising three hair tints inpastel shades including Lilac Lavender, PinkPanther and Peach Punch. The tints aredesigned for use on light blonde hair,which will pick up the colour temporarilybefore fading out over three to fivewashes.

Protection from the elementsTalking about future trends, Concoction’sEpstein adds: “People in the industry aretelling me that the personalisation trendis going to grow in a big way. My otherbet is on hair care products that containan SPF like effect, such as UVA/UVBprotection. This has been a growing areain skin care and I can see this growing ina big way. Another trend is weather-proofing of course, to protect hair strandsfrom freeze-thaw in our changeableBritish climate.”

And innovating at the forefront of theSPF trend that Epstein mentions is

Electric Hairdressing London’s latest productcalled P-4 Preparation Spray. The spray has amultitasking formula, designed to help protect,detangle and prime hair for styling. It also shieldsthe hair from damage through offering UVA andUVB protection.

Outside of the UK, US hair care brand Alterna,which launched its Bamboo Beach range in theUK in June this year has also been innovating inthis sector. The limited edition collection isdesigned to provide UV protection and help

combat the damaging effects of the sun,chlorine and saltwater, while helpingto create beachy, tousled hair. Thecollection includes: Summer Ocean

Waves, Summer Sun Recovery Sprayand Mango Coconut Refreshing

Dry Shampoo.Similarly, Bumble and

bumble launched Hairdresser’sInvisible Oil, which not only works to

condition and repair hair with argan oil,coconut oil, macadamia nut oil, sweetalmond oil, grapeseed oil and Tahitianmonoi extract, but it also providesUVA/UVB filters.

A sleek forecastAll in all, the UK hair care market wasparticularly active over the past 12months, with new launches absorbingthe wider C&T trend forpersonalisation and niche offerings,fragrance mixed with hair care, andSPF protection, alongside novel retaildevelopments that act to engageconsumers on the shop floor. If newlaunches continue to roll-out at asimilar pace as the past year, then theUK looks set to remain in excellentcondition.

Electric HairdressingLondon’s new P-4Preparation Sprayprovides UVA and UVBprotection

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products they’re using and they also wantto know where it’s made; which is why itwas so important to me to ensure eve snowwas made in the UK, so I could overseethe whole production process and ensureonly the best packaging and formula wereused in our products,” she adds.

FULL OF BODYHair care performed particularly well inthe UK last year increasing 4.9% to reach£1.4bn and there has been a vogue forboth oils and scalp health products, such asnewcomer Swell, a silicone-free volumisingline said to stimulate hair growth by 93%and reduce hair loss by up to 50%.

Innovation in hair care also continues tothrive with the trend towardspersonalisation creeping into the segment.Founded by British entrepreneur AlexEpstein alongside beauty industry veteransMillie Kendall and Will King, Concoctionallows consumers to create a bespoke‘ShampYou’ product by combining one offour 230ml fragranced Base Blends withtwo of eight Superserum shots, namely:Back to your Roots, Beautiful Brunette,Curl Me Up, Gimme More Moisture, HighDefinition Blonde, Ravishing Red,Thermo-Straight and Turn up the Volume.

Commenting on the inspiration behindthe brand, Epstein says: “As consumers weare increasingly demanding and havebecome very adept in customising productsin our everyday lives. Years ago you wouldwalk into a cafe and order a coffee… Wenow walk into a Starbucks and order a tall,skinny, decaff, triple caramel macchiatowith soy milk and an extra espresso shot.So consumers are now very ready andreceptive to other customisationopportunities.

“We have a limited, highly edited rangeof skus that allow hundreds of differentluxury bespoke couture blends to becreated. We are giving the consumer acompletely unique experience.”

Concoction launches in SelfridgesOxford Street later this month – wherecustomers will be able to have their £14shampoo blended at the ConcoctionMixology Bar – and online atwww.concoction.com. “Even whenordering online, our customers get to enjoythe mixologist experience when blending,activating and shaking their Concoctions athome,” Epstein explains.

REFINING FRAGRANCELikewise, the desire for bespoke scents iswhat’s currently driving the UK fragrancemarket, which topped £1.1bn in 2012.“Increasingly [UK] consumers are turningtheir backs on the conventional luxe

by gin and tonic and the tradition of thebarber, while SE1 evokes the area’shistorical importance as part of the spiceindustry. WIX, meanwhile, captures theelegance of Mayfair, reworking Victorianingredients like violet, muguet, jasmine andiris into a more modern format. Finally,Highgate Village-inspired N6 is a modernchypre that replaces the traditional citrustop note with bergamot and English fruits.

“Arguably, no other global major citycan compete [with London] in terms of itsvibrancy, diverse character and culture,” saysGoswell. “The idea of postcodes seems totouch a chord with the people I talk to –Londoners are very personally attached totheir area of the capital.”

Goswell, who is currently working on aKnightsbridge-inspired fragrance, SW1X,with Francois Robertet and a Notting Hillvariant, W11, with Azzi Glasser, says thegrowing preference for exclusivity amongUK fragrance consumers will particularlybenefit home grown brands. “The Britishas a race are tenacious, innovative andbrave. We break rules and take risks whereothers would chose to embraceconvention. It will be this determinedvision and almost anarchistic attitude... thatwill slowly start to turn heads. The art ofperfumery is very much alive and isincreasingly about personal expression andindividualism in a world where we canhave everything at the touch of a button.Consumers are becoming more discerningand they are starting to subscribe to anelement of exclusivity, enjoying theexperience of hunting out rare brands.”

Indeed, moving forward, the UK beautyand personal care industry at large canexpect to contend with a breed ofconsumer more focused on quality andvalue for money, and armed with a savvierapproach to shopping than ever before. Andfor those brands that are rising to thechallenge, the future is bright. After all, theBritish just love to spend, spend, spend.

perfume brands and are seeking out themore unusual brands in an attempt to ownfragrance with more integrity, complexityand personality, made often from finerquality ingredients and with less marketinghype behind it,” says Rebecca Goswell,founder of niche luxury fragrance brandBex London.

Bex London debuted last year with aline-up comprising four London themedfragrances: EC2, SE1, W1X and N6. Basedon the city’s financial hub, EC2 is inspired

market reportuk

July 2013 SPC 33

“Consumers are becomingmore discerning and they arestarting to subscribe to anelement of exclusivity, enjoyingthe experience of hunting outrare brands”

The growing popularityof niche fragrancebrands like BexLondon (below) isindicative of UKconsumers demandingmore bespoke beautysolutions in general

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personal care market grew 2.8% year onyear to reach nearly £10.6bn. While this isnot exactly a stratospheric increase, it isworth noting that UK beauty and personalcare growth statistics for 2012 have beenimpacted by the lack of a tax hike in 2012.

According to market analyst MintelGroup, both 2010 and 2011 saw VAT risesat the start of the year, which added a slightuplift to consumer spending in the beautyand personal care goods category, but “withno such effect in 2012, we expect annualgrowth to have been a little lower in valueterms and for real terms growth to havebeen virtually zero”.

The category was split evenly betweenbeauty (48%) and personal care (52%) in

2012, but Mintel expects the beauty sub-category to post stronger growth thanpersonal care in coming months to reach50% of overall beauty and personal carespending in 2014. “We think beautycategories – such as skin care andfragrances – where there is arguablygreater tangible justification for buyingquality will outperform toiletriescategories where consumers may be moretempted to substitute cheaper products,”says the company.

Although still in the midst of a slow ifsustained recovery, the UK economy is in aposition of relative strength. And for themost part the beauty and personal caremarket reflected this in 2012. Commentingon prestige beauty, Anna Lukic, BusinessAnalyst – Beauty at information andadvisory services provider The NPDGroup, says: “The market is usually relatedto the economy of a country andcompared with Spain or Italy the UKeconomy is relatively strong. The prestigebeauty market in France is growing too,but unlike the UK this is largely throughprice inflation.”

Figures provided by EuromonitorInternational show the UK beauty and

July 2013 SPC 27

market reportuk

Spendingspree

Although the UK is not immune to economic troubles,the beauty industry is benefiting from the British cultureof recreational shopping. And new brands on the sceneare keen to exploit this, says Julia Wray

Upcoming British brand Concoction offersconsumers bespoke hair care products

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