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DIGITAL IQ INDEX®
PERSONAL CARE: U.S. SEPTEMBER 29, 2015
EXCERPT FROM THE DIGITAL IQ INDEX®: PERSONAL CARE: U.S. TO ACCESS THE FULL REPORT, CONTACT [email protected]
2September 29, 2015
© L2 Inc., 2015 Circulation of the report violates copyright, trademark and intellectual property laws.
DIGITAL IQ INDEX® PERSONAL CARE: U.S.
EXCERPT FROM THE DIGITAL IQ INDEX®: PERSONAL CARE: U.S. TO ACCESS THE FULL REPORT, CONTACT [email protected] FROM THE DIGITAL IQ INDEX®: PERSONAL CARE: U.S. TO ACCESS THE FULL REPORT, CONTACT [email protected]
OFFLINEPersonal Care products do not command the same share of wallet online as in the physical retail environment. During the first half of 2015, Health & Personal Care retailers generated $150 billion in U.S. sales (nearly 10 percent of retail dollars, excluding motor vehicles and parts).1 In contrast, the category accounts for 5.7 percent of e-commerce dollars (flat year over year).2 Second only to Food & Beverage and OTC Health consumers, Personal Care shoppers have been slow to change how and where they shop.3
UrgencyWhile most Personal Care brands continue to cultivate deeper partnerships with e-tailers, select brands are proactively addressing potential threats. For example, several disruptors have capitalized on the replenishment opportunity in an industry tethered to traditional retail formats. Founded just three years ago, Dollar Shave Club now boasts two million active members and a $615 million valuation.4 More recently, the brand claims to have surpassed Schick in razor cartridge volume sales.5 This July, competitor Harry’s latest venture round gave the firm a valuation of $750 million.6 Both upstarts are attempting to disintermediate high-margin, low-competition businesses (e.g., Gillette, Schick). Despite operating on a different order of magnitude ($7.9 billion in sales), Gillette has responded. It recently launched “Gillette Shave Club,” a new avenue of investment with uncertain return.7 The lucrative diapers business, where Huggies enjoys nearly 40 percent market share, is facing a similar threat from The Honest Co., recently valued at $1.7 billion.8 According to reports, as much as 80 percent of The Honest Co.’s revenue comes from its diaper subscription service.9,10 It recently expanded distribution to more retail partners, including Target.
Watch the Video
Source: BI Intelligence, May 2015.
Source: Euromonitor International, May 2015.
Personal Care: Online vs. Offline Retail SalesU.S., 2001–2020E
Personal Care: Percentage of Sales Attributed to Internet Retailing, by CategoryU.S., 2014
1. “Monthly Retail Trade Report: Retail & Food Services Sales (June),” U.S. Census Bureau, August 2015.2. “Beauty Beats Drugstores for Ecommerce Sales,” eMarketer, July 7, 2015.3. “Though Majority of Americans Have Made a Virtual Purchase, They Still See Virtue in the In-Person Shopping Experience,”
Harris Interactive, July 15, 2014.4. “Dollar Shave Club Is Valued at $615 Million,” Rolfe Winkler, The Wall Street Journal, June 21, 2015.5. “Dollar Shave Club Claims to Top Schick as No. 2 Razor Cartridge,” Jack Neff, AdAge, September 8, 2015.6. “Harry’s Picks Up $75.6M at $750M Post-Money Valuation,” Lora Kolodny, The Wall Street Journal, July 7, 2015.7. “Gillette wants a slice of the online razor club business,” Tracy Maple, Internet Retailer, July 16, 2015.8. “Telling the truth pays: Jessica Alba’s Honest Company is worth $1.7 billion,” Valentina Zarya, Fortune, August 14, 2015.9. “Jessica Alba’s The Honest Co. Raises $70M, Preps for IPO,” Lizette Chapman, Wall Street Journal, August 26, 2014.10. “How Jessica Alba Built A $1 Billion Company, And $200 Million Fortune, Selling Parents Peace of Mind,” Clare O’Connor,
Forbes, May 27, 2015.
$400
$300
$200
$100
$02001 2003 2005 2007 2009 2011 2013 2015E 2017E 2020E
BILL
ION
S
OFFLINE SALES
ONLINE SALES
14.5%
SKIN CARE BATH ANDSHOWER
SHAVING BABY ANDCHILD-SPECIFIC
SUNCARE
MEN’SGROOMING
ORALCARE
DEODORANTS
1.9%0.8%
4.7%3.9% 3.8% 3.0%
6.5%
3September 29, 2015
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DIGITAL IQ INDEX® PERSONAL CARE: U.S.
EXCERPT FROM THE DIGITAL IQ INDEX®: PERSONAL CARE: U.S. TO ACCESS THE FULL REPORT, CONTACT [email protected]
E-Tailer DependencyTo date, Personal Care brands rely on third-party dot-coms for distribution. Among industry brands tracked longitudinally, less than 10 percent offer direct-to-consumer (DTC) e-commerce, and only five (Burt’s Bees, Gillette, Philips Norelco, Philips Sonicare, and TENA) support auto-replenish services. Meanwhile, more than 80 percent of brands provide an online path to purchase from product pages—commonly pushing visitors to Amazon, Drugstore.com, Walmart, etc. Unlike individual brands, major retail players have cultivated two assets required to challenge how consumers approach Personal Care purchases. First, several omnichannel players have well-established loyalty programs (e.g., Walgreens’s “Balance Rewards”) that are leveraged to personalize and target offers. Second, several e-tailers are cultivating the necessary infrastructure to subsidize shipping costs. In a competitive response to Amazon Prime, Walmart has confirmed plans to offer its own subscription service codenamed “Tahoe.”11 Despite a well-founded aversion to direct sales, manufacturers can develop a winning e-commerce strategy working closely with retail partners and leveraging their scale and customer data—advantages no individual brand can match.
Digital IQ = Shareholder Value This study attempts to quantify the digital competence of 72 U.S. Personal Care brands across 10 categories, with a special supplement on subscription services. Our aim is to provide a robust tool to diagnose digital strengths and weaknesses, helping managers achieve greater return on incremental investments. Like the medium we are assessing, our approach is dynamic. Please reach out with comments that improve our methodology and key findings.
Regards, L2 11. “Wal-Mart Preps Rival to Amazon Prime,” Amir Efrati, The Information, May 13, 2015.
0
200
400
600
800
AUG 2013 NOV 2013 FEB 2014 MAY 2014 AUG 2014 NOV 2014 FEB 2015 MAY 2015 AUG 2015
MON
THLY
SEA
RCH
VOLU
ME
IN T
HOUS
ANDS OCT 2013:
$12MSERIES B
SEPT 2014:$50MSERIES C
JUL 2015$75M SERIES D;$615M Valuation
NOV 2013:$25MSERIES A
JAN 2014:$123MVENTURE
MAY 2014:$10MVENTURE
NOV 2014:$75MVENTURE
JUL 2015:$76M SERIES C;$750M VALUATION
AUG 2013:$70MSERIES C
AUG 2015:$100M SERIES D;$1.7B VALUATION
Source: Google AdWords Keyword Tool, August 2015.
*Includes additional product sites for Colgate and Bic. Sites may link to more than one e-tailer.Source: L2 Inc., 2015.
WALMART DRUGSTORE.COM
AMAZON CVS WALGREENS TARGET SOAP.COM ANY ENTERPRISE
STORE
NO PATH TOPURCHASE
68% 64% 61% 58% 58% 51% 39%15%
4%
Personal Care: Online Search Equity of Emerging Subscription Services August 2013–2015 ■ “dollar shave club” ■ “gillette” ■ “honest company” ■ “harry’s”
Personal Care: Share of Brand Sites with Any Link to Given E-Tailer August 2015 n=74 Brand Sites*
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DIGITAL IQ INDEX® PERSONAL CARE: U.S.
EXCERPT FROM THE DIGITAL IQ INDEX®: PERSONAL CARE: U.S. TO ACCESS THE FULL REPORT, CONTACT [email protected]
4
GENIUS 140+
Digital competence is a point of competitive differentiation for these brands. Creatively engineered messaging reaches consumers on a variety of devices and in many online environments.
GIFTED 110–139
Brands are experimenting and innovating across site, mobile, and social platforms. Digital presence is consistent with brand image and larger marketing efforts.
AVERAGE 90–109
Digital presence is functional yet predictable. Efforts are often siloed across platforms.
CHALLENGED 70–89
Limited or inconsistent adoption of mobile and social media platforms. Sites lack inspiration and utility.
FEEBLE <70
Investment does not match opportunity.
Classification
35% SITE & E-COMMERCE
BRAND.COMTechnology, Search & Navigation: Load Time, Analytics, Video Technology, Guided Selling, Keyword Search, Clicks to Product Page, Sorting & Filtering Criteria
Product Page: Videos, Content Integration, Usage & Ingredients Information, User Reviews, Integration of “Buy Now” Call-to-Action
Customer Service & Account: Contact Us, “Where to Buy” Store Locator, User Account Registration & Functionality
E-Commerce / E-Tailer Support: Ease of Direct Checkout (if applicable), Sophistication of Handoff to Featured E-tailer(s)
RETAILER.COMAmazon: Content Investments, Search Visibility, Average Review Count
Walmart: Content Investments, Search Visibility, Average Review Count
Target: Search Visibility, Average Review Count
Drugstore.com: Search Visibility, Average Review Count
30% DIGITAL MARKETING
Brand Search: Traffic, Web Authority, SEO/SEM
Category Search: Organic Visibility Across Category-specific Keywords
Web Advertising: Impressions and Creative Count for Desktop Display Ads & Video Pre-Roll (Pathmatics)
Earned Media: Brand Mentions on Coupon Portals (including Hip2Save, Krazycouponlady, etc.)
Email: Frequency, User Profile Capture, Mobile Optimization, Personalization
Methodology
MOBILE
20% Mobile Site: Load Time, Compatibility, UI/UX Optimization, Geolocation
Mobile Search: “Mobile-Friendly” Designation in Search, “Pre-Scroll” Real Estate, Paid Search Extensions
Mobile Innovation: Mobile & Tablet Display Ads (Pathmatics), Mobile Apps, Tablet Site Optimization, Other Mobile Initiatives
SOCIAL MEDIA
15% Facebook: Post Engagement, Community Size & Growth, Post Frequency, Timeline Content, Support for Native Video
YouTube: Search Visibility, Channel Experience, Video Views, Virality of Most-Viewed Content
Twitter: Post Engagement, Community Size & Growth, Post Frequency, Employ of User Mentions & Hashtags
Emerging Social Media: Instagram, Pinterest (if applicable)
September 29, 2015
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DIGITAL IQ INDEX® PERSONAL CARE: U.S.
EXCERPT FROM THE DIGITAL IQ INDEX®: PERSONAL CARE: U.S. TO ACCESS THE FULL REPORT, CONTACT [email protected]
RANK BRAND DIGITAL IQ
1 149
2 144
RANK BRAND DIGITAL IQ
3 135
3 135
5 127
6 125
7 123
8 122
8 122
RANK BRAND DIGITAL IQ
10 121
10 121
12 120
12 120
14 118
14 118
16 115
Philips
Unilever Group
Procter & Gamble Co.
Procter & Gamble Co.
Procter & Gamble Co.
Procter & Gamble Co.
Procter & Gamble
Kimberly-Clark
Procter & Gamble Co.
Johnson & Johnson
Clorox Co.
Seventh Generation
Procter & Gamble Co.
Unilever Group
Procter & Gamble Co.
Procter & Gamble Co.
GENIUSPampers
GilletteGIFTED
DoveOlay
CrestSecretOral-B
Gillette VenusHuggiesAlways
Seventh GenerationNeutrogena
Philips SonicareBurt’s Bees
Old SpiceDove Men+Care
PoiseTampax
U by KotexColgateSimple
LuvsPhilips Norelco
AVERAGEAveenoDepend
Johnson’s BabyAxe
DegreeSchick
ListerineNivea
Pull-UpsSuaveBraun
PanasonicSally Hansen
Arm & HammerVaseline
CHALLENGEDTena
Banana BoatCetaphilJergens
Q-tipsTom’s of MaineAlways Discreet
PlaytexVeet
Summer’s EvePurell
Speed StickEdge
CaressNivea for Men
EucerinIrish Spring
Pond’sSkintimate
CarefreeNair
SensodyneStayfree
DialHawaiian Tropic
FEEBLECoppertone
BicLubriderm
Right GuardAquafresh
SoftsoapScope
ACTMitchum
IN THE COMPANY OF GENIUS GIFTED
5
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DIGITAL IQ INDEX® PERSONAL CARE: U.S.
EXCERPT FROM THE DIGITAL IQ INDEX®: PERSONAL CARE: U.S. TO ACCESS THE FULL REPORT, CONTACT [email protected]
RANK BRAND DIGITAL IQ
24 108
25 107
26 103
27 102
27 102
27 102
30 101
RANK BRAND DIGITAL IQ
16 115
16 115
19 114
20 112
21 111
22 110
22 110
RANK BRAND DIGITAL IQ
30 101
32 100
33 99
34 98
34 98
36 96
37 95
Church & Dwight Co.
Johnson & JohnsonKimberly-Clark
Johnson & JohnsonKimberly-Clark
Unilever GroupUnilever Group
Kimberly-ClarkProcter & Gamble Co.
Unilever GroupColgate-Palmolive Co
Edgewell Personal CareProcter & Gamble Co.
Johnson & JohnsonPhilips
Beiersdorf
Unilever Group
Panasonic Corp.
Kimberly-Clark
Procter & Gamble Co.
Coty
GIFTED AVERAGE
GENIUSPampers
GilletteGIFTED
DoveOlay
CrestSecretOral-B
Gillette VenusHuggiesAlways
Seventh GenerationNeutrogena
Philips SonicareBurt’s Bees
Old SpiceDove Men+Care
PoiseTampax
U by KotexColgateSimple
LuvsPhilips Norelco
AVERAGEAveenoDepend
Johnson’s BabyAxe
DegreeSchick
ListerineNivea
Pull-UpsSuaveBraun
PanasonicSally Hansen
Arm & HammerVaseline
CHALLENGEDTena
Banana BoatCetaphilJergens
Q-tipsTom’s of MaineAlways Discreet
PlaytexVeet
Summer’s EvePurell
Speed StickEdge
CaressNivea for Men
EucerinIrish Spring
Pond’sSkintimate
CarefreeNair
SensodyneStayfree
DialHawaiian Tropic
FEEBLECoppertone
BicLubriderm
Right GuardAquafresh
SoftsoapScope
ACTMitchum
6
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DIGITAL IQ INDEX® PERSONAL CARE: U.S.
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RANK BRAND DIGITAL IQ
45 84
45 84
47 82
48 81
49 80
49 80
51 79
RANK BRAND DIGITAL IQ
38 94
39 88
40 87
40 87
40 87
40 87
44 86
RANK BRAND DIGITAL IQ
52 78
52 78
54 77
54 77
54 77
54 77
58 76
Edgewell Personal Care
Procter & Gamble Co.Unilever Group
Reckitt BenckiserEdgewell Personal Care
GOJO IndustriesKao Corp
Edgewell Personal CareSCA Americas, Inc.
C.B. Fleet Co.Galderma
Colgate-Palmolive Co.Unilever Group
Edgewell Personal CareColgate-Palmolive Co.
Unilever Group
Beiersdorf
Unilever Group
Beiersdorf
Colgate-Palmolive Co.
Edgewell Personal Care
CHALLENGEDAVERAGE
GENIUSPampers
GilletteGIFTED
DoveOlay
CrestSecretOral-B
Gillette VenusHuggiesAlways
Seventh GenerationNeutrogena
Philips SonicareBurt’s Bees
Old SpiceDove Men+Care
PoiseTampax
U by KotexColgateSimple
LuvsPhilips Norelco
AVERAGEAveenoDepend
Johnson’s BabyAxe
DegreeSchick
ListerineNivea
Pull-UpsSuaveBraun
PanasonicSally Hansen
Arm & HammerVaseline
CHALLENGEDTena
Banana BoatCetaphilJergens
Q-tipsTom’s of MaineAlways Discreet
PlaytexVeet
Summer’s EvePurell
Speed StickEdge
CaressNivea for Men
EucerinIrish Spring
Pond’sSkintimate
CarefreeNair
SensodyneStayfree
DialHawaiian Tropic
FEEBLECoppertone
BicLubriderm
Right GuardAquafresh
SoftsoapScope
ACTMitchum
7
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RANK BRAND DIGITAL IQ
64 69
65 64
65 64
65 64
68 61
RANK BRAND DIGITAL IQ
58 76
58 76
61 74
62 72
63 71
RANK BRAND DIGITAL IQ
68 61
70 52
71 51
72 45
Bayer AGChurch & Dwight Co.
Johnson & JohnsonEdgewell Personal Care
GlaxoSmithKlineEdgewell Personal Care
Société BicGlaxoSmithKline
Henkel AG & Co.Henkel AG & Co.
Colgate-Palmolive Co.
Chattem
Procter & Gamble Co.
Revlon
CHALLENGED FEEBLE
GENIUSPampers
GilletteGIFTED
DoveOlay
CrestSecretOral-B
Gillette VenusHuggiesAlways
Seventh GenerationNeutrogena
Philips SonicareBurt’s Bees
Old SpiceDove Men+Care
PoiseTampax
U by KotexColgateSimple
LuvsPhilips Norelco
AVERAGEAveenoDepend
Johnson’s BabyAxe
DegreeSchick
ListerineNivea
Pull-UpsSuaveBraun
PanasonicSally Hansen
Arm & HammerVaseline
CHALLENGEDTena
Banana BoatCetaphilJergens
Q-tipsTom’s of MaineAlways Discreet
PlaytexVeet
Summer’s EvePurell
Speed StickEdge
CaressNivea for Men
EucerinIrish Spring
Pond’sSkintimate
CarefreeNair
SensodyneStayfree
DialHawaiian Tropic
FEEBLECoppertone
BicLubriderm
Right GuardAquafresh
SoftsoapScope
ACTMitchum
8
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Brand SiteDespite attracting low site traffic (averaging 114 thousand unique visitors per month), Personal Care brands have been actively investing in consumer-facing sites over the past year. More than a third of Index brands have either relaunched or made significant UI/UX changes since they were profiled in the October 2014 Index. Behind much of the momentum is the Procter & Gamble portfolio, with half the affiliated brands (including Always, Gillette Venus, Secret, and Tampax) having now migrated to a common enterprise template. Another notable relaunch is Unilever’s AXE brand (www.axe.us), which finally let go of its legacy Adobe Flash-based site. Year-over-year analysis of site features reveals an overall trend toward increasing sophistication, with 85 percent of the 53 brand sites tracked longitudinally now offering keyword search and 30 percent supporting user-specific account registration. Again, these changes to the Index at large are attributable primarily to the site changeover registered within P&G. In contrast, adoption of store locators is down to 42 percent (verses 60 percent in 2013) as brands reevaluate the utility of an often clunky tool used to highlight widespread availability of mass products. The dramatic 30 percentage point increase in responsive design speaks to the importance of optimizing across devices as brands opt for a one-size-fits-all approach—driven by a wide cross section of brands, regardless of enterprise affiliation. Support of live chat though limited (13 percent) is commonly found in two subsets of brands: (1) incontinence (Poise, Depend, TENA); and (2) electronics (Philips, Panasonic). The product education opportunities in incontinence and the availability of DTC e-commerce among electronics justify these targeted investments in advanced customer service options.
Personal Care: Brand Site Investments Over Time2013–2015, n=53 Brand Sites Present in All Studies
■ 2013 ■ 2014 ■ 2015
Source: L2, Inc.
AXE relaunched its brand site to accompany the launch of “White Label” products in December 2014.
USERREVIEWS
51%
62%72%
KEYWORDSEARCH
63%
65%85%
STORE LOCATOR
60%
57%42%
12%
25%55%
RESPONSIVE DESIGN
23%
CONSUMER ACCOUNT
23%30%
KEY FINDINGS SITE & E-COMMERCE
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Category Search (Organic)Non-branded, category-specific keyword terms (e.g., “diapers”) produce organic search listings that are even more favorable to retailers—again, disproportionately skewed by results from Amazon. Depending on a brand’s current distribution status on Amazon, the decisive advantage held by the “world’s largest store” across all facets of search can easily circumvent a brand’s identified set of preferred and/or authorized retail partners. Across the 10 product categories examined, Amazon appeared on average 1.8 times more frequently among the top 30 organic search results than the most visible brand site. Furthermore, Amazon’s average listing holds the eighth position among competing search results, compared with the brand site, which hovers at the 15th position. This means Amazon is more likely to occupy a prominent position on the first page of organic results versus the official brand site (as Google displays up to 10 results per page). Overall, brand sites are poorly optimized for more generic category keywords and are failing to gain the prominent visibility they consistently achieve on branded search queries. Relative to brand sites, retailers achieved the lowest visibility across incontinence terms (appearing 0.7 times as frequently as the most visible brand site), oral care terms (0.7 times), and sanitary protection terms (0.3 times). Brand sites in these categories benefit from a less competitive set of motivating keywords (i.e., medical jargon) plus enhanced SEO “crawl-ability” thanks to extensive on-site FAQs that address common questions about tooth decay, bladder leakage, etc. Consequently, a brand such as Colgate appears 173 times across oral care keywords, compared with Amazon’s 127 appearances.
Personal Care: Average Search Rank vs. Frequency of Appearance Across Category-Specific Keywords on GoogleTop 30 Organic Search Results for Non-Branded Terms Across 10 Product Categories*August 2015 ■ Amazon.com Result ■ Brand.com Result ■ Target.com Result ■ Walmart.com Result
21
26
11
16
1
6
0
AVER
AGE
SEAR
CH R
ANK
20 40 60 80 100 120 140 160
NUMBER OF APPEARANCES ACROSS CATEGORY TERMS
HIGH RELEVANCE, HIGH FREQUENCY
LOW RELEVANCE, LOW FREQUENCY
COLGATE.COMCREST.COM
Source: L2, Inc. *Note: Keywords determined using Google Adwords Keyword Tool. Bath & shower: n=60 terms; deodorant: n=105 terms; diapers: n=37 terms; electronics: n=28 terms; shaving & hair removal: n=38 terms; incontinence: n=42 terms; oral care: n=165 terms; sanitary protection: n=75 terms; skincare: n=130 terms; sun care: n=38 terms. Chart separately displays each product category.
KEY FINDINGS DIGITAL MARKETING
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Personal Care: Brand Adoption of Social Media Platforms Over Time2013–2015, n=53 Brands Present Across All Studies ■ 2013 ■ 2014 ■ 2015
Personal Care: Share of Cumulative Post Interactions by Social PlatformJuly–August 2015, n=81.2M Interactions Registered Across 231 Brand Pages/Accounts/Channels
Source: L2, Inc.
94% 98% 92% 60% 85% 91% 47% 77% 83% 32% 42% 55% 26% 36% 30%
0.6%1.9%
INSTAGRAM TWITTERFACEBOOK
YOUTUBE
0.1%97.4%
Source: L2, Inc.Note: Post Interactions are defined as: (1) likes, comments, or shares on Facebook; (2) retweets or favorites on Twitter; (3) likes or comment on Instagram; and (4) video views on YouTube.
KEY FINDINGS SOCIAL MEDIA
Social MediaA longitudinal analysis of social platform adoption across the Index shows that Personal Care mirrors trends found in adjacent verticals such as Home Care. Presence on YouTube, Facebook, and Twitter is nearing saturation, but brands are still experimenting with content creation on emerging platforms. In particular, Instagram witnessed a 13-point jump in adoption year over year, with the majority of the Index now supporting brand activity on the channel (55 percent or nearly double the brand presence on Pinterest). Meanwhile, a handful of brands (ACT, Lubriderm, Softsoap, TENA) fail to maintain active accounts on any of the social media channels surveyed. These holdouts have effectively missed the window to establish organic communities in advance of the rising costs required to achieve and maintain extended reach on select platforms.12
12. “An Update to News Feeds: What It Means for Businesses,” Facebook.com, November 2014.
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12%
53%
35%
53%
16%31%
59%
10%31%
Personal Care: Mobile Site InvestmentsAcross Time
2013–2015n=51 Brands Present in All Studies
Responsive DesignIndependent Mobile SiteNo Mobile Optimiziation
2013 2014 2015
Source: L2, Inc.
Although most P&G brands (except Pampers) supported mobile sites in 2014, the recent spate of desktop site relaunches were accompanied by mobile site overhauls. Generally speaking, the revamped mobile sites boast faster load times (in the 80th percentile on average) and more mobile-friendly navigation elements, such as the ability to vary tile sizes on product collection pages (57 percent versus the 17 percent Index average). However, there is room for improvement,
comScore Blog, April 13, 2015.
KEY FINDINGS MOBILE
Mobile SiteSupport for mobile-optimized sites has now become “table stakes,” evidenced by an adoption rate cresting 90 percent across the set of brands tracked since 2013. Google’s recent move to prioritize “Mobile-Friendly” sites over others in mobile search results helped cement this changeover, as any brands still lacking a mobile site now risk diminished page relevance (and consequently, lower site traffic from mobile devices).13,14
13. “Google’s ‘Mobilegeddon’ Was a Big Deal, After All,” Alistair Barr, Blogs.wsj.com, July 15, 2015.14. “Mobile Internet Usage Skyrockets in Past 4 Years to Overtake Desktop as Most Used Digital Platform,” Kate Dreyer,
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SUPPLEMENT SUBSCRIPTION BRANDS
In an attempt to staunch losses to razor subscription programs, Gillette launched Gillette Shave Club in early 2015 and, more recently, migrated the program to its own site (GilletteShaveClub.com) which mimics those of its competitors in layout. However, it does not offer several features common to its rivals, including a content-rich blog, guided selling on site, and live chat. Furthermore, in contrast to Dollar Shave Club’s easy one-page checkout, Gillette Shave Club requires a 14-field account registration process first, followed by a multipage checkout process. Gillette’s experiment may be too little too late, as a comparison of monthly unique visitors shows that the combined site traffic to Gillette’s main site (www.gillette.com), and its shave club offshoot in July was just one-seventh of Dollar Shave Club’s traffic. Year over year, gillette.com traffic has declined 65 percent, while traffic to dollarshaveclub.com is up 59 percent.
Source: L2, Inc. *Present at time of evaluation though no longer available.
Personal Care: Feature Set Comparison for Razor Subscription SitesAugust 2015
Personal Care: Web Traffic Comparison for Razor Subscriptions SitesJuly 2014–July 2015 ■ gillette.com ■ harrys.com ■ honest.com ■ gilletteshaveclub.com ■ dollarshaveclub.com
Dollar Shave Club’s account landing page is a ‘one-stop shop’ for subscriber needs, including shipping history of past boxes and a template for
TESTIMONIALS BLOGGUIDEDSELLING
PERSONALIZEDSITE EXP. LIVE CHAT
REFERRALPROGRAM
UGCINTEGRATION
NUMBER OFCHECKOUT PGS.
4
4
1
*
0
0.2
0.6
1.0
1.4
1.8
MON
THLY
UN
IQUE
VIS
ITOR
S (IN
MIL
LION
S)
JUL2014
SEP2014
NOV2014
JAN2014
MAR2015
MAY2015
JUL2015
0.4
1.2
0.8
1.6
Source: Compete.com
Portrait of a Subscription Brand (Cont’d)
14September 29, 2015
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DIGITAL IQ INDEX® PERSONAL CARE: U.S.
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DIGITAL MARKETING 27 Brand Search
28 Category Search (Organic)
30 Category Search (Paid)
32 Display Advertising
33 TV Advertising
SOCIAL MEDIA34 Social Media
36 Youtube
37 Facebook
39 Instagram
40 Twitter
MOBILE41 Mobile Site
42 Mobile Advertising
43 Mobile Apps
METHODOLOGY
DIGITAL IQ RANKING 6 Company of Genius
8 Gifted
9 Average
10 Challenged
12 Feeble
KEY FINDINGS 13 Digital IQ Distribution
14 Enterprise Value
15 Biggest Winners & Losers
SITE & E-COMMERCE 16 Brand Site
17 Enterprise Templates
18 E-Tailer Handoff
19 E-Tailer Performance
20 E-Tailer Reviews
22 E-Tailer Visibility
23 E-Tailer Investments
24 Amazon Marketplace
SUBSCRIPTION BRANDS44 Subscription Overview
45 Portrait of a Subscription Brand
47 Search
48 Display Advertising
49 Social Media: Razor Brands
50 Social Media: Diaper Brands
51 Mobile Site
FLASH OF GENIUS52 YouTube Advertising
53 Emerging Platforms
54 SEO & SEM
55 Guided Selling on Site
L2 TEAM
ABOUT L2
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CLINIC: GOLIATH
September 30, 2015 · NYC
BREAKFAST: SPECIALTY RETAIL
October 6, 2015 · NYC
BREAKFAST: SPECIALTY RETAIL
October 22, 2015 · NYC
LUNCH: BEAUTY & FASHION PARIS
November 6, 2015 · Paris
DIGITAL IQ INDEX® REPORTS:
Consumer Electronics
Beverages: Brazil
China: Beauty
L2 INTELLIGENCE REPORTS:
Social Platforms
Amazon
L2 INSIGHT REPORTS:
Beauty: Amazon E.U.
Hair Care: Guided Selling
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