What’s hot in 2014? IMA’s predictions for premium beauty
17/01/2014 by The Red Tree
Imogen Matthews Associates delivers valuable insights and opinion on the trends that are having the greatest impact on the Premium Beauty Industry. This week, we’re delighted to feature Imogen’s 2014 predictions for emerging trends, behaviours and brands in the premium beauty industry.
Premium beauty experienced a sparkling year in 2013*, culminating in Christmas, the high sales point of the year.
So what’s in store for 2014?
It would be easy to predict more of the same, and to some extent that will be true, but I see some changes on the horizon that will shape premium beauty over the next 12 months and beyond.
1. Increase in M&A Activity
The UK economy is forecast to pick up in 2014 and this will give the multinationals the confidence to start going on a shopping spree. Many have large stashes of cash ready to snap up attractive niche brands. 2014 could see acquisitions from P&G, L’Oreal, Coty, Estee Lauder Companies.
Takeover targets: Burberry, the fashion retailer and House of Fraser, currently in discussions with Galeries Lafayette.
2. Online Traders Head for the High Street
Yes, really. Online sales of premium beauty are a long way from peaking, but I predict that some pure etailers will go from clicks to bricks.
The high street is ripe for development with large swathes of vacant property due to the retail failures over the past 7 years.
Online may be where many people like to shop, but many more prefer to go out shopping, where they can touch, feel and try on products and ask for advice from a human being.
2014 will see the start of the high street revival, which will be part of a longer term trend.
3. Retailers will Reduce Portfolios and Choice
Maybe this is more for the wish list than a reality, but retailers will be looking hard at the economics of stocking brands and ranges that do not pull their weight. Not only does it make economic sense, but consumers will be more inclined to purchase in a less cluttered environment.
Fewer brands, less clutter = higher turnover.
4. Less Discounting Next Christmas
Consumers got savvy last Christmas and refused to spend, prompting a flurry of panicked promotions by Debenhams and Marks & Spencer. It didn’t work and they were the losers, while John Lewis, and others who did not play the discounting game, were the retail winners.
Discounting won’t go away, because it’s proven to be effective in increasing footfall, but by next Christmas it will be more measured. Premium beauty will still play around the margins, where it must stay if it is to retain credibility with the consumer.
5. Men’s Grooming – Set to Grow
The British Fashion Council and Mintel are seeing strong growth in the UK menswear market, which is indicative of men’s spending power and growing sense of style. Role models include actor Benedict Cumberbatch, comedian Jack Whitehall and current teen fave Harry Styles. It’s not just about the clothes they wear but their groomed appearance.
18-34 year old men are the biggest spenders and will drive growth in men’s skincare, haircare and fragrance.
6. Life After BB Creams
BB creams have peaked and the industry is looking around for the next big thing. Unfortunately, nothing will be as big as BB creams. As brands desperately trawl through the alphabet in search of something new, the novelty has worn off.
Products claiming multiple functionality will feature strongly for many skincare brands. It is conceivable that tinted versions will edge out foundations.
On the horizon are tinted serums, a clever way of capitalising on the above average growth of facial serums.
To share your predictions for the beauty industry in 2014, visit http://www.imogenmatthews.co.uk.
Contact IMA on:
t : +44 (0)1865 764 918
e : email@example.com
The Red Tree is the UK’s leading international beauty brand consultancy and a powerhouse of ideas, insight and inspiration. For an informal discussion on how we might help you, please contact us.
Middle East Beauty Hub
Explore our series of articles uncovering the intersection of tradition, innovation, and regulation within the nuanced Middle Eastern beauty markets.
Female Founders: The Lip Gloss Gap
Our series of articles highlighting how the UK beauty industry plays a vital part in closing the female fundraising gap.
New to the beauty industry? Our Founder Hub series brings together an array of articles covering topics from the costs of starting a new brand, to our recommended branding agencies.
Meet The Team
Get to know each of The Red Tree team members with our interview series. From our favourite campaigns to tips on how to enter the beauty industry.
Our series of articles exploring our fitness test for beauty brands. The unique RaceFit™ questionnaire allows you to quickly review the 7 building blocks crucial to brand success.
The Beauty Accelerator™
Read our series of articles focusing on The Beauty Accelerator™, which sees one emerging independent beauty brand receive equity investment plus the knowledge and expertise of The Red Tree.
Is RaceFit™ for me?
Is RaceFit™ right for my brand?
RaceFit™ assessment is beneficial to any brand at any stage of their journey. If you are: - A start up looking for direction and guidance - An established brand seeking an overall ‘health check’ - A brand in crisis urgently seeking direction on priorities - An international brand looking to expand into the UK market - A brand ready to take their ‘next step’ looking for guidance in preparation for growth, international expansion or expanding distribution then RaceFit™ is for you!
What if I am unsure of how to answer a question?
You should answer honestly and instinctively. Very often your initial response will be the most accurate. If you don’t understand a question, or are having difficulty knowing how to answer questions please do get in touch.Contact Us
I am based outside of the UK, can I complete RaceFit™?
Yes, the RaceFit™ self-assessment programme is entirely virtual so you can get started straight away, no matter where in the world you are.
Any company entering The Beauty Accelerator™ competition must be based and registered in the UK.
The scheme by which investment into the winning brand will be made is the Seed Enterprise Investment Scheme (SEIS). You must be eligible for SEIS to enter The Beauty Accelerator but you do not need to be registered for SEIS. You can be in the process of applying for SEIS and receiving Advanced Assurance from HMRC, which is free of charge to obtain and certifies to investors that the criteria necessary to qualify for SEIS have been met by the company at the time of the application. You do however need to be SEIS registered at the point of investment.Click here For further information about SEIS
As is the case with all equity investments, the winning brand must be willing to provide equity stakes for both SFC Capital and The Red Tree. In addition, the winning brand might be required to pay a monthly fee for the duration of the 12 month period of assistance from The Red Tree. The size of the equity stakes for both SFC Capital and The Red Tree are unknown at this stage and will be based on the valuation of the business at the time of investment. The value of the monthly fee to The Red Tree will be determined by the scope of work required by The Red Tree and will be agreed in consultation with the winning brand. The equity stake, monthly fee and scope of work will be discussed in further detail with short listed brands during the interview stage.
Brands that applied for The Beauty Accelerator™ 2022 can apply for The Beauty Accelerator™ 2024.
Applicant brands should ideally have proof of concept – the business should ideally be in operation with at least one product currently retailing on the market, an existing website in operation and a number of months of trading.
Under exceptional circumstances, brands that are at concept stage will be considered.
There should be a team in place or a willingness to take on a co-founder at an early stage.
A business plan must be in place and submitted as part of your application to demonstrate the revenue that can be delivered.
The business should not be valued at more than £1,000,000.
All R&D should be completed as funds invested will only be used for marketing and commercial activity.
If you are short listed, you must be available to attend the virtual shortlist interview. It is likely that short listed brands will be required to attend more than one virtual interview.
If you are a Finalist, you must be able to attend The Beauty Accelerator™ Final, either virtually or in-person.
You cannot apply for or already be in the process of applying for another accelerator or incubator during the period December 2023 to December 2024.
If you are selected as a finalist, and if you go on to win The Beauty Accelerator™, you must agree to exposure of you and your brand through The Red Tree’s, SFC Capital’s and Freeths online and social channels and a possible marketing campaign.
Confirmation of the winning brand is subject to SEIS eligibility confirmation, agreement on equity stake and The Red Tree fee, and completion of due diligence.
"*" indicates required fields