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Take note Market trends & indicators A snapshot of the latest market facts, fgures and trends Market trends More internet pure-play brands in the US are venturing into The use of food ingredients in cosmetics the physical world, underlining the relevance of brick-and-mortar, is expected to continue growing, driven by according to a report by market-researcher Kline & Co. The report consumer demand for natural/nutrient-rich notes that while e-commerce is the fastest-growing retail channel in cosmetics and products with health benefts. the US beauty market with a CAGR of 24% since 2009, it still only However, Organic Monitor highlights that this accounts for 8% of total beauty and personal-care sales. trend carries sustainability issues. Kline cites examples of online subscription sampling company The UK-based market researcher asks Birchbox opening a store in New York in 2014, followed by pop- whether food crops should be grown for up stores, and the Violet Grey brand, which offers edited beauty cosmetics, while parts of the world suffer collections online, opening a store in Los Angeles. Online natural from food poverty. It suggests using food by-products as a solution, retailer Credo also launched a store in San Francisco. stating that nutrient-rich agricultural materials wasted in food In addition, brands that were once only sold through infomercials, production can be used in cosmetics. The company cites Caudalie, such as Guthy-Renker’s Meaningful Beauty and WEN, can now also with its grapevine-based cosmetics. Similar by-products from coffee, be found in Sephora and Ulta. olives and citrus fruits are being used by natural cosmetic frms. The average community size for beauty Some 33% of French consumers expect storytelling from brands on Instagram grew by 30% beauty brands, according to a survey carried out by consulting to over 600,000 followers in the second frm Promise for communications agency 79C (formerly quarter of 2015, according to a report Carlin Communication). by L2 Think Tank. However, engagement Some 26% of consumers pay attention to these stories in shop rates for beauty brands have declined. windows and in the store itself, and 9% estimate that they are Nevertheless, these remain higher on effective when recounting the brand’s creation and traditional Instagram than Twitter and Facebook values. French cosmetics brand L’Occitane is cited as an example for beauty brands tracked by L2. Between October 2013 and July of a beauty company that has understood this—the brand makes 2015, the percentage of beauty brands present on Instagram much of its traditions from the south of France. increased from 78% to 95%. Between the second quarter of 2014 The survey revealed that while 49% of respondents cited the and the second quarter of 2015, frequency of posts by beauty quality of products and services offered by beauty brands as brands tracked by L2 grew by 42%. Instagram says its platform has the most important purchase criteria, more than 20% of French 300 million active monthly users, who confer 2.5 billion ‘likes’ daily. consumers seek interaction and dialogue with brands. 22 November-December 2015 - N°24 - BW Confidential