Specialist
Former VP at Coty Inc
Agenda
- Trends and developments in the European skincare industry – coronavirus impact and male customer growth
- Emerging skincare brands' competitive positioning vs legacy players, highlighting impact of Estée Lauder’s (NYSE: EL) acquisition of The Ordinary and Shiseido’s (TYO: 4911) acquisition of Drunk Elephant
- L’Oréal (PAR: OR) in the skincare category, highlighting strategy and Active Cosmetics Division
- Navigating evolving online customer preferences, cost inflation and sustainability considerations
Questions
1.
What happened to the European skincare landscape during the past 18 months? What have been the key trends?
2.
You mentioned a broadening audience, particularly with men. Was the pandemic a major driver behind this? Will this trend persist?
3.
Is male customer growth coming more from premium segments with brands such as Kiehl’s or is it spread across the market?
4.
You mentioned the disappearance of the cosmetics category has opened the door for more skincare. Does the heavy use of cosmetics sometimes cause a lot of damage to the skin and requires a moisturiser or a skincare regime to follow?
5.
To what extent has the skincare market in Europe grown since the pandemic began?
6.
You mentioned a 4% CAGR for Europe’s skincare market. Do you think this could increase over the next 1- 3 years?
7.
What will big players such as L’Oréal and Estée Lauder need to focus on to be part of or outpace the growth of Europe’s skincare market?
8.
How tough will it be for brands such as The Ordinary and Drunk Elephant to maintain their identities, following acquisitions by Estée Lauder in February 2021 and Shiseido in October 2019, respectively?
9.
It seems the younger brands are likely to be the key market winners but are owned by big backers. Do you think the big players have the right to win in this market, given they can acquire any forms of growth they want?
10.
Estée Lauder acquired The Ordinary and Shiseido acquired Drunk Elephant. Do you think L’Oréal needs to focus on acquiring one of these purpose-driven brands that are doing very well? Why do you think it hasn’t done so yet?
11.
Where does L’Oréal’s Active Cosmetics Division fit into the skincare landscape? It’s done exceptionally well for the company but is a different sub-category of skincare.
12.
I think L’Oréal’s Active Cosmetics Division has a unique route-to-market through real dermatologists. Route-to-market is an important part of strategy and something that has changed significantly through coronavirus given the rise of digital and consumers getting more screentime. How might players think about route-to-market? What key route-to-market elements and strategies might be most effective?
13.
I thought that the mass market channel and bricks-and-mortar especially took a hit pre-coronavirus, particularly companies such as Boots. Do you think that’s still the case?
14.
Have customer purchasing preferences changed with the shift online? Do customers lose the option to explore when purchasing online or does it offer more choice?
15.
Is the skincare industry experiencing the same cost price inflation and supply-chain issues as many other industries?
16.
How might inevitable price increases be passed through to customers? Will big players find this easier vs niche brands? Who has the pricing power in the market?
17.
Sustainability is a big consideration for consumers and companies. Is this starting to influence consumers’ buying decisions?
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