Specialist
Executive at Pacifica Beauty LLC
Agenda
- Q1 2022 industry trends and developments in the North America beauty industry
- Competitive landscape and potential market share shifts
- Channel dynamics – online vs bricks-and-mortar, including travel retail recovery
- Mid-to-long-term growth outlook
Questions
1.
What growth or decline has the broader beauty industry experienced in Q1 2022? What is your Q2 2022 outlook?
2.
Could you break down your Q1 2022 growth or decline outlook across prestige, masstige and mass?
3.
Which brands do you find to be the clear winners and losers in the prestige, masstige and mass categories?
4.
What are your thoughts on growth and decline for Q1 2022 and outlook for Q2 2022 across colour cosmetics, make-up, skincare, fragrances and haircare?
5.
What might be the underlying drivers behind the biggest growing and declining categories within the industry?
6.
Which brands do you think are clear winners and losers in each of the categories we’ve discussed?
7.
How did the channel sales mix split in Q1 2022? How much of that can carry over into Q2 2022 across online vs bricks-and-mortar sales?
8.
Could you outline the broader market share gains and losses in North America in Q1 2022? How can that translate into similar or different trends for Q2 2022 across larger brands including Estée Lauder, Procter & Gamble, Coty, L’Oréal, Revlon and Elf?
9.
How did smaller or indie brands perform in Q1 2022? What are your expectations for market share gains and losses in Q2 2022?
10.
Could you outline the threat of smaller or indie brands taking a bite out of the bigger, more established beauty labels? Is that on your radar as a key risk?
11.
Could you outline the promotional environment in Q1 2022? Should we compare that to Q1 2021 or if it make more sense, can compare it to Q4 2021?
12.
Promotions aside, how did marketing spending play out in Q1 2022?
13.
Can you elaborate on product launches in Q1 2022? You mentioned you saw less of them.
14.
Were there any specific launches in Q1 2022 that surprised you or were particular standouts?
15.
Are there any new product innovations that stood out to you over the course of Q1 2022?
16.
What is the next innovation that you believe will drive category growth?
17.
Is there any sort of risk of daily make-up item counts dropping to a simpler routine, from the peak with techniques such as contouring? How do we think about items’ daily utilisation in the context of innovation here?
18.
What percentage of sales tends to come from new launches?
19.
What would be a bad situation to be in at minimum from a new launch?
20.
What are your thoughts on Ulta and its vendor relationships? You seemed positive about the company earlier.
21.
What assumptions could we make about Ulta potentially increasing its demands from vendors or partners in the form of financial support?
22.
What are your thoughts on the Ulta offering at Target? How has it performed so far?
23.
Which other retailers or distributors do you consider well-positioned in the current environment, given the high inflation, rising input prices and supply chain issues?
24.
Could Amazon be a credible threat, biting at any Ulta market share?
25.
What’s the relative strength of the Amazon-branded products or Amazon-branded beauty?
26.
Have any brands made a concerted effort to increase D2C sales at the expense of selling through retail partners? If so, how should we think of the relative performance there?
27.
Do you expect any import restrictions or other political risks for supplies out of China?
28.
What’s happening with manufacturing facilities in regions currently in lockdown?
29.
At what frequency do finished goods prices typically get adjusted? Is it on a batch-by-batch basis, or is the price honoured for the lifetime of an SKU or an annual product?
30.
How aggressive can a company such as Elf get with pricing?
31.
How do retailers tend to view shelf space for a player such as Elf? Is it viewed more as a value brand or as being more constrained in a weaker consumer environment?
Gain access to Premium Content
Submit your details to access up to 5 Forum Transcripts or to request a complimentary 48 hour week trial
The information, material and content contained in this transcript (“Content”) is for information purposes only and does not constitute advice of any type or a trade recommendation and should not form the basis of any investment decision.This transcript has been edited by Third Bridge for ease of reading. Third Bridge Group Limited and its affiliates (together “Third Bridge”) make no representation and accept no liability for the Contentor for any errors, omissions or inaccuracies in respect of it. The views of the specialist expressed in the Content are those of the specialist and they are not endorsed by, nor do they represent the opinion of, Third Bridge. Third Bridge reserves all copyright, intellectual and other property rights in the Content. Any modification, reformatting, copying, displaying, distributing, transmitting, publishing, licensing, creating derivative works from, transferring or selling any Content is strictly prohibited
