36-55 year-olds not to be missed for Mother's Day sales
Mother’s day is coming up soon, but Taiwan’s cosmetic manufacturers had been keeping the market busy since March, introducing various promotion sales including TV commercials, early discounts etc., all in preparation for the biggest retail event of first half of the year. Based on the latest beauty trend released, Kantar Worldpanel Taiwan pointed out to drive sales for the cosmetic market*, targeting the needs of women age 36-55 year-old will be vital. Amid flat market performance for past two years, age 36-55’s spending continued strong, with growth in both buyer penetration and number of brands purchased. In comparison, women age 26-35, who used to have the highest share in the cosmetic market, is seeing decline in sales importance.
Younger buyers spend conservatively, while age 36-55 actively experiment
Kantar Worldpanel Beauty** observed that cautious spending from age 35 and below are the key reason behind recent flat market performance; these ladies have been cutting back spending on makeup items for the past three years, and facial skincare has also fallen to the same fate since last year. On contrary, women age 36 and above have been increasing their spending, contributed by more shopping trips for both makeup and facial skincare. Kantar Worldpanel’s data found these women’s 1-2 times more per year, which is an equivalent of NTD3.2 billion in market value!
While relatively stronger spending power than younger generation maybe a factor, growing willingness to experiment with different brands is also an important contributing factor. In the past, older women tend to be more fond of luxury counter brands, but Kantar Worldpanel has discovered that the number of purchased brands for Age 36-55 has increased by over 100 compared to three years ago, and amongst them increasing preference for mass brands was also observed. Other than the more prestigious mass derma brands, these older ladies are not shy to try out cheap brands with the NTD600 price range, the continuous improvement of mass brand products that promises equally high-end results, is believed to the key factor that attracted these ladies’ attention.
Different time preference for different age, younger ladies go for counter, mature girls trial out mass
Looking back on Taiwan’s cosmetic sales performance for 2013, Kantar Worldpanel found that focus on seasonal sales is still apparent. Last year, although Q1 first performance hit an extra low patch, remaining quarters shown strong performance much thanks seasonal promotions including Mother’s Day, Derma Day and Department Anniversary Sales, sustaining the annual sales performance at the 2012’s level. Kantar Worldpanel further pointed out that choice of purchase time frame is also showing divergence by different age group, therefore picking the right target group at the right time will be an important factor to take into account when planning marketing communications. 15-25 year-olds are still declining in buyer number, but those who are still willing to spend are investing big dollars on more high priced products; 26-35 year-olds are relatively more focused on Q2 and Q3 sales, with more purchase for cheaper mass brands, and declining preference of Department Anniversary; 36 and above are a force not to ignore! They are spending more, experimenting more with various brands, and not focusing on just counter brands anymore, this trend is especially obvious with the 46-55 year-olds, whose mass brand share importance surpassed 20% for the first time, equivalent of a whopping NTD 4 billion in market value.
Based on the observation of 2013’s trends, Kantar Worldpanel predicts that age 36-55 will still be a key force in driving Taiwan’s cosmetic market performance. And compare to makeup, skincare will remain the key driving sector, with focus on basic hydration and anti-aging care. Furthermore, the growing divergence in brand preference will only mean a more competitive market, thus other than appropriately communicate brand stories, highlighting product advantages combined with correct sales timing are also growing factors that cannot be ignored.
* The definition of beauty industry covers categories including facial skincare, makeup and nail polish, it does not include non-makeup suncare or body care.
**About Kantar Worldpanel Beauty, please see http://www.kantarworldpanel.com/tw/sectors/lady-panel
***Extended reading: The Cosmetic Market 2013H1: Weak sales as cautious customers tone down spending (http://goo.gl/9jA40S)
To quote above article for any purpose please state the source as Kantar Worldpanel Taiwan