HEALTH-CONSCIOUS CONSUMERS

HEALTH IS THE FUTURE OF BEAUTY

HEALTH : DICHOTOMY

A GLOBAL MAIN FACTORS

CONCERN AROUND AFFECTING THE
THE WORLD QUALITY OF MY
SKIN

•1. STRESS 72%

▐ I have a growing need to protect my health •2. LACK OF SLEEP 72%
and my well being. •3. HORMONES VARIATION 54%
•(Totally agree) 96% •4. SUN 46%
•5. POLLUTION 44%
•6. « FAST FOOD » 41%
▐ I am preoccupied by my health a lot
•7. CIGARET 36%
• (Totally agree) 77%

• Source : Sociovision study 2012 – 9 countries - 26000 consumers

 HEALTH IS THE FUTURE OF BEAUTY
GROWING PATHOLO G IES

ALLERGIES ECZEMA

∎ Allergies are now considered as the 4th most

50 MILLIONS people
(In Europe only)

important chronic disease and it doubled 40% of children

Aged between the age of 3 and 12
over the last 20 years Y.O.

∎ For 74% of the women around the

world, the skin is the first place where the 2th most important reason
symptoms of allergies will appear. TO CONSULT A
DERMATOLOGIST

Sources : Association for Clinical researches about allergy and Asthme

(ARCAA) , WHO (2010), quantitative studyl’Oréal (France, All, USA, Brazil, China 3750 women
 HEALTH IS THE FUTURE OF BEAUTY
SAFETY & SENSITIVE SKIN: GLOBAL CONSUMER CONCERNS

SAFETY
IN TOP 5
MOST IMPORTANT SENSITIVE SKIN IS A LARGE CONSUMER CONCERN
SKINCARE PURCHASE
CRITERIA
FOR 65% OF WOMEN

*2013 L’Oréal survey - 6 countries: 750 women per country

**2012 IFOP Sensisurvey L’Oréal survey -7 countries: 9000 women
Source: ACD sensisurvey 2013 Women having a very much or somewhat sensitive skin
HEALTH-ORIENTED CONSUMER

A need of efficient, safe and professional solutions to answer

every type of expectation, from preserving to optimizing skin’s
health and beauty

KEY WORDS
Wellness
Health expertise
Preservation
Protection E-Health
Healthy lifestyle Medical endorsement
Safety
Skin issues Youth
Naturalness Performance
Vitality Trust in science /
technology
Balance Sustainability
Body & Soul Transformation
5
DERMOCOSMETICS USER: WHO IS SHE ?

• They are rather well-off

• 41% upper middle class vs. 33% out of the total population

• They are health-conscious

• 79% of them do more and more to stay in better health

• 71% of them are health and wellness influencers

• They care about natural ingredients and sustainability

• 84% of them look for skincare products that contain natural

ingredients

• 62% of them support a humanitarian or environmental causes

Source: Consumer profiler survey - Sociovision L'Oréal 2015:

6 15 countries; 1,000 women in each country 18 years old or older
 WHO IS THE “HEALTHY CONSUMER” ?
35% of w omen w orldw ide use dermocosmetics brands as skincare
HIGHLY INVOLVED DEMAND FOR HEALTHY
CUSTOMER ADVICE
• 56% of them need advice from professionals with a medical
• Use 3,67 (vs 2,8) SKINCARE products/day background to take care of their skin
• for 42% of them, dermatologists are their main trusted source for
• Use 2,54 (vs 2,08) MAKE-UP products/day skincare advice

• 37% (vs 29%) products w. 100% NATURAL INGREDIENTS • 39% look for advice on internet

• 41% upper middle class vs. 33% of the total population

HEALTHY SKINCARE & MAKE-UP ARE KEY SKIN PROBLEMS & CONDITIONS

• I increasingly use skincare as a form of protection or a shield for my • 42% of « Dermo-cosmetics » users don’t have any skin problem
skin (against pollution, dust, wind, heat...) 62% vs 48% For them, skincare means… They mostly use…
• Fresh - 56% • Moisturizing products - 58%
• I'm increasingly worried about skincare products containing harmful
ingredients 70% vs 55% • Protected - 53% • Deep cleansing products - 36%
• Pure, detoxed - 40% • Anti-wrinkles - 27%
• I am worried about how healthy makeup are 53% vs 45%
• Rejuvenated - 43% • Anti-UV - 24%
• Resplendent - 44% • Anti-acne - 19%

SHOPPING BEHAVIOR

. Purchase is highly pre-planned : 80% of purchases are planned (52% knew exactly what product they were going to buy before )
. Healthy consumers are not captive : they shop their skincare brands across different channels according to the different benefits they identify for each of them
. The most influential touchpoints on purchase for dermo cosmetic face care are : dermatologist recommendation, advisor in store, sales events, gifting, samples, testers, brand websites

Source: Consumer Profiler Survey – Sociovision/L’Oréal 2015

Ipsos Path to Purchase 2016
 POTENTIAL CONSUMERS TERRITORY
Construction of Segments
WOMEN WITH WOMEN WITH
HEALTH-RELATED HABITS SKIN PROBLEMS

Does at least 3 of the following things:

- Physical exercise (does at least once or twice a month) indoor
exercise/outdoor exercise OR Does physical exercise (jogging,
fitness) (every day or so) At least one of the following items:
- Mental wellbeing (does at least once or twice a month) relaxation
and meditation OR Does yoga/meditation/tai-chi (at least 1-3 - Suffers from severe skin problems
times a week) - Suffers from skin conditions induced by allergies
- E-health (does at least once or twice a month) using wellness
- Sensitive skin (5 and more on a 7-pt scale)
devices OR (does regularly) using websites etc. to get advice on
- Skincare function used: anti-pimples
my wellbeing/ using websites etc. to monitor my health and
wellbeing OR Using health services medical websites (at least once - Skincare function used: anti-redness and
a week) broken veins
- (does regularly) using products with 100% natural ingredients - Skincare function used: reducing skin sensitivity
- Visits a dermatologist's at least every 3 months - Skincare function used: reducing scars and
- Visits a pharmacist’s at least once a month marks
- (does at least once or twice a month) Regular sleeping habits
- Skincare function used: repairing damaged
- I take regular care of my skin to maintain it in good health (strongly
skin
agree)
- Health orientation I spend more and more money to be/stay in the - Has a dry or very dry skin AND uses the
best possible health OR I do more and more things to stay in the skincare function “optimization for very dry
best possible health (strongly agree) skins”
- Healthy diet I am very careful to have a healthy, balanced diet
(strongly agree)
IDENTIFYING POTENTIAL ACD CUSTOMERS
OVERVIEW OF THE PROCESS

1 2 3
Total Women – 15 Countries Health Perimeter Health Perimeter
Healthy Habits or Skin Problems Healthy Habits or Skin Problems

460 M women (23% in Europe) 350 M women (23% in Europe)

8 potential territories
76% Women

56% * 54%*
SOURCE DATABASE have have
healthy 34% skin
15,691 women 18+ habits problems

from
Consumer Profiler
Benchmark Survey*

*Among 100% of total women the sample : 43% have healthy habits /41% have skin problems / 26% have both
 KEY INSIGHT THE HEALTH CONSUMERS
The one dimension which most
separates Types is whether they
seek preservation (bottom of
PYRAMID
the pyramid) or are dedicated TRANSFORMATION
to self-transformation (top).

However, on one given layer of

the pyramid, motivations,
AUGMENTATION
routines and relations to health
and to health professionals may
vary widely.

PERSONAL PERFORMANCE
ENHANCEMENT BOOST

HEALTHY LOOK AUTONOMOUS

WITH MEDICAL PROS HOLISTIC HEALTH

FATALISM PROTECTION
(IF YOU’RE LUCKY,
YOU’RE HEALTHY)

PRESERVATION
Protection comes as the 1st reason to use skincare product, in all countries.
It’s combined with preservation, except in Brazil where treatment is ranked 2 ; in China
Transformation is more valued than everywhere else.

n=1002 n=1000 n=1009 n=1000 n=1158

% - Reasons to use skincare

Protect my skin 93% 94 Protect my skin 95% Protect my skin 95% Protect my skin 96%
Protect my skin
Preserve my skin 86% % Preserve my skin 85% Treat my skin 89% Preserve my skin 90%
Treat my skin 78% 90 Treat my skin 65% Preserve my skin 86% Transform my skin 68%
Preserve my skin
%
Transform my skin 56% Transform my skin 30% Transform my skin 51% Treat my skin 43%
57
Treat my skin
%
19
Transform my skin
%

E4 – Why do you use skincare? I use skincare products so that my skin is... (Top3 % First choice)
E5 – Why do you use skincare? I use skincare in order to… ‘Yes’
 In the trade-off between Tolerance vs. Performance, Tolerance prevails in
France, Germany and Brazil. US and in China are more balanced.

n=1002 n=1000 n=1009 n=1000 n=1158

% - Trade off between Net Tolerance and Net Performance

Firstly tolerance for my

Firstly tolerance Firstly tolerance Firstly tolerance Firstly tolerance
skin even if results + 18-24 yo: 52%
are less visible + 50+ yo: 74% + severe skin issue: 50%
+ 50+ yo: 69%
+ health issue: 48%
+ med. treatment: 56%

57 73 68 62 56

43 27 32 38 44
+ 16-24 yo: 34%
+ severe skin issue: 38%
+ severe skin issue: 31%
Firstly to get efficient
results even if it’s less Firstly to get Firstly to get Firstly to get Firstly to get
natural for my skin efficient results efficient results efficient results efficient results

F1 – Trade off Performance vs Tolerance: What do you look for in priority in your beauty products?
(4 pts scale)

13
 Trade off : long-term results are more valued than short-term correction.
Brazil differs a bit, with an equal quest of long-term prevention vs short-term
correction.

n=1002 n=1000 n=1009 n=1000 n=1158

% - Trade off between Net Long term prevention vs Net Short term correction
Long-term prevention: you
do what is necessary
before problems occur, Long-term prevention Long-term prevention Long-term prevention Long-term prevention
you anticipate.
+ 50+ yo: 70% + 35-50 yo: 74%
+ 50+ yo: 74%

65 63 65 52 69

35 37 35 48 31
+ 16-24 yo: 49%
+ health issue: 42% + skin issue: 38% + health issue: 35%
+ severe skin issue: 42%

Short-term correction: you Short-term correction Short-term correction Short-term correction Short-term correction
treat yourself only when you
have problems, to correct
them.

F2 – Trade off Long term vs Short term: In your beauty routines, what is your priority? (4 pts scale)

14
 Trade-off between natural and simple products vs advanced ones : there is a
clear choice for simplicity and naturalness, except in Brazil.

n=1002 n=1000 n=1009 n=1000 n=1158

% - Trade off between Net Simple/Natural vs Net Most Advanced/Innovative

Simple and natural Simple and natural Simple and natural Simple and natural Simple and natural
beauty products beauty products beauty products beauty products beauty products

+ 60+ yo: 76% + Sensitive to naturalness (88%)* + Sensitive to naturalness (87%)* + Sensitive to naturalness (68%)* + Sensitive to naturalness (79%)*
+ Sensitive to naturalness (89%)*

67 72 71 65
48
33 28 29 35
52
+ skin nature : 34% + health issue: 41%
+ med. treatment: 46%
Most advanced / Most advanced / Most advanced / Most advanced / Most advanced /
innovative beauty products innovative beauty products innovative beauty products innovative beauty products innovative beauty products

+ - Significant differences at 90% vs Total country // *this group is defined by this item
G1 – Trade off Natural vs Advanced products: What do you prefer? (4 pts scale)

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 … ideal products is about preserving and strengthening skin for long term.
• UNITED STATES • FRANCE • GERMANY • BRAZIL • CHINA
Be easy to apply on my skin 57% Not pollute the environment 53% Be pleasant to use 55% Claim a health benefit 54% Claim a health benefit 63%
Treat skin issues for the long 57% Be pleasant to use 49% Be easy to apply on my skin 55% Help strengthen skin/hair 53% Be pleasant to use 54%
term resistance
Act deeply and help treat
Be pleasant to use 51% problems at the source and 48% Not pollute the environment 51% Not pollute the environment 52% Be even better tailored to my 52%
restore the skin/hair from skin/hair type, my problem
within
Act deeply and help treat
Preserve the youth of my skin as 49% Treat skin issues for the long 44% Treat skin issues for the long 50% Have efficacy that has been 52% problems at the source and 48%
much as possible term term proven in real life situations restore the skin/hair from
within
Act deeply and help treat
Help strengthen skin/hair 46% Be easy to apply on my skin 42% problems at the source and 49% Have clinically tested proof of 47% Preserve the youth of my skin as 45%
resistance restore the skin/hair from efficacy much as possible
within

Not pollute the environment 45% Have efficacy that has been 41% Claim a health benefit 47% Be pleasant to use 45% Treat skin issues for the long 44%
proven in real life situations term
Act deeply and help treat
problems at the source and 44% Preserve the youth of my skin as 39% Help strengthen skin/hair 45% Treat skin issues for the long 45% Help strengthen skin/hair 37%
restore the skin/hair from much as possible resistance term resistance
within
Have clinically tested proof of 42% Be even better tailored to my 36% Have clinically tested proof of 36% Be easy to apply on my skin 45% Not pollute the environment 33%
efficacy skin/hair type, my problem efficacy
Have more immediate results on 41% Help strengthen skin/hair 35% Smell nice 36% Smell nice 42% Be easy to apply on my skin 29%
my skin resistance
Be even better tailored to my 38% Have clinically tested proof of 33% Have more immediate results on 33% Be recommended by health 41% Have efficacy that has been 29%
skin/hair type, my problem efficacy my skin professionals proven in real life situations
Act deeply and help treat
Have efficacy that has been 35% Have more immediate results on 31% Have efficacy that has been 33% problems at the source and 41% Have more immediate results on 25%
proven in real life situations my skin proven in real life situations restore the skin/hair from my skin
within
Preserve the youth of my skin as Preserve the youth of my skin as Have clinically tested proof of
G2
Smell nice – I expect beauty
35% products
Smell nice in the future to… (Multiple
30% answers)
much as possible 32% much as possible 40% efficacy 25%
Be particularly credible in their 29% Claim a health benefit 27% Be even better tailored to my 31% Have more immediate results on 38% Be particularly credible in their 21%
advertising and promises skin/hair type, my problem my skin advertising and promises
Claim a health benefit 26% Be particularly credible in their 24% Be recommended by health 17% Be even better tailored to my 37% Be recommended by health 20%
advertising and promises professionals skin/hair type, my problem professionals
Be recommended by health 24% Be recommended by health 24% Be particularly credible in their 12% Be particularly credible in their 25% Smell nice 19%
professionals professionals advertising and promises advertising and promises
Be customizable/so I can add my 19% Be customizable/so I can add my 8% Be customizable/so I can add my 6% Be customizable/so I can add my 13% Be customizable/so I can add my 18%
personal touch (DIY) personal touch (DIY) personal touch (DIY) personal touch (DIY) personal touch (DIY)
16 At least one answer 95% At least one answer 96% At least one answer 96% At least one answer 98% At least one answer 99%
Mean answers 6,7 Mean answers 5,9 Mean answers 6,1 Mean answers 6,9 Mean answers 5,7
 Thus quest of protection, naturalness and long-term prevention is accompanied
by a need for education and knowledge of skin concerns

n=1002 n=1000 n=1009 n=1000 n=1158

Top 3 country - Expectations towards beauty services
Education on skin Better knowledge of Precise routine Education on skin Better knowledge of
39 43%
concerns, ageing my needs and my recommendations concerns, ageing my needs and my 68%
%
and preventive 48% routines Education on skin and preventive 56% routines
actions (allergies, High level and concerns, ageing actions (allergies, Education on skin
34
cancer, pollution...) personalized skin and preventive 40% cancer, pollution...) concerns, ageing and
%
Better knowledge of diagnosis actions (allergies, Better knowledge of preventive actions 59%
my needs and my 47% Education on skin cancer, pollution...) my needs and my 47% (allergies, cancer,
routines concerns, ageing and High level and routines pollution...)
34
High level and preventive actions personalized skin 37% Warnings on my skin Precise routine
% 58%
personalized skin 36% (allergies, cancer, diagnosis enemies (exposition recommendations
diagnosis pollution...) to sun, air pollution,
44%
external
temperature,
Mean answers 2,6 Mean answers 2,3 Mean answers 2,6 Mean answers
humidity level) 2,8 Mean answers 3,1

G2 – I expect beauty services in the future to be… (Multiple answers)

17