STOREDITS , MAKE-UP and

A research report by the Shop! Global Network

Sponsored by Platinum sponsor

Prepared by Gold sponsors STOREDITS SKIN CARE, MAKE-UP and COSMETICS

Storedits Letter from Todd

Our goal at Shop! Environments We hope you find this comprehensive Association is to provide retailers and report helpful as you collaborate and brands with fresh ideas to meet their build alliances with retailers in this customers’ untapped needs by using competitive market. Shop! member products and services. “Collaboration & Alliances” is one of If you have questions about this or six vital trends we’ve identified other Shop! research reports, feel as necessary to thrive in today’s free to reach out to me (tdittman@ challenging retail environment. shopassociation.org) or Madeline Baumgartner, Director of Education This research project underscores & Research, at mbaumgartner@ how strong alliances among our Shop! shopassociation.org. Global Network members can result in A special thank you to the creation of an essential tool for the Thank you! our sponsors WestRock, industry at large. Storedits (stor-ditz) Duraco and Hera Lighting is an analytical qualitative survey of for their ongoing support retail space conducted by the Shop! of the Storedits program. Global Network. For several years, this We also thank the staff study has been identifying how POP Todd Dittman, at POPAI UK & Ireland displays are being deployed in different Executive Director Shop! for managing the project, categories and retail channels across providing analysis and the world. This year, it was expanded writing the report, as well throughout North America and covers as other members of the the explosive market of skin care and make-up/cosmetics. Shop! Global Network who conducted the field work. The total global cosmetic products Without their contributions, market, which includes , oral this project would not have and fragrances, was valued at USD For more information about this topic, been possible. 532.4 billion in 2017. This burgeoning please visit Shop! market is expected to reach a market Website: shopassociation.org value of USD 805.6 billion by 2023. Email: [email protected] The study results reveal contributions or call Madeline Baumgartner, from global Shop! members to Shop! Director of Education & the growth of this market through Research on 312-863-2917. innovative displays and marketing.

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Contents

Introduction 4 Executive Summary 5 The Global Cosmetics and Skin Care Market 6 Industry Trends 9 Display Trends 11 Market Data 13 In-store Research 17 Display Types and Distribution 18 Display Characteristics 23 Conclusion 30 Recommendations 31 Sources 31 Glossary of Terms 32

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Introduction

The cosmetics and skin care market is one in which physical stores play a huge part. When buying these products, we like to see, touch, smell and test – something which we cannot do online. Despite global economic uncertainty, this category is consistently resilient, with a continuing focus on our looks combining with new and emerging trends to keep the market buoyant.

Increased disposable income in traditionally poorer countries, an aging population, the growing trend for men’s grooming products and increased innovation offering new ways to try and buy, all mean that brands and retailers can find ever more audiences to reach.

Although dominated by the big top ten players, new entrants are constantly seeking to join this highly competitive market, particularly those with a focus on anti-aging products.

In-store promotional materials have a clear task and focus.

Attracting shoppers to the product

NEW Introducing new products Our research Increasing product and category Storedits (stor-ditz) is an analytical The research set out to identify the following sales qualitative survey of retail space conducted aspects of POP display use in different by the Shop! Global Network. It has been retail environments. used for several years to identify how Creating impulse purchase and • Location in-store of POP display POP display is being employed in different cross-sell opportunities categories and retail channels across the • Type of POP used world. It is not, however, a full audit of this • Use of digital screens space and display materials therein; rather, it Enhancing co-branding • Types of messaging and information targets specific areas to identify trends and being communicated understand how displays and promotional Offering shoppers a more engaging messaging are being used by brands and • Color brand experience retailers to appeal to and influence the • Single or multiple brand use shopper in-store. POPAI UK & Ireland also undertook desktop Our research explored the current and This research into the cosmetics and skin research and consulted industry experts changing global trends, seeking to care industry follows last year’s consumer to understand the current position of the understand the role of POP across the electronics report, but has been expanded global cosmetics and skin care market and world and to discover, when it comes to to cover 13 countries in Asia, Europe and to investigate existing and predicted trends cosmetics and skin care: what does good North America. that may impact these categories. really look like?

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Executive Summary

Physical stores are a key aspect of the global cosmetics and skin care categories, with shopper demand for ‘try before you buy’ placing them ahead of online retailers. Global sales in both categories are forecast to grow, with this growth driven by a number of positive consumer trends as well as the population growth in emerging markets.

Our research explored the current and changing global trends, seeking to understand the role of POP across the world. We covered 13 countries across Europe, Asia and North America.

The sector has been traditionally resilient, proving less susceptible to economic downturns than other fast-moving consumer goods categories. A continuing influx of new entrants to the market is keeping it buoyant and fresh, introducing new and innovative products. However, the market remains dominated by the top ten leading companies.

While communicating product information is ever more important for new and innovative products, pressure remains for displays to hold as much stock as possible. This often results in challenging design decisions to determine how best to use space on display equipment.

The use, type and placement of cosmetics and skin care displays was fairly consistent across all the countries surveyed, generally with just two or three exceptions in each case.

Cosmetics and skin care POP displays were widely used across all the retail channels surveyed, with a varied range of display types seen.

POP display plays a vital role in helping shoppers navigate the numerous and varied products across categories. While a large amount of display equipment was seen in most retailers, the vast majority of it was Tester facilities play a key role in displays, along displays, often at the expense of clear and concentrated in the main cosmetics and with lighting, which has a dual role of attracting bold branding. skin care trading areas, with relatively few shoppers to displays and displays seen elsewhere in stores. highlighting products. Digital technology has not yet been widely adopted. While it has the potential to address Permanent display equipment was by far the Retailers continue to influence the size, design some of the product information issues, the most prevalent, proving three times more and placement of cosmetics and skin care technical challenges of centrally controlling popular than temporary display. content is restricting its use.

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The Global Breakdown of the cosmetic market worldwide 2011-2017, by geographic zone Cosmetics and Asia-Pacific North America Western Europe Latin America Eastern Europe Africa & Middle East Skin Care Market 100 80

60 Skin care, make-up, hair care, fragrances, sun care... it seems that looking good 40

and protecting our skin is something of an Market share (%) international inclination. 20 This is reflected in the figures. The global cosmetic products market looks set to 0 2011 2012 2013 2014 2015 2016 2017 continue to thrive – valued at $532.4bn in 2017, Geographic region it is expected to reach $805.6bn by 2023. Source: Statista – Cosmetics Industry Worldwide – 2016

A predicted 51% Annual global growth across the whole increase for the global category since 2004 has varied, from a cosmetics and skin low of 1% in 2009 to a high of 5% in 2007. $805.6bn Growth for 2017 is estimated at 5%, with a $532.4bn care market by 2023 2017 2018 2019 2020 2021 2022 2023 4% average for the whole period.

The Asia-Pacific region holds the highest Worldwide economic events have traditionally market share, having gradually reinforced affected categories within the wider cosmetics that position since 2011, as shown in the and beauty market, with periods of sales graph above. growth and decline at country levels. Skin care is the global top priority, taking However, skin care, color cosmetics, eye the highest market share within all beauty make-up, and have been categories, followed by hair care and color resilient, buoyed by the continuing and growing cosmetics. The graph below details the use of products by women and, increasingly, relative shares of the global beauty market by men across the world. by category.

Global beauty market value by category 2016

Sales value in US$ billion

Skin care 116.5

Hair care 72.5

Color cosmetics 61.5

Men’s grooming 48.5

Fragrances 47

Oral care 42.5

Bath & shower 39

Deodorants 20.5

Source:Baby &Statista child – Cosmetics16 Industry Worldwide – 2016

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This hierarchy looks set to continue. The Global skin care market size 2012-2024 global skin care market has experienced steady growth since 2012, which is forecast to continue to 2024. The color cosmetics 180.3 171.7 market has also experienced a sustained, 163.5 155.8 albeit slower, sales increase. These graphs 148.3 141.3 134.5 (left) show these increases. 128.1 122.0 110.7 116.2 99.6 103.0 Mass beauty holds sway in most markets, with the premium category far more popular in North America and equally important in

Market size (US$ billion) Western Europe and Australia, as shown in the graph below.

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Source: Statista – Cosmetics Industry Worldwide – 2016 Sales growth of premium and mass Global make-up market size 2012-2024 beauty products 2016-2021

Sales growth (US$ million) 84.5 81.6 76.2 78.8 71.1 73.6 66.4 68.7 8,600 60.7 64.1 55.0 56.9 57.4 Asia- Pacific 14,900 Market size (US$ billion) 1,000 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Latin America 9,600 Source: Statista – Cosmetics Industry Worldwide – 2016

2,800 Western Europe 2,800 Mass beauty Premium beauty 1,000 Middle East & Africa 2,700

5,700 North America 2,700

400 Eastern Europe 1,600

400 Australasia 400

Source: Statista – Cosmetics Industry Worldwide – 2016

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Renowned Market Leaders The cosmetics market is not as fickle as Top ten global beauty companies we might think, with the top ten leading companies being market leaders for decades. 31.2 These, along with smaller companies across the globe, are thriving on the diversity of 24.8 products and demographics at their disposal. 13.7 The top ten cosmetics companies all turn 12.4 9.4

urnover (US$ billion) 8.9 over in excess of $5bn and are a mixture of T 6.9 6.7 6.1 5.6 specialist beauty companies and those with wider portfolios, including food, household and luxury products.

Source: beautypackaging.com – based on 2017 data (sales include only cosmetics, fragrance and personal care items)

One of world’s largest cosmetics companies and top beauty brands, L’Oréal was founded Beiersdorf was founded in 1882 and has a wide in 1909. Its product range includes color range of personal care products, including skin cosmetics, skin care, hair care, sun care and Procter and Gamble (P&G) holds care and body care brands. Some of its most high- fragrances. As well as its key brands L’Oréal a significant position in the skin profile brands include , Eucerin, Labello, Paris, and New York, the care industry with many well- Florena and La Prairie. The company operates company also sells luxury brands including known brands, including Ivory, across different markets including the mass Lancôme, Giorgio Armani and Yves Saint Olay, Safeguard and Secret, market, dermocosmetics and premium cosmetics. Laurent Beauté. offering a wide range of beauty and personal care products.

LVMH is one of the world’s leading luxury products group, and its cosmetics and business grew by 12% in 2017. Driving the make-up A big player in fragrance and segment was growth in brands such as professional hair care as well Dior, Dior Addict and . Unilever is one of the largest consumer as color cosmetics, Coty owns goods companies in the world. It has also brands such as Adidas, Clairol, carved a place for itself in the cosmetics CoverGirl, David Beckham, Katy industry, with popular brands such as Axe/ Perry, , London, Lynx, Dove, Lifebuoy, Pond’s, Closeup, Sally Hansen and . It also TRESemmé, Suave, Sunsilk and . owns the luxury brands Marc In 2017, Unilever announced the creation of Perhaps best known as a pharmaceutical company Jacobs, Calvin Klein, Chloé, Gucci, Unilever Cosmetics International to extend with several baby product ranges, Johnson & Hugo Boss and philosophy. its global portfolio of prestige beauty and Johnson (J&J) has also become known globally for its fragrance brands. beauty brands, including and Aveeno.

Founded in 1872 in Ginza, Tokyo, was the first Western-style pharmacy in Based in , Amorepacific focuses primarily Japan, producing personal care on developing natural beauty products and has Estée Lauder was founded in the products including skin care, benefitted from the recent K-beauty trend – the 1940s and is one of the world’s leading fragrance, hair care, sun care, rise of Korean make-up in the West. It launched manufacturers and marketers of quality body care and make-up. Its most its cosmetics brand Amorepacific in 2002 and is skin care, make-up, fragrance and hair care popular brands include Shiseido, growing rapidly, with increasing demand for its most products. Its diverse portfolio of over 25 Za, Senka, Anessa, Sea Breeze, popular brands, which include Sulwhasoo, , brands is sold in 150 countries. NARS, and Bare Escentuals. , , and Annick Goutal.

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Industry Trends

Forever Young This has been supported by aggressive Enhanced Technology An aging world population is a key factor in the marketing strategies and promotional Technology is pervading almost every growth of the cosmetics market, with the global campaigns aimed at men which, together area of retail, and the cosmetics industry population of those aged 60 and over estimated with the influence of social media and male is no different. High-tech beauty devices to reach 2.1bn by 2050. grooming magazines, keeps them much are becoming much more prevalent, more informed about the latest trends in the offering consumers clever new ways to Life expectancy for women is expected to cosmetics industry then they have been in integrate their personal care routines into increase by three-and-a-half years to 86.3, the past. their homes using technology. and for men by over five years, to 83.6. With an almost universal desire amongst men and Combination Skin women to retain their youthful looks, there is Multifunctional cosmetics, such as products Developments include: expected to be a corresponding growth in sales which combine both skin care properties and of anti-aging products to reduce wrinkles and traditional cosmetics color choices, are set to • The Neutrogena Skin360, a age spots and to balance uneven skin tone. be game changers and trendsetters over the sensor-based skin-scanning There is also likely to be increased innovation in coming years. Increasing demand for these device with an accompanying new cosmetics products. within the premium cosmetics category is app to monitor skin over a period driven by their capacity to give consumers of time. The Modern Man maximum value for the most expensive make- • Lancôme’s Le Teint Particulier It seems that men across the globe are up brands. foundation matcher, which uses becoming more image-conscious. Millennial men a digital scanner and artificial in particular are adopting grooming regimes and These products are being developed by intelligence (AI) to identify a buying into categories traditionally associated companies which are wise to the growing need shopper’s exact skin tone and find with women, such as make-up, , for convenience in the busy schedules of the a perfect match. modern consumer. moisturisers and exfoliation products. • Virtual ‘try on’ apps like ’s Virtual Artist, enabling shoppers to try thousands of lipstick and shades using their smartphones. The app also hosts digital make-up tutorials to help match shades to skin color. • Smart skin care tools such as the HiMirror from New Kinpo Group. This scans shoppers’ faces for wrinkles, spots, pores and lines, and then provides personalised tips and product recommendations. • Make-up printers which can scan skin for blemishes and apply tiny amounts of make-up to hide them. P&G’s Opté scanner uses a built- in camera to take 200 frames per second, while a microprocessor analyses the data to differentiate between light and dark areas. A microprinter then applies foundation to the skin.

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Smart Beauty The ubiquitous smartphone offers consumers access to ever easier and social media platforms, and e-commerce will play an increasingly important role in the category, particularly in skin care.

As such, companies will continue to focus on online marketing, as well as developing brand- specific Facebook sites and Twitter accounts.

The Middle East and Africa Cosmetics sales growth is traditionally slow in these regions, with many populations having little, or no, disposable income.

However, some countries in these areas are forecast to grow with the highest annual compound growth rate in the cosmetics market. Israel, Saudi Arabia and the United Arab Emirates (UAE) are expected to lead this growth, especially in the nail, hair and categories.

An increase in the number of women in the workplace in countries such as the UAE, as well as a growth in tourism, are also driving cosmetics sales.

The wealthier Middle Eastern countries have already been penetrated by luxury brands such as Dior, , , Lancôme and Estée Lauder. These are now permeating into developing countries such as Nigeria and Kenya, where disposable income is increasing, along with the inclination to spend more on appearance.

The Rise of Vegan Cosmetics Although cruelty-free products have been around for a while, vegan cosmetics products are now also entering the , not just from ethical retailers like but also from other brands such as Kat Von D, , Barry M and Black Opal.

Fresh Thinking The cosmetics market is notoriously competitive. However, an increasing number of companies are seeking to enter the category, particularly those focusing on anti- aging products.

The cost of gaining a foothold in the market is high. New product research and development, manufacturing costs and limited raw materials are all barriers to entry. Additionally, the cost of advertising and promoting new brands and products in an already established market can be restrictive.

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Display Trends Forms of advertising most likely to influence the purchase of a new beauty product

POP display undoubtedly has a key role in 25% influencing shoppers’ purchase decisions, with 17% of shoppers in the United States 22% 22% citing in-store displays as the most influential media in encouraging them to buy a new 17% beauty product.

This is nothing new. Indeed, the role of display has always been fundamental to the success 9% of cosmetics and skin care products. Given the intensely personal nature of the relationship 5% between the individual consumer and the products, the opportunity to see, engage with, and compare products, has given the sector a Television Magazines POP display Online Coupons Other unique place in the world of in-store display.

As a result, there has been continuing and high-level global investment in displays for ranges and newly launched or promoted Source: Videology (Amobee) – Statista 2018 products, as well as displays incorporating technology – either through the complexity Although many of the main brands are global, of manufacturing techniques or, for example, Taking Stock there is clear significant local influence, both the early adoption of digital screens to Competition for space in-store has never nationally and regionally, with regard to the assist product choice, usage tips and been fiercer. A growing number of brands displays produced for national markets. lifestyle suggestions. and continual new product development are swelling ranges, and this can mean some One of the big surprises in our findings was tough decisions in terms of stockholding the lack of uniformity amongst the main versus product information. brands. While the type of display was the same, the design and final execution was The pressure for displays to accommodate as different in the vast majority of cases. many different SKUs as possible is intense. But this leaves limited space on displays for brand, Testing Testing product and promotional messages. The Shoppers often visit a store as they can try irony here is that the wave of new innovative and test products, something they cannot products, such as multifunctional items, do online. It makes sense, therefore, that arguably need more detailed explanations. incorporating a testing facility, including mirrors, on cosmetics fixtures is the current Creative designers will work to accommodate single most important design consideration. both, although there has been little recent While some markets, such as Western innovation to more efficiently host the sheer Europe, have already fully embraced the number and range of products required. tester concept, most other markets are not far behind, with this requirement being seen in However, there has been a subtle change in ever more design briefs. some imagery. Pictures of people portraying brand values are being replaced by close- ups of make-up application, such as lips, highlighting the product’s attributes instead.

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A Light Touch Digital Signage Photographers, models and artists have Digital screens are in short supply in the long used lighting to highlight or minimise cosmetics sector. It remains difficult to certain features. However, some lighting can update content and troubleshoot equipment be unflattering, and it is key that cosmetics remotely, which is the main barrier to adoption, counters use lighting styles that show off with unreliable in-store Wi-Fi often also products in the most complimentary way. causing issues.

White lights will highlight a product once Ownership is also unclear, with brands applied and help shoppers to see its true tones and retailers unsure who should own the and textures. technology to provide the screens. All of this adds up to a likelihood that digital screens As such, illumination continues to play an will not be in wider use until these challenges important role in cosmetics wall and gondola are overcome. fixtures, where it has become the accepted norm. Indeed, any unit in a run of lit displays that does not have illumination is likely to be at a disadvantage. Displays without lighting around the exterior of the fixture are less likely to attract shoppers, while those with no illumination in the internal part of the unit will struggle to compete with adjacent displays The Role of the Retailer with lighting. Retailers in most markets still control carcass To achieve true standout in-store, displays dimensions for wall and gondola displays need to be illuminating to three times the traditionally used by legacy brands. However, brightness of their surroundings to draw many are now more open to newer brands, attention to a product. However, some especially those with innovative products, retailers are limiting the amount of illumination utilising secondary placement opportunities for permitted on displays, as they consider their displays with smaller footprints such as free- environmental credentials and energy bills. standing display units (FSDUs). Low-energy options such as LED lighting are likely to benefit from this trend, as such bulbs In fact, brands with new and trendsetting can use up to 80% less energy. products will often gain display space at the expense of more established brands, irrespective of the promotional support on offer.

These displays can also more effectively convey a brand’s identity, away from the more formulaic banks of wall and gondola units.

Men and Ethnic Groups While the market and markets in the Middle East and Africa are emerging as growth areas, this has yet to be reflected in display design. Limited space makes it difficult to accommodate a wider range of marketing messages without impacting on stockholding, so above-the-line marketing is rarely translated onto in-store display.

Many countries in these regions still rely on the graphics and display-based communications supplied by a brand’s central distribution, and there is little adaptation for local markets.

The exceptions are brands which have been created to cater specifically for women of color, such as IMAN Cosmetics and Beauty Bakerie, whose graphics and imagery reflect their target audiences.

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Market Data Dutch sales value and forecast growth 2017 sales EUR million Category Sales for Countries Surveyed 2022 forecast sales 580 In keeping with global trends, the skin care 505 550 539 EUR million category has the highest sales value in all the 173 180 countries in which our research was conducted. Irrespective of country, strong sales growth is Cosmetics Skin care Deodorants forecast across the skin care, cosmetics and deodorant categories between now and 2022. Source: Passport category country reports – May 2018

French sales value and forecast growth Canadian sales value and forecast growth 3,800 3,396 2,750 2017 sales 2,200 2,199 2017 sales EUR million CAD million 2022 forecast sales 1,750 2022 forecast sales 1,600 EUR million CAD million 1,456

645 690

367 440 Cosmetics Skin care Deodorants

Source: Passport category country reports – May 2018 Cosmetics Skin care Deodorants Source: Passport category country reports – May 2018 German sales value and forecast growth

Czech Republic sales value and forecast growth 4,800

4,048 2017 sales 5,900 EUR million 2017 sales CZK million 2022 forecast sales 4,800 4,816 EUR million 2022 forecast sales 3,960 2,300 CZK million 1,982

950 1,578 1,600 883

Cosmetics Skin care Deodorants Cosmetics Skin care Deodorants Source: Passport category country reports – May 2018 Source: Passport category country reports – May 2018 Irish sales value and forecast growth Danish sales value and forecast growth 177 2017 sales 150 2017 sales EUR million 1,900 142 DKK million 2022 forecast sales 1,636 117 EUR million 1,400 2022 forecast sales 1,216 DKK million 57 47 420 460

Cosmetics Skin care Deodorants Cosmetics Skin care Deodorants

Source: Passport category country reports – May 2018 Source: Passport category country reports – May 2018

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Japanese sales value and forecast growth Spanish sales value and forecast growth

2017 sales 1,600 2017 sales 2,100 JPY billion 1,485 1,832 EUR million 2022 forecast sales 1,080 JPY billion 953 2022 forecast sales EUR million

350 850 321 747

Cosmetics Skin care Deodorants 50 54 Source: Passport category country reports – May 2018 Cosmetics Skin care Deodorants

Source: Passport category country reports – May 2018 UK sales value and forecast growth

Russian sales value and forecast growth 3,350 3,400 2017 sales 2,808 GBP million 175,000 2,399 2022 forecast sales GBP million

133,239

2017 sales 820 104,000 RUB million 713

85,610 2022 forecast sales RUB million Cosmetics Skin care Deodorants

Source: Passport category country reports – May 2018 33,000 27,295 US sales value and forecast growth

23,500 Cosmetics Skin care Deodorants 22,000 Source: Passport category country reports – May 2018

South African sales value and forecast growth 18,368 16,794

13,000 2017 sales ZAR million 2017 sales 2022 forecast sales USD million ZAR million 2022 forecast sales 8,300 8,309 8,100 USD million 6,116 5,585 5,500 4,524

Cosmetics Skin care Deodorants Cosmetics Skin care Deodorants Source: Passport category country reports – May 2018 Source: Passport category country reports – May 2018

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Category Sales for Other Key and Developing Territories Chinese sales value and forecast growth

Skin care is also the best performer in other 296,232 main and emerging markets across the globe. Interestingly, only in the UAE do cosmetics come close to challenging skin care as the leading category. While continued growth is expected in all of these countries, sales in developing markets such Brazil, India and Nigeria are forecast to grow at a 187,413 significantly higher rate than most other markets.

2017 sales Australian sales value and forecast growth CNY million

3,450 2022 forecast sales CNY million 71,700 2017 sales 2,400 2,437 AUD million 34,443 2022 forecast sales 962 1,810 AUD million 747

Cosmetics Skin care Deodorants

418 450 Source: Passport category country reports – May 2018

Indian sales value and forecast growth Cosmetics Skin care Deodorants

Source: Passport category country reports – May 2018 180,000 155,000 2017 sales Brazilian sales value and forecast growth INR million

2017 sales 113,925 2022 forecast sales BRL million INR million 17,500 2022 forecast sales BRL million 68,817 67,000 13,000 13,000 11,533 9,772 33,827 8,315

Cosmetics Skin care Deodorants

Source: Passport category country reports – May 2018

Cosmetics Skin care Deodorants Indonesian sales value and forecast growth Source: Passport category country reports – May 2018 31,900 2017 sales IDR billion

19,982 2022 forecast sales IDR billion 13,000 8,600 6,498 3,433

Cosmetics Skin care Deodorants

Source: Passport category country reports – May 2018

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Italian sales value and forecast growth Saudi Arabian sales value and forecast growth

2,260 2,013 2017 sales 1,800 2,860 2017 sales 2,700 SAR million 1,538 EUR million 2,473 2,161 2022 forecast sales 2022 forecast sales SAR million EUR million 930 760 402 440

Cosmetics Skin care Deodorants Cosmetics Skin care Deodorants

Source: Passport category country reports – May 2018 Source: Passport category country reports – May 2018 Mexican sales value and forecast growth UAE sales value and forecast growth 44,800 2017 sales 41,700 MXN million 33,428 2022 forecast sales 1,300 1,310 2017 sales 29,464 MXN million AED million 1,060 1,107 2022 forecast sales 18,300 AED million 13,087 490 414

Cosmetics Skin care Deodorants

Source: Passport category country reports – May 2018 Cosmetics Skin care Deodorants

Nigerian sales value and forecast growth Source: Passport category country reports – May 2018

2017 sales 212 NGN billion 2022 forecast sales NGN billion 94 92 40 52 22

Cosmetics Skin care Deodorants

Source: Passport category country reports – May 2018

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In-store Research Types of store visited The following display characteristics were recorded as part of the research.

Research Methodology 15% • Temporary or permanent The field research, data processing and analysis • Single or multi branding was carried out by POPAI UK & Ireland and other 5% • Type of messaging members of the Shop! Global Network, and • Brand imagery covered 177 stores in 13 countries. 47% • Promotion The teams visited 152 different retail chains • Product information 26% and independent stores, covering drug stores/ • Main colors used pharmacies, department stores, grocery stores • Text color and specialist cosmetic stores. 7% • Text direction The researchers took images of a cross section • Illumination of POP displays and store fixtures found in each • Mirror incorporation store visited. They recorded the display type, its Drug store/pharmacy – chain location and some characteristics and attributes Drug store/pharmacy – independent • Digital screen – interactive of the display, e.g. illumination or video screens. Department store • Digital screen – non- Specialist cosmetic store interactive Further details about the display were then • Testers captured through analysis of the images taken, Source: POPAI such as font color and branding. • Movement • Sound The research is a snapshot of a significant selection • Aroma Number of stores visited in each country of the POP display seen in the stores visited, but is • Augmented reality and number of images captured not an audit of the all the displays present in each retailer. As such, the analytical results are indicative • Virtual reality (none found) and not finite. Canada 5 74 • Product displayed for purchase or display used to The research took place from January to March 2019. Czech just highlight product 20 167 Republic • Product demonstration by Displays with the following product store or brand representative Denmark 18 269 categories were included.

Cosmetics Skin care France 15 200 The researchers surveyed all areas • • Skin cleansers (toners, of the stores visited and recorded a Stores visited creams) Germany 13 82 • Mascaras cross section of all the types of POP Images captured • Eye shadows • Face washes (masks, display found and their locations. exfoliator creams/gels) They found 4,311 items of cosmetic Ireland 17 244 • Foundations • Body and skin care display – a significant • Powders (moisturisers, creams) amount considering not all POP Japan 6 103 display in each store was recorded. • Eyeliners • Self-tanning products • Blushers (creams, gels) Netherlands 15 164 These were either separate items • Bronzers • Hand creams fulfilling a display purpose in their own right, or component display Russia 13 222 • Primers and • Skin plumpers fixing sprays equipment used in combination to • Eye creams/gels create more complex installations or • Accessories South Africa 7 125 • Exfoliation creams/gels as part of shop-in-shop displays. (brushes, tweezers, • Accessories (cotton Spain 20 250 wool, cleansing wipes) One of the unique aspects of this brush research is the vast number of images cleaners) • Men’s care (in relation United taken, with each image capturing one 15 194 to the above) Kingdom or more display types. Many of the • Deodorants and body images cover multiple displays, so the United States 13 167 sprays (roll-ons, sprays) of America actual coverage of display items is over 3,000. Source: POPAI To gain access to these images, please contact your local Shop! Global Network or POPAI office.

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Display240 types and distribution 240 230 230 The220 research explored the types of display, how more display equipment in the cosmetics part of a chain also employed a large number220 much210 was used and how it was distributed. It and skin care categories than did other retail and type of displays, more than twice as 210 was200 found that department stores had marginally channels. Pharmacy/drug stores that were much as their independent counterparts. 200 190 190 180 180 Types170 and numbers of different display types found 170 160 160 150 150 140 Department store 140 130 130 120 Grocery store 120 110 Pharmacy/drug store – chain 110 100 Pharmacy/drug store – independent 100 90 90 Specialist store 80 80 70 70 60 60 50 50 40 40 30 30 20 20 10 10 0 0 in r Table Panel Display Bus Stop/ Carousel End Cap/ – Retaile Banner/F Countertop Dump Bin – Branded Videoscreen– Interactiv Videoscreene Display Card End Display Display Unit Ladder RackLeaflet Rack Display Header Board Gondola ixtureSide Header Floor GraphicFree-Standing Display Header End Side F Fixture Header – Non-Interactive End Cap/GondolaEnd Cap/Gondola End Cap/Gondola Digital Digital Interactive Display Free-Standing Poster 240 240 230 230 220 220 210 Department store 210 200 Grocery store 200 190 Pharmacy/drug store – chain 190 180 180 170 Pharmacy/drug store – independent 170 160 Specialist store 160 150 150 140 140 130 130 120 120 110 110 100 100 90 90 80 80 70 70 60 60 50 50 40 40 30 30 20 20 10 10

0 0

ster lker y or Fixture Po Label Ta obbler Overlay W Shopping – Branded – RetailerOverhead/ Shelf Edge Shelf Strip Showcase Main Main Fixture Parasite Unit – Shelf Unit Shelf ster with Pole Other Signage ill Display/Unit Ceiling Hanging Security Shroud Basket Display T Po Shelf Information ester Bar/Station Shelf Equipment Store Categor T Tester Display Box Wall Unit – BrandeWall dUnit – Retailer Source: POPAI

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This is perhaps surprising, given the similarity Number of top ten display types used of the retail format. by retail channel

Specialist stores also used a large amount of 520

POP, but grocers used relatively little, possibly 500 due to self-imposed restrictions on display use. Department store 480 Grocery store Specialist cosmetics stores had, on average, a third fewer displays than chain pharmacy/drug 460 Pharmacy/drug store – chain stores. However, they used a wider variety of 440 Pharmacy/drug store – independent display types. Specialist store 420 The most commonly seen POP types were a complete mix of three-dimensional display and 400 two-dimensional signage. 380

Simple, inexpensive posters were the most 360 frequently witnessed display types. However, more complex and costly cosmetics testing 340 stations were the second most common, either 320 as stand-alone displays or incorporated into larger display installations. 300

The popularity of both tester stations 280 and smaller tester boxes emphasises the 260 importance of enabling shoppers to try cosmetics in-store, indeed much more so than 240 in most other fast-moving consumer goods (FMCG) categories. 220

200

180

160

140

120

100

80

60

40

20

0

oster

P

Display Card Display

ixture – Retailer – ixture

ixture – Branded – ixture

ester Bar/Station ester

all Unit – Retailer – Unit all

ester Display Box Display ester

T

all Unit – Branded – Unit all

T

W W

The next most regularly seen POP type was

Main F Main

Main F Main

ixture Header – Branded – Header ixture ree-Standing Display Unit Display ree-Standing more two-dimensional signage in the form F of branded headers on store fixtures and F

display cards located on different forms of Source: POPAI display units.

The other top ten most common display types Digital screens were relatively rare, seen were all three-dimensional equipment: FSDUs, in only a total 3.3% of stores. Likewise, branded and retailer generic main fixtures and interactive POP was seen in only a very small wall-based displays, and shelf units. number of stores.

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Department stores tended to use more of the most popular displays, compared with other Average number of top ten display types used by retail channel channels for most display types. 0 12345678910 11 12

However, there were some exceptions. FSDUs, Poster display cards and wall units were more popular in chain pharmacy/drug stores, along with branded equipment generally. Meanwhile, generic retail Fixture Header – Branded units were favored by independent pharmacy/ drug retailers. Main Fixture – Retailer

Unsurprisingly, grocery stores led the way with Display Card generic main fixtures.

The average number of displays per store varied Free-Standing Display Unit very little by country, with most deviating by only one or two from the overall average of 25. Tester Bar/Station

Only three countries were significantly different: Main Fixture – Branded Germany and the Czech Republic had noticeably Department store less display, while South Africa had much more. Wall Unit – Retailer Grocery store The lower number in Czech stores was driven by Pharmacy/drug store – chain under-indexing in department stores, where they Wall Unit – Branded Pharmacy/drug store – independent had only a third as many displays as the average, Specialist store and chain pharmacy/drug stores, where they had a quarter fewer displays. Meanwhile, Germany Tester Display Box had significantly less display in all channels. Source: POPAI

South Africa’s figure was due to much higher POP placement in chain pharmacy/drug stores.

Average number of displays per store

Canada 28

Czech 15 Republic

Denmark 29

France 25

Germany 11

Ireland 28 A Japan 23 VERAGE

Netherlands 25

Russia 29

South Africa 34

Spain 25

United 24 Kingdom United States 27 of America

Source: POPAI

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Display Locations Number of POP displays found The researchers found POP display in the outside of the main cosmetics and following locations across all the stores skin care trading areas visited. • Outside the store 4 • Store window External 6 • Store entrance • In the cosmetics and skin care section Window • End cap/gondola end Category Display Approach • End cap/gondola side 16 Women were clearly the target audience for • Wall display use in the categories surveyed, with Store entrance* • As part of a shop-in-shop display over half of the displays recorded being for • Outside of the main cosmetics and skin women’s cosmetics and over a quarter for care section women’s skin care. • At the checkout/till area

However, the favorite location for POP display Display use by category 19 was emphatically the main cosmetics and skin care trading areas, with the vast majority of the Checkout/till area* 0.1% 4.0% 4,311 display items found there. 1.6% 8.7% 29 Several shop-in-shop displays were found 0.1% away from the main trading area, but very few Out of window or external displays were seen. category Within the main trading area, the most popular place for display was in, on or immediately 28.2% 57.3% adjacent to the cosmetics and skin care * Where these are not the main cosmetics and skin care end caps/gondolas. The next most popular trading area location was in or on wall displays, with 9% Source: POPAI positioned on end caps/gondola ends, 6% in shop-in-shops, and 3% at checkouts.

Women’s cosmetics Women’s skin care Men’s cosmetics Men’s skin care Women’s & men’s cosmetics Unisex skin care Both cosmetics & skin care

Source: POPAI

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The cosmetics and skin care categories both took a very different approach to display by POP type. Cosmetics tended to use branded displays There was a significant variation in the ratio such as on main fixtures, wall units and header of cosmetics displays compared with those boards, while the equivalent retailer-owned for skin care by country. displays were preferred for skin care. In ten of the 13 countries surveyed, Tester equipment also varied. Cosmetics were cosmetics displays were predominant. The ratio of cosmetics displays to skin care much more likely to offer a tester bar or station, However, this varied from 81% in Canada was fairly consistent across the retail channels. with skin care adopting a tester display box. In fact, only independent pharmacy/drug stores to 55% in Spain. In Germany, France and differed, placing a much greater emphasis on Digital screens were also much more popular the Czech Republic, there was a higher skin care than the other retailers. within the cosmetics category. percentage of skin care POP.

Display category use by type (%) Display category use by country (%)

050 100 Canada 81 19 Tester Bar/Station Czech 37 63 Fixture Header – Branded Republic

Digital Video Screen – Non-Interactive Denmark 55 45 Poster France 42 58 Shelf Equipment – Shelf Unit Germany 40 60 Wall Unit – Branded Ireland Shelf Strip 61 39 Main Fixture – Branded Japan 70 30

End Cap/Gondola End Display Netherlands 68 32 Tester Display Box Russia 82 18 Free-Standing Display Unit South Africa 56 44 Wobbler Display Card Spain 55 45 Fixture Header – Retailer United Kingdom 60 40 Main Fixture – Retailer United States 76 24 of America Wall Unit – Retailer Cosmetics displays Skin care displays Use by cosmetics Use by skin care Source: POPAI Source: POPAI

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Display characteristics Permanent and temporary displays by category

Permanent Versus Temporary Three-quarters of the displays seen were permanent, with an even higher 18% percentage found in cosmetic displays. 30% Department stores and specialist cosmetics and skin care retailers favored permanent displays slightly more than the other retail channels. There was little variation by country. The only exceptions were Russia and the USA, with 84% and 85% permanent display respectively, and Japan, which had 70% significantly less, with just 55%. 82%

Skin care Permanent display Cosmetics Temporary display

Source: POPAI Permanent and temporary displays Permanent and temporary displays by retail channel by country Canada 102 36 Department store 1144 261 Czech 207 87 Republic Grocery store 154 51 Denmark 413 101 Pharmacy/drug store Permanent display – chain 559 251 Temporary display France 279 99 Pharmacy/drug store 84 40 – independent Germany 109 38 Specialist store 1374 393 Ireland 386 90

Source: POPAI Japan 88 71

Netherlands 282 92

Russia 313 59

South Africa 168 69

Spain 399 106

United 267 96 Kingdom

United States 302 52 of America

Permanent display Temporary display

Source: POPAI

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Highlighting Brands Interestingly, 16% of the POP displays did not feature any actual products for sale. Two-thirds of these were some form of tester or make-up application units, with the rest used to highlight products or for brand or product messaging. The majority of the displays without product were in the women’s cosmetics category with some in women’s skin care. Almost half of these displays were found in specialist retailers and 45% in department stores. There was a significant variation in the use of display with no product by country, varying from an average of nine per store in Russia to just one in Germany.

Average number of displays per store with no product for sale

Canada 5

Czech 2 Republic

Denmark 5

France 3

Germany 1

Ireland 5

Japan 3

Netherlands 3

Russia 9

South Africa 3

Spain 3

United 5 Kingdom United States 3 of America

Source: POPAI

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Digital Displays Digital displays were scarce. Only 142 examples were seen, of which just 13 were interactive. Department stores were by far the biggest users of digital display, with an average of 2.6 screens per store compared with just 0.8 per store in specialist retailers and fewer than 0.3 in the other retail channels surveyed. Ten of the interactive displays were in department stores and three in specialist retailers. Use by country varied quite significantly. More than two screens per store were seen in Japan and one or more in Ireland, Russia, Spain and the UK. No digital screens were recorded in South Africa. The average number of digital screens per store across all countries was 0.8. Digital screens were mainly used to communicate product information, seen on 80% of screens. Just over half displayed some form of brand imagery, while 46% performed both functions. Only four screens were seen to display promotional messages.

Average number of digital screens per store

Canada 0.2

Czech 0.4 Republic

Denmark 0.7

France 0.4

Germany 0.1

Ireland 1.4

Japan 2.1

Netherlands 0.5

Russia 1.4

South Africa 0

Spain 1.1

United 1.5 Kingdom United States 0.3 of America

Source: POPAI

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Let There Be Light? Despite its key role, lighting was seen on just 31% of the displays. Backlit illumination was the most popular, recorded in 1,328 displays. Of these, 52 used flashing lights, 134 shelf illumination, 75 were display with lightboxes and 28 employed Hollywood-style lighting. Department stores were by far the most prolific users of display with lighting, with an average of 20.9 displays per store. Specialist retailers ranked second, with 6.8 per store, followed by chain pharmacy/drug stores with 6.3 and grocery with 2.2 per store. Independent pharmacy/drug stores had an average of only 0.7 illuminated displays per store. The use of illumination varied by country. Russian and Danish stores had an average of 11.7 and 11.4 illuminated displays respectively, while Japan and Germany only had 3.7 and 3.2 per store. The most popular display types with illumination were backlit posters, branded fixture headers and tester bars and stations.

Average number of illuminated displays per store

Canada 8.4

Czech 4.3 Republic

Denmark 11.4

France 7.3

Germany 3.2

Ireland 9.3

Japan 3.7 Displays with illumination incorporated

Netherlands 8.7 Backlit Posters 248

Russia 11.7 Branded Fixture Headers 230

South Africa 9.7 Tester Bars & Stations 208

Spain 8.6 Branded Main Fixture 181 United 8.7 Kingdom Branded Wall Units 154 United States 8.5 of America Retailer Wall Units 102

Source: POPAI Source: POPAI

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Mirror Mirror In keeping with shoppers’ desire to try products, 451 displays incorporated a mirror and testing facilities. Not surprisingly, the majority of these were for cosmetics. Mirror use by retail channel was in line with the average number of displays seen in each channel, with the majority in specialist retailers and department stores. There was little variation in the use of mirrors by country, with the exception of Russia which had nearly twice the average number of displays with mirrors and the Czech Republic, which had just a quarter of the average.

Sensory Touch Very few displays were found to incorporate sensory elements. Where it was present, smell was the most popular, noticed in 18 displays. Five had movement but none had sound. All those with smell were for skin care products, as was one with movement; the rest of those with movement were for cosmetics. Most of the 23 displays with a sensory element were found in specialist retailers, three were in department stores and just one in a chain pharmacy/drug store. Sensory displays were found in the Czech Republic, Denmark, France, the Netherlands, Russia, Spain, the UK and the USA.

Virtual and Augmented Reality Seven augmented reality displays were found, but interestingly no virtual reality units at all. The augmented reality displays – three each of cosmetics and skin care and one combined unit – were all in department stores and Product Demonstration featured interactive digital screens. Five were in the UK, with one each in Ireland and the USA. Twenty-six displays had a staff member present. Twenty of these were in the cosmetics Finding Factices category and six in skin care, with six being used for product demonstration. Just 21 displays were either in the form of, or incorporated, a factice (a large display These were spread across 11 specialist version of the product). Fifteen of these were retailers, seven department stores, seven chain in the women’s cosmetics category and six in pharmacy/drug stores and one independent women’s skin care. Eight were there purely to pharmacy/drug store, and were found in highlight the product and had no product for Canada, France, Ireland, the Netherlands, sale. Ten were found in the UK and Ireland. Russia, South Africa and Spain.

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Number of displays seen

140

122 115 115

88

79 79 76 72 71 70 64 63 63 60 58 53 50 50 48 48 47 47 44 41

Source: POPAI

Big Branding Image Conscious Noting the different types of branding seen, 385 Imagery, either of products or lifestyle different cosmetic and skin care brands and own pictures conveying brand values, was the label brands were found on the displays. The most common form of messaging. Product vast majority of displays carried a single brand; information was also present, closely followed however, 533 had multiple branding. by promotional messaging. Text with some form of brand message was the least Excluding own label, 26 of the brands exceeded common, seen on only 3% of displays. one percent or more of the total seen. Multiple messaging was also noted, with some displays carrying a combination of the communication types listed above. Once again, department stores were more to likely have displays carrying messaging of some type.

Use of display messaging

012 345678910 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Department store

Grocery store

Pharmacy/drug store Imagery – chain Product information Pharmacy/drug store Promotional information – independent Brand messaging Specialist store

Source: POPAI

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Color Me Beautiful Main POP display colors White and black were by far the two most popular display colors, used by 1,376 and 1400 1,021 displays recorded respectively. By 1376 comparison, the third most popular, red, was found only 224 times. 1200 White was also the most popular color for display merchandising multiple brands. 1000 1021 Multiple colored displays were rare amongst three-dimensional display with 800 product for sale, used on only 46 on the 288 FSDUs recorded. However, multiple color use was popular for tester display 600 boxes. The remainder of the 937 multiple color displays were predominately two- dimensional messaging. 400 Interestingly, many brands were not consistent in their use of color. While black was the favored choice for many big 200 224 names such as Chanel, Dior, Estée Lauder, 183 111 Lancôme, M·A·C, Max Factor, Maybelline 98 93 36 33 31 26 62 42 4 1 New York, NYX Professional Makeup, 0 and Yves Saint Laurent, many of White Black Red Brown Pink Gray Blue Yellow Purple Clear Green Gold Orange Peach Maroon their units were also white, as well as using Source: POPAI smaller numbers of other colors. When it came to variation by country, only Text color preference mirrored that for displays, There were 529 examples of multiple text Russia bucked the trend, with more black with white and black again the clear favorites. colors and also 1,153 instances where there displays than white. As such, the most commonly occurring color was little or no text. combinations were white text on a black background and vice versa.

Main text colors

1400 1441

1200

1000 919

800

600

529

400

200

57 49 38 36 30 19 13 10 9 7 0 White Black Multi Gold Red Pink Blue Gray Yellow Purple Green Brown Orange

Source: POPAI

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Overall permanent display was significantly more common than temporary, by a ratio Conclusion of three to one, with department stores and specialist retailers having an even higher percentage of permanent display. The future for the color cosmetics, skin care and deodorant markets looks rosy, with strong While the beauty category was one of the first growth forecast in all categories across all to adopt digital signage technology, technical major global markets. These traditionally issues, such as connectivity and the ability resilient categories are not prone to unduly to centrally update content, appear to have suffer in times of depression or uncertainty, restricted the development of this display and sales are also set to benefit from several media. Likewise, other technology such as positive global trends within the beauty interactive displays and virtual and augmented sector. Additionally, the categories look likely reality was very limited in its use. to capitalize on the population growth and economic expansion in Asia, Africa and the With so many brands competing for exposure Middle East. in such visually noisy environments, the use of color, bold branding and clear messaging The leading cosmetics manufacturers are is vital. Single bold colors were the favorite well-established global brands, perfectly choice with 72% of displays’ primary color placed to weather any economic turmoil, and being either white or black, even sometimes at with substantial resources for developing the expense of the brand’s usual color scheme. new products in response to technological advances and consumer demand. As for messaging itself, lifestyle imagery portraying brand values was most commonly Finally, there is an emergence of a wave seen, and ten times more popular than of cosmetics companies offering new and best effect at the display, as well as assisting using text to communicate brand messages. innovative products, often targeting specific with the product testing experience. However, There is also an important job to be done audiences such as the vegan market, men and environmental concerns and retailers’ energy communicating product information, the space women of color. bills may see the use of lighting being limited in for which is always heavily contested with some markets. products. Given the sheer number of manufacturers and the range and variety of products, it In fact, retailers in some markets still exercise a is not surprising that POP display plays a high level of influence when it comes to the use fundamental role in helping shoppers navigate and design of branded POP, dictating display the category in-store as well as giving dimensions and level of branding, as well product information. One of the key benefits as offering display space to newer in-vogue presented by displays is offering shoppers brands, sometimes at the expense of legacy the opportunity to try products, which, brands. notwithstanding the continued advance of e-commerce and social media, is still driving Display use varied by retail channel, but this them into stores. was unsurprising. Specialist beauty retailers and department stores used the largest Investment in cosmetics and skin care POP amount of display, with retailers such as mass display therefore remains buoyant, driven by market and grocery stores using less. the need for brands to differentiate themselves in-store and to support new product launches When it comes to display locations in-store, the and promotional activity. main beauty trading area is by far and away the most prominent place for display placement, As a result, there is a vast range and amount of with over 97% of display found here. However, POP display material available to both brands the main trading area is also very often the and retailers. This study identified 42 different store entrance in department stores and most display and major component display types, of the store area in specialist beauty stores. the majority of which were seen in all five retail channels surveyed. Such is the diverse nature In general, there were few significant variations of the POP available, no one particular type in POP display use across the 13 countries dominates. surveyed, with ten averaging about 25 pieces of display per store. Likewise, cosmetics Tester stations and display boxes in their displays outnumbered those of skin care in all various forms were the most commonly seen but three countries. The ratio of permanent to display types. Lighting also remains a key temporary display was also fairly consistent feature, seen as absolutely vital to attracting in the countries visited, again with just three shoppers and showing off products to their deviating from the norm.

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Recommendations

Twelve design and production considerations to help companies develop truly effective POP

Brands must work with retailers to Use digital signage wisely. It Review and reconsider. ensure their displays are acceptable 1. 7. could provide light, movement, Designs should be regularly and achieve the right in-store placement. It 12. product selection and usage tips, reviewed to learn what works well and is essential for brands to understand and and highlight brand above-the-line where improvement can be made. abide by retailers’ rules and specifications, campaigns. As with all display, the and to deliver displays on time. Brands shoppers’ needs and expectations should also be clear about where their should come first. displays should be sited in-store, providing evidence to retailers where necessary.

Strike the right balance For more information on guidelines between messaging and Design to target the right audience. 8. for developing in-store marketing 2. As with all display, knowledge of your stockholding. It can be tempting to shopper and how they shop is critical and maximise stockholding, but it is also materials, improving compliance and may define the design of your units. important to consider how you are calculating ROI see the 2017 Shop! communicating product information, ROI Standards: In-Store Marketing especially in the case of new or complex products. Materials standards document Bring suppliers on board. While and white paper at https://www. 3. brands and retailers are experts shopassociation.org/roi-standards- in what shoppers are looking for, many program/. suppliers are also investing significantly to Keep displays easy to shop better understand the shopper. Working 9. and merchandise. This means in a three-way partnership may produce it should not only be easy for shoppers significant benefits in addition to purely to select products, but also to replace technical knowledge. those they choose not to purchase, to help keep displays looking tidy. Furthermore, it should be easy for Remember, experience is all. store staff to replenish displays, 4. Research has shown the importance of keeping them well stocked and neatly the aspects of a display that allow a shopper presented. to fully experience the product. Testers, Sources mirrors and potentially more advanced 2017 Shop! ROI Standards: In-Store Marketing technology such as augmented reality should Materials standards document and white all be considered at the design stage. It is this Ensure displays are durable. paper at https://www.shopassociation.org/ ability to test products that differentiates the 10.To maximise longevity in-store, roi-standards-program/ physical stores from their online counterparts. displays must be durable, whether they are permanent or temporary BBC – Five tech trends shaping the beauty designs. The latter should also be easy industry – 24 May 2019 to assemble, especially if this is done One size will very often not fit all. by store staff, to achieve maximum beautypackaging.com 5. Always consider creating a family placement and compliance. of units to accommodate different retail Instore Momentum – Best Practice for channels and store sizes. Cosmetics Displays – November 2016

Mordor Intelligence 2019 Keep complexity to a Shop! – POP Display & Store Fixture Lighting Illumination is critical. It provides 11. minimum. While displays in the 6. both attraction and, in a category cosmetics and skin care categories Statista – Cosmetics Industry Worldwide – 2016 where there may be many small products, need to look premium, this should not better visibility for the shopper. Illumination stop designers removing unnecessary Technavio – Top 10 Cosmetics Companies in may also provide movement, increasing the complexity and weight to reduce the World 2019 chances of shoppers visiting the display. production and shipping costs.

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Glossary of Terms

Bus Stop/Banner/Fin—2D signage protruding unit, usually with shelves, holding products for Shelf Edge Overlay—A flat piece of material, from a fixture at right angles to the shelves. shoppers to buy. usually colored, which sits on the shelf and Carcass—The generic outer frame of a display Free-Standing Poster—A poster which is not is wrapped over the edge. Usually used to unit which is usually a consistent shape and size, mounted on a wall or pillar. communicate brand messaging. as specified by individual retailers. Grocery/Mass Market Store/ Shelf Equipment – Shelf Unit—A shallow Carousel—A tall, floor-standing display that —A store selling a range goods including food, display which sits on a shelf to hold stock and rotates through 360º usually merchandised with beverages, household goods and . communicate brand product information on its edge. small or light products. Hollywood-Style Lighting—Bulbs positioned Countertop Display—A display designed to be around the edge of the display or mirror facing Shelf Information Label—A label positioned by a placed on a counter or table with a small number of the shopper. product on a shelf, which provides product, pricing or promotional information. products for shoppers to buy. Interactive Display—A display with any physical Department Store—A store selling a wide mechanism that allows shoppers to interact with it Shelf Strip—A narrow graphic the same height as range of consumer goods in different specialist for the purpose of learning more about the brand the shelf edge, which runs the length of the shelf departments. or product. providing branding, product, pricing or promotional information. Digital Video Screen – Interactive—A video Ladder Rack—A display with shallow shelves screen, usually a touch screen, which shoppers holding stock for shoppers to buy, usually attached Shelf Talker—A label positioned by a product can interact with to search for additional to the side of an existing store fixture. on a shelf, which provides brand or product information. information. Leaflet Rack—A display specifically designed to Digital Video Screen – Non-Interactive— hold leaflets or literature. Vary in size from small Shopping Basket Display—A 2D graphic with a A video screen displaying animated images countertop units to larger, free-standing or wall- brand or retailer message located on the frame that or messaging, but which has no interaction mounted displays. holds shopping baskets. with shoppers. Main Fixture – Branded—A branded fixture, Showcase—A cabinet, usually mainly glass, Display Card—A 2D card providing brand, either free-standing or in a run of gondola or which holds products that can be seen but are product and promotional information and wall displays. not accessible. positioned on a fixture or larger display. Main Fixture – Retailer—A retailer-owned Specialist Store—A store specialising in beauty Display Header—A 2D card providing brand, fixture, either free-standing or in a run of gondola products including cosmetics and skin care. product and promotional information and or wall displays. Store Category or Other Signage—Graphics positioned on the top of a 3D display unit. Overhead/Ceiling Hanging—2D signage which which help shoppers to navigate the store Display Table—A table used to display products is located above the shopper’s head by being hung or fixtures to find product categories and and information. Usually retailer-owned equipment. from a ceiling or other overhead structure. subcategories. Dump Bin—A floor-standing display in the form of Parasite Unit—Any 3D display with product to Temporary Display—Typically used for a bin, in which products are available for shoppers buy which is attached to an existing fixture. These promotions and new product launches. May to buy. are usually small, holding small products. be disposed of once depleted. Often made of corrugated board and designed to be easily End Cap/Gondola End Display—Shelves on Permanent Display—A product display designed disposed of at end of life. the end of an end cap/gondola which have been to remain in use anywhere from three months to dressed with 2D signage to create a branded or several years. As such, they are typically made Tester Bar/Tester Station—An area of a retail display. out of more durable materials, such as plastic, cosmetics or skin care incorporated into a display with products for shoppers to try. End Cap/Gondola End Side Panel—A 2D wire, wood, and metal, giving the display a more graphic on the side of an end cap/gondola with premium look. Tester Display Box—A box or container with branded or retailer messaging. Pharmacy/Drug Store – Chain—A store cosmetics or skin care products for shoppers to belonging to a retail chain, specialising in a wide try, which is either part of or separate from a End Cap/Gondola Header Board—A 2D bigger display. graphic on top of an endcap with branded or range of health and beauty products. retailer messaging. Pharmacy/Drug Store – Independent—An Till Display/Till Unit—A small display located in independent store specialising in a wide range of the vicinity of the store’s till or checkout area, which End Cap/Gondola Side Display—A 3D display has product for sale. with stock for shoppers to buy, positioned on the health and beauty products. side of an end cap/gondola. Poster—Poster mounted on a wall or pillar. Wall Unit – Branded—A display positioned against a wall, usually in a run of other displays, Fixture Header – Branded—A 2D card above a Poster with Pole—A poster displayed on a pole, which is branded. store fixture, with a branded message. typically attached to a free-standing display. Wall Unit – Retailer—A display positioned against Fixture Header – Retailer—A 2D card above a Secondary Placement—Using a POP display to a wall, usually in a run of other displays, which is store fixture, with a retailer message. position a product in an additional location in-store retailer-owned. beyond where it is usually merchandised. Floor Graphic—A graphic display stuck to the Wobbler—A small 2D display made from thin shop floor. Security Shroud—Graphics covering security plastic material which is flexible and will wobble Free-Standing Display Unit—A floor-standing gates at store entrances. if touched.

32 | STOREDITS | www.shopassociation.org Attract Engage Execute Measure

Retail

Reimagined At WestRock, we recognize the urgent need to reinvent the retail experience to better serve the ever-changing expectations of the time-pressured shopper. The rise of online shopping has placed incredible demand on retailers to o er relevant, engaging shopper solutions designed with a balance of appeal, convenience and functionality to become the shopping destination of choice.

Let’s work together to reimagine retail merchandising for the next generation and beyond.

westrock.com/displays

©2019 WestRock Company. WESTROCK, WestRock and Design, and the WestRock Logo 33 | STOREDITS | www.shopassociation.orgare trademarks owned by WestRock Company. All rights reserved. STOREDITS SKIN CARE, MAKE-UP and COSMETICS

Thank You to Our Sponsors

Platinum sponsor

About WestRock Your P-O-P Powerhouse. WestRock is your single-point access to in-store merchandising. We design and manufacture it all, from packaging to promotional displays, permanent fixtures, in-store environments, and out-of-store spectaculars. You can get more bang from your merchandising budget. Discover the newest in-store innovations. Visual effects that create brand emotion. Digitally driven shopper-media experiences and sustainability solutions.

Gold sponsors

About Duraco Specialty Tapes Duraco is the clear choice for your specialty tape needs. From design conception to assembly, you can count on our 65 years of expertise, unmatched service and quality product to deliver the optimal solution for your application.

About Hera Lighting, L.P. Hera Lighting, L.P. designs, develops and manufactures LED lighting systems for retail displays. Our team understands the science behind proper retail illumination and striking the right balance between ambient and display lighting. Regardless of your budget, our experts are here to help with every step of your project. To find ways to reduce your bottom line costs or increase your Eye to Product Ratio (sales) give Hera a call.

About Shop! Shop! Environments Association (shopassociation.org) is the global trade association dedicated to enhancing retail environments and experiences. Shop! represents more than 1,400 member companies and affiliates worldwide from 24 countries. The association brings value to the global retail marketplace through our industry leadership, research programs, industry certification, education and networking events. Shop! produces the award-winning magazine, Retail Environments, offering business-focused content to retailers, brands, designers and suppliers throughout the industry.

About POPAI UK & Ireland (part of the Shop! Global Network) We represent 190 member companies and conduct research commercially and for our members, as well as hosting networking events, seminars and conferences. Our flexible training courses can be delivered either online or face to face.

POPAI strongly promotes sustainability within the industry, and we have developed our pioneering ConVert tool to measure the environmental impact of displays.

The POPAI Awards are renowned across the industry. Here, we celebrate creativity, innovation and excellence in-store and throughout the shopper experience, and the Awards are seen as the industry benchmark of success.

Shop! Environments Association POPAI UK & Ireland Ltd 4651 Sheridan Street, Suite 470, Hollywood, FL 33021 7a Lakeside Court, Maple Drive, Tungsten Park, 954.893.7300 Hinckley, Leicestershire, LE10 3BH shopassociation.org +44 (0)1455 613 651 popai.co.uk [email protected]

@shopassociation @shopassociation Shop! Enhancing Retail Environments and Experiences