Beauty & Skin Care Category Report

Home , Nivea, Urban Decay (cosmetics)

Beauty & Skin Care Category Report June 2020

DAN DNA - Proprietary and Confidential - July 20 Table of Contents

• Methodology

• Defining Beauty Mavens

• Turkey’s Map of Beauty

• Brand Personalities

• Beauty retailers & E-commerce

• Case Study: Sustainability & Health Trend in Beauty Sector

DAN DNA - Proprietary and Confidential - July 20 Methodology

is a Dentsu Aegis’ internal technology which uses Facebook’s Interest Graph for aggregated insights on every user worldwide. There are: 18+ Women in Facebook database in TR 20 Mio

18+ Women who are interested in Beauty & Cosmetics in TR

13 Mio Defining Beauty Mavens

3.3 Mio 18-24 F Interested in Cosmetics & Beauty Single: 53%; Married 33% 66% collage; High school 33%

4.7 Mio 25-34 F Interested in Cosmetics & Beauty Single: 16%; Married 78% 72% collage; High school 24%

2.7 Mio 35-44 F Interested in Cosmetics & Beauty Single: 9%; Married 89% 63% collage; High school 33% Defining Beauty Mavens –Top Differentiating Interests

25-34 F 18-24 F Focused on family & 35-44 F Energetic & Active, Loves friendships; takes care of value Loves travelling & nature, shopping of money in shopping homebody & active

Performing arts (42%) 138 Fragrances (20%) 157 Vacations (20%) 144

Travel (76%) 136 Sunglasses (20%) 156 Tourism (55%) 143 Handbags (39%) 150 Photography (88%) 133 Nature (59%) 143 Shoes (70%) 149 Hotels (45%) 141

Coffee (46%) 150 Beauty salons (52%) 159 Physical exercise (48%) 142 Fast food (20%) 145 Spas (39%) 150 Meditation (21%) 142

Physical fitness (52%) 142 Physical fitness (53%) 140 Children's clothing (23%) 156 Swimming (31%) 142 Recipes (22%) 153 Men's clothing (50%) 152 Parties (22%) 143 Theatre (41%) 152 Baking (35%) 149 Music videos (69%) 142 Home improvement (22%) 143 Video games (57%) 141 Coffeehouses (25%) 159 Writing (25%) 142 Comedy movies (61%) 141 Coffee (50%) 152 Online games 32%) 141 Dance (46%) 138 Tea (21%) 152 Gardening (28%) 141 Online games (31%) 137 Friendship (39%) 150 Do it yourself (DIY) (42%) 140

Interests that have reach > 20%; index >100 Defining Beauty Mavens – Shopping Behaviors

35-44 Years old beauty mavens have higher reach and index in almost all Shopping 30% (122) 38% (95) 48% (118) shopping related interests. On the other hand, 18-24 years old Boutiques 42% (141) 43% (100) 48% (112) Shopping Malls 30% (146) 39% (150) 48% (142) persona tend to shop more from Discount stores 16% (137) 27% (96) 37% (133) boutiques. Coupons 36% (100) 47% (98) 58% (121)

Regarding e-comm platforms, Online shopping 88% (98) 88% (96) 93% (101) Trendyol has the highest reach & 42% (867) 49% (142) 52% (134) affinity among all personas, still, 14% (135) 20% (144) 28% (132) considering the index – 18-24 years old persona has a great tendency in 10% (139) 20% (149) 28% (136) Trendyol. 6% (141) 13% (141) 18% (141) 5% (140) 5% (148) 5% (142) How Beauty Brands’ Consumers differ from each other? Overlaps among Beauty Brands’ Consumers

According to FB + IG data, we analyzed how many people who are interested in specific brands are common. Results showed that:

Loreal • 37% of people who are interested in NIVEA, are also Benefit Cosmetics interested in L’oreal

Maybe • 10% of MAC consumers overlaps with Maybelline; lline MAC where this number increases to 41% with L’oreal NIVEA

Dior • Overlap between Benefit and L’oreal is 66% Beauty Turkey’s Map of Beauty

We examined in which cities the selected brands have higher affinities among people who are interested in beauty & cosmetics.

Note: This map shouldn’t be considered as a sales distribution map of brands. It only considers the index metric on Facebook interests of specific brands. Turkish Consumer Types vs Beauty Brands’ Consumers Overview of Turkish Consumer Types

In order to understand the characteristics of brand’s consumers, we defined 8 consumer types / personas:

Educated Traditionals Modern Socializers Conservative Religious Luxury Lover 3.4 Mio 3.9 Mio 4.5 Mio 755K University degree, religious, loves University degree, loves urban active Interested in religion and religion Interested in Luxury goods & tastes shopping life related topics

Adventurer Passionate Spender Minimalist Homebody 1.6 Mio 6.3 Mio 1.6 Mio New Techies Outdoor Enthusiasts, interested in Loves shopping, interested in special Loves family time, interested in home 820K outdoor sports such as camping, discounts, coupons, free products and & garden, DIY activities, shops only Interested in new technology trends, hiking, surfing etc. special sales days when it necessary high tech, AR,VR etc. Brand Personalities

Considering the consumer types, we analyzed which brand is close to which persona. The results showed that while NIVEA and L’oreal’s consumer are closer to Passionate Spender Persona; M.A.C. consumers are close to Modern Socializers; Yves Rocher’s consumer are in-between Luxury Lovers & Adventurers. Beauty Retailers & E-commerce channels Special Case: Environmental Awareness in Beauty Category

With consumers more aware of the impact their consumption habits have on the environment, the beauty industry has grown more conscious.

The term “natural” will expand to include locally-sourced and technologically enhanced ingredients, products, and services. Special Case: Environmental Awareness in Beauty Category

In order to understand how effective this global trend is on Turkish consumers, we analyzed consumers of specific brands and their interests related with environmental issues and organic food & products.

The parameters included in the scoring are:

Environment Organic Sustainability Organic Food Sustaible living Organic Product Enviromentalism Natural foods Reneweble energy Veganism Plastic pollution Vegetarianism Waste management & Recycling Organic Farming Animal rights Ethical consumerism NGOs (environment related) Special Case: Environmental Awareness in Beauty Category

Considering the affinities on environmental issues & organic food / product awareness of people who interested in specific brands, we see that mostly high-end brands’ consumers tend to have higher interest in these subjects.

The green marked brands such as The Body Shop, Kiehl’s and L’occitane are the ones which has “organic” or “environmentally conscious” claims. In this concept, L’occitane & Kiehl’s are among the brands which has highest “organic” score. 160

150

140 Chanel 130

MAC 120 L'occitaine L'oreal Kiehl's Dior 110 Urban Decay Estee Lauder Benefit 100 Nars The Body Shop 90

Maybelline 70

60 NIVEA

Organic Score Organic 50 60 70 80 90 100 110 120 130 140 150 160 Environment Score ABOUT US We help brands to make Data- driven decisions on a daily basis by consulting & managing projects in martech, data intelligence, audience insights & digital analytics.

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2nd Party Data: (e.g. Partner data, e-com We can analyze various of data sets such as data etc.) . 3rd Party Data: (FB & IG ad engagers, page engagers, interest-based data)

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DAN DNA - Proprietary and Confidential - July 20