2021
9
UK The BPC Purchase Journey Market Report 2021
2021-11-10T03:09:50+00:00
OX1050041
2195
144367
[{"name":"Health and Beauty Retail","url":"https:\/\/store.mintel.com\/industries\/retail\/health-beauty"}]
Report
en_GB
“The BPC purchase journey is becoming less linear and more complicated, with consumers researching brands and products across multiple touch points and buying products from a broader range of channels…

UK The BPC Purchase Journey Market Report 2021

£ 2,195 (Excl.Tax)

Report Summary

Providing the most comprehensive and up-to-date information and analysis of the BPC Purchase Journey market, including the behaviours, preferences and habits of the consumer.

Despite a significant shift toward online shopping in the BPC market during the pandemic, 37% of consumers who buy beauty or grooming products say they typically only do so in store, while a further 24% mostly shop in-store. This confirms that stores remain a powerful point of difference in a crowded beauty retail landscape, and those that continue to invest in physical retail spaces will spaces will reap the rewards.

The spike in online BPC retail innovations during the pandemic means that the shift online will be lasting, with the experience of buying beauty or grooming products online now rivalling the experience of buying them in-store. UK BPC consumers choose where to shop for BPC products based on two primary factors: price and convenience. This means the biggest threat to BPC brands and retailers are intense price competitions, as well as a need to compete with bigger players to meet convenience expectations. Specialists can offset these challenges with range differentiation, with greater focus on curation likely to resonate in particular.

There also remains opportunities to better connect different retail channels in BPC, with greater investment into in-store technology, as well as the development of mobile sites and apps, necessary to better understand the holistic BPC purchase journey, which now often involves a combination of online and offline activities.

Read on to discover more details or take a look at all of our UK Beauty market research.

Quickly understand

  • The impact of COVID-19 on BPC purchase journey.
  • Post-COVID-19 market size and forecast for the online BPC market.
  • BPC online and offline retail innovation.
  • Channels used to purchase BPC, retail drivers and shopping behaviours.
  • How consumers discover new beauty/grooming products.
  • Awareness and usage of the leading online-only BPC retailers.

Covered in this report

Brands: Lookfantastic, Feelunique, Fragrance Direct, Beauty Bay, Cult Beauty, Allbeauty, Glossybox, Mankind, Escentual, The Modern Man, Beauty Pie, Birchbox, Facebook, Instagram, YouTube, Wish, Snapchat, TikTok, GumTree, Twitter, Pinterest, Depop, Shpock, Preloved, Olive, Chanel, Aesop, Veracity, Liberty London.

BPC Categories: Body, hand and footcare, Colour cosmetics, Deodorants, Facial skincare, Fragrances and body sprays, Hair colourants, Haircare and styling products, Oral hygiene, Shaving and hair removal products, Soap, bath and shower products, Suncare.

Expert analysis from a specialist in the field

This report, written by Samantha Dover, a leading analyst in the Beauty and Personal Care sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

The BPC purchase journey is becoming less linear and more complicated, with consumers researching brands and products across multiple touch points and buying products from a broader range of channels than ever before. However, consumers are craving an easier path to purchase. As a result, retailers that educate consumers and help them navigate the vast amounts of choice will be best placed to succeed, but to do so they need to keep pace with changing behaviours and purchase drivers with a compelling loyalty proposition.

Samantha Dover
Senior Beauty and Personal Care Analyst

Table of Contents

  1. Overview

      • Key issues covered in this Report
        • Products covered in this Report
          • COVID-19 market context
            • Economic and other assumptions
            • Executive Summary

                • The impact of COVID-19 on BPC
                  • Figure 1: Short-, medium- and long-term impact of COVID-19 on BPC, 2020-25
                • The market
                  • COVID-19’s online boost will have a lasting impact
                    • Figure 2: Market forecast for the UK online BPC market, 2016-26
                  • Companies and brands
                    • Innovation focus begins to shift back toward stores
                      • The consumer
                        • Consumers continue to show an appetite for shopping in-store
                          • Figure 3: Channels used to purchase BPC in the last 12 months, 2021
                        • Traditional influences remain powerful in the purchase journey
                          • Figure 4: New product discovery in BPC, 2021
                        • Brand assortment and loyalty schemes drive place of purchase
                          • Figure 5: Retail drivers in BPC, 2021
                        • Online-only retailers garner strong brand awareness and usage
                          • Figure 6: Awareness and usage of online BPC retailers, 2021
                        • Price competition will remain intense for the foreseeable future
                          • Figure 7: BPC shopping behaviours, 2021
                      • Issues and Insights

                        • Differentiate to offset price competition post-COVID-19
                          • Explore new store formats to re-engage consumers
                          • The Market – Key Takeaways

                            • Online faces difficult comparison post-COVID-19
                              • Connect the online and offline channels
                                • Cater to the demand for greater transparency
                                • Online BPC Market Size and Performance

                                  • The impact of COVID-19 on BPC
                                    • Figure 8: Short-, medium- and long-term impact of COVID-19 on BPC, 2020-25
                                  • Online shift in BPC will outlast the pandemic
                                    • Figure 9: Market size for the UK online BPC market, 2016-21
                                • Online BPC Market Forecast

                                  • Online growth will drive demand for innovation
                                    • Figure 10: Market forecast for the UK online BPC market, 2016-26
                                    • Figure 11: Market forecast for the UK online BPC market, 2021-26
                                  • Market drivers and assumptions
                                    • Figure 12: Key drivers affecting Mintel’s market forecast, 2016-25
                                  • Forecast methodology
                                  • Online BPC COVID-19 Scenario Performance

                                    • Mintel’s approach to predicting the impact of COVID-19
                                      • Fundamental differences in how COVID-19 is affecting consumer markets
                                        • Rapid recovery will negatively impact online BPC, but extend disruption would provide an another boost
                                          • Figure 13: COVID-19 scenario forecasts for the UK online BPC market, 2016-26
                                        • COVID-19 market disruption: risks and outcomes
                                          • Figure 14: Summary of Mintel scenario expectations and the impact on the UK online BPC market, 2021
                                      • Online BPC Channels to Market

                                        • Online-only retailers gain market share
                                          • Figure 15: Online BPC channels to market, 2019-21
                                      • Market Drivers

                                        • Work on diversity and inclusion to engage growing demographics
                                          • Figure 16: Projected trends in the age structure of the population, 2018-28
                                        • Recognise consumers who feel less confident about their finances
                                          • Figure 17: Mintel’s financial confidence index, 2015-21
                                        • Connect the dots between online and offline
                                          • Figure 18: Channels used to purchase BPC products in the last 12 months, 2020
                                        • Facilitate ethical research behaviours
                                          • Figure 19: Ethical BPC shopping behaviours, 2021
                                        • Explore the role that social media plays in the purchase journey
                                          • Figure 20: Alternative platforms shopped with in the past 12 months, 2021
                                      • Companies and Brands – Key Takeaways

                                        • COVID-19 drives demand for improved convenience
                                          • Brands leverage the power of packaging
                                            • In-store investment will resonate post-pandemic
                                            • Launch Activity and Innovation

                                              • Keep pace with next-generation order fulfilment
                                                • Figure 21: Olive delivery platform, 2021
                                              • Maintain investment in tools that aid beauty decisions
                                                • Figure 22: Chanel Lipscanner app, 2021
                                              • Better utilise packaging in the purchase journey
                                                • Utilise a combination of online and offline events
                                                  • Figure 23: Aesop Queer Library, London, 2021
                                                • Respond to rising competition from disruptive DTC players
                                                  • Figure 24: Veracity Self Care App, 2021
                                                • Be inspired by the next generation of subscription services
                                                  • Figure 25: Liberty London The Beauty Drop, 2021
                                              • The Consumer – Key Takeaways

                                                • COVID-19 disrupts place of purchase in BPC
                                                  • Traditional touch points remain influential
                                                    • Renovate customer loyalty with new incentives
                                                    • The Impact of COVID-19 on BPC Consumers

                                                      • Pivot NPD and marketing toward low-maintenance BPC
                                                          • Figure 26: Change in priorities since the start of the COVID-19 outbreak, 2021
                                                        • Offset price competition with range differentiation
                                                            • Figure 27: Spend on BPC compared to before the COVID-19 outbreak, 2021
                                                          • Respond to heightened wellbeing demands
                                                            • Figure 28: Planned changes to consumer behaviour once COVID-19 is no longer a concern, 2021
                                                          • Restore the in-store shopping experience
                                                              • Figure 29: Beauty/grooming shopping behaviours since the start of the COVID-19 outbreak, 2021
                                                              • Figure 30: Gucci Beauty on Drest, 2021
                                                            • Cater to consumers who are looking for value
                                                                • Figure 31: Change in priorities when purchasing beauty/grooming products since the start of the COVID-19 outbreak, 2021
                                                            • Channels Used to Purchase BPC

                                                              • Reimagine the in-store experience
                                                                • Figure 32: Channels used to purchase BPC in the last 12 months, 2021
                                                              • Dedicate more in-store shelf space to male grooming
                                                                • Figure 33: Channels used to purchase BPC in the last 12 months, by gender, 2021
                                                              • Strengthen in-store service to boost senior spend
                                                                • Figure 34: Channels used to purchase BPC in the last 12 months, by age, 2021
                                                              • Fill the gap left by department stores
                                                                • Figure 35: Channels used to purchase BPC in the last 12 months, by location, 2021
                                                            • Product Discovery

                                                              • Tap into word-of-mouth recommendations
                                                                • Figure 36: New product discovery in BPC, 2021
                                                              • Explore shoppable TV and second screen behaviours
                                                                • Figure 37: New product discovery in BPC, by age, 2021
                                                              • Improve shoppable content on social media
                                                                • Utilise DTC websites to engage women
                                                                  • Figure 38: New product discovery in BPC, by gender, 2021
                                                              • Retail Drivers

                                                                • Be creative with loyalty and reward schemes
                                                                  • Figure 39: Retail drivers in BPC, 2021
                                                                • Aid product exploration amongst women
                                                                  • Figure 40: Retail drivers in BPC, by gender, 2021
                                                                • Expand the brand assortment for underserved shoppers
                                                                  • Figure 41: Retail drivers in BPC, by age, 2021
                                                              • Awareness and Usage of Online BPC Retailers

                                                                • Recognise the threat that online-only retailers pose
                                                                  • Figure 42: Awareness and usage of online BPC retailers, 2021
                                                              • Shopping Behaviours

                                                                • Provide next level convenience to win over shoppers
                                                                  • Figure 43: Attitudes toward the BPC shopping experience, 2021
                                                                • Restore price integrity with exclusivity
                                                                  • Figure 44: Discount shopping behaviours in BPC, 2021
                                                                • Reduce the barriers to seeking in-store assistance
                                                                  • Figure 45: Attitudes toward advice/guidance when shopping for BPC, 2021
                                                                • Use in-store curation to aid product discovery
                                                                  • Create a more personal shopping experience with technology
                                                                    • Figure 46: Attitudes toward retail technology in BPC, 2021
                                                                • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                    • Abbreviations
                                                                      • Consumer research methodology
                                                                      • Appendix – Total BPC Market Size and Forecast

                                                                        • Market size and forecast
                                                                          • Figure 47: Market size and forecast for the UK BPC market (excluding professional services), 2016-26
                                                                          • Figure 48: Market size and forecast for the UK BPC market (excluding professional services), 2016-26
                                                                        • Market forecast and prediction intervals
                                                                          • Figure 49: Market forecast and prediction intervals for the UK BPC market, 2021-26
                                                                        • Scenario performance
                                                                          • Figure 50: COVID-19 scenario forecasts for the UK BPC market, 2016-26
                                                                          • Figure 51: COVID-19 scenario forecasts for the UK BPC market, 2016-26
                                                                      • Appendix – Online BPC Market Forecast

                                                                        • Market forecast and prediction intervals
                                                                          • Figure 52: Market forecast and prediction intervals for the UK online BPC market, 2021-26
                                                                        • Scenario performance
                                                                          • Figure 53: COVID-19 scenario forecasts for the UK online BPC market, 2016-26
                                                                      • Appendix – Central Forecast Methodology

                                                                        • Market drivers and assumptions
                                                                          • Figure 54: Key drivers affecting Mintel’s market forecasts, 2016-25
                                                                        • Forecast methodology
                                                                        • Appendix – Scenario Performance Methodology and Assumptions

                                                                          • Rapid COVID-19 recovery, central and extended COVID-19 disruption scenarios outline
                                                                            • Scenario methodology

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