Soap & Glory - Industry Analysis

Part
01
of two
Part
01

Soap & Glory - Industry Analysis

The market size of beauty and personal care products in the United Kingdom was estimated to be $15,579 million in 2019; the market was forecast to grow annually by 2.4% from 2019-2023. The Asian ethnic group is the highest consumers of beauty and personal care products in the United Kingdom. Brexit is one major weakness of the beauty and personal care industry in the United Kingdom.

INDUSTRY OVERVIEW

  • The beauty and personal care market operate a consumer good for cosmetics and body care.
  • Cosmetics, skincare, personal care, and fragrance are some segment of the beauty and personal care industry in the United Kingdom.
  • The UK beauty and personal care industry have experience slower growth as a result of Brexit threatening its consumer confidence.

MARKET SIZE AND GROWTH RATE

  • Beauty and personal care industry market size was estimated to be $15,579 million in 2019; the market was forecast to grow annually by 2.4% from 2019-2023.
  • The cosmetics market segment was estimated to have a market size of $2,986.4 million in 2019; the market was forecast to grow annually by 4% from 2019-2023.
  • Skincare market segment was estimated to have a market size of $3,933.5 million in 2019; the market was forecast to grow annually by 2.7% from 2019-2023.
  • The personal care market segment was estimated to have a market size of $6,370.8 million in 2019; the market was forecast to grow annually by 1.5% from 2019-2023.
  • Fragrances market segment was estimated to have a market size of $2,288.7 million in 2019; the market was forecast to grow annually by 2.3% from 2019-2023.

STRENGTHS AND WEAKNESSES

  • Product innovation, quality, price, and attractive packaging are some areas were the beauty/personal care industry is excelling.
  • Premium anti-aging products, cosmetics specifically designed products for ethnic consumers, and products that offer multiple benefits and are convenient to use are some areas were beauty/personal care products are excelling.
  • Natural and clean beauty is becoming the standard causing the industry to excel for ethnic consumers and products that offer multiple benefits and are convenient to use
  • The growing population of people aged 65 and over in the United Kingdom offers potentials for anti-aging cosmetics.
  • Brexit is one major weakness of the beauty and personal care industry.

CUSTOMER DEMOGRAPHICS

PRODUCT SOLD

RESEARCH STRATEGY

To locate the current status of the soap, skincare, and cosmetic industry in the UK, we began by combing through the UK government website, Export Forum reports, and industry reports. While we were able to locate information regarding the types of products sold, strength and weakness, and the market size and growth rate of the industry, there was limited information regarding the customer demographics of the industry. We went further to search press releases for precompiled information regarding the demographic analysis like age, sex, income level, and ethnic group of beauty and personal care products in the United Kingdom. We were able to locate that Asian ethnic group has the highest consumers of beauty and personal care products in the UK and the majority of the consumers were seniors age 65 and over were the major consumers of anti-aging cosmetics, while there was no information regarding the sex and income level.

Next, we scoured through survey reports by industry expert and market reports hoping to locate information regarding the gender and income level of the beauty and personal care industry consumers. This strategy was not successful, the information found was referencing the growing awareness of the potentially harmful side-effects of the artificial ingredients used in beauty products and surveys that focused on the organic beauty market. There was no information regarding the sex and income level of the consumers of beauty and personal care products.

Our research team change gear by sourcing for paywall reports hoping to find relevant data that could be used to triangulate the percentage of male and female using the beauty and personal care products in the United Kingdom. While we were able to locate a pay report of $2,650, the information found did not provide data that could enable us to triangulate the percentage of male and female using beauty and personal care products in the UK. Information found were leading players within the beauty and personal care industry, challenges facing the industry, and the growing awareness of health and beauty.

Our next strategy was to locate academics publications, thesis, and dissertation carried out by scholars to determine the demographics of beauty and personal care products in the United Kingdom. We utilize credible sources like Researchgate, Elsevier journals, NCBI, and business journals for information regarding the demographic analysis of beauty and personal care products in the United Kingdom. Unfortunately, we were unable to locate published journals referencing the demographic profile of beauty and personal care consumers. Information found were referencing hazardous ingredients in cosmetics and personal care products, trends in aging and skincare, synthetic cosmetics, and major brands in the synthetic cosmetics market.

Lastly, we broadened the scope of the research to locate the demographic profile of the global beauty and personal care industry. This strategy was fruitful as we were able to locate information regarding the age and sex of the major consumers in the beauty and personal care industry. We unearth that female age 21-29 are the core cosmetics consumer. We have, therefore, used this information to compile the demographic profile for the beauty and personal care industry.
Part
02
of two
Part
02

Soap & Glory - Competitor Analysis

Both Charlotte Tilbury and Inglot are cosmetics firms that compete with Soap and Glory. While more expensive, Charlotte Tilbury has created a product and a social media campaign that is attracting young buyers. Inglot has products in the same price range, a similar brand and message in their marketing and is on a significant growth spurt which will expand their name recognition.

CHARLOTTE TILBURY

Why is it a competitor

  • Charlotte Tilbury is a UK Cosmetic Brand that targets the GenZ market. Analysts describe its market as bohemian/rock girls. On its customer review page, a customer talked about how her 14 yr old girls wanted the face cream and were thrilled with it.
  • While more expensive than Soap and Glory, it has a massively successful social media campaign rated first in the UK by Gartner. It had an "unbeatable buzz by beauty vloggers on YouTube."
  • It has a similar social awareness campaign to Soap and Glory. Charlotte Tilbury recently pledged £1 million to the Women for Women International, a charity that helps women affected by war rebuild their lives.

Mission and Goals of the Brand

  • Charlotte Tilbury's motto is "Give a woman the right makeup and she can conquer the world."
  • The goal of the company is to uplift women, make them feel powerful and beautiful and confident in their capabilities.

Market/Industry

  • Charlotte Tilbury operates primarily in the Cosmetics for Women industry, including makeup and skincare.

Product

  • Charlotte Tilbury was a makeup artist and consultant to some major brands before she launched her own company. Her products are unique. "I love creating exciting new formulas and discovering gorgeous, confidence-boosting beauty."
  • On Charlotte Tilbury's website, the product is not only sold in the typical categories of cosmetics — i.e. which part of the face it enhances.
  • They also package and sell their products by look. For example, they have packages for The Ingenue, the Rock Chick and The Rebel.
  • Their product lines include Walk of Shame, Pillow Talk Diamonds and Glowgasm.

Target Audience

  • According to the reviews on their website, their target market is young single women.
  • The names of both their packages and their product lines are designed to engage women who are proud of who they are and not ashamed to live life out loud.
  • For example, one review stated "The packaging — simply gorge and the name 'Walk of Shame' — describes me and my night out antics to a T!"

Performance

  • According to the latest annual financial report issued, in 2017 Charlotte Tilbury showed revenue of £75,523,751 with an after-tax profit of £2,559,985

INGLOT

Why is it a competitor

  • Inglot is a cosmetic company originally from Poland. It opened in the UK in 2009 and now operates under the name Ingot Cosmetics Ireland, with the head office in Lynn Cross, Mullingar, Co Westmeath in Ireland, about an hour northwest of Dublin.
  • They have recently partnered with Next to expand their line even deeper into the British cosmetics market.
  • They are a family-owned business, whose daughter Jane is a makeup artist. She knew the products would resonate with the younger demographic while "keeping the cost reasonable and the quality high". "Jane now hosts brand roadshows and events, while running a makeup blog which has become successful on social media in its own right."
  • These activities put them squarely in the market of Soap and Glory.

Mission and Goals of the Brand

  • As a relatively new company (2009), Inglot has not yet defined a social issue to support.
  • It is focused on making its products in Ireland and has achieved that goal by reaching 95%.
  • They are also committed to high-quality ingredients and fair prices.
  • Their makeup prices are similar to Soap and Glory — e.g. lipstick in the £9-£10 range.

Market/Industry

Product

  • Inglot provides a wide selection of colors. They state they have 450 ways to color lips, 600 ways to showcase eyes and 300 ways to enhance a face.
  • They can do this because they have designed a series of Palettes called the Inglot Freedom system.
  • Customers can use this to purchase each unit separately, personalize their colors and design their combinations.

Target Audience

  • The target audience for Inglot is younger women.
  • Not only was this stated by the company owner, but the glance at the website shows similarities to the Soap and Glory Site.
  • Like the Soap and Glory website, the bright pink color and the summer fun themes are front and center.
  • An article published earlier in August 2019, named Inglot as one of the top seven makeup lines a teen would like to receive for Christmas.

Performance

Inglot is a privately owned company, so exact revenue figures are not available. However, they are on a significant growth path.
They opened two new boutiques in Next in Manchester in May, three new stand-alone stores in England with a flagship store in London.
Besides Next's 500 stores in the UK and Ireland, Inglot is also expanding into Irish pharmacy chains.

RESEARCH STRATEGY

We began our research by reviewing Soap and Glory for its products, ownership, revenue, ad campaigns, target market, and social responsibility programs. We analyzed them as follows:

Products: Soap and Glory sells Beauty and Cosmetics
Ownership: Boots Alliance acquired the Soap and Glory brand on Dec 1, 2014.
Annual revenue for Boots Alliance was $640,980,000
Ad Campaigns: pink, glossy, and fun are the keywords and images.
Target Market: Teenagers and Gen Z. A review of their products showed none advertised as for mature skin.
Social awareness campaign launch in 2018. It is called #MoreThanLips and focuses on women's rights. Every Post with hashtag #MoreThanLips on Instagram provides a donation to SheShouldRun, a group promoting leadership with a goal of having 250,000 women run for office by 2030.

Competitive analyses can be based in one of two factors. A company can be defined as the biggest competitor because of its revenue or because it occupies exactly the same place in the market and uses the same marketing channels and the same message.

We started with a search on Crunchbase of all cosmetic companies in the UK with makeup in their description. We reviewed the descriptions of all the companies and found that Charlotte Turnbull was the only one listed with those criteria. With a revenue of over £75 million it is listed 4th on the list, while the first three were not in the makeup market.

We could not find any other companies on Crunchbase which met the financial criteria so we then searched for companies that were in the exact same target market of teenagers and were marketing in the same social media channels. There we found Inglot. While it is a privately held company with no published revenue, it is in the process of a large growth spurt. We therefore projected that it will soon be at least the second largest competitor.

We were not surprised to only find two UK companies marketing to teenagers. Not only is it a niche market but when we examined a list of top makeup brands that teenagers want this year, only one of the seven, Inglot, was not an American company.






Sources
Sources

From Part 02
Quotes
  • "Tilbury's brand is aimed at the bohemian/rock type girl- Tilbury herself is always sporting tousled long locks and kohl rimmed cat eyes. "
Quotes
  • "I bought this for my 14-year-old daughter as one of her birthday presents. I also bought another one for my other daughter as one of her birthday presents for next month. After having a makeover at your shop they asked for it as it was absolutely amazing and made their skin glow and their makeup look flawless. We’ve seen an improvement in my 14-year-olds complexion too. So thank you."