Understanding consumer buying behaviour for beauty products

Interpretation of Beauty

Understanding Consumer Buying Behaviour for

Beauty Products

Nishanth WarrierVipin NairBhavesh SharmaKunal JoshiBhavna Vaja

Content

• What is a beauty Product?• Products• Brands Available in India• ASSOCHAM Industry Report • Understanding consumer Behaviour• Conclusion

What is a Beauty Product?

Substances used to enhance the appearance or odor of the human body. They are generally mixtures of

chemical compounds, some being derived from natural sources, many being synthetic

“Intended to be applied to the human body for cleansing, beautifying,

promoting attractiveness, or altering the appearance without affecting the

body's structure or functions."

Products

Skin-care creamsLotions

Powders

Perfumes

LipsticksFingernail and toe nail polish

Eye and facial makeupColored contact lenses

Hair colors

Hair sprays and gelsDeodorants

Hand sanitizer

Brands in India - Synthetic

Brands in India - Natural

ASSOCHAM Industry Report

Current Rs.10,000 cr will double to be

Rs 20,000 cr by 2014

Young urban elite populationRising disposable incomes

Increase in working women Purchasing power

Rising fashion consciousnesspromotional activities

Rural expansion and are offering specialized products

ASSOCHAM Industry Report

Two important categories resulting

growth

Respondents’ age bracket

57%40%

3%

Age group

18-25 26-30 30-40

A majority of the respondents fell into the 18-25 and 26-30 age bracket. So this research will give us an idea of the

consumer behavior of women with respect to beauty products in the 18-30 age range

How much are women willing to spend on beauty products?

54% of women would spend more than 50% or more of their income on beauty products

Below 50%46%

50%29%

More than 50%20%

100%6%

Spends

What do women primarily use beauty products for?

To be hygenicTo be pampered

To look attractiveConfident

0

5

10

15

20

Primary use

Majority of women use beauty products to look attractive and to feel confident.

How easily do women switch beauty brands?

Switching brands

EasilyRarely

Women rarely switch brands, showing that brand loyalty is high for beauty products.

Why would women experiment new products?

Interesting Free samples Available in small packs

02468

10121416

Women love free samples and a majority of them would experiment a new brand if they are provided with some.

What are the important factors while buying a beauty product?

Total

2.7

2.8

2.9

3

3.1

3.2

Important factors while buying

Average of Ranking to the factors important while buying [Brand]Average of Ranking to the factors important while buying [Price]Average of Ranking to the factors important while buying [Quality]

The brand name and the quality of the product are the more important than price while selecting a beauty

product

Are women usually open about the products they use?

No14%

Yes86%

A majority of the women are very vocal about the brand they use. This means the word of mouth propagation of

the brand name has a tendency to be high.

What do women get easily influenced by?

Friends opinion

66%

Interesting ads23%

Online review11%

Opinion of friends about a particular brand or product is the major influencing factor for women.

Do women feel that a brand ambassador is important for a product?

Total

A mustNot necessary

Women feel brand ambassadors are not necessary for a product and does not affect their decision making

Do women always look at the choices available?

Check different brands available Direct pickup the brand I always use0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

Total

Total

This research shows that women tend to directly pick up the brand they always use than checking for different

brands available.

What are the first things they check for in a new product?

Content43%

Offers9%

Price49%

The research shows that when women are looking for new products they do look at price and content equally.

Are women open to trying new products if they are offered one?

I will ac-cept but not use it

26%

I will try it74%

Total

A majority of women are open to trying out a new product which they are offered.

What do women do when they have a bad experience with a brand?

17%6%

71%

6%

Total

Complained online Did nothing about itDiscussed it with friends Wrote bad reviews

Majority of women discussed their experience with friends

If the preferred brand is unavailable

49%51%

I will still try to get it Switch the brand

Women might/might not switch brands (no brand loyalty)

Best Advertising Campaign

20%

11%

40%

29%

Total

All ages, all races, all sexes Be UnforgettableBecause you’re worth it On Top of the World

Because you are worth it resonated most with the respondents

What is women’s perception of their own knowledge of wearing make up?

71%

29%Good Minimal

Majority of women think that their knowledge of wearing make up is good.

What women think of sales people?

14%

49%

37%

Annoys after certain point Help us to know the product betterShould not push the product too much

Majority of women think that sales people can help them understand the product better.

60%

40%

I am not much active I am part of the brand community

Majority of women are not that active on social media

Do women interact with their favourite brand on social media?

Most preferred brand

Amaya1%

Avon1%

Avon 2%

Bobbi brown1%

Chanel2% Colorbar

2%Dove2%

Elle 181%

Garnier1%

Guess1%Lakme

28%

L'oreal15%

Lotus3%

LUX1%

MAC3%

Maybelline12%

Nike1%

Nivea1%

Oriflame2%

Pears1%

Ponds3%

Revlon8%

sheer cover1%

shehnaz hussain2%

VLCC2%

VOV1%

Lakme followed by L’oreal & Maybelline

Conclusion• Women tend to spend a large part of their income on beauty products because it helps

them look attractive and feel confident. This finding was also resonated in the finding where women connected best with the ‘Because you’re worth it’ ad campaign.

• A majority of women do not easily switch brands, but if the brand they buy is unavailable, they do get a slight tendency to switch brands. So brand availability in the market is crucial.

• Women are not too concerned about the price of the product they regularly buy, but they do check at the price of a new product they are buying to check if the product is worth the content.

• The small percentage of woman who don’t have a proper knowledge about make up can be educated, thus increasing the usage of the beauty products.

• Women are vocal about the products they use. They can a double edged sword.

Thank You