By: Kristen Prazenica

What intrigues a woman to shop through a television network or infomercial?

Convenience Ability to shop at any time of dayNo sales pressureDemonstrations of product application

Why do we shop network channels?

PRICE“Sometimes they have great sales you can’t beat, to see the latest styles.” –

Age 26“The price and quality of the products.” – Age 37

RETURN POLICY“Great return policy and great prices.” – Age 49

CONVENIENCE“Convenience and price.” – Age 53

INFORMATION“Demonstration, testimonials.” – Age 43“I like the explanation of the products and the demonstrations.” – Age 33

BRANDS/PRODUCTS“Some of the products I buy aren’t available any other place that I’m aware

of.” – Age 59

The Generic Home Shopping Persona

Focused on price and value Impulsive shopperLargest segment purchasing is women aged 45-54 50% want savings on travel and gas costs 39% shop channel for discounted pricesEnjoy shopping at any time of day

The Infomercial Shopper Profile

Prefer prestige brands 38% see the product and purchase it online 29% view product and purchase it at a store Impulsive decision maker 40% shop between 10 p.m. and 2 a.m. More likely to purchase a new product from a familiar brand

Infomercial Shopper Continued

4 out of 10 woman awarenessMost viewers fall into 18-24 segment45-54 aged segment spent the most on

beauty ($138)18-24 year old segment $110 averageGrowing market, about 4 in 10 newcomers

doubling HSN newcomers80% tune in impulsively

Infomercial Shopper Continued

20% of Infomercial shoppers used channel for 5+ years

40% of Infomercial shoppers purchase through internet

3 in 10 Infomercial shoppers shop via internet

The TV Network Shopper Profile

Prefer prestige 38% see product and purchase it online18% view items and make store purchaseImpulsively tune in31% shop between 8 p.m. and 10 p.m.18% shop between 6 p.m. and 8 p.m.

TV Network ContinuedMost likely purchase new product from familiar

brand70% buy new from brands they already own

products fromPrime segment of viewers: 45-64 age range1 in 3 TV Network shoppers shop channel 1-4

hours per week

TV Network Continued50% of TV Network shoppers used channel

for 5+ yearsLess likely to shop on impulse vs. infomercial

shoppers (67% vs. 83%)More likely to plan tuning in times vs.

infomercial shoppers (33% vs. 17%)More likely to watch products on television

and purchase it online after vs. through phone

TV Network Continued59% see product on

TV, then purchase through internet

4 in 10 shoppers also shop with the internet

TV Network and Infomercial, a Worthy Channel?

Least likely market to gain new consumersStronger market for skincare & make-up More likely to purchase skincare (60%) vs.

body skincare (30%)Internet and fine department store shoppers

likely to cross-shop to this channelThe highest reported average spending

for beauty is cited as fine department stores ($117), TV Shopping Networks ($109), and Infomercials ($100)

QVC Shopping Market Profile

Highest purchases are make-up and skincareBetter market for make-up sales than HSN,

70% vs. 50% reported buyers80% of fans will shop/purchase if tuned in92% awareness level amongst consumersQVC turns 90% of viewers into regular

watchers

Home Shopping Network Market Profile

Highest purchases are make-up and skincareBetter purchase results in facial (63% vs. 48%)

and body skincare than QVC (47% vs. 36%)Fewer shoppers vs. QVCStrong make-up brands have a chance at

success Market awareness level of 84%

Ability of Consumers to find Beauty Products Conveniently

Through TV Networks82% mentioned not

shopping this channel 12% had no problem 6% unable to find productsA third of those shopping

this channel had a problem finding their desired purchases.

The Internet? Could be an asset to TV Networks!Provides flexibility

and interactivityAbility to watch

missed TV segmentsTV Network shoppers

more likely to watch products on television and purchase it online after vs. through phone

The biggest element is it brings an interactive experience to the consumer

“The Natural Perception”

“Pure, clean.”

“Free of chemicals.”

“Does not contain additives.”

No artificial ingredients.”

“Made from plant products.”

“It is safe to use.”

“Come only from natural sources such as plants. No chemicals.”

“All natural ingredients.”

What intrigues women to buy all natural products?Need for samples

and educationLow initial pricesProof it works

without the costJust as effective as

the current product

Common Phrases That Associate Consumer Perceptions to think “All

Natural”Terminology Rank %

Safe to Use on Your Skin 1 73

Made without dyes or additives 2 71

Product is healthier for you 3 66

Ingredients are mineral based 3 66

Manufactured without chemicals 4 63

Not tested on animals 5 29

Safe for the Environment 6 28

General Interest in the Beauty Market

The Natural Market Potential

Distinct perception vs. organic, eco-friendly, and socially conscious brands is “safe for use on skin.”

Organic and eco-friendly advocates are easiest to convert to natural market

Greatest expansion in white women and segment 55+

Mass merchants and beauty specialty stores biggest sellers

Natural Product Age Segment Analysis

18-34 year olds Highest interest in natural products: 81% Most usage of natural lines: 68% Highest usage of all natural make-up:

45% Body skin: 43%, 2nd highest amongst

segments 27% (3rd highest) sun care interest 63% admitted to having a strong interest in

new beauty trends (highest of all segments)

42% mention “certified green” products of prime importance

56% willing to pay more for facial care products

50% willing to pay more for body care

Natural Product Age Segment Analysis

35-54 year olds80% interest in

natural productsTied for highest

usage of all natural make-up: 45%

Tied for highest usage of sun care: 29%

Natural Product Age Segment Analysis

55-64 Year Olds78% very interested58% actual usageHighest facial usage

user: 45% consumersLowest reported

interest in sun care products

39% interest in “certified green” products

65+ Year Olds 74% natural product interest 59% actual usage Highest sun care interest:

29% Interest in make-up, facial, and

body care products all about equal (39%, 41%, 40%)

Highest interest in naturally grown and organic products, (44% and 27%)

Willing to pay more for make-up, body, and skincare than other segments: (54%, 50%, and 51%)

Market Segmentation by Ethnicity

Whites (not Hispanics) Highest interest in “certified green”

products: 41% Make-up interest: 30% Facial, body care, and sun care

product interest: (35%, 33%, and 28%) 62% more likely to purchase product

with natural wording

Blacks (not Hispanics) Highest interest in “naturally grown” and

“organic” products”: 47% and 28% Strongest interest in facial skincare: 50%

consumers Equivalent interest in make-up and skin care:

(47% and 44%) Sun care interest: 28% 69% more likely to buy with natural wording Most likely to pay more for beauty products

across product types except sun care than other segments

Market Segmentation by Ethnicity

Hispanic MarketHighest interest in

“naturally grown” products: 43%

Strong desire to purchase facial skin care: 46%

Make-up, body care, and sun care product interest follows: (44%, 42%, and 36%)

Market Segmentation by Household Income

Under $25,000 Highest general interest in

beauty products: 40% Greatest interest in sun

versus other markets: 29% Equivalent interest in facial

and body care: 39% 69% more likely to

purchase product with “natural wording”

$25-000 to $44,999 34% general beauty

interest Highest interest in facial

care: 38% Rate body care, make-up,

and sun care importance: (37%, 31%, and 28%)

Market Segmentation by Household Income

$45,000- $74,99936% general interestHighest interest: facial

care 40%Out of all segments

most interest in sun care: 31%

Body care and make-up interest: (38% and 36%)

56% willing to pay more for make-up

$75,000+34% general interestHighest interest: facial

skin care 36%Close interests in make-

up, body care, and sun products: (34%, 33%, and 29%)

Most willing to pay more face, body, and sun care out of all segments: (60%, 52%, and 57%)

Willing to Pay More For Natural Products (among Beauty Users

18+)

Fun Facts of the Beauty Market

72% of facial skincare purchases are planned91% of foundation purchases are pre-planned

(the top category in make-up sales)64% of Beauty Product Users would more

likely purchase product if NATURAL appeared on the label.

“Healthier” and “Free from chemicals and pesticides” are the two main reasons users choose natural

Biggest decline in spending: segment (18-24)

Where is the beauty market headed?

Make-up highest decline in purchasing

When asked, what type of product (skincare vs. make up vs. fragrance they would put $100 to) skincare won with 45% of votes

The All Natural Skin Purchaser Profile

2009 total Skincare segments: 74% feel mass brands are just as good as prestige

Sets/Kits had 10% dollar market shareExperienced +8% dollar growth+7% unit growth

Anti-aging, big seller! Claimed 40/50 top kit spots>50% buy on impulse<50% plan brand to purchase from

What are women searching for when purchasing skin

products?

Planned vs. Unplanned Shopping

TrendsAnti-aging serums, treatments, and moisturizers

The Anti-aging Skin Consumer Profile

Type of Skin Product

% Change in Market $

Performance for Prestige

Anti-aging -4%

Face Cleanser -4%

Face Moisturizer -4%

Acne -11%

>50% of women are

86% strive for wrinkle reduction

74% seek firming/lifting

59% find products ineffective

“The consumer values BEST PRICE for the product GETTING A DEAL”

The Anti-aging Skin Consumer Profile

How do we get a female shopper to buy

and use?54% of women rely on friends, family, and

coworkers47% admit to being influenced by experts40% by magazine articles29% by internet and blogs12% by home shopping networks and

infomercials

Expansion in the “Sensitive skin”

Market49% of women have sensitive skin62% of 18-24 year olds 61% of all African American women

Consumers in this market favor hypoallergenic, fragrance-free, and SPF strong products

Kits are the most appealingRely on natural face care products the mostMost likely to purchase from companies that

give back to charities

Ways to fuel innovation in SkincareThe Key, Mass Acceleration Innovation

Unique delivery systemsSpecializationAnti-aging winnersTools“CONSUMERS VALUE BEST PRICE FOR THE

PRODUCT GETTING A DEAL.”

Skin Care SummaryConsumers are beginning to cut back on beauty

purchasingShifting to preferences of interaction/personal

engagement before making purchaseSkincare has gained in relevance to consumersMake-up has declined in the eyes of the consumerKits are a hot commodityAnti-aging is a strong market that is not decliningMost decisions to purchase are made on impulseWomen are remaining faithful to their brands