For beauty business news, beauty store owners turn to Beauty Store Business. Beauty business trends, beauty business profiles and more!
Issue link: http://beautystorebusiness.epubxp.com/i/444071
4 February 2015 | beautystorebusiness.com Marc Birenbaum Executive Editor firstname.lastname@example.org Editor's Note TABS GROUP—A LEADING TECH- enabled analytics firm servicing the consumer-products industry—released the results of its 2014 Beauty Consumer Insights Study Dec. 15 with great news as well as excellent advice for what it calls specialty beauty stores. In the latest installment of its Webinar series, TABS Group explored the relationships between Millennial shoppers, social media and beauty products by surveying 1,000 women and 250 men between the ages of 18 and 75. Based on its data, TABS Group esti- mates most shoppers buy more than seven types of products throughout the year; and the majority of buyers pay between $5 and $20 for products, but Millennial women are apparently willing to spend more—paying an average of 25% more than other age groups. "The heaviest shoppers demonstrate no brand loyalty, purchasing more than eight brands on average and shopping at many more outlets than lighter buyers," says TABS Group founder and CEO Dr. Kurt Jetta. "Consistent with the data from our Consumer Value Study earlier [in 2014], most consumers say they prefer to shop at stores that offer good deals. The bottom line is that more deals lead to more sales— particularly among the heaviest buyers who have no loyalty to specific brands." Other key findings include: Specialty beauty stores, online- beauty retailers and department stores attract "heavy" buyers. While mass retailers were the most popular places for buyers overall (57% reported shopping at Walmart; 32% at Target), specialty beauty stores, online retailers and department stores are more successful at attracting heavy buyers—shoppers who regularly purchase more than 10 segments. Don't count on loyalty! Attract heavy buyers with good deals. While heavy buyers are valuable targets—purchasing four times more brands than light buyers and accounting for 58% of all purchases— they don't show any true loyalty to spe- cific places, nor to brands. In fact, most heavy buyers purchase more than four brands regularly. Online-beauty gurus are replacing in-store advisers. Only 24% of heavy buyers indicated that they prefer to shop in brick and mortars with in-store beauty advisers. Forty-two percent of heavy buyers say that social media is "very important" in making their purchasing decisions. Beauty blogs (29%) and YouTube (23%) were the most-popular resources among these buyers. Millennial women, the income group from $75,000 to $99,000, and Hispanics are the most involved. Millennial women between the ages of 25 and 34 purchase the most products—an average of between nine and 10 product types per year. Don't ignore those men! While women are the primary demographic target with 86% purchasing in 2014, retailers shouldn't ignore the importance of men—who are active buyers too. For a custom review of the data, visit tabsgroup.com, email webinar@tabsgroup. com or call 203.925.9162. ■ "Most consumers say they prefer to shop at stores that offer good deals." Specialty Beauty Stores Draw "Heavy" Product Buyers