CT0010IS Sample Pages Insight Report August 2014

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1 Consumer Trends Analysis: Understanding Consumer Trends and Drivers of Behavior in the US Fragrance Market CT0010IS Sample Pages Insight Report August 2014

2 Example table of contents Definitions Category classifications Demographic definitions Summary methodology Trend framework Market context Drivers and inhibitors of consumption Overall market value, (US$ millions), Overall market volume, (millions of KG), Market volume, (millions of KG), , by category Market volume, forecasted Compound Annual Growth Rate, Global country comparison of market volume and growth, (millions of KG), Number of consumption occasions in 2012, by gender Number of consumption occasions in 2012, by age Market volume of substitute categories (Millions of Kg), Demographic cohort consumption patterns Breakdown of consumption occasions 2012, by gender Over/under consumption compared to the proportion of society represented Breakdown of consumption occasions 2012, by age group Over/under consumption compared to the proportion of society represented Private label consumption by age group compared to overall market consumption by age, 2012 Consumer trend analysis Level of influence each trend has on overall consumption, by volume, 2012 Primary market drivers the top five trends influencing consumption 8/28/ /08/2014 8/28/2014 2

3 Example table of contents - continued Consumer trend analysis continued For each primary market driver: Sub-trend explanations and analysis Value of consumption influenced by the trend, (US$ millions), 2013 Volume of consumption influenced by the trend, (millions of KG), 2013 Percentage of consumption motivated by the trend, by category Percentage of consumption motivated by the trend, by gender Percentage of consumption motivated by the trend, by age group Percentage of consumption motivated by the trend, by leisure time group Percentage of consumption motivated by the trend, by income group Analysis of how the trend influences consumption habits Recommendations of how manufacturers can formulate their products to target the trend How the trend will evolve in the category Innovation examples Innovative country-specific launches in the sector Innovative global launches in the sector Recommended actions What trends will increase in importance over the next ten years? What niche consumer needs can manufacturers meet to help differentiate their products? Appendix An explanation of the sub-trends Detailed methodology About Canadean 8/28/ /08/2014 8/28/2014 3

4 Reasons to buy this report This report brings together consumer analysis and market data to provide actionable insight into the behavior of consumers. This is based on Canadean s unique consumer data developed from extensive consumption surveys and consumer group tracking which quantifies the influence of 20 consumption motivations within your industry. Consumer trends analysis An overview of the key demographic groups driving consumption in your industry, and what their motivations are for doing so. This enables the reader to identify the most important trends within the market and also determine whether beliefs over what influences consumer behavior within the category are accurate. Market sizing Market value and volumes are given over for 10 leading countries across the globe. Coverage includes major European markets, the US, and the emerging markets of Brazil, Russia, India, and China. Demographic analysis Key demographic groups driving consumption within the UK market are identified. The figures showcase the number of Fragrance occasions attributed to specific age groups and genders, as well as identifying whether these demographic groups "over" consume in the category. Product innovation examples Examples are provided of innovative international and country-specific product development within your industry, with analysis of how these products effectively target the most pertinent consumer need states. Recommended actions Strategic recommendations of how to capitalize on the evolving consumer landscape are offered, allowing product and marketing strategies to be better aligned with the leading trends in the market. Future outlook The report provides insight to highlight the "so what?" implications behind the data, and analysis of how the need states of consumers within your industry will evolve in the short-to-medium term future. 8/28/ /08/2014 8/28/2014 4

5 Canadean has identified nine mega-trends that drive consumers and these can be broken down into 20 sub-trends Trust Better Value Changing Age Structures Changing Life Stages MEGA-TRENDS: CHANGING LIFESTAGES Personal Space & Time New Gender Behaviors CONNECTIVITY Individualism Urbanization & Migration CONVENIENCE Health ETHICS Beauty Aspiration EXPERIENCE & ENJOYMENT Quality Seeking Media Connection HEALTH & WELLNESS INDIVIDUALITY Indulgence Fun & Enjoyment Experience Seeking! Ethics Busy Lives Technology TRUST VALUE 8/28/ /08/2014 8/28/2014 5

6 The US Fragrances market is currently valued at US$ billion, and is forecast to witness a higher growth rate in next five years The Fragrances market in the US is expected to reach USDX million by 2018, growing at a CAGR of % during Improving economic conditions and a rise in the variety of offerings is stimulating the Fragrances market in the US. Continuous product innovation and the rising demand for Premium Fragrances by the high income consumers will drive growth in the market. Market volume is expected to grow at a CAGR of % during , driven by the rising importance for personal grooming. Furthermore, increasing celebrity Fragrance launches and a consumer desire for new sensory experiences is expected to further drive the Fragrances market in the US. Market value, (US$ millions), Market volume, (Unit millions), CAGR CAGR CAGR CAGR /28/ /08/2014 8/28/2014 6

7 Women and Older Consumers enjoy the most Fragrance occasions in the US Women in the US have both the highest Fragrance occasions and most frequent occasions compared to men, indicating their higher preference for Fragrances in comparison. Early Young Adults, who are comprised of young working professionals are the most frequent consumers of Fragrances. However, Older Consumers have the highest number of total Fragrance occasions per year in the US due to the large size of the demographic. Number of occasions per year by age group, 2012 Women: Men: Number of occasions per year by gender, 2012 Kids & Babies Tweens & Early Teens: Early Young Adults: Per person Older Young Adults: Pre- Mid-Lifers: Mid-Lifers: Older Consumers: 8/28/ /08/2014 8/28/2014 7

8 How the Indulgence trend influences Fragrance consumption habits in the US Consumers are increasingly seeking the latest formulations and most indulgent Fragrance offerings Indulgence is the leading motivator of Fragrance consumption in the US, at %. This indicates the necessity for manufacturers to provide consumers with premium offerings to meet their desire for high-quality, luxurious products. The influence of Indulgence is much higher among women, at %, in comparison to men, at %. Women are more likely seek the latest, fashionable scents and are willing to spend more money more often for perfume they use regularly, or on one-off expensive purchases of the most premium, superior offerings as a special treat. Many consumers view Fragrances as a luxury and are thus unwilling to trade-down to lower-cost alternatives or compromise on overall quality. Moreover, the act itself of shopping for and buying perfume can constitute an enjoyable shopping experience, particularly among women. Through sampling a wide array of Fragrances in Department Stores and other similarly luxurious settings, and interacting with various scents, the shopping and ultimately the consumption experience is enhanced. This leads to the added leading to the likelihood that consumers will be willing to spend more for an all-round Indulgent Fragrance experience. Premium luxury offering, in limited edition offers unmatched levels of Indulgence Winner of the US Female Fragrance of the Year, this offering from Giorgio Armani provides a limited edition, premium and luxury product. Bespoke packaging and expensive pricetag heightens Indulgence levels This premium product, Serge Lutens Borneo Cologne for Men- is priced at US$135, and targeted at men seeking the height of luxurious Fragrances. 8/28/ /08/2014 8/28/2014 8

9 Innovative new product launches in the US Fragrance market Brand: J by Jennifer Aniston Manufacturer: Jennifer Aniston Fragrances Launched: 2014,US Trend: Aspirations, Beauty J by Jennifer Aniston, a new product from Jennifer Aniston Fragrances which has Beachy & Fresh flavor. It is made up of salty blend of water lily, magnolia, sandalwood, and vanilla bourbon, targeting consumers wanting an unusual scent. Brand: Endless Euphoria Manufacturer: Calvin Klein Launched: 2014, US Trend: Beauty, Indulgence Endless Euphoria is a new Fragrance in Calvin Klein s Euphoria range. Top notes of cherry blossom, mandarin, bergamot, middle notes of Petal Rose, violet and base notes of bamboo, sandalwood and musk offer consumers a distinctive and sophisticated Fragrance suitable for formal occasions. Brand: Talbots Manufacturer: Talbots Launched: 2014, US Trend: Quality Seeking, Indulgence US Apparel major Talbots has launched a fragrance for women, its first ever signature fragrance. It is made up of Fresh Freesia, Pink Grapefruit and Watery Pea, Magnolia, Tuberose Petals and Tiare Flower, Blonde Woods, Peach Skin and Sheer Vanilla, priced to meet consumers indulgence desires. Brand: Born in Paradise Manufacturer: Escada Launched: 2014, US Trend: Experience Seeking This new Fragrance offering from Escada captures the scent of the exotic and elicits an emotional response due to its association with vacations and tropical paradise. Formulated with hints of pineapple, watermelon, coconut and guava, it targets women wanting a fresh and recognizable perfume. 8/28/ /08/2014 8/28/2014 9

10 What niche consumer needs can manufacturers use to help differentiate their products? These niche consumer needs can be targeted to help brands stand out from the crowd: Busy Lives: The increasingly Busy Lives of consumers will lead to an increased desire for Fragrances which meet, fastpaced, on-the-go lifestyles. Particularly for younger consumers, manufacturers should ensure they position their products to the widening number of Fragrance occasions, providing robust and easily transportable packaging for use out of the home. They should also provide larger bottles which last longer, reducing the need for frequent re-purchase. Ethics: Despite its current low influence, the demand for ethical Fragrances is set to increase, as consumers become more aware of the animal testing procedures associated with the manufacture of many products across the category. Manufacturers must ensure they are transparent in regards to their levels of animal testing and the sourcing of ingredients, as consumers are unlikely to opt for products which destroy natural habitats or promote animal suffering. Media: The use of more creative advertising campaigns, particularly those containing celebrity endorsements, will be increasingly influential among US consumers. The rise of interactive advertising and social media campaigns, will increase awareness among specifically targeted audiences. Marketers can use memorable media campaigns to highlight their superiority over other brands, leading to higher levels of brand awareness and loyalty. 8/28/ /08/2014 8/28/

11 Summary Methodology This report is comprised of two data research programs MARKET DATA Method: Analyst triangulation of consensus numbers based upon comprehensive primary and desk research as part of an international research programme. Coverage: 50 Countries fully researched Category and segment breakdown 8 channels Value and Volume data Internationally comparable data 100% standardized definitions CONSUMER DATA Method: Extensive consumption surveys and consumer group tracking with strict age and gender quotas to ensure nationally-representative results. Coverage: 10 Countries 20 Consumer Trends 26 Consumer Groups Category breakdown Integrated market sizing at the country and category level Interim 2013 Consumer data generated by mapping 2013 Market size data onto 2012 Consumer data consumption values Details on the methodology for both of these research programs can be found in the Appendix. 8/28/ /08/2014 8/28/

12 Related reports Consumer Trends Analysis: Understanding Consumer Trends and Drivers of Behavior in the Indian Fragrance Market Indian men have a higher number of Fragrance occasions compared to women. With an increase in disposable income, urban working men are inclined to experience new Fragrances and are spending more money to feel good. Meanwhile, professional and sophisticated Fragrances are set to grow in demand as consumers look to impress in office environments. Brazilian Consumer Lifestyles Report: What s next for consumer spending in this emerging giant Brazil offers key growth opportunities for marketers of all consumer packaged goods, as a large and young population and growing middle class both adopt western consumption habits and carve out their own, Brazilian, consumption patterns. This report provides an overview of the key changes in Brazilian consumers lifestyles, allowing marketers to better target the emerging opportunities in this booming market. Global Executives Survey: The impact and influence of CSR Policy on the FMCG Industry This report globally analyzes industry opinions on the significance of corporate and social responsibility (CSR) policy and key challenges encountered in implementing CSR within their organizations. This report also examines ethical and environmental issues confronted by the organizations to set their objectives and strategies. Furthermore, the report analyzes the key factors responsible to consumer skepticism over environmental and ethical claims, and highlights the CSR activities actively engaged by the organizations. 8/28/ /08/2014 8/28/

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