Feature

Sector Insight: Men's toiletries - Skincare leads the way

Male-grooming routines are on the rise, but there remains substantial room for development.

THE BACKGROUND

Men's toiletries emerged when the cosmetic giants tuned in to the idea that in focusing their efforts on products designed to appeal to women, they were leaving half their potential market untapped. Accordingly, a wave of brands hit the shelves, specifically targeting men. Over the past few years, the media has hailed the rise of the 'metrosexual' as David Beckham's groomed and buffed features dominated the billboards; more recently, 'menaissance man' has been adopted as a moniker more appropriate for British men who have yet to fully embrace moisturising.

This sector has experienced steady growth over the past few years, but has not taken off with the vigour that manufacturers would have hoped for.

Many sporting heroes may have been willing to promote the idea of grooming and pampering, but there have been just as many male celebrities, such as Russell Brand, opting for a more dishevelled, devil-may-care look. However, while it may seem that three days of stubble and 'bedhead' hair is unlikely to lead to mass purchases of skin balm and hair gel, it can take a lot of effort and, particularly, hair product to achieve the desired look.

Young men, the most obvious target group, tend to be more willing to experiment with products, but the over-45s are less easily converted to a new regime and are still mostly ignored by the big brands. In general, men are more interested in the clothes element of grooming.

In 2007 men's toiletries (excluding shaving products) reached a value of 拢806m. Most men still need convincing of the merits of skincare, with only 拢57m spent on moisturisers, cleansers and facial scrubs. This compares with 拢602m spent on these categories by women, according to Mintel.

Fragrance accounts for 43% of total sales in this sector; of the 拢356m this represents, premium brands account for about 70%.

While women eagerly share tips on grooming and favourite products, men are less inclined to discuss such things, giving little opportunity for word-of-mouth recommendations, but web forums and social networking sites offer a possible substitute. Online toiletries retailer mankind.co.uk has a forum, for example, where men can ask advice incognito, reducing their embarrassment.

Men's magazines and lifestyle titles go some way toward building knowledge and introducing products. In most cases editorial is dedicated to this subject, especially in titles aimed at young men.

Actors and sports stars are particular favourites to endorse men's fragrances and toiletries. Recent campaigns include Clive Owen for Lancome Homme and Roger Federer, Tiger Woods and Thierry Henry for Gillette.

While men will seek out and buy male-targeted fragrances and shaving products, they will often borrow other toiletries such as hair and skincare items. Haircare products tend to be gender-neutral, while men unsure of skincare regimes may more readily try a product bought by their girlfriend or wife before purchasing something for themselves.

Men are often attracted to products that provide a specific solution to a problem, such as scrubs for acne. Similarly, they like products that have data to back up their claimed benefits.

Unilever and Gillette lead the pack in this sector, but Beiersdorf and L'Oreal are building share, particularly with their respective Nivea for Men and L'Oreal Men Expert brands. This can be a tough category to break into because of the difficulty of gaining listings due to the tight grip of the big brands.

Unilever's key brands in this market are Lynx and Sure for Men, which it continually refreshes with NPD. Lynx's most recent development has been Lynx 3, a two-can spray that creates a third 'custom' fragrance when used together. Lynx is aimed at younger men, as shown by its tongue-in-cheek advertising, while Sure for Men appeals to the over-25s with a performance-focused positioning.

Beiersdorf's Nivea for Men leads in men's mass skincare. Its focus has been on making the category simpler and easier for consumers to buy into, especially first-time users. It has also assimilated some trends from the women's category, such as anti-ageing, with its DNAge system. L'Oreal has invested heavily in its men's ranges and it, too, has embraced anti-ageing lines.

Coty's position in fragrances is strong, with Davidoff, Joop! and Calvin Klein, as well as David Beckham's fragrances Instinct and Intimately Beckham Men.

Other key brands include Sara Lee's Brylcreem and KMI's King of Shaves.

The multiples are gaining sales in men's toiletries as they offer convenience and avoid the embarrassment of having to deal with assistants in smaller stores. But Boots remains the biggest retailer in the field, offering a wide range of brands as well as own-label lines such as Boots No 7 for Men and Botanics for Men.

The number of over-45s is set to rise, so brands would be wise to introduce products aimed at this age group; products that help fight the signs of ageing may prove particularly popular.

The market is expected to be worth 拢963m by 2012, a rise of 19% on 2007, according to Mintel. Spend should reach an average of 拢35 a head over the next five years, although it will be higher for younger men.

MASS MEN'S TOILETRIES BY MANUFACTURERS' SALES AND SHARE

2007* 2006 2005 %chng
pounds m % pounds m % pounds m % 05-07

1 Unilever HPC 161 35 155 35 147 35 9.5
2 Procter & Gamble
(Gillette) 106 23 107 24 101 24 5.0
3 Sara Lee 28 6 31 7 29 7 -3.4
4 Beiersdorf 28 6 22 5 25 6 12.0
5 L'Oreal 23 5 18 4 8 2 187.5
6 Coty 14 3 13 3 8 2 75.0
Own-label 46 10 49 11 46 11 0.0
Others 53 12 50 11 57 13 -7.0
Total 459 100 445 100 421 100 9.0

Source: Mintel
*estimated


MEN'S TOILETRIES BY CATEGORY SALES AND SHARE

2007* 2006 2005 % chng
pounds m % pounds m % pounds m % 05-07

1 Fragrances 356 44 343 44 327 44 8.9
2 Deodorants/
antiperspirants 99 12 98 13 91 12 8.8
3 Bodysprays 94 12 93 12 94 13 0.0
4 Men's shaving
preparations 77 10 74 9 72 10 6.9
5 Men's skincare 57 7 51 7 47 6 21.3
6 Shower gels 53 7 54 7 54 7 -1.9
7 Men's haircare 50 6 49 6 48 6 4.2
Other** 20 2 19 2 18 2 11.1
Total 806 100 781 100 751 100 7.3

Source: Mintel
*Estimated
**Other includes: body lotions, suncare, and depilatories


MEN'S TOILETRIES AND COSMETICS BY TRENDS IN USE

2002 2003 2004 2005 2006 2007 %chng
% % % % % % 02-07

1 Razors and razor blades n/a n/a n/a 89.2 89.6 93.6 4.4*
2 Shampoo 94.7 94.3 95.4 93.6 94.2 92.6 -2.1
3 Deodorant 87.7 87.2 89.1 88.4 89.1 89.5 1.8
4 Shower gel 65.3 65.5 67.9 69.8 71.0 73.2 7.9
5 Shaving foam/gel/ 70.2 70.9 68.2 71.5 70.0 70.9 0.7
cream/sticks
6 Aftershave/ n/a n/a n/a 71.9 69.7 70.1 -1.8*
male fragrances
7 Face creams and lotions 24.2 30.0 29.1 33.5 33.4 36.1 11.9
8 Conditioners 28.2 28.9 29.1 28.9 29.5 31.9 3.7
9 Hair styling products 31.3 31.0 32.0 32.7 32.3 29.8 -1.5

Source: TGI Europa, BMRB - 2007/Mintel
*2005-07

ANALYST COMMENT - JONAS ANDERSON, SENIOR MARKETING ANALYST, GFK ROPER CONSULTING

The huge growth potential within the UK male-grooming category has long been recognised, but our latest insights show that 19% of British men are very interested in personal appearance, fashion and beauty - a figure that has trebled in four years.

While British women still place higher importance on the personal value of 'looking good' than men, this gender difference is eroding among younger people - 44% of teenage men in the UK find looking good important, compared with 47% of their female counterparts.

So what is driving this growing interest in and importance attached to looking good? As well as impetus from popular figures such as David Beckham and Daniel Craig's Bond, who have added the 'cool' and 'must-have' factors to male-grooming products, the leading personal drivers are the 'feel good factor' (56%), followed by a wish to please a spouse or partner (37%) and make a good impression on people they are meeting for the first time (33%).

Clearly male personal grooming is a matter of self-presentation in a social setting - but the majority of male-grooming products are still testosterone-adjusted versions of women's products, which fails to tap into this need. As British men gain personal confidence about grooming, they are becoming more demanding and seeking items that are developed, designed and marketed solely for men.

However, only 10% of British men are very active in seeking out the best ideas and latest information about personal appearance, fashion and beauty, so, to trigger their growing interest in this category, the stereotypical masculine image should be replaced by a more engaging and socially oriented marketing communication.