The Future of Personal Care Consumer Trends in Australia

Introduction

Understanding the most important trends impacting Australian consumers requires a broader understanding of the macro environment forces that have affected Australia in recent years. This report outlines how these social drivers translate into distinct attitudinal and behavioral shifts among Australian consumers with respect to personal care shopping and consumption.

Features and benefits

• Identify the five most important consumer developments occurring in Australia, and understand how these affect consumers' personal care choices
• Gain an in-depth understanding of the broader socio-demographic, economic and technological forces shaping Australian consumer behavior
• Benefit from Australia-focused consumer insight, benchmarked against global sentiment, to cater for contextualized, region-specific information needs
• Access multiple waves of primary research to increase the likelihood of being 'on-trend' with NPD and marketing in Australia
• Identify the companies, brands and campaigns most likely to succeed in the Australian market in the near future, and adapt strategies accordingly

Highlights

Nearly one-quarter of Australians will be over 65 by 2050. Addressing population aging requires rethinking of all aspects of a company's marketing strategy—from product design to promotion. Companies need to take a proactive approach to addressing this historically undervalued segment, in order to capitalize on rapidly shifting demographic trends.Over four-in-10 Australians find shopping enjoyable, but almost the same proportion think there is too much product choice when shopping. Retailers can reconcile this paradox by competing on non-price characteristics such as customer service and in-store layout, to ensure the shopping experience is interesting and engaging for Australians.Over half of all Australians express concern about personal care products that have been tested on animals. As more is learnt and publicized about how personal care products are made and distributed, products with a strong ethical positioning will be a key differentiator in the coming years.

Your key questions answered

• How do Australian consumers define 'value-for-money' and how have value orientations changed in recent years?
• How are Australians using the internet to make personal care choices? What influence is improving connectivity exerting on Australian lifestyles?
• How will private label grooming products fare now that the economic downturn is effectively over? What do Australians think about private label?
• What are the most influential claims guiding Australians' personal care choices? How do these relate to more general beauty and appearance outlooks?
• What are the latest products and brands that are effectively addressing the needs of Australian personal care consumers?

Contents

OVERVIEW

Catalyst
Summary

THE FUTURE DECODED

TREND: The socio-demographic profile of Australia is rapidly changing
The over 30 (million) crowd: Australia’s growing and graying population holds greater "cultural capital"
Australia’s household composition is a microcosm of wider demographic changes taking place in the country
Stirring the "melting pot": Australian views on multiculturalism are polarized
Key take-outs and implications: understanding Australia’s changing socio-demographic profile is imperative in addressing and anticipating key consumer needs
TREND: Major challenges still confront post-downturn Australia
Australia leads the developed world in emerging from the downturn
Australian consumer confidence has rebounded compared to one year ago, but underlying caution remains
Mortgage envy: home ownership is becoming more elusive for young Australians
Australians are particularly sensitive to rising grocery prices
Australia’s labor market has fared comparatively well amid the downturn but needs to address the aging population and gender wage disparity
Key take-outs and implications: Australians are cautiously optimistic about their economic prospects for the future
TREND: Many issues of global relevance are influencing Australian values
Australians exhibit a great deal of pride in their country
The institution of family is a defining characteristic of Australian cultureDespite changing household types and family structures, the notion of family is an enduring one, and Australians continue to look to their families for stability, values, emotional and financial support, and a sense of belonging. This was particularly the case during the economic downturn, as consumers sought comfort in their personal relationships, prompting Australians to re-prioritize this aspect of their lives. Family is as important as ever in Australian life, not only for comfort and financial support, but also for advice on everyday decisions, particularly as consumers become increasingly cynical about corporations’ marketing efforts. Acknowledging the importance of family to Australians helps elucidate the strong influence that family and friends have on consumers’ purchase choices.
Australians are tackling numerous health issues with varying degrees of urgency
Australians are making greater efforts to reduce their impact on the environment
Key take-outs and implications: it is important to understand how Australians’ values are changing in order to effectively resonate with consumers
TREND: Australians will rely more on the internet as mainstream media loses credibility and relevance
Australians are demonstrating growing distrust of mainstream media and advertisingConsumers are overloaded with advertising messages each day, with the degree of marketing saturation negatively affecting consumers’ attitudes toward the advertising industry. In 2010, three-quarters (75%) of Australians said they "tend to agree" or "strongly agree" that there is too much advertising today. The proportion was slightly lower compared to 2008 (79%) but a considerable majority nonetheless. The broad appeal of judging and criticizing the advertising industry has even been turned into a successful Australian television show, The Gruen Transfer, which aims to deconstruct various advertising campaigns and assess them on their merits (or lack of).
The internet will continue to facilitate Australian lifestyles
Key take-outs and implications: Australians are increasingly cynical of the media and advertising, and will rely more on connective technologies to influence their consumption choices
INSIGHT: The Australian retail sector is being shaped by shifting consumer expectations
The health and beauty retail sector in Australia is becoming increasingly competitive
Australian grocery shoppers are becoming increasingly demanding of retailers
Private label momentum will continue to strengthen the position of grocery chains
Key take-outs and implications: health and beauty retailers need to keep up with increasingly demanding Australian shoppers
INSIGHT: Grooming for success: Image conscious Australians derive satisfaction from knowing they look good
Physical appearance is a key concern for Australian consumers
Actual and behavioral demographic shifts will impact the personal care sector in Australia
Key take-outs and implications: industry players should acknowledge the profound and evolving role that personal care products play in Australians' lives
INSIGHT: Grooming for results: Australians expect health and beauty products to deliver on their promises
Australians are primarily concerned about health and beauty products living up to their promises
Concerns about product efficacy can be linked to the skepticism that Australians harbor with respect to health and beauty claims
The need for product efficacy is all the more significant given Australians' time scarcity
Key take-outs and implications: Health and beauty products need to deliver on their promises to satisfy cynical and time poor Australians
INSIGHT: Grooming for the planet: Australians are increasingly considering the ethical and environmental implications of the health and beauty products they purchase
Growth in the organic and natural personal care market in Australia reflects the confluence of environmentalism and health in directing consumer choices
Australians express concern about how personal care products are sourced, manufactured and tested
For Australians, good things come in less packaging
Australians want companies to be more accountable for their environmental impact
Key take-outs and implications: Australians are holding personal care manufacturers to higher scrutiny with respect to ethical and environmental responsibility
INSIGHT: Grooming for less: staunch value consciousness among Australians will continue to endure post-downturn
The thrill (and necessity) of the bargain-hunt continues to entice Australian consumers
Private label products continue to grow 'share of wallet' from value conscious Australians
Australians are going online to find the best deals
Key take-outs and implications: industry players must enhance their value proposition, and in doing so, acknowledge that value if an individually defined concept that extends beyond low prices
INSIGHT: Grooming for me: Australians often make health and beauty product choices based on their specific and individual needs
Customized products deliver a tailored grooming experience for Australians
Health and beauty products can be perceived as a personal treat or indulgence
Sensory benefits serve to enhance the grooming experience
Key take-outs and implications: industry players should acknowledge that the grooming experience is often as important as the outcome
ACTION: Adopt a progressive but pragmatic approach to capitalizing on these Australian personal care trends
Brands to watch: Hissyfit
Brands to watch: L'Oreal Paris Men Expert
Brands to watch: Outback Spirit Botanicals
Brands to watch: Cheffresh Skincare
Brands to watch: Macleans Iso-Active Whitening Foaming Gel
Brands to watch: Soap & Glory

APPENDIX

Report methodology
Further reading and references
Ask the analyst
Datamonitor consulting
Disclaimer
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