Digital IQ Index®: Beauty EU 2016

In our second annual analysis of the Beauty industry in France, Germany, and the U.K. the big story is online commerce. France—the birthplace of the beauty industry—is losing its home court advantage as traditional sales have plateaued, and declined for fragrances. In addition, U.K. index brands do a better job guiding customers to online commerce than French peers. In the past year, Local “indie” brands have entered the U.K. market in full force. Lacking the budget to invest in traditional media, these brands are turning to digital to accelerate growth, and have prioritized e-commerce, offering sophisticated Direct to Consumer and e-tailer experiences. In Germany, the percentage of brands handing off to third party retailers is approaching the number offering Direct to Consumer sales. Brands are working with Amazon at a rate twice that of French or British brands. Benefit Cosmetics is a winner across geographies, ranking Genius in the UK and France, and Gifted in Germany, capturing #1 in the UK. The brand site deftly integrates content with commerce and best-in-class social engagement. Lancome ranked #1 in France with investments across e-tailers and mobile advertising. The brand has built engaged social communities, garnering double the Index average for facebook interactions. Maybelline, the #1 brand in Germany, demonstrates an understanding of digital building blocks including a well-optimized mobile search experience. The brand’s YouTube channel features influencer tutorials that have long-tail benefits across digital. L2’s 2016 Digital IQ Index: Beauty EU benchmarks 129 Beauty brands in the Colour Cosmetics, Fragrance, Nail, and Skincare categories. Members can download the full reports at L2inc.com.