We got an expert’s perspective on Nordic countries, as the region is increasingly having an impact on beauty trends on an international scale.
Here, we consider some key defining trends in Norway and Sweden. Here are exclusive insights from Euromonitor International, market research provider.
Sweden: apparel retailers, pharmacies and beauty retailers are expanding their private label
Various retailers have over the review period changed and increased their portfolio to contain more products from other categories.
For apparel retailers, this has included footwear, accessories and most recently, beauty and personal care.
Although H&M previously sold cosmetics in its stores, it aggressively expanded its own private label in 2015, launching more than 1,000 new beauty products.
Apparel retailers have been able to see the success of the H&M-owned &Other Stories apparel shop, which has beauty as a big segment of the sales.
The reason for apparel retailers’ growing focus on beauty is due to the scope of increased value sales, as it is likely that customers quickly grab some reachable make-up or other beauty products along with the planned purchase before reaching the counter.
However, these private label products also compete with external brands as none of the retailers solely sell their own products.
These low-priced products are therefore gaining sales every year as these products belong to the low-price segment. Indeed, H&M continued to increase its portfolio, moving into new category launches in its new ecological beauty line, H&M conscious.
Norway: stable but modest due to maturity
Beauty and personal care in Norway is expected to display stable but modest growth over the forecast period, with growth set to be limited by a high degree of maturity and industry fragmentation, especially within toiletries categories.
Hair care, deodorants and bath and shower are examples of categories that registered slow or stagnant growth for most of the review period.
Consequently, growth in the industry over the forecast period is expected to be mainly derived from high levels of innovation in segments such as colour cosmetics and skin care.