Category Focus: Christmas Gifting

Monday, 10 November 2008

At Christmas, the larger manufacturers unveil their personal care gifting packs. According to TNS, average spending in the toiletries and cosmetics gift category rose from £19.67 in 2006 to £20.18 pre person in the three months until the end of 2007.

Even though total spending on the category dropped by almost £100m last year, TNS said, spend still remained high at £800.5m.

Within the category, female fragrances remained the most popular choice. Last Christmas, the value of these items hit £401m. This was up from £377m in 2006. Male Fragrances were second most popular, amounting to £105.3m, down from £126.7m.

Generic gift packs were next on £70.7m, with colour cosmetics behind on £58.4m, TNS revealed. While there was a large fall in the popularity of skincare products (value dipped from £116.8m to £56m), washing products (£49.6m) and shaving products (£47m) remained firm in the three-month period pre-Christmas in 2007.

Products included in the list studied by TNS included deodorants, body sprays, lipsticks, shampoo, soap, shower gel, mascara and eye shadow, among others.

Category director of gifting at Unilever Adam Briggs says toiletries and cosmetics is the second-largest sector in Christmas gifting, with the market growing by almost 9% year-on-year.

Consequently, he believes there is a "prime opportunity" for retailers to take advantage of festive gifts and bring in more cash.

The gifting category is obviously a strong one at Christmas. But what can retailers do to boost sales? Unilever stresses that retailers ought to "keep it simple", offering all-in-one selections so shoppers do not get confused.

Moreover, the manufacturer says a range of products should be available on the shelves. If this is the case, then shoppers on all budgets can see the appeal of "both value stocking fillers as well as more luxurious personal gifts".

And with good merchandising, Unilever argues, such as innovative display units and visible signage, Unilever argues, consumers can be encouraged to purchase even more gift packs.

The manufacturer also argues that big brands should be available on the shelves so that consumers have more "confidence" in the products they are thinking of buying.

Let's look at what's new for 2008. Wilkinson is promoting its Quattro Disposable razors, which it claims mix technology with "superior design".

The product is available for both men and women, it says.

As an aid for store owners, Wilkinson has developed a range of off-shelf merchandising options from simple counter displays to promotional islands, side kicks and metal display units.

Unilever's gift range comprises 30 different sets. These include the Dove Mini weekend Essential pack (complete with wash bag), the Lynx Mini Traveller pack (with spray, antiperspirant, shower gel) and the Sure Girl Mini Purse (antiperspirant varieties).

Additionally, the Lynx Music Download pack brings together an antiperspirant with purifying shower tonic and a digital music gift voucher.