Changing behaviours are accelerating trends along a reinvented customer purchase journey. Presentation by Erika Andreetta PwC at WeCosmoprof Cosmotalks on 16th October 2020.

1. October 16th, 2020
The connected
Beauty Consumer
Changing behaviours are
accelerating trends along
a reinvented customer
purchase journey

2. 2
Changing behaviours
ecommerce
discountmindset
security
sustanaibility
caution
social distance
digital
DIY beauty
self checkout
polarization
price
social
click&collect
Tik
Tok
gel
zero waste
Cosmoprof 2020 - Cosmotalks
2
health
New normal Beauty

3. Understanding the
pace of consumer
change can put
companies in a
position to
navigate the
disruption
Beauty is among
the top 5 most
penalized categories
3
74% work at home at least some of the time
59% increased use of video chat apps since the COVID-19 outbreak began
58% increased use of messaging apps and social media
45% increased mobile shopping
40% decrease in household income
36% spend less in the next 12 months
35% spend less in beauty the next 12 months
Cosmoprof 2020 - Cosmotalks
Changing behaviours are accelerating trends along
a reinvented customer purchase journey:
71%
Mature Gen Z
+89%
vs 2019
45% ME
42% China

4. E-Commerce
Omnichannel
Social
Digital engagement robust and diversified
4Cosmoprof 2020 - Cosmotalks
Consumers expect to consume products and
services at any time and any place

5. 81% global consumers purchased online health & beauty
over the last 12 months
93%
90%
90%
Likely to continue
increased use
For Beauty, how many of your purchases have you made online over the last 12 months? (Please select ONE option) Base: 19,098
How has your use of the following shopping channels changed, if at all? How likely are you to continue to use this channel to the same extent when social distancing/social isolation measures are removed? Base 4447
PwC Global Consumer Insights Survey, 2020
45% increase shopping by phone
41% increase shopping by pc
33% increase shopping by tablet
60% 57%
Online shopping after Covid-19
81%
Online beauty shopping before
Covid-19
Shopped for beauty
online
9%
Shopped for beauty
exclusively online
93%

6. E-Commerce
Omnichannel
Social
AR, VR and voice-
activated
technologies
Click & collect
Call & Collect
Home delivery
Social engagement
Live streaming
Social shopping
Digital engagement robust and diversified
6Cosmoprof 2020 - Cosmotalks
The words “online sales” and “store sales”
will fade away in favor of “retail sales”,
as the two channels merge
Consumers expect to consume products and
services at any time and any place
45% of consumers
increased their mobile
online shopping and
41% their desktop
online shopping

7. 7
How do you use Social Media during the purchasing process?
Note: Multiple choice answers
PwC Millennials vs Generation Z 2020
69%
47%
36%
12%
62%
53%
35%
15%
ZM
Read the reviews before making
product/service purchasing decisions
Look for inspiration to
make purchases
Follow up on sales and promotions
Buy directly through
«shoppable» posts and photos
66% of M&Z use social media to look for inspiration to make purchases
7Cosmoprof 2020 - Cosmotalks
New generations use social media to…
15% of Millennials buys directly through
«shoppable» posts
30% of global consumers discovers new
beauty products thanks to micro-influencers
and social media word-of-mouth

8. pwc.com/it
© 2020 PricewaterhouseCoopers Advisory SpA. All rights reserved. PwC refers to PricewaterhouseCoopers Advisory SpA and may sometimes refer to the PwC
network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details. This content is for general information purposes only,
and should not be used as a substitute for consultation with professional advisors.
Erika Andreetta
Partner | Consumer Markets Consulting Leader
erika.andreetta@pwc.com

9. Before COVID-19
Global consumers who will spend less in the
«New Normal» have almost doubled
40%
reported a decrease in income
as a result of job loss or
redundancy as a result of the
COVID-19 situation
46% 33%
33% 32%
19% 36%
After COVID-19
Question, 2019: in terms of personal spending for the next 12 months, do you
expect to ... Base: 19.098
Question, 2020: Due to the COVID-19 (coronavirus) situation, how do you expect
your family's spending to change in the coming months? Base: 4,447
PwC, Global Consumer Insights Survey 2020
Cosmoprof 2020 - Cosmotalks 9
Middle East 49%
China 43%
France 49%
Spain 56%
UK 43%
Italy 42%
+ 89%
- 28%
Spend
more
Spend
less
Spend
the same

10. 36% of global consumers will spend less in
beauty in the next 12 months
10Cosmoprof 2020 - Cosmotalks
35%36%
41%
46%
51%
51%
46%
41%
36% 35%
Spain 61%
Italy 57%
ME 53%
Spain 62%
UK 58%
China 49%
ME 50%
Spain 49%
Italy 44%
ME 45%
UK 44%
China 42%
Top 5 areas of decreased household spend
Health &
beauty
Restaurant
food pick
up/ delivery
Sports
equipment
/ outdoor
Clothing &
footwear
Office
equipment
Spain 70%
Italy 65%
UK 60%
How has your household spending in the following categories changed, if at all,
as a result of the COVID-19 (Coronavirus) social distancing/social isolation
measures? % shown of those who said “decreased” - excludes those who
stated “I do not spend in this category – excludes those who stated “I do not
spend in this category. Base range: 3158 – 4094
PwC, Global Consumer Insights Survey 2020