Successes in UK Market- Consideration of Current Practise

Why have Lumene gone into the US market, something similar needs to be produced for UK viability

What are the most typical characteristics of the UK cosmetics market?

Research has shown there is significant competition in the marketplace, and many well-known skincare and cosmetic giants have a strong foothold in their respective categories. Big brands are investing heavily in media visibility. On the other hand, the consumers are not very brand-loyal, and they are very interested in what is new in the category. British consumers are likely to switch brands based on new trends in the industry and expect manufacturers to provide claims regarding the effectiveness of their products. At the moment many consumers are also very interested in purchasing cosmetic products with natural ingredients. The natural ingredient trend is expected to continue and grow over the next few years.

In Finland Lumene has been the market leader in

cosmetics for a long time. In the United States Lumene

is a challenger. What are the competitive advantages

of the Lumene brand in the American market?

The competitive advantage of the Lumene products is the combination of advanced cosmetics technology and natural ingredients from arctic nature. When we asked CVS customers who use Lumene cosmetics what they consider the most unique quality of the Lumene cosmetics range, natural ingredients was the number one answer. The demand for cosmetic products containing natural ingredients is growing within the US marketplace, so Lumene is well positioned.

Why is Lumene a success in the US market?

A European brand that delivers department store quality at an affordable price. Last year we executed some very successful advertising campaigns together with

CVS and made strategic use of the Extra Care program. CVS’s Extra Care customer reward program is the only one of its kind in the USA. Some 65 million people receive information about special offers and Lumene products through the program.

Excellent Future Skin Care line

Revolutionary

Endless consumer reviews

The introduction of the Lumene brand on the US market has done exceptionally well through the sole quality and effectiveness of the products. The brands newly respected product range; Excellent Future Skin care has gained endless media attention in well respected American publications such as Vogue, People Style Watch and NewBeauty. Also, a knock-on effect online with countless bloggers spreading the word about Excellent Future’s successful products.

Raising Awareness by …

Educating the US consumer about the qualities and benefits of the arctic ingredients Lumene uses in their packages.

New product releases generate awareness and excitement used to promote the brand in the US market.

Also Lumene sponsors the 18th Annual Susan G. Komen Race for the Cure events in Boston. Lumene representatives solld gift bags featuring cosmetic and skincare samples for $5 at the Lumene booth.100% of the proceeds were donated to Susan G. Komen for the Cure. This links the brand to a positive message which creates honest and caring attributes consumers can relate to.

Target Consumer

Lumene wishes to address the wants and needs of women of all ages; it is a brand particularly designed for those who value beauty and inner well-being

USP

-A huge product range in both skincare and cosmetics with the combination of advanced cosmetics technology and natural ingredients from arctic nature.

-A European brand that delivers department store quality at an affordable price.

Viability for products doing well in the UK

US achievements

Excellent Future Skin Care line

Revolutionary

Endless consumer reviews

The introduction of the Lumene brand on the US market has done exceptionally well through the sole quality and effectiveness of the products. The brands newly respected product range; Excellent Future Skin care has gained endless media attention in well respected American publications such as Vogue, People Style Watch and NewBeauty. Also, a knock-on effect online with countless bloggers spreading the word about Excellent Future’s successful products.

Finnish Heritage- Design

Lumene’s origins are important to its branding due to its merged unique and respected heritage with the products. Finland has recently been given the title, World Design Capital 2012 due to its strong links with design and its design district. A district created to corral many of the rising fashion, furniture and graphic entrepreneurs.

An example of this design intigrated into the UK is the inginious temprary pop-up restaurant and exhibition called Hel yes! in East London The event brings some of Finland’s world renowned designers to produce the unique perspective which undoubtedly comes from an immersion in both cultures. The event is a great means of exporting Scandinavian Design to the UK which could be imitated by the Lumene brand.

‘Our products are a means of exporting Scandinavian Design.’ Maija Olkkonen-Seppo design manager Lumene Group.

Lumene can utilise these great connections with design and innovation within its marketing and promotion generating a well respected and cool image.

With the UK’s naïve perceptions and connections with the culture and the country itself, the Lumene brand could bring something exciting and new to the UK skincare and cosmetics industry.

Lumene POS

Natural Trend

‘Although the economic recession has affected the beauty market’s growth rates, consumer demand for 'chemically-clean' and ecological cosmetics remains buoyant. (Organic monitor: online 2011)

Mainstream retailers in the UK are responding to high consumer demand, a growing interest and changed values by introducing natural & organic cosmetics Health warnings, environmental concerns, ethical concerns, therapy awareness and organic attitudes have all contributed to the growth in popularity of a natural-based personal care products trend. Natural/organic skincare and cosmetics sales are predicted to continue to grow strongly in the retail sector.

Consumers are drawn to cosmetics containing natural ingredients due to several reasons;

-One of the main drivers of growth in natural cosmetics has been the consumer trend towards healthier lifestyles and many natural products have perceived health benefits.

- Consumers believe they have higher standards of quality. This has enabled cosmetics manufacturers to charge higher prices for natural products, thereby injecting value into the market. Major manufacturers have also used this perception of quality to drive packaging developments, which convey fresher, more upscale appearances for natural products. Origins and Aveda, for example, have achieved success by emphasising the quality of their products, which in turn have prompted smaller producers to introduce competing products and rejuvenate their packaging.

-Another is reason is because consumers are becoming more and more aware of the possible dangers of parabens, phthalates and other synthetic ingredients in cosmetics & toiletries. (Organic Monitor online: 2011)

Primary Research

Lumene has a facebook account where lots of primary research and consumer insight can be found, it has also lad me to find consumers i can talk to directly and fill in questionnaires based around the brand.
http://www.facebook.com/LumeneUSA

Facebook Account

Lumene Products/Visual Identity