Colour Cosmetics in the US

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Euromonitor International Colour Cosmetics in the US Category Briefing 22 Jun 2012 HEADLINES Retail sales of colour cosmetics increase by 7% in current value terms in 2011, to reach US$10.0 billion Fashion trends and new product innovation lead to strong demand for colour cosmetics in 2011 Nail products is the most dynamic category, with 24% current value growth, to reach US$1 billion 2011 Unit prices of colour cosmetics increase in 2011 L Oréal USA leads colour cosmetics with a 23% value share in 2011 Colour cosmetics is forecast to increase by 15% in constant value terms over the forecast period TRENDS Trends in fashion, combined with new technology, led to strong demand for colour cosmetics in 2011. After years of lacklustre sales, lipstick is back in, as fashion editors tout lipstick as providing glamour. At the same time, advances in lipstick technology have produced lipsticks which are more comfortable to wear by being lighter in weight and more moisturising. Similarly, fashion bloggers and magazines are promoting nail art. Nail art is currently popular amongst the fashionable set, as fashion designers increasingly work with manicurists and nail polish manufacturers to create a coordinated look. The combined effect of fashion and new product innovation helped to create excitement in colour cosmetics in 2011. Premium products benefited the most in 2011, with value sales of premium products growing by 11%, in contrast to lower 4% growth for mass products. In turn, the 7% overall current value growth in colour cosmetics in 2011 represented an improvement over the 3% CAGR in the review period. American women continued their love affair with nail colour in 2011. As in 2010, nail products outperformed the rest of the categories in colour cosmetics. After growing by 9% in current value terms in 2009 and by 13% in 2010, sales of nail products increased by 24% in 2011. Fashion, technology and budgeting boosted sales of nail products in 2011. Advances in nail polish technology played a major part in boosting sales of nail polish. Coty s Sally Hansen brand introduced Sally Hansen nail polish strips, which are actually nail polish applied to a flexible polymer. Despite its price tag of up to US$9.99 for one package, Sally Hansen nail polish strips found popularity amongst women who wanted the look of fancy nail art and up to 10 days of wear. At the same time, many

women who had carried out DIY manicures and pedicures during the 2008/2009 recession to economise became accustomed to doing this at home, and decided to forego salon visits. The introduction of easier-to-use and longer-lasting nail polishes in recent years also allowed more women to skip the salon. Within nail products, nail polish saw the best performance, with current value growth of 31% in 2011. The DIY trend also benefited sales of other nail products, with nail treatments/strengtheners growing by 8%, and polish remover growing by 4% in 2011. Average unit prices of colour cosmetics increased in 2011. New products with value-added features, such as foundation with anti-ageing technology, served to increase unit prices. Lip products saw the second-best performance in 2011, with a current value increase of 5%. Demand for lipstick was strong, as women responded positively to product innovation in lipstick, as well as fashion trends emphasising lipstick. Luxury lipsticks such as Guerlain Rouge D and Tom Ford Private Blend prompted affluent women to spend a great deal (over US$40 per lipstick) on glamorous lipsticks which they could enjoy pulling out of their bags. Many of these luxury lipsticks also touted their high moisturisation qualities through ingredients such as jojoba and murumuru butter. Value sales of premium lipstick increased by 11% in 2011, whilst sales of mass lipstick increased by 6%. On the other hand, value sales of lip gloss were static in 2011. An emphasis on lipstick reduced the demand for lip gloss. Make-up companies are increasingly introducing multi-functional products so consumers can also receive the benefits of anti-ageing and/or sun protection in addition to colour. Estée Lauder introduced Clinique RepairWear Laser Focus All-Smooth Makeup SPF15 in 2011, which incorporates the technology from its Clinique RepairWear Laser Focus Wrinkle & UV Damage Corrector anti-ageing serum. The Clinique foundation contains murumuru seed butter, ultrasomes, vitamin E and whey protein. Clarins launched Clarins Everlasting Foundation Compact SPF15 with a Light Optimizing Complex (soft focus pigments and mother of pearl to diffuse the look of imperfections) and white tea extract to provide antioxidant protection against the harmful effects of pollution. Mineral make-up is popular amongst American women. Whilst mineral make-up was originally sold as a premium product in spas, salons and doctors offices to serve the needs of women with sensitive and post-surgery skin, sales of mineral make-up have since risen substantially, and such products are now sold everywhere at multiple price points. Consumers have turned to mineral make-up because of its healthy, skin-beneficial positioning and weightless feel. There is also more leeway with mineral make-up (most of which is in powder format) in terms of shade matching, so women find it less intimidating than many liquid and cream foundations. Companies are seeking to capitalise on the growing demand for naturally-positioned make-up by playing up certain ingredients in their advertising. In January 2011 The Procter & Gamble Co launched Cover Girl NatureLuxe as a more upscale offering. NatureLuxe Silk Foundation contains jojoba and rosehip extracts, and cucumber water for a lighter feel, whilst Gloss Balm contains shea and mango butters. The packaging for NatureLuxe also contains a small amount of sugarcane-derived plastic. Pacific World introduced geogirl cosmetics for tweens aged 8-12 years old exclusively in Wal-Mart stores in February 2012. The geogirl line touts natural ingredients such as calendula, chamomile and lavender, whilst stating it has no parabens, phthalates, sulphates or synthetic colours

Premium products accounted for a 41% share of sales in colour cosmetics in the US in 2011, up from 39% in 2010. The top four brands within the premium segment in 2011 were Estée Lauder s Clinique, Estée Lauder, and Mac brands and L Oréal USA s Lancôme brand. Clinique maintained its lead in the premium segment due to its reputation for high quality and innovation, as well as its position as the leading introductory premium brand, which new consumers are most likely to choose. Mac continued to benefit from its long association with New York Fashion Week and its limited edition collections, such as Wonder Woman (February 2011) and Cindy Sherman (October 2011). COMPETITIVE LANDSCAPE L Oréal USA remained the leader in colour cosmetics in the US at the end of the review period. The company s four brands Maybelline, L Oréal Paris, Lancôme, and Essie held a combined value share of 23% in 2011, unchanged from 2010. Its mass-market Maybelline brand outperformed The Procter & Gamble Co s Cover Girl brand to become the leading colour cosmetics brand in 2011. Maybelline owes its success to its strength in mascara, extensive advertising and product innovation. The Maybelline brand was able to build its fashion credibility by becoming the official cosmetic sponsor for IMG Fashion s Mercedes-Benz Fashion Week in New York City s Bryant Park, beginning in September 2009. In January 2011 the Maybelline brand launched the Fit Me facial make-up collection (foundation, powder, concealer, blush and bronzer), which uses patented skin merge technology to match skin tones. The print and television advertisements starring Brazilian model Lisalla Montenegro, Erin Wasson and others stood out because they offered a more documentary feel, with the models showing lots of movement and intense facial expressions, instead of the typical demure smile. L Oréal USA s mass-market L Oréal Paris line was the third largest mass colour cosmetics brand in 2011, and is marketed as a high-quality brand linked with fashion through the sponsorship of the Lifetime fashion reality show Project Runway. In October 2011 L Oréal consulting make-up artist Collier Strong (who also appears on the show) created the limited edition Project Runway Colors Take Flight line. The L Oréal Paris brand is also linked with increasing awareness of ovarian cancer through its fundraising efforts, such as L Oréal s annual Colour of Hope cosmetics collection. The company s Lancôme brand was second in premium colour cosmetics and seventh in colour cosmetics as a whole in 2011. Lancôme is well-known for its high-quality mascaras. The company expanded its mascara franchise by introducing Lancôme Hypnoses Doll Lashes Mascara, which claims to produce the wide-eyed look of dolls lashes. The Procter & Gamble Co saw the strongest value share decline in 2011, dropping by one percentage point to a 10% share. Despite new launches such as Cover Girl Intense Shadow Blast, Cover Girl fared poorly in 2011, as it faced intense competition from mass-market rival Maybelline, which spent a great deal of money on advertising and new product launches. The brand also experienced a share decline as some of its consumers moved to premium rivals such as Mac and Lancôme as the US economy improved. Noteworthy new product launches in 2011 included bareminerals s introduction of the Ready Eyeshadow Collection in September. Unlike its regular mineral eyeshadow line, the bareminerals Ready line uses solid mineral technology, whereby the company is able to turn loose minerals into a

pressed powder form. The print and television advertisements used real customers instead of models, and touted that the eyeshadows offer softer, smoother skin. Packaging innovations in 2011 included Coty s Rimmel London Volume Flash Scandaleyes Mascara with a new MaxDensity brush, which is 50% larger than Rimmel s other mascaras. The larger brush is claimed to create lashes which look up to 12 times fuller. L Oréal USA s L Oréal The One Sweep eyeshadow features an unusually-shaped flat brush which is designed to be swept over three stripes of powder to create smoky eyes. In nail polish Coty introduced Sally Hansen nail polish strips, whereby liquid nail polish has been bonded to a flexible polymer so that the polish can be easily applied to nails and removed with regular nail polish remover. Revlon introduced Almay Wake-Up Hydrating Make-up, which is a loose powder containing encapsulated water beads which break on contact. The powder is sold in a plastic jar with a sifter and a lid which contains the brush. Premium colour cosmetics brands such as Chanel and Mac are marketed based on an aspirational image and an association with fashion. Chanel s heritage as a French couture brand allows the Chanel beauty consumer to wear something from Chanel for a fraction of the cost of a Chanel suit. Prestige brands such as Guerlain and YSL Beauté also offer more luxurious packaging, with beautiful metal lipstick cases and compacts which look like jewellery. Guerlain is able to charge US$48.00 for its Rouge G lipstick by having Paris-based jewellery designer Lorenz Baumer design a beautiful silver case which opens to reveal a mirror and then a lipstick. Furthermore, the use of luxurious and exotic ingredients such as ruby powder and tiger grass from India and Madagascar also allows the company to charge a premium over other lipsticks. Masstige players such as L Oréal and Revlon position themselves as offering high-tech ingredients, and support their image through the use of celebrities such as Penelope Cruz and Jennifer Connelly respectively. Mass brands such as Wet n Wild and NYC New York Color have traditionally focused more on low prices and product benefits than on celebrity endorsement. In 2011 this changed, as Wet n Wild hired singer Fergie to represent its colour line. Private label held a value share of only 1% in colour cosmetics in 2011. The aspirational nature of colour cosmetics makes it difficult for private label products to succeed in this category. PROSPECTS Value sales of colour cosmetics are expected to show strong growth over the forecast period, as the US economy recovers and manufacturers launch new innovations for easier and/or more fun makeup application. Colour cosmetics is forecast to increase by a total of 15% over the forecast period in constant value terms, after increasing by only 2% in constant value terms over the forecast period. Consumers are expected to increase their spending on colour cosmetics, as unemployment falls and consumer confidence rises. Women enjoy looking good, and manufacturers of colour cosmetics are expected to continue improving the wearability and fun factor of their products. Forecast data is being significantly restated compared with last year s forecast in order to account for the outstanding performance of colour cosmetics in 2011. The confidence of US consumers has risen since autumn 2010, when the previous forecasts were estimated. Although the performance of the US stock market was flat, high-income consumers felt more comfortable about spending in 2011. As a result, sales of colour cosmetics are expected to increase at higher rates than previously forecast.

Potential threats to growth include a consumer preference for an easy, natural look. The growing trend towards simplicity in homes and lifestyles may also prompt consumers to pare down their routines and reduce purchases of colour cosmetics. Many women who do not like the heaviness of traditional foundation have gravitated to mineral make-up. It will be problematic for colour cosmetics companies if consumers switch away from colour cosmetics to substitute products such as tinted moisturisers or self-tanners. Nail products is expected to see the best performance in colour cosmetics over the forecast period. Value sales of nail products are projected to see a 26% constant value increase over the forecast period. Whilst the improving US economy will permit more women to treat themselves to salon manicures and pedicures, the technological innovations in at-home nail polishes will keep many women at home. New product launches such as nail polish strips, magnetic nail polishes and longwear nail polishes will boost consumers interest in retail nail products, enabling them to compete against nail salons. Products such as Coty s January 2011 launch of Sally Hansen Salon Effects and its May 2012 launch of Sally Hansen Magnetic Nail Color represent notable competition to nail salons. At the same time, many busy and affluent consumers are likely to pursue salon-only gel manicures which claim 14-day wear. Creative Nail Design and OPI Products recently introduced gel nail polishes under the Shellac and Axxium Soak-Off Gel Lacquer brands. Beauty companies see major potential in nail products. Coty purchased OPI Products in November 2010, whilst L Oréal acquired Essie Cosmetics in April 2011 and Revlon acquired Sinful Colors in March 2011. Eye make-up is expected to see the second best performance over the forecast period. Value sales of eye make-up are forecast to increase by 15% in constant value terms. Fashion trends are expected to continue highlighting the eye area for the next few years. Smoky eyes are expected to remain popular. In addition, manufacturers are expected to maintain consumers interest through technological innovations, especially in mascara. As a result, value sales of mascara are expected to increase by 17% over the forecast period. Average unit prices are forecast to increase slightly for many products over the forecast period, as manufacturers offer more value-added benefits, such as anti-ageing functions. New lightweight foundations such as NatureLuxe Silk Foundation and are expected to do well in the short term. Consumers are looking for light foundations which offer coverage without feeling heavy on the face. L Oréal Colour Riche Balm SPF15 is expected to do well, as it offers a lot of moisture for dry lips, whilst offering a hint of colour. Potential company activity is likely to revolve around more skin care benefits, improved product delivery systems and more natural ingredients. The ageing of baby boomers is expected to boost the development of products with anti-ageing skin care benefits. Companies are likely to introduce more unique product applicators, such as L Oréal s The One Sweep eyeshadow, in order to stand out from the competition. More manufacturers are also expected to introduce products with natural and organic ingredients, as well as to reformulate items to remove chemicals such as parabens and phthalates, which have received negative publicity. CATEGORY DATA

Table 1 Sales of Colour Cosmetics by Category: Value 2006-2011 US$ million 2006 2007 2008 2009 2010 2011 Eye Make-Up 2,658.5 2,775.4 2,873.0 2,889.9 3,010.6 3,145.4 - Eye Liner/Pencil 591.4 639.4 669.8 676.8 721.8 747.9 -- Premium Eye Liner/Pencil 200.0 212.6 215.1 202.4 209.6 223.7 -- Mass Eye Liner/Pencil 391.4 426.9 454.7 474.4 512.3 524.2 - Eye Shadow 572.5 559.4 563.8 528.8 544.1 578.6 -- Premium Eye Shadow 204.0 206.6 196.6 184.4 180.0 202.5 -- Mass Eye Shadow 368.5 352.8 367.2 344.4 364.1 376.2 - Mascara 1,388.4 1,475.1 1,532.6 1,569.9 1,628.1 1,696.2 -- Premium Mascara 589.7 635.5 618.2 589.8 599.9 656.2 -- Mass Mascara 798.7 839.7 914.4 980.1 1,028.2 1,040.0 - Other Eye Make-Up 106.2 101.4 106.8 114.4 116.6 122.7 -- Premium Other Eye Make-Up 33.5 35.6 36.2 37.5 39.1 42.4 -- Mass Other Eye Make-Up 72.6 65.9 70.6 76.9 77.5 80.3 Facial Make-Up 3,348.2 3,494.3 3,586.3 3,552.6 3,658.8 3,842.8 - Blusher/Bronzer/Highlighter 481.0 516.6 504.2 475.9 469.7 482.3 -- Premium Blusher/Bronzer/Highlighter 226.6 233.9 224.6 214.4 219.6 227.1 -- Mass Blusher/Bronzer/Highlighter 254.5 282.7 279.7 261.5 250.0 255.2 - Foundation/Concealer 2,206.6 2,324.3 2,432.8 2,445.4 2,532.3 2,675.5 -- Premium Foundation/Concealer 1,023.3 1,106.3 1,139.3 1,133.0 1,181.8 1,287.9 -- Mass Foundation/Concealer 1,183.4 1,218.0 1,293.4 1,312.4 1,350.5 1,387.6

Table 1 Sales of Colour Cosmetics by Category: Value 2006-2011 US$ million 2006 2007 2008 2009 2010 2011 - Powder 633.6 625.4 618.7 598.9 619.0 638.5 -- Premium Powder 252.7 251.6 253.0 242.9 245.1 250.3 -- Mass Powder 380.9 373.7 365.7 356.0 373.9 388.2 - Other Facial Make-Up 26.9 28.0 30.7 32.4 37.8 46.6 -- Premium Other Facial Make-Up 24.0 24.9 25.3 25.2 30.3 38.7 -- Mass Other Facial Make-Up 2.9 3.1 5.3 7.1 7.5 7.9 Lip Products 2,157.3 2,159.2 2,084.5 1,935.9 1,904.3 2,003.4 - Lip Gloss 528.7 518.6 529.0 488.4 471.7 471.6 -- Premium Lip Gloss 205.6 205.1 199.6 183.6 175.3 176.7 -- Mass Lip Gloss 323.2 313.5 329.4 304.8 296.4 294.9 - Lip Liner/Pencil 149.8 138.6 125.9 114.5 110.6 111.0 -- Premium Lip Liner/Pencil 61.7 58.2 53.6 48.6 46.4 45.6 -- Mass Lip Liner/Pencil 88.0 80.4 72.3 65.9 64.2 65.4 - Lipstick 1,328.5 1,336.0 1,271.9 1,184.8 1,181.6 1,282.4 -- Premium Lipstick 604.9 596.3 566.8 529.1 551.2 614.0 -- Mass Lipstick 723.7 739.7 705.1 655.7 630.4 668.4 - Other Lip Products 150.3 166.1 157.7 148.2 140.4 138.5 -- Premium Other Lip Products 81.0 92.5 88.4 83.8 86.7 91.6 -- Mass Other Lip Products 69.3 73.6 69.3 64.4 53.7 46.8 Nail Products 595.4 595.1 658.6 714.7 806.6 1,003.4 - Nail Polish 423.3 405.7 460.2 510.3 594.0 778.0

Table 1 Sales of Colour Cosmetics by Category: Value 2006-2011 US$ million 2006 2007 2008 2009 2010 2011 -- Premium Nail Polish 29.1 35.9 58.4 62.2 85.8 190.7 Table 2 Sales of Colour Cosmetics by Category: % Value Growth 2006-2011 % current value growth 2010/11 2006-11 CAGR 2006/11 Total Eye Make-Up 4.5 3.4 18.3 - Eye Liner/Pencil 3.6 4.8 26.5 -- Premium Eye Liner/Pencil 6.8 2.3 11.9 -- Mass Eye Liner/Pencil 2.3 6.0 33.9 - Eye Shadow 6.4 0.2 1.1 -- Premium Eye Shadow 12.5-0.2-0.8 -- Mass Eye Shadow 3.3 0.4 2.1 - Mascara 4.2 4.1 22.2 -- Premium Mascara 9.4 2.2 11.3 -- Mass Mascara 1.1 5.4 30.2 - Other Eye Make-Up 5.3 2.9 15.6 -- Premium Other Eye Make-Up 8.4 4.8 26.4 -- Mass Other Eye Make-Up 3.7 2.0 10.6 Facial Make-Up 5.0 2.8 14.8 - Blusher/Bronzer/Highlighter 2.7 0.1 0.3 -- Premium Blusher/Bronzer/Highlighter 3.4 0.0 0.2

Table 2 Sales of Colour Cosmetics by Category: % Value Growth 2006-2011 % current value growth 2010/11 2006-11 CAGR 2006/11 Total -- Mass Blusher/Bronzer/Highlighter 2.1 0.1 0.3 - Foundation/Concealer 5.7 3.9 21.2 -- Premium Foundation/Concealer 9.0 4.7 25.9 -- Mass Foundation/Concealer 2.7 3.2 17.3 - Powder 3.1 0.2 0.8 -- Premium Powder 2.1-0.2-1.0 -- Mass Powder 3.8 0.4 1.9 - Other Facial Make-Up 23.2 11.6 73.0 -- Premium Other Facial Make-Up 27.7 10.0 61.3 -- Mass Other Facial Make-Up 4.9 22.0 169.9 Lip Products 5.2-1.5-7.1 - Lip Gloss 0.0-2.3-10.8 -- Premium Lip Gloss 0.8-3.0-14.1 -- Mass Lip Gloss -0.5-1.8-8.7 - Lip Liner/Pencil 0.3-5.8-25.9 -- Premium Lip Liner/Pencil -1.8-5.9-26.2 -- Mass Lip Liner/Pencil 1.8-5.8-25.7 - Lipstick 8.5-0.7-3.5 -- Premium Lipstick 11.4 0.3 1.5 -- Mass Lipstick 6.0-1.6-7.6 - Other Lip Products -1.4-1.6-7.9

Table 2 Sales of Colour Cosmetics by Category: % Value Growth 2006-2011 % current value growth 2010/11 2006-11 CAGR 2006/11 Total -- Premium Other Lip Products 5.7 2.5 13.1 -- Mass Other Lip Products -12.9-7.5-32.4 Nail Products 24.4 11.0 68.5 - Nail Polish 31.0 12.9 83.8 -- Premium Nail Polish 122.2 45.6 554.5 -- Mass Nail Polish 15.6 8.3 49.0 - Nail Treatments/Strengthener 7.9 7.2 41.4 -- Premium Nail Treatments/Strengthener 5.8-1.6-7.9 -- Mass Nail Treatments/Strengthener 8.0 7.7 44.7 - Polish Remover 3.8 3.0 15.9 -- Premium Polish Remover - - - -- Mass Polish Remover 3.8 3.0 15.9 - Other Nail Products 5.0 6.2 35.2 -- Premium Other Nail Products 52.4 6.0 33.7 -- Mass Other Nail Products 2.6 6.2 35.3 Colour Cosmetics 6.6 2.7 14.1 Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 3 Colour Cosmetics Company Shares 2007-2011 % retail value rsp 2007 2008 2009 2010 2011

Table 3 Colour Cosmetics Company Shares 2007-2011 % retail value rsp 2007 2008 2009 2010 2011 L'Oréal USA Inc 22.3 22.3 22.2 22.9 23.1 Estée Lauder Cos Inc 21.5 20.8 20.4 21.1 21.2 Procter & Gamble Co, The 8.9 9.5 10.5 10.4 9.6 Revlon Inc 8.8 9.0 9.0 8.6 8.5 Coty Inc 1.4 5.1 5.8 6.4 6.2 Mary Kay Inc 4.6 4.4 4.4 4.3 4.2 Avon Products Inc 3.9 3.9 4.0 3.8 3.6 Chanel USA Inc 2.4 2.3 2.3 2.3 2.4 Bare Escentuals Inc 1.7 1.9 2.1 2.1 2.1 LVMH Perfums & Cosmetics USA Inc 1.6 1.6 1.7 1.7 1.8 Johnson & Johnson Consumer Products Inc 1.6 1.8 1.8 1.9 1.7 Shiseido Cosmetics (America) Ltd 1.5 1.5 1.5 1.6 1.7 Markwins International Corp 1.3 1.3 1.2 1.1 1.3 Mirage Cosmetics Inc 0.1 0.2 0.3 0.6 0.7 Physicians Formula Cosmetics 1.1 1.1 1.0 0.7 0.7 OPI Products Inc 0.2 0.5 0.5 0.6 0.6 Johnson Publishing Co Inc 0.6 0.6 0.5 0.5 0.5 Clarins SA 0.5 0.5 0.5 0.5 0.4 Elizabeth Arden Co 0.5 0.4 0.4 0.4 0.4 Jafra Cosmetics International Inc 0.4 0.4 0.4 0.4 0.4 Limited Brands Inc 0.3 0.3 0.3 0.3 0.3 Amway Corp 0.4 0.3 0.3 0.3 0.2

Table 3 Colour Cosmetics Company Shares 2007-2011 % retail value rsp 2007 2008 2009 2010 2011 Bonne Bell Inc 0.6 0.5 0.4 0.3 0.2 CCA Industries Inc 0.1 0.2 0.2 0.2 0.2 Burt's Bees Inc 0.3 0.3 0.2 0.2 0.2 Medtech Inc 0.2 0.2 0.2 0.2 0.2 Body Shop Inc 0.2 0.2 0.2 0.1 0.1 Nu Skin Enterprises Inc 0.1 0.1 0.1 0.1 0.1 Beauticontrol Cosmetics Inc 0.1 0.1 0.1 0.1 0.1 Jane & Co LLC 0.4 0.5 0.3 0.2 0.1 Smashbox Cosmetics 0.8 0.9 1.0 - - Del Pharmaceuticals Inc 3.0 - - - - AM Cosmetics Inc - - - - - Private Label 0.7 0.7 0.7 0.7 0.7 Others 7.7 6.7 5.8 5.5 6.4 Total 100.0 100.0 100.0 100.0 100.0 Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 4 Colour Cosmetics Brand Shares by GBN 2008-2011 Maybelline L'Oréal USA Inc 8.9 9.0 9.7 9.6 Cover Girl Procter & Gamble Co, The 9.1 10.1 10.3 9.6

Table 4 Colour Cosmetics Brand Shares by GBN 2008-2011 Clinique Estée Lauder Cos Inc 7.6 7.5 7.6 7.6 L'Oréal Paris L'Oréal USA Inc 7.8 7.8 7.6 7.3 Mac Estée Lauder Cos Inc 5.9 6.0 6.2 6.4 Revlon Revlon Inc 6.4 6.6 6.4 6.3 Lancôme L'Oréal USA Inc 5.6 5.4 5.5 5.7 Estée Lauder Estée Lauder Cos Inc 4.5 4.4 4.3 4.3 Mary Kay Mary Kay Inc 4.4 4.4 4.3 4.2 Sally Hansen Coty Inc 2.9 3.5 3.9 3.8 Avon Avon Products Inc 3.9 4.0 3.8 3.6 Chanel Chanel USA Inc 2.3 2.3 2.3 2.4 Almay Revlon Inc 2.6 2.4 2.2 2.2 bareminerals Bare Escentuals Inc 1.9 2.1 2.1 2.1 Neutrogena Johnson & Johnson Consumer Products Inc 1.8 1.8 1.9 1.7 Rimmel Coty Inc 1.5 1.6 1.8 1.7 Bobbi Brown Estée Lauder Cos Inc 1.2 1.3 1.3 1.3 Nars Shiseido Cosmetics (America) Ltd 0.8 0.8 1.0 1.1 Wet 'n' Wild Markwins International Corp 1.0 0.9 0.9 1.1 Smashbox Estée Lauder Cos Inc - - 1.0 1.0 BeneFit LVMH Perfums & Cosmetics USA Inc 0.8 0.9 0.9 1.0

Table 4 Colour Cosmetics Brand Shares by GBN 2008-2011 Sinful Colors Mirage Cosmetics Inc 0.2 0.3 0.6 0.7 Physician's Formula Physicians Formula Cosmetics 1.1 1.0 0.7 0.7 NYC New York Color Coty Inc 0.7 0.7 0.7 0.6 Dior LVMH Perfums & Cosmetics USA Inc 0.6 0.6 0.6 0.6 OPI OPI Products Inc 0.5 0.5 0.6 0.6 Shiseido Shiseido Cosmetics (America) Ltd 0.7 0.7 0.7 0.6 Essie L'Oréal USA Inc - - 0.1 0.5 Fashion Fair Johnson Publishing Co Inc 0.6 0.5 0.5 0.5 Clarins Clarins SA 0.5 0.5 0.5 0.4 Origins Estée Lauder Cos Inc 0.5 0.5 0.5 0.4 Elizabeth Arden Elizabeth Arden Co 0.4 0.4 0.4 0.4 Jafra Jafra Cosmetics International Inc 0.4 0.4 0.4 0.4 Artistry Amway Corp 0.3 0.3 0.3 0.2 Bonne Bell Bonne Bell Inc 0.5 0.4 0.3 0.2 Nutra Nail CCA Industries Inc 0.2 0.2 0.2 0.2 Victoria's Secret Limited Brands Inc 0.2 0.2 0.2 0.2 Burt's Bees Burt's Bees Inc 0.3 0.2 0.2 0.2 Prescriptives Estée Lauder Cos Inc 1.0 0.8 0.2 0.2 Cutex Medtech Inc 0.2 0.2 0.2 0.2

Table 4 Colour Cosmetics Brand Shares by GBN 2008-2011 Max Factor Procter & Gamble Co, The 0.4 0.3 0.1 - Table 5 Eye Make-up Brand Shares by GBN 2008-2011 Maybelline L'Oréal USA Inc 16.0 16.7 17.8 17.7 Cover Girl Procter & Gamble Co, The 10.6 11.3 12.1 11.4 L'Oréal Paris L'Oréal USA Inc 9.8 10.7 10.4 10.5 Clinique Estée Lauder Cos Inc 7.0 6.7 6.6 6.6 Lancôme L'Oréal USA Inc 6.2 5.9 6.0 6.4 Mac Estée Lauder Cos Inc 4.9 4.9 5.0 5.2 Avon Avon Products Inc 5.0 4.9 4.8 4.7 Revlon Revlon Inc 5.1 5.2 5.1 4.5 Almay Revlon Inc 3.9 3.6 3.6 3.6 Estée Lauder Estée Lauder Cos Inc 3.9 3.6 3.4 3.5 Mary Kay Mary Kay Inc 3.4 3.4 3.3 3.4 Rimmel Coty Inc 2.5 2.8 3.3 3.3 Chanel Chanel USA Inc 2.8 2.6 2.6 2.7 Wet 'n' Wild Markwins International Corp 1.2 1.2 1.3 1.4 Bobbi Brown Estée Lauder Cos Inc 1.3 1.3 1.3 1.4 Smashbox Estée Lauder Cos Inc - - 0.9 1.0

Table 5 Eye Make-up Brand Shares by GBN 2008-2011 BeneFit Neutrogena Dior Nars LVMH Perfums & Cosmetics USA Inc Johnson & Johnson Consumer Products Inc LVMH Perfums & Cosmetics USA Inc Shiseido Cosmetics (America) Ltd 0.8 0.8 0.8 0.8 0.7 1.0 1.0 0.7 0.6 0.6 0.6 0.7 0.5 0.5 0.6 0.7 NYC New York Color Coty Inc 0.7 0.7 0.6 0.6 bareminerals Bare Escentuals Inc 0.5 0.6 0.6 0.6 Jafra Shiseido Jafra Cosmetics International Inc Shiseido Cosmetics (America) Ltd 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.3 Clarins Clarins SA 0.3 0.3 0.3 0.3 Fashion Fair Johnson Publishing Co Inc 0.4 0.3 0.3 0.3 Origins Estée Lauder Cos Inc 0.4 0.3 0.3 0.3 Elizabeth Arden Elizabeth Arden Co 0.3 0.3 0.3 0.3 Artistry Amway Corp 0.3 0.2 0.2 0.2 Victoria's Secret Limited Brands Inc 0.2 0.2 0.2 0.2 The Body Shop Body Shop Inc 0.2 0.2 0.2 0.1 Prescriptives Estée Lauder Cos Inc 0.8 0.7 0.1 0.1 jane Jane & Co LLC 0.7 0.5 0.2 0.1 Nu Skin Nu Skin Enterprises Inc 0.1 0.1 0.1 0.1

Table 5 Eye Make-up Brand Shares by GBN 2008-2011 BeautiControl Beauticontrol Cosmetics Inc 0.1 0.1 0.1 0.1 Max Factor Procter & Gamble Co, The 0.6 0.6 0.1 - Smashbox Smashbox Cosmetics 0.9 0.9 - - Naturistics Del Pharmaceuticals Inc - - - - jane Estée Lauder Cos Inc - - - - Bath & Body Works Limited Brands Inc - - - - Private label Private Label 0.1 0.1 0.1 0.1 Others Others 6.5 5.6 5.3 5.7 Total Total 100.0 100.0 100.0 100.0 Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 6 Facial Make-up Brand Shares by GBN 2008-2011 Cover Girl Procter & Gamble Co, The 10.5 12.4 12.6 11.8 Clinique Estée Lauder Cos Inc 9.2 9.4 9.6 9.7 Maybelline L'Oréal USA Inc 6.1 6.1 6.8 7.3 L'Oréal Paris L'Oréal USA Inc 7.3 6.8 6.9 6.7 Lancôme L'Oréal USA Inc 6.4 6.3 6.5 6.6 Mac Estée Lauder Cos Inc 5.1 5.3 5.6 5.9 Estée Lauder Estée Lauder Cos Inc 5.6 5.5 5.5 5.5

Table 6 Facial Make-up Brand Shares by GBN 2008-2011 Revlon Revlon Inc 6.1 6.0 5.9 5.5 Mary Kay Mary Kay Inc 4.9 4.9 4.8 4.8 bareminerals Bare Escentuals Inc 4.3 4.6 4.6 4.7 Neutrogena Johnson & Johnson Consumer Products Inc 3.5 3.3 3.5 3.7 Almay Revlon Inc 3.1 3.1 2.7 2.7 Chanel Chanel USA Inc 2.4 2.3 2.3 2.3 Avon Avon Products Inc 2.5 2.6 2.4 2.3 Physician's Formula Physicians Formula Cosmetics 2.7 2.5 1.8 1.9 Smashbox Estée Lauder Cos Inc - - 1.6 1.6 Bobbi Brown Estée Lauder Cos Inc 1.4 1.4 1.5 1.5 Nars BeneFit Shiseido Shiseido Cosmetics (America) Ltd LVMH Perfums & Cosmetics USA Inc Shiseido Cosmetics (America) Ltd 1.1 1.1 1.3 1.5 1.1 1.1 1.2 1.2 1.1 1.1 1.1 1.0 Rimmel Coty Inc 0.8 0.8 0.8 0.8 Fashion Fair Johnson Publishing Co Inc 0.8 0.7 0.7 0.7 Clarins Clarins SA 0.7 0.7 0.7 0.6 Dior LVMH Perfums & Cosmetics USA Inc 0.5 0.6 0.6 0.6 Origins Estée Lauder Cos Inc 0.7 0.7 0.6 0.6

Table 6 Facial Make-up Brand Shares by GBN 2008-2011 Elizabeth Arden Elizabeth Arden Co 0.5 0.5 0.5 0.5 Jafra Jafra Cosmetics International Inc 0.4 0.4 0.4 0.4 NYC New York Color Coty Inc 0.3 0.3 0.3 0.3 Prescriptives Estée Lauder Cos Inc 1.3 1.1 0.3 0.3 Artistry Amway Corp 0.3 0.2 0.2 0.2 Nu Skin Nu Skin Enterprises Inc 0.2 0.2 0.2 0.1 BeautiControl Beauticontrol Cosmetics Inc 0.2 0.1 0.1 0.1 The Body Shop Body Shop Inc 0.1 0.1 0.1 0.1 jane Jane & Co LLC 0.5 0.4 0.2 0.1 Coty Airspun Coty Inc 0.1 0.1 0.1 0.1 Victoria's Secret Limited Brands Inc 0.1 0.1 0.1 0.1 Max Factor Procter & Gamble Co, The 0.3 0.2 0.0 - Smashbox Smashbox Cosmetics 1.4 1.5 - - Ultima II Revlon Inc 0.0 - - - Bath & Body Works Limited Brands Inc - - - - Private label Private Label 0.2 0.2 0.2 0.1 Others Others 6.1 5.4 5.8 6.0 Total Total 100.0 100.0 100.0 100.0 Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 7 Lip Products Brand Shares by GBN 2008-2011 Mac Estée Lauder Cos Inc 10.5 11.0 11.9 12.4 Revlon Revlon Inc 8.5 9.3 9.4 9.6 Clinique Estée Lauder Cos Inc 8.0 8.2 8.6 8.7 Cover Girl Procter & Gamble Co, The 6.8 7.2 7.2 7.4 L'Oréal Paris L'Oréal USA Inc 8.1 7.7 7.2 6.9 Mary Kay Mary Kay Inc 6.3 6.5 6.6 6.6 Maybelline L'Oréal USA Inc 5.2 5.2 5.7 6.0 Lancôme L'Oréal USA Inc 5.0 5.0 5.2 5.3 Estée Lauder Estée Lauder Cos Inc 5.0 5.0 5.2 5.1 Avon Avon Products Inc 4.8 4.9 5.0 4.5 Chanel Chanel USA Inc 2.2 2.2 2.4 2.5 Bobbi Brown Estée Lauder Cos Inc 1.4 1.4 1.5 1.6 Rimmel Coty Inc 1.4 1.3 1.4 1.5 Wet 'n' Wild Markwins International Corp 1.6 1.5 1.4 1.4 Nars BeneFit Shiseido Cosmetics (America) Ltd LVMH Perfums & Cosmetics USA Inc 1.0 1.1 1.2 1.4 0.7 1.1 1.2 1.2 Bonne Bell Bonne Bell Inc 2.0 1.8 1.5 1.2 Burt's Bees Burt's Bees Inc 1.3 1.1 1.0 1.0 NYC New York Color Coty Inc 0.8 0.8 0.9 0.9 Dior LVMH Perfums & Cosmetics 0.7 0.7 0.8 0.8

Table 7 Lip Products Brand Shares by GBN 2008-2011 USA Inc Shiseido Shiseido Cosmetics (America) Ltd 0.7 0.6 0.6 0.6 Fashion Fair Johnson Publishing Co Inc 0.6 0.6 0.6 0.6 Smashbox Estée Lauder Cos Inc - - 0.5 0.5 Victoria's Secret Limited Brands Inc 0.5 0.5 0.6 0.5 Origins Estée Lauder Cos Inc 0.6 0.6 0.6 0.5 Clarins Clarins SA 0.5 0.5 0.5 0.5 Neutrogena Johnson & Johnson Consumer Products Inc 0.8 1.0 0.9 0.5 Bath & Body Works Limited Brands Inc 0.4 0.4 0.5 0.5 Jafra Jafra Cosmetics International Inc 0.4 0.4 0.5 0.4 bareminerals Bare Escentuals Inc 0.3 0.4 0.4 0.4 Artistry Amway Corp 0.5 0.4 0.5 0.4 Elizabeth Arden Elizabeth Arden Co 0.4 0.4 0.4 0.4 The Body Shop Body Shop Inc 0.3 0.3 0.3 0.3 Prescriptives Estée Lauder Cos Inc 1.0 0.9 0.2 0.2 BeautiControl Beauticontrol Cosmetics Inc 0.2 0.1 0.1 0.1 Nu Skin Nu Skin Enterprises Inc 0.1 0.2 0.1 0.1 Sally Hansen Coty Inc 0.7 0.7 0.3 0.1 jane Jane & Co LLC 0.3 0.2 0.1 0.1

Table 7 Lip Products Brand Shares by GBN 2008-2011 Almay Revlon Inc 0.7 0.3 0.1 0.0 Smashbox Smashbox Cosmetics 0.4 0.5 - - Private label Private Label 0.9 1.0 1.1 1.0 Others Others 8.5 6.9 5.7 6.0 Total Total 100.0 100.0 100.0 100.0 Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 8 Nail Products Brand Shares by GBN 2008-2011 Sally Hansen Coty Inc 38.2 43.2 44.9 38.0 Revlon Revlon Inc 7.8 7.4 6.6 8.8 Sinful Colors Mirage Cosmetics Inc 3.0 3.9 6.9 7.2 OPI OPI Products Inc 6.3 6.1 6.4 6.3 Essie L'Oréal USA Inc - - 1.4 5.1 Wet 'n' Wild Markwins International Corp 3.6 3.2 2.8 3.5 Avon Avon Products Inc 4.4 4.6 3.9 3.2 Nutra Nail CCA Industries Inc 2.3 2.3 2.3 2.3 Cutex Medtech Inc 2.2 2.1 1.9 1.6 NYC New York Color Coty Inc 2.2 2.5 1.8 1.4 Chanel Chanel USA Inc 0.6 0.5 0.9 1.4

Table 8 Nail Products Brand Shares by GBN 2008-2011 Rimmel Coty Inc 1.5 1.0 1.2 1.0 Maybelline L'Oréal USA Inc 4.6 2.5 1.4 0.8 Nars Shiseido Cosmetics (America) Ltd 0.1 0.1 0.3 0.4 L'Oréal Paris L'Oréal USA Inc 1.7 1.3 0.7 0.3 Lancôme L'Oréal USA Inc 0.6 0.5 0.4 0.3 Estée Lauder Estée Lauder Cos Inc 0.2 0.2 0.2 0.2 Jonel Markwins International Corp 0.2 0.1 0.1 0.1 Clinique Estée Lauder Cos Inc 0.4 0.3 0.2 0.1 Dior LVMH Perfums & Cosmetics USA Inc 0.1 0.0 0.1 0.1 Cover Girl Procter & Gamble Co, The 2.3 1.8 1.0 0.1 Jafra Jafra Cosmetics International Inc 0.1 0.1 0.1 0.1 Essie Essie Cosmetics 0.7 1.0 - - Jonel AM Cosmetics Inc - - - - Wet 'n' Wild AM Cosmetics Inc - - - - Artistry Amway Corp - - - - Naturistics Del Pharmaceuticals Inc - - - - NYC New York Color Del Pharmaceuticals Inc - - - - Sally Hansen Del Pharmaceuticals Inc - - - - Bath & Body Works Limited Brands Inc - - - -

Table 8 Nail Products Brand Shares by GBN 2008-2011 Olay Procter & Gamble Co, The - - - - Almay Revlon Inc - - - - Private label Private Label 5.3 5.0 4.4 3.7 Others Others 11.6 10.4 9.8 14.0 Total Total 100.0 100.0 100.0 100.0 Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 9 Colour Cosmetics Premium Brand Shares by GBN 2008-2011 Clinique Estée Lauder Cos Inc 19.0 19.4 19.5 18.6 Mac Estée Lauder Cos Inc 14.7 15.3 15.9 15.8 Lancôme L'Oréal USA Inc 14.0 13.9 14.2 13.9 Estée Lauder Estée Lauder Cos Inc 11.3 11.2 11.0 10.5 Chanel Chanel USA Inc 5.9 5.8 6.0 5.9 bareminerals Bare Escentuals Inc 4.9 5.3 5.3 5.1 Bobbi Brown Estée Lauder Cos Inc 3.1 3.2 3.3 3.3 Nars Shiseido (America) Ltd Cosmetics 2.0 2.1 2.4 2.7 Smashbox Estée Lauder Cos Inc - - 2.6 2.5 BeneFit LVMH Perfums & 2.1 2.4 2.4 2.4

Table 9 Colour Cosmetics Premium Brand Shares by GBN 2008-2011 Cosmetics USA Inc Dior LVMH Perfums & Cosmetics USA Inc 1.4 1.5 1.6 1.6 OPI OPI Products Inc 1.1 1.2 1.4 1.6 Shiseido Shiseido (America) Ltd Cosmetics 1.8 1.7 1.7 1.6 Essie L'Oréal USA Inc - - 0.3 1.3 Fashion Fair Johnson Publishing Co Inc 1.4 1.4 1.3 1.2 Clarins Clarins SA 1.2 1.2 1.2 1.1 Origins Estée Lauder Cos Inc 1.4 1.3 1.2 1.1 Elizabeth Arden Elizabeth Arden Co 1.0 1.0 0.9 0.9 Prescriptives Estée Lauder Cos Inc 2.4 2.1 0.5 0.5 Smashbox Smashbox Cosmetics 2.3 2.5 - - Essie Essie Cosmetics 0.1 0.2 - - Others Others 8.8 7.3 7.2 8.6 Total Total 100.0 100.0 100.0 100.0 Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 10 Forecast Sales of Colour Cosmetics by Category: Value 2011-2016 US$ million 2011 2012 2013 2014 2015 2016 Eye Make-Up 3,145.4 3,243.5 3,332.9 3,416.0 3,515.2 3,626.1 - Eye Liner/Pencil 747.9 762.3 775.5 788.4 807.3 829.5 -- Premium Eye Liner/Pencil 223.7 231.5 237.7 243.1 247.7 254.2 -- Mass Eye Liner/Pencil 524.2 530.9 537.8 545.3 559.5 575.3 - Eye Shadow 578.6 600.4 620.6 640.2 657.7 678.5 -- Premium Eye Shadow 202.5 212.7 221.3 227.1 233.7 239.6 -- Mass Eye Shadow 376.2 387.7 399.3 413.2 424.0 438.9 - Mascara 1,696.2 1,754.8 1,808.7 1,857.0 1,916.8 1,982.2 -- Premium Mascara 656.2 685.4 707.5 727.4 749.3 773.5 -- Mass Mascara 1,040.0 1,069.5 1,101.2 1,129.7 1,167.5 1,208.7 - Other Eye Make-Up 122.7 126.0 128.2 130.4 133.4 135.9 -- Premium Other Eye Make-Up 42.4 44.4 45.6 46.7 47.8 48.9 -- Mass Other Eye Make-Up 80.3 81.6 82.6 83.7 85.6 87.0 Facial Make-Up 3,842.8 3,952.2 4,037.8 4,125.0 4,225.5 4,327.8 - Blusher/Bronzer/Highlighter 482.3 498.2 513.3 527.9 542.2 550.7 -- Premium Blusher/Bronzer/Highlighter 227.1 233.0 239.8 247.8 254.5 260.4 -- Mass Blusher/Bronzer/Highlighter 255.2 265.2 273.5 280.1 287.7 290.3 - Foundation/Concealer 2,675.5 2,765.0 2,834.9 2,901.3 2,977.3 3,067.2 -- Premium Foundation/Concealer 1,287.9 1,345.1 1,394.0 1,450.3 1,501.5 1,548.4 -- Mass Foundation/Concealer 1,387.6 1,419.9 1,440.9 1,451.0 1,475.8 1,518.9 - Powder 638.5 637.8 635.4 639.1 647.0 649.5

Table 10 Forecast Sales of Colour Cosmetics by Category: Value 2011-2016 US$ million 2011 2012 2013 2014 2015 2016 -- Premium Powder 250.3 250.8 253.0 254.8 257.3 258.3 -- Mass Powder 388.2 387.0 382.4 384.3 389.7 391.2 - Other Facial Make-Up 46.6 51.2 54.2 56.7 59.0 60.4 -- Premium Other Facial Make-Up 38.7 42.9 45.6 47.9 50.0 51.2 -- Mass Other Facial Make-Up 7.9 8.2 8.5 8.8 9.1 9.2 Lip Products 2,003.4 2,058.3 2,110.4 2,161.0 2,203.8 2,232.0 - Lip Gloss 471.6 464.3 461.0 460.5 464.6 473.6 -- Premium Lip Gloss 176.7 177.0 178.2 180.3 184.7 190.1 -- Mass Lip Gloss 294.9 287.3 282.8 280.1 279.9 283.5 - Lip Liner/Pencil 111.0 107.6 103.8 101.6 99.8 99.0 -- Premium Lip Liner/Pencil 45.6 43.6 41.9 40.8 40.0 39.8 -- Mass Lip Liner/Pencil 65.4 64.0 61.9 60.8 59.8 59.2 - Lipstick 1,282.4 1,346.4 1,403.8 1,455.0 1,492.5 1,510.3 -- Premium Lipstick 614.0 651.7 686.0 716.2 740.4 759.7 -- Mass Lipstick 668.4 694.7 717.8 738.8 752.2 750.6 - Other Lip Products 138.5 140.0 141.8 144.0 146.9 149.1 -- Premium Other Lip Products 91.6 95.5 98.9 101.8 104.6 106.3 -- Mass Other Lip Products 46.8 44.5 42.9 42.1 42.3 42.8 Nail Products 1,003.4 1,111.5 1,181.7 1,231.7 1,262.2 1,264.7 - Nail Polish 778.0 878.6 943.6 992.2 1,021.9 1,024.6 -- Premium Nail Polish 190.7 234.0 253.3 266.2 271.8 265.6

Table 10 Forecast Sales of Colour Cosmetics by Category: Value 2011-2016 US$ million 2011 2012 2013 2014 2015 2016 -- Mass Nail Polish 587.3 644.6 690.3 725.9 750.1 759.0 - Nail Treatments/Strengthener 115.3 121.4 125.9 128.2 129.3 130.1 -- Premium Nail Treatments/Strengthener 4.8 4.9 5.0 5.1 5.2 5.2 -- Mass Nail Treatments/Strengthener 110.5 116.4 120.9 123.1 124.2 124.9 - Polish Remover 74.1 74.6 74.6 73.6 73.2 72.2 -- Premium Polish Remover - - - - - - -- Mass Polish Remover 74.1 74.6 74.6 73.6 73.2 72.2 - Other Nail Products 36.0 37.0 37.5 37.8 37.8 37.7 -- Premium Other Nail Products 2.5 2.7 2.8 2.8 2.8 2.8 -- Mass Other Nail Products 33.5 34.3 34.6 34.9 35.0 35.0 Colour Cosmetics 9,995.0 10,365.5 10,662.8 10,933.7 11,206.7 11,450.5 Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Table 11 Forecast Sales of Colour Cosmetics by Category: % Value Growth 2011-2016 % constant value growth 2011-16 CAGR 2011/16 TOTAL Eye Make-Up 2.9 15.3 - Eye Liner/Pencil 2.1 10.9 -- Premium Eye Liner/Pencil 2.6 13.6

Table 11 Forecast Sales of Colour Cosmetics by Category: % Value Growth 2011-2016 % constant value growth 2011-16 CAGR 2011/16 TOTAL -- Mass Eye Liner/Pencil 1.9 9.8 - Eye Shadow 3.2 17.3 -- Premium Eye Shadow 3.4 18.3 -- Mass Eye Shadow 3.1 16.7 - Mascara 3.2 16.9 -- Premium Mascara 3.3 17.9 -- Mass Mascara 3.1 16.2 - Other Eye Make-Up 2.1 10.7 -- Premium Other Eye Make-Up 2.9 15.2 -- Mass Other Eye Make-Up 1.6 8.4 Facial Make-Up 2.4 12.6 - Blusher/Bronzer/Highlighter 2.7 14.2 -- Premium Blusher/Bronzer/Highlighter 2.8 14.7 -- Mass Blusher/Bronzer/Highlighter 2.6 13.8 - Foundation/Concealer 2.8 14.6 -- Premium Foundation/Concealer 3.8 20.2 -- Mass Foundation/Concealer 1.8 9.5 - Powder 0.3 1.7 -- Premium Powder 0.6 3.2 -- Mass Powder 0.2 0.8 - Other Facial Make-Up 5.3 29.8

Table 11 Forecast Sales of Colour Cosmetics by Category: % Value Growth 2011-2016 % constant value growth 2011-16 CAGR 2011/16 TOTAL -- Premium Other Facial Make-Up 5.8 32.4 -- Mass Other Facial Make-Up 3.2 16.9 Lip Products 2.2 11.4 - Lip Gloss 0.1 0.4 -- Premium Lip Gloss 1.5 7.6 -- Mass Lip Gloss -0.8-3.9 - Lip Liner/Pencil -2.2-10.8 -- Premium Lip Liner/Pencil -2.7-12.7 -- Mass Lip Liner/Pencil -2.0-9.4 - Lipstick 3.3 17.8 -- Premium Lipstick 4.4 23.7 -- Mass Lipstick 2.3 12.3 - Other Lip Products 1.5 7.7 -- Premium Other Lip Products 3.0 16.0 -- Mass Other Lip Products -1.8-8.6 Nail Products 4.7 26.0 - Nail Polish 5.7 31.7 -- Premium Nail Polish 6.8 39.3 -- Mass Nail Polish 5.3 29.2 - Nail Treatments/Strengthener 2.4 12.8 -- Premium Nail Treatments/Strengthener 1.5 7.9

Table 11 Forecast Sales of Colour Cosmetics by Category: % Value Growth 2011-2016 % constant value growth 2011-16 CAGR 2011/16 TOTAL -- Mass Nail Treatments/Strengthener 2.5 13.0 - Polish Remover -0.5-2.6 -- Premium Polish Remover - - -- Mass Polish Remover -0.5-2.6 - Other Nail Products 0.9 4.8 -- Premium Other Nail Products 2.1 11.2 -- Mass Other Nail Products 0.9 4.3 Colour Cosmetics 2.8 14.6 Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources