Building differentiation
Healthcare
First
- Major own brands relaunched
- No7, No1 cosmetic brand , +12% in H1
- 17 +13% since relaunch
- Soltan 5* is the market leader
- New exclusive brands in store
- Elle McPherson
- Ted Baker
Notes
I have explained in the past that our own-label and exclusive products are a key driver of differentiation and margin. Boots has a level of expertise in product development which none of our rivals can replicate. Cosmetics brands like No7 and 17 and suncare brands like Soltan are great assets.
Each of these brands has traded successfully this year following relaunch. No7 has reinforced its position as Britain's leading cosmetics brand, and in the first half enjoyed sales growth of 12 per cent. More recently we have relaunched 17 and this is ahead by 13 per cent. Soltan, meanwhile, has added 16 per cent and has regained its market leadership in suncare.
But own-brands are not the only weapon at our disposal. We have also started to get smarter at using our scale and unique position in the market to secure exclusive deals with other brands. Over the last six months, for example, we have started to sell Elle McPherson's Body range and new products from Ted Baker.
LINK: The "Only at Boots" strategy goes across our business. But nowhere is its impact felt more than in beauty, so I thought it was worth providing some detail in this area.
