DCF and vIndustry oaluation pverview arameters PPage 73age 73 I Points of view from EY global sector The beauty market: where to invest? and other industry professionals The beauty market is proving to be very attractive for most of its players — beauty companies, retailers, start-ups and investment funds — with its track record Digital beauty brands of high single-digit growth (from +6% to +8%) in the early 2000s and low single-digit growth (around +4%) after the *((/Ç(0 global financial crisis, despite Digital beauty service Blasco De Felice widespread economic tensions. The anerage profitabilitq of the top plaqers in this rich Retail beauty brands w Beauty top executive and profitable marcet is aromnd )0 E:AL<9, and the ervie best performers top *(, despite macing significant v investments in distribution, business drivers and Retail beauty services try o onerhead. Lhis profitabilitq enables most plaqers to Indus deploy investments to develop their business in ts research and innovation, advertising and marketing, e Open innovation distribution and retail operations. The beauty market is also incredibly dynamic, with y mark Ethnic beauty brands innovation representing up to one-third of yearly eaut revenues. For the players in this market, this is a B double-edged sword: the most innovative companies Bio beauty brands thrive, while the laggards are destined to decline. In addition to the more mature and competitive mainstream segments of the beauty market, many E-commerce beauty platform niche segments are growing at a double-digit pace and face less fierce competition. Lhese niches Kpecific laj_el Zjands represent a strong investment opportunity for beauty companies, retailers, start-ups and investment funds alike. +4% 18% Some of the hot opportunities of the beauty market Growth EBITDA (see graphic) are discussed further below. The luxury and cosmetics financial factbook 2016