The UK has a new health & beauty player unashamedly aiming for the luxury end of the market, and investing online to capture a share of the international market.

Despite its niche market positioning and small share of the total UK health & beauty market (0.5 per cent in 2016), Space NK continues to outperform the wider market and grow its UK presence. High end entry level price points are been justified by a luxury shopper experience across both its online and in-store channels. Innovative in-store services such as reflexology and detox baths also help to differentiate the specialist from competitors, such as premium end department stores and online pure-plays, ensuring destination appeal for both new and repeat customers.

Space NK clearly wants to position itself as a high profile international retailer.

At home, it is well positioned to grow its market share by further developing its loyalty scheme for its male consumer base as it is currently more female orientated. With a growing interest in personal appearance and style among males, particularly the 16-45s, is should be targeting the male shopper through product exclusives, tailored marketing and in-store experiences that would encourage regular spend and improve shopper loyalty.

Currently Space NK own brand product is limited to makeup brushes. With its branded proposition targeted to ABC1 shoppers or those purchasing gifts, Space NK should develop its own brand range to target those seeking an aspirational lifestyle. Providing a slightly lower price point than the third-party brands it stocks will broaden its appeal, get shoppers in at a slightly younger age and provide upselling opportunities to branded items as they become loyal customers.

Alongside investment in creating a fully responsive international eCommerce site which launched in May 2016, plans for a flagship store on London’s Regent Street by the end of 2016 will help establish itself as an international brand among the global demographic profile of the street’s shoppers. This is especially important as it vies for growth outside of the UK. Turnover from outside the UK in 2015/16 was £11.4 million, or 14.8 per cent of total revenue.

• Katrina Rattu is an analyst at Verdict Retail.