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The Future Bright for Color Cosmetics Despite Economic Gloom
By: Rob Walker, Euromonitor International
Posted: April 2, 2012, from the April 2012 issue of GCI Magazine.
- Weaker consumer confidence boosted at-home DIY pampering to the benefit of nail care brands.
- In 2011, though some discretionary spending remained weak, there were signs of a more devil-may-care attitude to consumption, with the notable growth of luxury brands with affordable price tags.
- In 2012, growing demand for affordable “treat yourself” beauty care in developed markets will trigger investment in mass-market color cosmetics that offer premium and multifunctional features.
- Brands will find the sweet spot of opportunity in color cosmetics in the emerging markets, particularly second-tier emerging markets—both the most attractive growth markets and the riskiest in terms of new investment.
As the global economy tilts toward a potentially protracted downturn, what lies in store for the color cosmetics category? Will growth in the developed markets be clipped by weaker discretionary spending capacity, or will consumers dilute the doom and gloom with affordable feel-good purchasing?
And with the BRICs looking more exposed to contagion than during the financial crisis of 2008/2009, are leading players becoming overdependent on Brazil and China to bulk out their global growth? If so, where should manufacturers be looking to strengthen their positions in 2012 and beyond?
Nail Polish Bucks Trend of Discretionary Pinch
The consensus in fast-moving consumer goods is that nonessential products will normally experience a slowdown in demand when discretionary spending power becomes squeezed. On paper, that appears to bear out in beauty and personal care.
For example, in 2009, the first full year following the collapse of Lehman Brothers, the two biggest retail markets in the world for color cosmetics, the U.S. and Japan, both slipped into negative growth (-1% and -4%, respectively, at fixed U.S. dollar prices), according to data from Euromonitor International.
Regulations, Stability, Color Aesthetics, and Economics.
Coloring the Cosmetic World: Using Pigments in Decorative Cosmetic Formulations covers the four dimensions to selecting colors for cosmetics. Take note of the chapter on color stability which describes the various colorants you will use in your product and includes a chart listing compatibility of colorants with a number of solvents. Photos rendered in full masstone color!
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