Most Popular in:
Markets Drive Color Cosmetics Growth
By: Oru Mohiuddin, Euromonitor International
Posted: February 27, 2009, from the March 2009 issue of GCI Magazine.
page 3 of 3MAC is one of the few companies to have launched shades for consumers in emerging markets, and this appears to be reflected in the company’s strong CAGR of 17% globally, compared to 3% for Clinique and 4% for Chanel. Part of MAC’s growth was driven by Asia-Pacific and Latin America, in which it posted respective CAGRs of 14% and 13%. To further emphasize the importance of designing shades for skin tones other than Caucasian, Shiseido, a Japanese company with a particular focus on Asian skin tones, recorded a strong global CAGR of 14%. Other leading companies are now trying to catch up by setting up manufacturing units and research centers in various regional markets.
Color Cosmetics Prove Resilient in Economic Downturn
During the current economic downturn, color cosmetics have proven to be quite resilient. The segment has been described as small ticket luxuries, which consumers can afford and tend to substitute for expensive holiday gifts and accessories even as they tighten their purse strings. Consequently, color cosmetics marketers have posted positive growth from one quarter to another.
It is vital that manufacturers invest in research and development to come up with new products that offer good value for the money. This is the only way to engender consumer loyalty, a key factor for survival in today’s market. More and more consumers will demand color cosmetics that are more closely tuned to individual skin tone, and in emerging markets, therefore, manufacturers should focus on introducing colors and textures that achieve this.
Oru Mohiuddin is a research analyst for personal care at Euromonitor International. She is responsible for contributing to the content and quality of Euromonitor’s personal care research, providing strategic analysis of companies and the global market.