2012 Market Review on Cosmetics in Malaysia

>> TRENDS 

Growth in total colour cosmetics current value sales in 2011 was down slightly on 2010, and also slower than the CAGR for the entire review period. The same was true with regard to volume growth for eye make-up and nail products, while volume growth rates for facial make-up and lip products were only slightly stronger than those recorded the previous year. The performance of colour cosmetics as a whole was hindered by a number of factors, most notably increasing maturity. At the same time, some product types lost popularity due to changing fashion trends. Nonetheless, most categories continued to show reasonably good growth in volume and current value terms thanks to economic improvements, new launches and marketing activities. In particular, several categories benefited from the addition of new added value variants to masstige ranges. Growth in the numbers of women joining the Malaysian workforce and the influence of international fashion and beauty trends also helped to sustain the positive development of colour cosmetics as a whole.

>> COMPETITIVE LANDSCAPE 

L’Oréal was the leading company in colour cosmetics in 2011, claiming a value share of 21% with a broad portfolio that covers several categories and includes top global brands like Maybelline, L’Oréal Paris, Lancôme and Shu Uemura. The company’s leading position was also attributable to its extensive distribution network, consistently strong advertising support for its brands and longstanding reputation for offering high quality products at reasonably affordable prices in Malaysia. L’Oréal was the number one player in facial make-up and lip products, and finished second in eye make-up and nail products. Avon was the second leading company overall with a value share of 17%. The company’s competitively priced Avon brand is very popular among Malaysian women, and widely available across the country thanks to its network of more than 400,000 direct selling agents. It offers price promotions every two months, which encourages users to buy multiple Avon products at a time. Avon was the leading company in eye make-up, and finished second and third in lip products and facial make-up respectively. Other prominent competitors in colour cosmetics included Estée Lauder Cos Inc, Alliance Cosmetics, Revlon, Shiseido Co Ltd, Amway and Nu Skin.

>> PROSPECTS 

While the outlook for colour cosmetics over the forecast period is broadly positive, growth in total constant value sales is expected to be only marginally stronger than that recorded over 2006-2011. This will be partly due to more intense price competition in all categories, but will also reflect increasing maturity in eye make-up, lip products and nail products. The former two categories are expected to see volume sales grow at slower rates than during the review period, while the latter is expected to record a small decline in volume terms. Aside from maturity, a projected slowdown in Malaysia’s economic development will hamper the development of these categories. The outlook for facial make-up is more favourable, with volume and constant value growth rates expected to surpass the respective CAGRs witnessed during the review period. Despite these mixed prospects, new launches, advertising campaigns and the growing influence of international fashion and beauty trends in Malaysia should help to sustain reasonably healthy growth in volume and constant value sales for most individual product categories within colour cosmetics.

>> SOLUTION
Begin looking for prospects in the first quarter of the year to ensure progressive results throughout the year. Engage with the right partners and alter business strategies to tackle forthcoming difficulties.

Engage with Socialwalk to connect you to your right prospects. Our extensive network includes manufacturers & distributors in the line of Skin Care, Cosmetics, Hair Salon Equipment, Fragrance and Nails ready to partnerships, joint-ventures and buyer-supplier relationships. 

Click here to find out more: http://socialwalk.com/LandingBeauty.aspx 

Source of article: http://www.euromonitor.com/colour-cosmetics-in-malaysia/report