India and China: the main markets to see colour cosmetics growth by 2020
These Asian countries are expected to witness high growth over the next five years, spurred on by a rise in demand for organic cosmetics and innovative packaging.
Major players in this segment includes Estée Lauder, Avon, L’Oréal, Revlon, Proctor & Gamble, Johnson & Johnson and Beiersdorf, and with soaring popularity, comes fierce competition.
In a move to expand and compete with its rivals, the India-based subsidiary of Revlon has rolled out a new brand of colour cosmetics, priced 60% cheaper than its existing range.
Through the nail and lip colour range, the company hopes to extend its reach and gain a foothold in tier-II and -III cities, whilst also taking on rivals like L'Oreal.
There will be obstacles though...
The market researcher reports that while the sector has serious potential for growth, it will have to overcome regulatory challenges, such as the rising cost of raw materials and the wider economic climate in order to capitalise on these opportunities.
"The high cost of quality chemicals, strict government regulations and high price related to packaging are some of the factors restraining growth," analysts say, regarding setbacks.
Innovation in colour cosmetics
There has been considerable cross-category innovation over the past few years between skin care and facial make-up.
The multi-functional colour cosmetics category is one of the most rapid and fast-paced areas of the industry right now. As consumers continue to perceive themselves as time poor, 40% of global consumers agree that they rely heavily on time saving goods and services.
While the 'alphabet cream craze' undoubtedly epitomizes multi-functionality; BB, CC, and DD creams are just the tip of the iceberg.
This sentiment is being characterized within the make-up space by the exponential growth of multi-functional products and while having originated within face make-up streams, is now spreading to segments like the nail make-up space.
This is creating high innovation potential for brands within the personal care space, as regardless of their category, there is opportunity to capitalize on the interest surrounding multi-functional products.
