2014’s Cosmetics Market Consumer Trends

Despite the global financial turmoil of the past few years, the skin care & cosmetic products sector has achieved remarkable success compared to other industrial sectors. In recent years major changes have emerged in the beauty industry particularly in consumer purchasing behaviors and distributor and sale agent business models.

Consumer trends towards ethical manufacturing processes and utilization of safer and greener raw materials has changed the low price high volume manufacturing paradigm towards a high quality, natural, sustainably sourced and above all ethical manufacturing paradigm. More attention is also being paid to purchasing authentic products meaning consumers are savvier and pay more attention to labeling, ingredients lists and online product reviews prior to purchasing. According to Mintel, a trend has been seen in the West and now in Asia-Pacific region that consumers are re-evaluating their brand loyalties and supporting products from independently owned retailers or artisan manufacturers. Industry analysts have also noted: “This elevates the need for brands to be authentic and transparent in their business practices in 2014. Companies must be careful to monitor all aspects of their image and interaction with fans ensuring that they’re aligning with corporate responsibility goals as well as the key priorities of its current and prospective consumers”.

This revamped enthusiasm and expanded definition of value has soon been integrated into the business ethos of savvy skin care brand such as Sukin, a brand from Australia focusing on naturals and organics. Sukin is set to expand its operations into Hong Kong, which is seen as a stepping stone to mainland China and ultimately tackle the entire Chinese market. NZTE, New Zealand’s international business development agency noted: “Skin care and cosmetic products can add value by emphasizing natural or organic ingredients that are accompanied with product certification from authorized certifiers such as GMP, AgriQuality or ECOCERT.”

Challenges also face many enterprises in updating their current business models from traditional in-store to e-commerce sales channels. This requires brands to be proactive in the use of social media and digital marketing, also focus more on resources of technology development. L’Oreal Australia stated: “With L’Oreal Australia’s increased focus in digital communications, combined with the rapid development of e-commerce, it has become necessary to fully engage with its consumer using the latest, most engaging communications.” Mobile devices are predicted to be the new trend of e-commerce especially in China, where mobile payment is prevailing.

Innovation is another requirement in order to move forward in the marketplace and tap into consumer demand. Multifunctional products are in high demand with key selling points focused on instant gratification, product longevity and user friendliness. Procter & Gamble and L’Oreal both have successfully launched multifunctional BB and CC creams to adapt to the new market demand and remain market leaders.

International brands seeking to expand and stabilize their positions in the marketplace should maintain industrial sensitivity at all times and continue to adapt to consumer demands and preferences.