1 Beauty Trends 2018 Beauty World Zambia

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2 Beauty Trends of 2018 This is our first publication of Beauty Trends. We are excited to share with you what the global projections are for the personal care and cosmetic industry for From what we have seen in 2017, we believe that we can safely predict the trends that will be significant in We want to ensure that our followers are aware of the new and exciting changes that will be coming up globally. So here is our take of the beauty market. African Market Currently, Africa has a population of 1 billion people; it is estimated that this will rise to 3 billion people by This increase in population is very significant. The demographic profile is correlated with the continuous rise in disposable income by 2030, and the 18 most populated African cities could have a combined spending power of $1.3 trillion making the continent very attractive for companies seeking to grow outside developed counties. They have estimated revenues of $1. 8 billion in 2018 in personal care and cosmetics according to Euromonitor international, a market research firm. Many Sub-Saharan African governments enforce heavy taxes for beauty related products, in their defence they do this to encourage local consumers to buy local products. Unfortunately, many of these countries do not have convincing international regulatory standards for personal care and cosmetics and in addition a viable control on regulations on illegal and imitation products. Therefore local consumers still prefer buying international brands from reputable establishments. In Zambia, the market for personal care and cosmetics is immense. It is dominated by South Africa chains, such as Edgars and Foschini. Zambians like to feel, look and smell nice. It has become a social status to always look elegant. The growing middle class has given rise to the desire for more international brands and consumers with less disposable income will settle for imitations or illegal products. We have seen the power of social media take the centre stage in advertising and selling of cosmetics and personal care services, such as Make-Up artists. Although there is currently only a handful of Make-Up artists that are professionally trained. The hair care service is still by far the most prominent services and product offering that you can find almost anywhere. What we have seen is many consumers going back to taking care of their natural hair, and this trend will continue to grow. The rise of skin care and wellness is also significant; the middle class will demand more professionalism and quality brands for their skincare. South Africa, (the most mature market in Africa) has seen the demand on international brands reduced due to economic slowdown. Although the biggest news has been that, L Oréal has launched the L Oréal Institute for Ethnic Hair and Skin Research in Chicago, US and has also set up an assessment centre in South Africa dedicated to the study and understanding of consumer development. 2

3 Fast growing African economies such as Uganda, and the markets of Kenya and Ethiopia, with middle class incomes increasing, population growth and greater urbanisation are driving the markets for cosmetics and personal care products to new heights, especially in the East African region. Kenya and Uganda are dominated by multinational brands using local production capacity in production and supply chain outsourcing. The hair care sector has the most growth in all East Africa markets. The natural hair market has made a comeback. Many consumers are taking care of their natural hair more than before. This correlates with young women who are embracing their culture, their roots and their identity. In this sector they are staying away from the commercial hair products and prefer using natural products. There is a shortage of such natural products in both hair and skin care. Many women would like to see products that would suit their needs and requirements, products that are more Afrocentric. 3

4 million people by 2020, it is expected that the beauty and personal care products will record a positive performance related to this growth. For this reason, Nigeria is becoming the destination of choice for investment by international companies. Nigeria stood out in 2017 due to the product called Ajali Handmade Natural. Their product has been able to capture international interest. It is a 100% natural beauty product range crafted in Nigeria. The brand boasts moral ethos, encouraging fair trade and the ingredients such as coco butter and virgin coconut oil are all from indigenous West Africa, In West Africa, Nigeria is one of the most populous states of Africa, with over 184 million people. Demographic forecasts indicate the Nigerian population will exceed 200 4

5 The African market is difficult, principally because there is not as much research and readily available statistics compared to the developed nations. Generalised information can be obtained though, which in our opinion does not really provide the true sense of what s happening on the ground but it does indicate an overall assessment. We hope that this situation gradually improves. 5

6 The Rest of the World In the developed markets, (the Americas- including Canada and South America- Europe, and Asian Pacific region), we see more defined shifts taking place compared to Africa. So what s in? Dirt is in We see that consumers are in love with dirt! The likes of charcoal products, silts from sources from remote lakes and volcano ashes. Such products will continue to increase in demand. Adding Water We have also seen products that are not overly complicated gaining market share. For example Mary Kays Personal Care Vitamin C Activating Squares. 6

7 This beauty industry first uses breakthrough technology that delivers pure vitamin C to your skin in a tiny, dissolvable square. Products such as these will be making significant market penetration in the coming years and many more products of this kind will be surfacing. 7

8 Male Grooming This sector has been steadily growing and to be frank it is a very hard and complicated market and very difficult to measure. This is because some men still don t like to talk about such things and the difficulty in breaking into this market is exactly for that reason. Google research has picked out male grooming as one the 4 key trends for the industry to watch. This is especially for men s skincare especially in the following countries Japan, France and the US. Google analysis revealed that most searches were for the following categories: Skincare for face Face wash Face moisturiser Branded facial brushes The British brand Bulldog Skin Care is doing exceptionally well in the industry. How google produced its report was based on identifying and comparing consumer habits and demands across the key global markets, which are: the US, France and Japan. Top volume queries related to the above categories and analysed the monthly volume from

9 Microbiome is in This is becoming a major trend in Europe and the US for good reason. So what is Microbiome? It refers to the collection of microbe such as bacteria, fungi, viruses that live in or on human cells. Major players in the beauty industry, such as Johnson & Johnson, P&G and L Orèal are now looking at this field very keenly and are investing in it on a serious level. Mother Dirt, an American brand, is one of the leading brands in microbiome skincare products. The brands core ingredient is AO+Mist is the only product in the market that contains a live culture of Ammonia Oxidizing Bacteria (AOB). The company claims that this type of microorganism that has been lost in modern hygiene. The products aim to improve any common skin issues within 2 weeks of use. According to Mother Dirt continued use can help in the dependence of soaps and deodorants. People are starting to realise that our skin, like our gut, needs a balance of good bacteria to be healthy. We will definitely see this as a growing trend in the years to come, starting in

10 Mother Nature is in Mother natural will continue to play a pivotal role in The local approach and developments in the biotechnology will go hand in hand with a natural approach. As we live in the era of smartphones and digital transformations, consumers will continue to research more about product safety, product sourcing and product developments. The demand for pure and effective products a dependence on science and technology will be essential for future beauty products. Consumers will move even more than before to shop locally, want locally produced products; it s now not only a trend but a lifestyle choice. 25% German consumers who purchase natural /organic personal care do so because they believe they are better for the environment. 29% Australians consumers look for locally made products when shopping everyday items including personal care. 33% Italians consumers who purchase colour cosmetics choose natural products. 45% Female facial skin care users in China plan to use products that are made with natural herbs/plants ingredients more often to improve skin. 50% UK consumers who buy beauty products look for products made with natural ingredients. 10

11 There are many beauty products that work solely with natural products, the outstanding trendsetter in 2017 was a New York based hair care product called Yarok Hair Care. This is an organic sustainable hair care brand which mixes Aromatherapy based products. It demonstrates it in front of the customer and it is 100% vegan tested treatment. A shift for Brand Owners Consumers are more informed than ever; they have information at their fingertips. This gives consumers immense purchasing power. Brands can no longer simply rely on having a good brand anymore; they need to ensure that the product is aligned with the consumer s personality, purpose and values in order to win them over. The tides have changed and it s all about seducing and impressing the consumer. The shift here is that consumers are now buying products either because it s an attitude or lifestyle choice. For example consumers will care about the value of a brand and product can offer them as much as the quality of the product. 56% of US consumers have stopped buying products from a brand or retailer if they believe there are unethical. 11

12 37% of UK consumers consider whether or not a product is tested on animals when shopping. 34% of French consumers trust smaller business more than large co-operations. 29% of Brazilian prefers to buy from companies with sustainable practice. 27% of Indonesia consumers say they prefer products that maintain fair trade regulations An example of a trendsetter in this category is Thrive Causemetic, an LA, California based company. They have developed a clean beauty line of false eyelashes and cosmetics. For every sale, they donate one additional product to a woman who has cancer or suffering from domestic violence. 12

13 Digital Technology is part of everyday life now Digital technology will make shopping even more personal in Basically, there are too many products and too little time. The search for the right product that meets the values and needs of the consumer is constantly developing. Technology will interpret consumer s facial expression and eye movements to determine their product preference and offer help both in store and online. We are going to see beauty brands increasingly finding ways to track the likes and dislikes of consumers. Apps will become digital personal assistance while voice based technology will evolve to curate products. These apps will use biometric data to create a real time set of recommendation to note product discovery faster and more personally. The new saying is Beauty is in the eye of the smartphone holder. Governments will enforce stricter regulations and legislation on data security and will force companies to seek consent, disclose tracking and offer consumers the right to be forgotten. 67% of US Igeneration beauty buyers aged prefer to search for products info on their mobile device than ask sales associate. 45% of Thai consumers compare prices at other stores while shopping in person. 33% Spanish consumers who view beauty products on social media would buy products directly through social channels. 30% UK fashion buyers are interested in digital screens to search for product info in store. Individualism is the new Beauty Rule Brands will gradually stop targeting consumers based on age, gender and body type. We are going to see a shift to individualism. Beauty being defined on consumer s terms. Brands in the coming years will need to embrace individuality and address individual beauty concerns resulting in customisation and personalisation of products. 13

14 Brands will need to focus more on human behaviour rather than demographics. Consumers will want products that will suit personal routine and meet their own sensitivities. 75% French female consumers say feeling comfortable is better than looking perfect. 62% Canadian consumers aged agree its ok for people to experiment with gender. 33% Brazilian Millennials aged say they would like to see more adverts featuring people with wide range of body types. 40% US Make-up users aged are frustrated by products that don t match their skin tone. 14

15 The key trendsetter that stood out in 2017 is Robyn Rihanna Fenty Beauty was launched to fill a void that existed in the industry for products that perform well across all skin types and tones. The Make- Up range of traditionally hard to match skin tones creating a formula that works for all skin types and pin pointing universal shades. Sources: Mintel, Cosmetic Design, Google, Kosmetica World, Pinterest 15

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