Cosmetics And Toiletries in Dominican Republic
Euromonitor International's Cosmetics And Toiletries in Dominican Republic market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
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Tables: 107 | Publication date: Jul 2008
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Baby care; Bath and shower products; Colour cosmetics; Deodorants; Depilatories; Fragrances; Hair care; Men's grooming products; Oral hygiene; Premium cosmetics; Skin care; Sun care
Executive summary
Continued growth seen as the economy keeps improving
As the economy continued to grow – as indicated by the country’s rising GDP – consumer expenditure on cosmetics and toiletries in the Dominican Republic continued to recover in 2007. However, for the market as a whole as well as many individual product areas, sales measured in constant value terms in the local currency in 2007 were still below the levels seen prior to the economic difficulties experienced by the country in the 2003-2004 period. One exception to this was hair care, which, along with colour cosmetics, saw the fastest growth in 2007.
Dominican consumers still place a great emphasis on price
In spite of the improving economy and rising per capita annual expenditure among Dominican consumers in recent years, it is still below the average for Latin America and the Caribbean. High unemployment and marked income inequality means that, for many consumers, limited disposable income is an everyday reality. This leads to shoppers favouring value-for-money options such as body sprays that can take the place of both a deodorant and a fragrance. Companies offering products combining performances at reasonable prices will likely continue to be rewarded by Dominican consumers in a constrained income environment.
Status quo maintained in distribution
After making quite strong gains in 2006, supermarkets/hypermarkets maintained its leading share of distribution in the final year of the review period. Such outlets remain a convenient location to pick up cosmetics and toiletries products during regular shopping trips. This is helped by the improving economy, which means that consumers have slightly more money in their pockets, allowing them to plan purchases more, rather than buying items at local stores only when they have the funds to do so. The inexorable advance seen by direct selling in the late 1990s and early 2000s would seem to have been halted, although its loss of share was fractional in 2007 and much smaller than the decline seen in the previous year.
“Big Three” enjoyed a good year in 2007
Colgate-Palmolive DR Inc, Productos Avon SA and Unilever Caribe SA continued to be the three leading players in the cosmetics and toiletries market in 2006. In fact, all three recorded slight increases in their shares of overall value sales. Colgate-Palmolive dominates oral hygiene and is also a strong performer in bath and shower (Palmolive bar soaps) and deodorants (Speed Stick, Mennen). Avon, with the largest team of consultants among direct sellers, is the most traditional and well-known direct sales company in the Dominican Republic. Its main strengths lie in skin care, fragrances, deodorants, and colour cosmetics. Unilever, which leads deodorants and hair care, was one of the most innovative companies over the review period, introducing new products and supporting them with major marketing expenditure.
Continued growth expected
The cosmetics and toiletries market, and all of its individual product sectors, are expected to see continued growth over the forecast period. However, with economic growth expected to begin to slow in the coming years, this will also have an effect on cosmetics and toiletries sales, with annual growth rates predicted to diminish as the forecast period progresses. Hair care will continue to see some of the strongest growth, with bath and shower products and sun care among the more disappointing performers.
Price still a key factor in the purchasing decision
Most Dominican consumers are still very driven by price considerations when they make purchasing decisions. Despite the country’s recovery from the economic difficulties it faced in the early 2000s, the Dominican Republic still has high unemployment and marked income inequality. This means that per capita income levels are still below the average for Latin America.
Current Impact
These income constraints result in consumers looking for value for money, preferring to pay a lower price and get only the features they perceive as essential. Such value-driven consumers are not willing to pay extra for features or claimed benefits with which they are not familiar or they do not need or value.
High and upper-middle income consumers represent an exception to this, however, as they can afford to try out new concepts, since the purchase of a new cosmetic or toiletry product represents a smaller portion of their budgets. In addition, consumers on middle and lower-middle incomes are also willing to spend more and try new things in areas where they believe it can make a difference, like colour cosmetics and skin care.
Outlook
While national GDP is expected to continue growing, the income increase resulting from it will not significantly change the characteristics of the market. The Dominican Republic will remain a market where cost considerations are among the biggest factors influencing the purchasing decision of the majority of the population. This presents opportunities to companies that can develop products that fulfil one or two basic needs at the right price.
A good example of this was the 2001 launch by Unilever Caribe of the Sedal line – a range of shampoos and conditioners targeted at different needs and with a price consumers could afford. These products were a great success and Unilever kept introducing new formulas within the Sedal brand umbrella, helping it gain value share in every year of the review period (except for 2006).
Impact
The challenge in the Dominican Republic is selling to lower-middle income people, who make up the majority of the population, dedicating most of a company’s attention to their needs and wants. Multinational companies such as Unilever, Procter & Gamble, and Colgate-Palmolive have in their portfolio brands that include products that can be made economically to meet the demands of lower income consumers across the world. Moreover, they also have the financial resources to acquire established local manufacturers when these local manufacturers have achieved a level of brand recognition and consumer loyalty that would undermine the introduction of a global brand. For example, Colgate-Palmolive acquired the Lavador brand of bar soap from local manufacturer Industrias Lavador. As the economy keeps recovering it is expected that these companies will increase their shares. Consumers will be able to afford products with international brand names and, in general, they prefer these products to those manufactured locally.
Women’s increasing purchasing power affecting local consumption trends
The increasing participation of women in labour markets is resulting in changes to consumption trends in the Dominican Republic.
Current Impact
This means that for many Dominican women their homes are no longer the centre of their lives, with their working lives obviously playing a major role in their lives. A recent report found that 88% of Dominicans consider that women’s role in modern society is more dynamic than it was in the past as they get paid for their work and this contributes to improving the quality of life in many Dominican households. It naturally also impacts on consumption trends, with women who are part of the workforce being more likely to spend more on certain cosmetics and toiletries, both from a point of view of being able to afford such “little luxuries” but also to maintain the level of appearance they might feel necessary in the workplace.
Outlook
Modern Dominican women have changed Dominican consumption trends as, in the past, women did not work. Today, they work, but do not have us much free time, although they have greater economic resources to afford more “little luxuries” for both themselves and other members of their families. In the future this trend is expected to continue as modern lifestyles predominate over traditional ones.
Impact
Manufacturers need to be aware of this situation and target female consumers who now have that little extra disposable income, either for themselves or their families, or, indeed, both. Before she went out to work, a Dominican housewife and mother would likely never even have considered a self-indulgent soak in the bath using relaxing oils or salts, but after a hard day’s work she may feel that she has earned such a luxury. Hair care, colour cosmetics and even oral hygiene players must all also understand that they stand to gain from such a trend, with working women being more likely to care about their appearance on an everyday basis.
Table of contents
COSMETICS AND TOILETRIES IN DOMINICAN REPUBLIC : MARKET INSIGHT
EXECUTIVE SUMMARY
Continued growth seen as the economy keeps improving
Dominican consumers still place a great emphasis on price
Status quo maintained in distribution
“Big Three” enjoyed a good year in 2007
Continued growth expected
Price still a key factor in the purchasing decision
Women’s increasing purchasing power affecting local consumption trends
MARKET DATA
Table 1 Sales of Cosmetics and Toiletries by Sector: Value 2002-2007
Table 2 Sales of Cosmetics and Toiletries by Sector: % Value Growth 2002-2007
Table 3 Sales of Premium Cosmetics by Sector: Value 2002-2007
Table 4 Sales of Premium Cosmetics by Sector: % Value Growth 2002-2007
Table 5 Cosmetics and Toiletries Company Shares by NBO Retail Value 2003-2007
Table 6 Cosmetics and Toiletries Company Shares by GBO Retail Value 2003-2007
Table 7 Cosmetics and Toiletries Brand Shares by Retail Value 2004-2007
Table 8 Sales of Cosmetics and Toiletries by Distribution Format: % Analysis 2002-2007
Table 9 Sales of Cosmetics and Toiletries by Sector and by Distribution Format: % Analysis 2007
Table 10 Forecast Sales of Cosmetics and Toiletries by Sector: Value 2007-2012
Table 11 Forecast Sales of Cosmetics and Toiletries by Sector: % Value Growth 2007-2012
Table 12 Forecast Sales of Premium Cosmetics by Sector: Value 2007-2012
Table 13 Forecast Sales of Premium Cosmetics by Sector: % Value Growth 2007-2012
DEFINITIONS
Summary 1 Research Sources
DANIEL ESPINAL CXA
Strategic Direction
Key Facts
Summary 2 Daniel Espinal CxA: Key Facts
Company Background
ProduCtion
Competitive Positioning
Summary 3 Daniel Espinal CxA: Competitive Position 2007
GRUPO TRANSBEL CA
Strategic Direction
Key Facts
Summary 4 Grupo Transbel CA: Key Facts
Company Background
ProduCtion
Competitive Positioning
Summary 5 Grupo Transbel CA: Competitive Position 2007
JAFRA COSMETICS DOMINICANA SA
Strategic Direction
Key Facts
Summary 6 Jafra Cosmetics Dominicana SA: Key Facts
Company Background
ProduCtion
Competitive Positioning
Summary 7 Jafra Cosmetics Dominicana SA: Competitive Position 2007
BABY CARE IN THE DOMINICAN REPUBLIC
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 14 Sales of Baby Care by Subsector: Value 2002-2007
Table 15 Sales of Baby Care by Subsector: % Value Growth 2002-2007
Table 16 Baby Care Premium Vs Mass % Analysis 2002-2007
Table 17 Baby Care Company Shares by Retail Value 2003-2007
Table 18 Baby Care Brand Shares by Retail Value 2004-2007
Table 19 Forecast Sales of Baby Care by Subsector: Value 2007-2012
Table 20 Forecast Sales of Baby Care by Subsector: % Value Growth 2007-2012
Table 21 Forecast Baby Care Premium Vs Mass % Analysis 2007-2012
BATH AND SHOWER PRODUCTS IN THE DOMINICAN REPUBLIC
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 22 Sales of Bath and Shower Products by Subsector: Value 2002-2007
Table 23 Sales of Bath and Shower Products by Subsector: % Value Growth 2002-2007
Table 24 Bath and Shower Products Premium Vs Mass % Analysis 2002-2007
Table 25 Bath and Shower Products Company Shares by Retail Value 2003-2007
Table 26 Bath and Shower Products Brand Shares by Retail Value 2004-2007
Table 27 Forecast Sales of Bath and Shower Products by Subsector: Value 2007-2012
Table 28 Forecast Sales of Bath and Shower Products by Subsector: % Value Growth 2007-2012
Table 29 Forecast Bath and Shower Products Premium Vs Mass % Analysis 2007-2012
DEODORANTS IN THE DOMINICAN REPUBLIC
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 30 Sales of Deodorants by Subsector: Value 2002-2007
Table 31 Sales of Deodorants by Subsector: % Value Growth 2002-2007
Table 32 Deodorants Premium Vs Mass % Analysis 2002-2007
Table 33 Deodorants Company Shares by Retail Value 2003-2007
Table 34 Deodorants Brand Shares by Retail Value 2004-2007
Table 35 Forecast Sales of Deodorants by Subsector: Value 2007-2012
Table 36 Forecast Sales of Deodorants by Subsector: % Value Growth 2007-2012
Table 37 Forecast Deodorants Premium Vs Mass % Analysis 2007-2012
HAIR CARE IN THE DOMINICAN REPUBLIC
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 38 Sales of Hair Care by Subsector: Value 2002-2007
Table 39 Sales of Hair Care by Subsector: % Value Growth 2002-2007
Table 40 Hair Care Premium Vs Mass % Analysis 2002-2007
Table 41 Hair Care Company Shares by Retail Value 2003-2007
Table 42 Hair Care Brand Shares by Retail Value 2004-2007
Table 43 Forecast Sales of Hair Care by Subsector: Value 2007-2012
Table 44 Forecast Sales of Hair Care by Subsector: % Value Growth 2007-2012
Table 45 Forecast Hair Care Premium Vs Mass % Analysis 2007-2012
COLOUR COSMETICS IN THE DOMINICAN REPUBLIC
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 46 Sales of Colour Cosmetics by Subsector: Value 2002-2007
Table 47 Sales of Colour Cosmetics by Subsector: % Value Growth 2002-2007
Table 48 Colour Cosmetics Premium Vs Mass % Analysis 2002-2007
Table 49 Colour Cosmetics Company Shares by Retail Value 2003-2007
Table 50 Colour Cosmetics Brand Shares by Retail Value 2004-2007
Table 51 Forecast Sales of Colour Cosmetics by Subsector: Value 2007-2012
Table 52 Forecast Sales of Colour Cosmetics by Subsector: % Value Growth 2007-2012
Table 53 Forecast Colour Cosmetics Premium Vs Mass % Analysis 2007-2012
MEN’S GROOMING PRODUCTS IN THE DOMINICAN REPUBLIC
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 54 Sales of Men's Grooming Products by Subsector: Value 2002-2007
Table 55 Sales of Men's Grooming Products by Subsector: % Value Growth 2002-2007
Table 56 Sales of Men's Razors and Blades by Type 2005-2007
Table 57 Men's Grooming Products Company Shares by Retail Value 2003-2007
Table 58 Men's Grooming Products Brand Shares by Retail Value 2004-2007
Table 59 Forecast Sales of Men's Grooming Products by Subsector: Value 2007-2012
Table 60 Forecast Sales of Men's Grooming Products by Subsector: % Value Growth 2007-2012
ORAL HYGIENE IN THE DOMINICAN REPUBLIC
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 61 Sales of Oral Hygiene by Subsector: Value 2002-2007
Table 62 Sales of Oral Hygiene by Subsector: % Value Growth 2002-2007
Table 63 Sales of Manual and Power Toothbrushes by Type: Value 2002-2007
Table 64 Sales of Manual and Power Toothbrushes by Type: % Value Growth 2002-2007
Table 65 Oral Hygiene Company Shares by Retail Value 2003-2007
Table 66 Oral Hygiene Brand Shares by Retail Value 2004-2007
Table 67 Forecast Sales of Oral Hygiene by Subsector: Value 2007-2012
Table 68 Forecast Sales of Oral Hygiene by Subsector: % Value Growth 2007-2012
Table 69 Forecast Sales of Manual and Power Toothbrushes by Type: Value 2007-2012
Table 70 Forecast Sales of Manual and Power Toothbrushes by Type: % Value Growth 2007-2012
FRAGRANCES IN THE DOMINICAN REPUBLIC
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 71 Sales of Fragrances by Subsector: Value 2002-2007
Table 72 Sales of Fragrances by Subsector: % Value Growth 2002-2007
Table 73 Fragrances Premium Vs Mass % Analysis 2002-2007
Table 74 Fragrances Company Shares by Retail Value 2003-2007
Table 75 Fragrances Brand Shares by Retail Value 2004-2007
Table 76 Forecast Sales of Fragrances by Subsector: Value 2007-2012
Table 77 Forecast Sales of Fragrances by Subsector: % Value Growth 2007-2012
Table 78 Forecast Fragrances Premium Vs Mass % Analysis 2007-2012
SKIN CARE IN THE DOMINICAN REPUBLIC
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 79 Sales of Skin Care by Subsector: Value 2002-2007
Table 80 Sales of Skin Care by Subsector: % Value Growth 2002-2007
Table 81 Skin Care Premium Vs Mass % Analysis 2002-2007
Table 82 Skin Care Company Shares by Retail Value 2003-2007
Table 83 Skin Care Brand Shares by Retail Value 2004-2007
Table 84 Forecast Sales of Skin Care by Subsector: Value 2007-2012
Table 85 Forecast Sales of Skin Care by Subsector: % Value Growth 2007-2012
Table 86 Forecast Skin Care Premium Vs Mass % Analysis 2007-2012
DEPILATORIES IN THE DOMINICAN REPUBLIC
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 87 Sales of Depilatories by Subsector: Value 2002-2007
Table 88 Sales of Depilatories by Subsector: % Value Growth 2002-2007
Table 89 Depilatories Company Shares by Retail Value 2003-2007
Table 90 Depilatories Brand Shares by Retail Value 2004-2007
Table 91 Forecast Sales of Depilatories by Subsector: Value 2007-2012
Table 92 Forecast Sales of Depilatories by Subsector: % Value Growth 2007-2012
SUN CARE IN THE DOMINICAN REPUBLIC
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 93 Sales of Sun Care by Subsector: Value 2002-2007
Table 94 Sales of Sun Care by Subsector: % Value Growth 2002-2007
Table 95 Sun Care Premium Vs Mass % Analysis 2002-2007
Table 96 Sun Care Company Shares by Retail Value 2003-2007
Table 97 Sun Care Brand Shares by Retail Value 2004-2007
Table 98 Forecast Sales of Sun Care by Subsector: Value 2007-2012
Table 99 Forecast Sales of Sun Care by Subsector: % Value Growth 2007-2012
Table 100 Forecast Sun Care Premium Vs Mass % Analysis 2007-2012