Colour Cosmetics in Argentina

PROSPECTS

Premium colour cosmetics products escapes the crisis

In 2018, colour cosmetics registered a significant contraction in retail volume terms, as a result of the economic crisis that deepened in the second half of the year. However, the performances of mass colour cosmetics and premium colour cosmetics were very different.

New consumers are less faithful to brands

According to industry sources, younger consumers are less loyal to colour cosmetics brands and look for opportunities when buying, regardless of the brand. For this reason, companies are working hard on social media platforms such as Facebook or Instagram, along with influencers, with the aim of creating a stronger bond between the consumer and the brand.

Demand for nail products shrinks for the sixth consecutive year

Although all categories of colour cosmetics registered a contraction in 2018, as a result of the need of consumers to reduce expenditure, including on colour cosmetics, in the case of nail products this continued a longer term trend. Sales of nail products declined for the sixth consecutive year, due to several factors.

COMPETITIVE LANDSCAPE

New economy brands to offer new alternatives to consumers

The launch of economy brands was one of the most important strategies of colour cosmetics companies in the latter part of the review period. Faced with an extremely difficult economic context and low brand loyalty – particularly among younger generations – cheap options were very well received.

Direct sales companies lead sales of colour cosmetics

Sales of colour cosmetics in Argentina are led by the direct sales companies Cosméticos Avon SA and Natura Argentina SA. Direct sales has a long tradition in the country, and in the latter part of the review period, direct sales companies became multi-channel, which helped them to retain their leadership.

Strong expansion expected in internet retailing over the forecast period

Internet retailing is expected to see significant growth over the forecast period, owing to the development of websites by key beauty specialist retailers such as Juleriaque and Pigmento in, as well as the recent incorporation of online sales by the leading companies, Avon Cosmetics and Natura Argentina. In the short term, it is expected that a greater number of brands will offer online sales of colour cosmetics, following the example of L’Oréal Argentina’s brand Lancôme.

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