Colour Cosmetics in Dominican Republic

PRE-COVID-19 PERFORMANCE

Growing interest in higher-end products

The end of the review period saw increasing demand for higher-end colour cosmetics, with this not only translating into rising demand for premium products, but also for upper mass items. Rising demand was supported by greater consumer awareness as a result of social media, and the growing importance of influencers for younger consumers.

Targeting consumers’ desire to try out new products before purchase

MAC Cosmetics and NYX aimed to attract consumers at the end of the review period by appealing to the desire to try make-up before making a purchase. These players used make-up artists at the point of sale to allow consumers to experience their products and find out the most appropriate items.

Direct sellers dominate, with social influencers playing a growing role in marketing

Direct seller, Grupo Transbel remained dominant in colour cosmetics in 2019 with a portfolio that included the top three brands in the category – Ésika, Cyzone and L’Bel. Cyzone successfully increased its value share in the final year of the review period, benefiting from its efforts to target younger consumers through social media and educational videos on how to use colours.

2020 AND BEYOND

COVID-19 impact

Sales of colour cosmetics are forecast to decline by 8% in 2020 in 2019 constant value terms in light of COVID-19. This compares to a forecast increase of 1% for 2020 during research conducted at the end of 2019 before the spread of the virus.

Affected products within colour cosmetics

All colour cosmetics categories are expected to experience a marked negative impact from measures to limit the spread of COVID-19. Colour cosmetics sets/kits is set to see the most marked decline, as reduced consumer confidence and purchasing power undermine demand for high-end and non-essential products, and consumers opt for less expensive gifting options.

Recovery and opportunities

Colour cosmetics is expected to return to modest growth in 2021 in 2019 constant value terms following the marked decline seen in 2020. The return to normal social activity will bring back opportunities for wearing make-up, though demand will continue to be dampened by reduced consumer purchasing power as efforts to control the spread of COVID-19 lead to effects such as higher levels of unemployment.

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