Colour Cosmetics in Israel

PROSPECTS

Consumers’ improved make-up skills boost volume growth

Consumers continue to become more knowledgeable about colour cosmetics and the variety of brands available in the market, using a greater number of products as part of their regular routine. Personal make-up courses are offered by a growing number of brands; whilst these aim to increase exposure to the products offered by a specific brand, they also serve to boost consumers’ use of colour cosmetics.

The low-cost segment increases

Whilst volume growth remained fast in 2018, current value growth lagged behind, as unit prices fell due to the increasing share of mass brands. The low-cost segment is growing both in terms of number of outlets and in terms of number of brands in the market, with intense competition to attract the younger consumer group with little to no brand loyalty.

Widening distribution will boost the share of mass brands

Mass brands are easily available online – L'Oréal Perfection, Maybelline and several other mass brands are offered in multi-brand local online beauty retailers which offer quick delivery, and many brands even operate their own online stores with attractive delivery costs. With the entry of Milucca in 2018, and the expected introduction of Kiko Milano in 2019, mass brands are expected to continue driving prices down and taking a larger share of sales in colour cosmetics.

COMPETITIVE LANDSCAPE

L'Oréal Israel leads colour cosmetics

L'Oréal Israel led colour cosmetics in value terms in 2018, with its mass brand L'Oréal Perfection ranking first in the category. The company also offers mass brands Maybelline and Garnier, premium brand Lancôme, and Essie in nail products.

Brands are present in a growing number of channels

Brands are entering more channels in order to increase their exposure – during 2017 and 2018 many launches of brands were seen in new channels. The most prominent of these was online retailing – more brands are being sold online in both multi-brand stores and monobrand stores.

Super-Pharm introduces Milucca in colour cosmetics

Super-Pharm also enhanced its position with the introduction of the low-cost private label colour cosmetics brand Milucca, launched in February 2018. The brand has a different name to the chain’s private label Life, which is successful in other personal care and health categories, but failed to make an impression in colour cosmetics.

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