Colour Cosmetics in Latvia

PROSPECTS

Premiumisation continues to benefit colour cosmetics, especially higher-priced brands

Colour cosmetics was among the beauty and personal care categories to benefit the most from the premiumisation trend that was evident across the industry in 2018. The main reason for this is that colour cosmetics are widely regarded as inherently indulgent and luxurious products, meaning that demand has naturally moved towards more expensive and sophisticated products as income levels have risen.

Growth is boosted by the rising interest in a more diverse range of colour cosmetics

Another spur on growth in colour cosmetics towards the end of the review period is that Latvian women are becoming interested in a wider range of colour cosmetics, rather than the very basic items that tended to be favoured in previous years. Latvian women are discovering a more diverse range of colour cosmetics such as BB/CC creams and more sophisticated, value-added versions of classic items such as mascara, which is widening demand and also boosting overall sales.

Innovation and new product development set to remain key to success in colour cosmetics

Colour cosmetics is one beauty and personal care category in which it is essential for companies and brands to constantly engage in new products development in order to remain relevant and competitive. With Latvian women now exposed to the latest global beauty trends through both broadcast media and social media channels, they are becoming more demanding and more discerning in their colour cosmetics choices, especially younger women.

COMPETITIVE LANDSCAPE

Chained beauty retailers remains the key distribution channel for colour cosmetics

With beauty specialist retailers drugstores/parapharmacies accounting for more than one-third of colour cosmetics value sales, these channels remain the main distribution focus for the category’s leading players. This means that there is also strong competition between the country’s leading chained drugstores and beauty specialist retailers, notably Douglas, Superdrug and Drogas.

Relatively recent entrants gain ground

With innovation and novelty important aspects of colour cosmetics, new brands are constantly entering the category, offering something new and fresh to a consumer audience that is generally highly receptive to such innovation. 2018 for instance saw the arrival in Latvia of interanion colour cosmetics brands NYX and Urban Decay and it is likely that further new entrants will be seen in the country during the forecast period.

Large multinational players to remain in the lead due to their superior resources

With demand for colour cosmetics likely to remain highly focused on emerging products and new launches, it is expected to remain very important for the large international brands that dominate sales to remain focused on innovation and offering products that not only offer high quality and strong performance, but which are also seen to do so. This means that the advertising and promotion of new products is likely to remain of the utmost importance, with emerging online channels such as the use of social media influencers expected to come to the fore.

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