Colour Cosmetics in Malaysia

2020 IMPACT

Home seclusion trend due to lockdown results in declines across much of colour cosmetics in 2020

With restrictions on movement outside of the home after the introduction of the country’s lockdown in the form of a Movement Control Order from March 2020, many Malaysians significantly reduced their expenditure on perceived non-essential products such as colour cosmetics due to remote working and limited socialising opportunities over the year. This resulted in declining demand across most of the category with the exception of BB/CC creams, although its performance was subdued compared to its dynamic growth recorded over the review period as a whole, and nail products which benefited from consumers attempting to replicate the salon experience at home due to the closure of non-essential beauty salons.

Popular health and beauty specialist retailers extend consumer reach through omnichannel strategy

Health and beauty specialist retailers remained the leading channel for colour cosmetics in 2020, being deemed essential and permitted to remain open during lockdown. While this channel lost value share to e-commerce as consumers moved online due to concerns about spending too long in public, popular health and beauty specialists Watsons and Guardian were able to cover both offline and online sales due to their omnichannel strategies.

Multinationals retain lead in 2020, while increasing number of brands attempt to appeal to younger consumers by highlighting products which support “selfie” trend

L'Oréal and Estée Lauder Cos Inc retained their overall leadership of colour cosmetics in 2020. While they were the only players to hold double-digit value share overall, they lost ground to smaller players under “others” as price-sensitive consumers headed online to find more attractive prices.

RECOVERY AND OPPORTUNITIES

Improving demand for colour cosmetics from 2021 onwards depending on relaxing of restrictions and return to movement outside of the home

Demand for colour cosmetics is predicted to marginally improve in 2021 depending on a relaxation of restrictions in the latter half of the year, before gaining stronger momentum over the remainder of the forecast period. While pent-up demand is set to drive higher value growth (at constant 2020 prices) compared to the review period as consumers gradually return to indulging in higher quality products, price sensitivity is likely to remain for some Malaysians, with mass products continuing to gain share from the premium segment over the forecast period.

Blurring of boundaries likely to gain further momentum

The forecast period is also likely to see further launches of hybrid brands which allow colour cosmetics to expand by appealing to consumers who appreciate multi-purpose products. This trend is set to include the further exploration of combining facial make-up such as foundation/concealer or BB/CC creams with skin moisturisers as offered by Korean brand April Skin Real Calendula Ampoule Glow Cushion which claims to moisturise, soothe and brighten skin, and IT Cosmetics Your Skin But Better CC+ Cream SPF50 which offers the multifunctionality of concealer, foundation, anti-ageing serum, moisturiser and protection in a wide range or shades to suit different skin types.

Halal certification offers further expansion opportunities for colour cosmetics players

Halal colour cosmetics are set to continue to gain in popularity over the forecast period, offering potential for new product development by colour cosmetics players in order to attract the high Muslim population in the country. These products require strict hygiene manufacturing practices in order to gain halal certification which can be highlighted on the product’s packaging and marketing.