Health and Beauty Specialist Retailers in Kazakhstan

2021 DEVELOPMENTS

Chemists/pharmacies drive category growth as beauty specialist retailers struggle

Due to pandemic, consumers are increasingly following global trends and focusing more on their health and self-care. Thus, consumers have been visiting health-focused specialists to acquire preventative, immunity-boosting products (such as vitamins) and symptom relief products (such as ibuprofen) to ensure they are stocked up.

Product offer and customer experience gain importance due to growing competition

In 2021, health and beauty specialist retailers has remained a highly fragmented channel due to varying customer needs and the large diversity of product offering by companies. The largest players are in chemists/pharmacies and drugstores/parapharmacies as such channels benefit from having a wide price positioning (anything from economy to premium) and an extensive choice of products and brands.

Social media presence becomes increasingly important to attract customers

Online sales had been strongly rising in the review period and were further accelerated at the onset of COVID-19. Internet content is having a big influence on consumer preferences and health and beauty specialist retailers put increased emphasis on their digital presence, especially in terms of marketing.

PROSPECTS AND OPPORTUNITIES

Strong overall growth to continue, despite beauty specialists increasingly being challenged by offerings from modern grocery retailers

Over the forecast period, chemists/pharmacies is expected to experience the strongest growth within the channel, driven mainly by the uneven spread of other outlets across the country, especially the lack of them in less developed cities and villages. The category will also benefit from the growing healthcare trend as consumers will remain more cautious about their general wellbeing in the aftermath of the pandemic.

Increased consumer awareness of beauty products to be driven by digitalisation

Over the forecast period, health and beauty specialist retailers will benefit from the constant developments in internet retailing. E-commerce and omnichannel strategies have become far more accepted during the pandemic and have proved to offer convenience to consumers.

Emerging trends include offering eco-friendly products and cosmetic procedures

With COVID-19 further focusing consumers’ attention on the harmful effects that certain products and packaging can have on the environment, there will be growing interest in products perceived as natural or green. This will lead to an increase in offerings of eco-friendly products, that are comprised of less damaging ingredients that are packaged in recycled or greener packaging materials.