Mass Beauty and Personal Care in New Zealand

PROSPECTS

Natural brands gain momentum through supermarkets

Over the review period, supermarkets looked at ways to develop beauty and personal care beyond mainstream brands and private label, trying to offer added-value products which differentiate from those in competing channels. New Zealand has developed a strong industry for premium natural beauty brands, with the majority sold through retail channels outside supermarkets.

Masstige continues to grow

Supermarkets have always been associated with mass brands, with mainstream mid-priced brands and private label being the main drivers of sales. However, over the review period supermarkets looked at ways to upscale and command higher price points.

Brand exclusivity through certain channels

Over the review period, a number of retailers introduced lines either exclusively made for their chain, or under private label. The former is similar to the growing trend of phantom brands, where the packaging of products is similar to mainstream brands; however, they are owned and made under contract by the retailer themselves.

COMPETITIVE LANDSCAPE

Unilever leads

Multinationals remain strong in mass beauty and personal care. Unilever New Zealand led in value terms in 2017, despite its share falling marginally from 2016.

Avon announces its departure

The largest direct selling company in New Zealand, Avon Cosmetics, announced at the end of 2017 it would be pulling out of Australia and New Zealand. Avon has been synonymous with direct selling; however, this sales method is seen as antiquated and less relevant, as glamorous stores develop and consumers continue to shop leisurely, whilst internet retailing also continues to grow.

Domestic companies perform well

2017 was a good year for domestic companies. As natural and green brands remained popular, a number of companies saw good growth within supermarkets.

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