Premium Beauty and Personal Care in Argentina

PROSPECTS

Demand for premium products grows at a faster rate than demand for mass ones

In 2017, the significant growth in demand for premium beauty and personal care stood out; it was even much higher than that for mass beauty and personal care. The economic crisis did not diminish demand for premium products.

Premium fragrances dominates sales

Sales of premium beauty and personal care in value terms are mostly represented by premium fragrances, while in second place but with a significantly lower sales figure is premium skin care. Premium fragrances is an accessible yet luxury category and, particularly in Argentina, in relation to other products – such as leather goods or clothing – tends to have low prices.

Beauty specialist retailers is the most popular channel

According to industry sources, the beauty specialist retailers channel and, to a lesser extent, drugstores/parapharmacies, generate the most sales of premium beauty and personal care in the country. Internet retailing is an undeveloped channel for premium products; their sales are even inferior to those of mass products.

COMPETITIVE LANDSCAPE

L'Oréal Argentina SA leads sales

L'Oréal Argentina SA leads sales of premium beauty and personal care thanks to the tradition of brands such as La Roche-Posay, Vichy and Ô de Lancôme, as well as other brands such as Kiehl's and Biotherm, which are focused on millennial consumers looking for products with natural ingredients. The company is a leader in categories such as premium skin care, premium hair care and premium adult sun care.

Internet retailing is a key channel in the short term

Companies are developing the internet retailing channel to adapt to the needs of younger customers. In 2018, L'Oréal Argentina will be the most innovative company in premium beauty and personal care for establishing e-commerce, firstly through creating a website for its Lancôme brand and later through creating another website for the US brand Kiehl's, aimed at the youngest consumers, who are the keenest for products with natural ingredients.

Easier trading conditions attract new companies and a greater variety of brands

The removal of trade barriers to the importation of premium beauty and personal care products will play a key role in the development of the category in the short term. With the elimination of barriers to imports, a greater variety of products is expected, as is the arrival of new brands and a better degree of coverage considering that many premium brands are only available in the city of Buenos Aires.

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