Premium Beauty and Personal Care in Argentina

PROSPECTS

Premium skin care and colour cosmetics products escape the economic crisis

Premium beauty and personal care products did not feel the impact of the economic crisis in the second half of 2018 in the same way as mass products. The stronger performance of premium products is due to their consumer base having higher than the average spending power, and thus being less affected by the economic context.

Internet retailing gains share

According to industry sources, significant expansion in internet retailing of premium beauty and personal care products is expected over the forecast period. The leading chains of beauty specialist retailers are gradually incorporating online sales of premium fragrances and skin care.

A category strongly concentrated on fragrances

In Argentina, sales of premium beauty and personal care focus mainly on fragrances. This is because premium fragrances are considered an affordable luxury, and see strong demand among middle-income consumers.

COMPETITIVE LANDSCAPE

New marketing strategies

Companies are developing different options to boost the sales of their premium brands. A notable strategy was that carried out by Coty Argentina SA at the end of 2018, with the opening of a pop-up store for a limited period of time at the Galerias Pacifico shopping mall, in Buenos Aires, where tourists are the main customers.

Consumers loyal to their favourite brands

Argentinian purchasers of premium beauty and personal care products tend to be very loyal to their favourite brands. Regardless of age, loyalty to luxury brands is very high and brands are seldom changed – a trend that is particularly evident in skin care.

L’Oréal maintains its leadership

L’Oréal Argentina SA continues to lead sales of premium beauty and personal care, thanks to brands such as La Roche Posay, Vichy and Ô de Lancôme, which are focused mainly on adult women, as well as other brands, such as Kiehl’s and Biotherm, that focus more on millennial consumers. L’Oréal Argentina was one of the best performing companies over the review period, thanks to an aggressive sales policy and an expansion of the product offer after the end of the import restrictions in 2016.

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