Premium Beauty and Personal Care in Australia

PROSPECTS

Beauty specialist retailers continue to expand

The beauty specialist retailers channel continues to increase its distribution value share of beauty and personal care, benefiting from expanding its store presence and offering a better in-store experience. Premium beauty specialist retailers are key drivers of sales of premium beauty and personal care.

Beauty and personal care experiences strong demand from Chinese consumers

Australia’s premium beauty and personal care industry continues to be supported by Chinese consumers, both local and international, who are attracted to Australian products due to the country’s clean and green reputation and strict regulations. Asian consumers are willing to pay a premium for Australian-made products which they trust and perceive to be of higher quality.

Products with a natural positioning continue to have strong growth prospects

The natural beauty trend is becoming a more significant driver of premium beauty and personal care sales. Consumers’ awareness of these products is increasing as natural and organic beauty products are becoming more mainstream and accessible.

COMPETITIVE LANDSCAPE

Estée Lauder takes the lead in premium beauty and personal care

Estée Lauder Pty Ltd became the leading company in premium beauty and personal care in Australia in 2018, overtaking L’Oréal Australia Pty Ltd. During 2018, the company benefited from the performance of its Estée Lauder, Mac and Clinique brands, with higher sales of products such as Double Wear foundation and Pure Color product lines in colour cosmetics.

“Experience more” megatrend influences premium beauty and personal care

Beauty specialist retailers, Mecca and Sephora, have changed the way consumers in Australia purchase beauty products and have taken share from department stores. Both retailers have differentiated themselves from more traditional distributors by offering customers exclusive and curated brands in their large-format stores and, most importantly, a special purchasing experience.

Amazon expands its premium range in Australia

Amazon has undertaken to add luxury brands such as Chanel, Clinique, Estée Lauder, Shu Uemera and Jurlique to its existing offering of mid-range beauty brands in Australia such as Maybelline, Nivea and Revlon. Industry sources indicate that most of the products to be distributed by Amazon in Australia are from grey markets rather than being sourced directly from the manufacturers.

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