Premium Beauty and Personal Care in Ecuador

PRE-COVID-19 PERFORMANCE

Further development of an import-dominated category as the price war continues

2019 saw premium beauty and personal care register further development as the positioning of premium products and brands continued to improve. In particular, products with a more overt premium image and corresponding premium price tags are emerging strongly in categories such as baby and child-specific products and men’s grooming.

Imported products dominate sales as counterfeit brands continue to pose challenges

Imported products and brands continue to dominate sales of premium beauty and personal care in Ecuador. These foreign brands tend to have a better public image and are well known for their superior quality and high performance.

Developments in the distribution of premium brands influence consumer demand

Towards the end of the review period, various interesting developments were seen in the retail distribution of beauty and personal care products in Ecuador. In particular, chained beauty specialist retailers that are dedicated mainly to premium brands emerge strongly, including store-based retailers with an omni-channel retailing strategy and online-only e-commerce specialists such as Hann Store.

2020 AND BEYOND

COVID-19 impact

Sales of premium beauty and personal care are now expected to decline by 5% in 2020 in 2019 constant value terms in light of the impact of COVID-19. A significant interruption to business activity is expected to be seen in Ecuador in the wake of the COVID-19 pandemic.

Affected products within premium beauty and personal care

All categories of premium beauty and personal care can be expected to have experienced a softening of demand due to COVID-19 and the effect that the lockdown situation will have had on Ecuador’s economy and consumer confidence. Among the categories that are expected to register the strongest sales declines during 2020 are premium hair care, premium fragrances and premium body care.

Recovery and opportunities

Demand for premium beauty and personal care brands was already under some pressure prior to the onset of COVID-19 during early 2020 as the slower economic growth seen in Ecuador in recent years has led many households to rationalise their spending. Thus, the forecast period is expected to see many premium beauty and personal care categories continue to struggle, including premium hair care, premium fragrances and most of all premium colour cosmetics.

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