Premium Beauty and Personal Care in New Zealand

PROSPECTS

Beauty specialist retailers gains momentum

Over the review period there was a move towards beauty specialist retailers by premium brands. This was mainly to counteract internet sales of brands not available through local retail stores but well-known through media attention.

Beauty professionals influence purchases

Over the review period there was a distinct influence from beauty professionals such as make-up artists and skin care specialists, which had an influence on product developments and ingredients within premium beauty and personal care. “Make-up studio kiosks” were developed, for instance by Benefit Cosmetics, whereby make-up artists carry out beauty procedures as well as product sales, as a more interactive way to sell beauty products.

The internet continues to fill the gaps

Although there was a strong influx of beauty specialist retailers over the review period, which is expected to continue, internet retailing is increasing, particularly amongst the younger generation. Many manufacturers and retailers have incorporated internet retailing, particularly those not present nationwide, such as department stores Smith & Caughey and David Jones.

COMPETITIVE LANDSCAPE

Estée Lauder offers a range of brands

Estée Lauder (NZ) continued to lead premium beauty and personal care in value terms in 2017, as all brands within its portfolio are premium. Its Estée Lauder flagship brand performed well in 2017, whilst Mac saw a slowdown in growth; nevertheless, it still increased, and remained the second brand within the company’s portfolio.

Elizabeth Arden captures the growing older market

Late 2016 saw Elizabeth Arden acquired by Revlon Inc globally. The brand Elizabeth Arden continues to be seen as a premium brand, whilst Revlon, although it has moved its image upmarket, is still seen as a mass brand, despite now having its own counters in Famers department stores.

Trilogy International up for sale

Trilogy International saw good growth over the review period, particularly with its premium brand Trilogy. It also bought out CS Co, a beauty company with the rights to distribute the majority of Coty brands.

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