Premium Beauty and Personal Care in New Zealand

PRE-COVID-19 PERFORMANCE

Further growth in 2019 with a new definition of premiumisation

Premium beauty and personal care recorded further current value growth in 2019 as consumers were prepared to spend more on premium products to experience luxury brands, such as Yves Saint Laurent, Armani and Gucci, at affordable price points. The strongest growth was again seen in premium colour cosmetics, with sales driven by the increasing availability of products both on- and offline through beauty specialist retailers and department stores.

Omnichannel is key in premium beauty and personal care

When consumers pay a premium for products, they expect an outstanding experience. Loyalty programmes with rewards for returning customers, in addition to in-store and online beauty advisors, should be adopted to provide an exceptional experience.

Multinational players lead with extensive portfolios and innovation

Premium beauty and personal care was led by multinational players in all the categories in 2019. Estée Lauder (NZ) Ltd, with an extensive portfolio of brands such as Estée Lauder, Mac and Clinique, retained its leadership of the premium category.

2020 AND BEYOND

COVID-19 impact

Sales of premium beauty and personal care are expected to grow by 1% in 2020 in 2019 constant value terms in light of the impact of COVID-19.

Affected products within premium beauty and personal care

The impact of the COVID-19 pandemic will vary across the different product areas in premium beauty and personal care in 2020. Products with a non-essential positioning and those generally used in order to maintain an attractive and well-groomed appearance, including premium colour cosmetics, premium self-tanning, and premium BB/CC creams, are expected to be impacted by social distancing and consumers spending more time at home.

Recovery and opportunities

Premium beauty and personal care in New Zealand is set to record further value growth at constant 2019 prices over the forecast period, although growth will be slower than that recorded over the review period as consumer purchasing power will be impacted by the expected negative economic circumstances and rising unemployment. Many consumers will remain highly price-sensitive and will opt for more affordable items and prioritise essential products over the forecast period.

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