Premium Beauty and Personal Care in Peru

PROSPECTS

Natural or organic products are still a small niche

Due to their high prices, natural and organic products remain a niche, albeit a growing one, primarily because consumers view such products as being higher in quality, with some not wanting to use chemicals on their skin. In addition, these consumers value companies that are more socially responsible.

Prices in Peru are higher than the regional average

Premium beauty and personal care products constitute a very small niche and, therefore, the import logistics costs when divided amongst a few units are expensive. The same is true for fixed operating costs, since most premium brands have stands within department stores or their own stores, paying for space as well as for staff to serve customers, and having a low turnover.

Expansion of premium products is associated with growth of shopping centres

Usually premium brands are available in department stores such as those of Perfumerías Unidas, all of them installed inside shopping centres. To this we can add the recent beauty specialist high-end retailers that are also located inside malls, although they are still very small in number.

COMPETITIVE LANDSCAPE

Few premium brands seen in the Peruvian marketplace

There are only a few premium brands available in Peru, competing mainly in colour cosmetics, skin care and fragrances, where consumers easily perceive the added value. There are two types of brands: the traditional ones such as Clarins and Estée Lauder, or the modern, highly promoted brands such as Urban Decay or Bobbi Brown.

Premium and mass brands offer the same benefits

Consumers who buy premium products seek better results than what they would find by using mass products, although the main benefits are the same. For example, all anti-ageing products claim to help reduce wrinkles, but the consumers of premium products expect them to do so faster and with a deeper or more noticeable effect.

Premium brands are all imported

Although there are local companies with a significant presence in the mass market, such as Cetco, Unique and Intradevco Industrial, there are no local premium brands in beauty and personal care in Peru.

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