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Asia Personal Care & Cosmetics Market Guide 2016

AsiaCosmeticsMarketGuide

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In addition to personal care products top-sellers in cosmetics market are distributed through multi-level<br />

marketing or direct selling – Avon, Mary Kay, Fullerton/Sara Lee, Amway. Most of these products are<br />

U.S. brands.<br />

Product Trends<br />

U.S. brand Avon <strong>Cosmetics</strong> dominated color cosmetics in 2015, with a market share of 29 percent. The<br />

company remains appealing to mass consumers due to its affordable prices, product variety, and flexible<br />

paying terms. Avon is also a very well-established brand that has penetrated even small neighborhoods.<br />

Pricing<br />

Imported goods for sale in the Philippines are not only considered quality products, but are also more<br />

expensive. If the difference between a locally manufactured product and an imported one is a few<br />

pesos, a consumer would likely buy the imported brand.<br />

Filipino consumers are increasingly more discerning and brand-conscious and this is more and more<br />

reflective in their purchase habits. They watch out for product promotions that offer their favorite<br />

products at lower prices and think twice before making purchases.<br />

To make products more available to consumers, cosmetics and personal care companies, including<br />

multinationals, have repackaged products into single-use sachets. Consumers have the option to buy in<br />

quantities they need and can afford; for example, they can buy one sachet only or enough sachets for a<br />

week or two.<br />

The average mark-up for consumer goods is 40 percent.<br />

Representative retail prices for the following products (US$)<br />

Products Mass <strong>Market</strong> Premium<br />

Low High Low High<br />

Perfume $6.16 $10.29 $20.59 $113.37<br />

Lipstick $3.40 $4.43 $8.20 $15.46<br />

Eye Shadow $7.19 $11.48 $20.61 $69.88<br />

Mascara $4.11 $7.73 $24.73 $76.26<br />

Sunscreen $5.13 $8.22 $10.31 $38.54<br />

Bronzer/Blush $6.00 $9.03 $12.16 $25.97<br />

Skin Cream $4.10 $9.28 $15.05 $57.71<br />

Shampoo/Conditioner $3.09 $5.67 $16.28 $51.53<br />

Hair Styling Product $3.09 $5.77 $14.39 $28.75<br />

Deodorant $2.04 $3.40 $8.14 $20.61<br />

Nail Polish $0.93 $1.86 $7.94 $11.32<br />

Shaving Prep $2.39 $6.39 $11.27 $26.69<br />

Source: U.S. Commercial Service Philippines Field Research<br />

Overview of the Domestic <strong>Market</strong><br />

US Imports and Competitors

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