Beauty and personal care grows steadily in 2014
Beauty and personal care witnessed similar current value growth in 2014 to the performance of 2013. While the unstable political situation in Thailand during 2014 affected consumer confidence and thus spending, this did not have a significant impact on beauty and personal care’s current value growth. The essential nature of various beauty and personal care categories such as bath and shower products supported the category’s performance in 2014. Consumers’ image consciousness also boosted beauty and personal care, as they were increasingly willing to try new products that can enhance their appearance. This was especially with their continued exposure to international beauty and grooming trends, with the eagerness to improve their knowledge of grooming.
Convenience surrounds beauty and personal care
The hectic lifestyles of consumers in view of having to deal with a tight work agenda and personal schedules prompted consumers to demand convenience in their daily lives. This also applied to beauty and personal care products, whether multipurpose or extended wear products that can ease usage. With this, manufacturers were keen to launch products with holistic offerings as well as those with long-lasting effects in order to minimise consumers’ need to apply different products or constantly reapply.
International players gain ground in beauty and personal care
International players dominated beauty and personal care, easily taking eight out of the top 10 positions with a joint 50% value share in 2014. The longstanding presence of international players benefited their performance over the review period, as they managed to earn consumers’ trusts in the product quality offered. The comprehensive portfolio of international players, whether brands or product types, also helped them to sustain consumer interests amid efforts in regular product innovations. On the other hand, more foreign players entered Thailand during the end review period such as Tom Ford in 2014 so as to tap onto growing consumers’ interests in foreign beauty and personal care brands.
New product launches exude sophisticated advancement
The rising sophistication of consumers led to increased demand for advanced beauty and personal care products, especially those with value-added benefits. This was underpinned by the desire, ranging to create a better image for themselves. During 2014, manufacturers were thus keen to incorporate multiple benefits, aiming to create more value for consumers including convenience, cross-category benefits and more. For instance, hair care products with BB cream effect that offered up to 10 benefits from sun protection to moisturising functionality.
Beauty and personal to continue positive performance
Beauty and personal care is expected to see positive constant value growth over the forecast period, though at a slower pace compared with 2014. The essential nature of various categories in consumers’ daily lives will contribute to the positive performance over the forecast period, though the already high penetration of basic products will still constrain the overall growth potential of beauty and personal care. The projected improvement of Thailand’s political situation, and in turn economic conditions, will benefit consumers’ sentiment to spend. This will also translate into their willingness to invest in beauty and personal care products, including those with premium quality or advanced benefits. Convenience will also continue to surround their choices of beauty and personal care products, as they seek to ease their load from daily lives. More niche players are also expected to enter Thailand to seize a share of consumers’ pockets over the forecast period.