Cosmetics in South Africa
Source：Taiwan Trade Center, Johannesburg
From：Taiwan Trade Center, Johannesburg
Update Time：2017/11/22
Southern Africa is the region with the most cultural diversity in the world, with mixtures of ethnic groups and cultures. Not only are there cultural differences but also social distinctions such as income, connection to infrastructure and access to education and health care. With positive policies adopted by many African governments, the emerging middle class has been favoured and brought about a rapid evolution of the consumer goods sector, including growth demand for cosmetic products, especially in South Africa.
Sales and distribution channels for the personal care industry consist of retails such as Dischem, Clicks, Pick ‘n Pay and more (L’Oreal, Johnson & Johnson, etc); direct sales such as Avon Justine and Avroy Shlain Cosmetics; salon and spa – Babor, Thalgo, etc; franchise & concept stores – Sorbet, Dermalogica and the informal sector. Most of these outlets also support online shopping.
Kosmetica World describes South Africa as the ‘capital of African glamour’. This is mostly thanks to the trend of consumers increasingly focussing on looking attractive and smelling pleasant. Through this trend, sales in the colour cosmetics and fragrances arena show increases year on year. South Africa plays a vital role as a valuable partner in global markets. As disposable income has decreased clients are looking for value products that still offer premium results. Companies who are looking to meet this requirement have created a category of products with combined benefits of a premium product but a mass market price – masstige.
As more and more women are joining the labour force, more have disposable income to spend on such items such as colour cosmetics. Increased focus on personal appearance drives growth across all income and age groups. The brands on which consumers spend though will depend on their income level. Revlon still leads with 15% value share in 2016, followed by Avon Justine with 14%. New entrants and consumer willingness to try new products cause established brands to lose category share.
It is still believed that the beauty industry is one of the most prominent sectors to boost the economy of South Africa and economy brands have gained strong ground against leading multinational companies.
The biggest South African beauty products include Annique, Africology, Theravine, Bio Oil, Avon Justine and Environ. Popular proudly South African brands that are making big inroads into the industry include Oh-Lief, Beaucience, Optiphi, Esse, Dr Robert Gobac, African Extractts, Charlotte Rhys and Placecol. Imported products are dominated by Filorga, Clarins, Dermalogica, Babor, Regim A and more. Distributors within South Africa who specialise in local and imported products include Twincare, A & I Importers, Smartbuy, Upfront Distribution, etc. International companies such as L’Oreal, Clarins, Schwarzkopf, Goldwell, etc all have manufacturing and distribution facilities within South Africa. Although the industry is still dominated by multinational companies, smaller local companies are starting to make inroads within the South African market mainly due to the fact that consumers are still looking for good quality products but at a lower price.
Lip make-up dominates the cosmetics market in South Africa, followed by eye make-up and then manicure or pedicure preparations. Powder imports round up the list with Europe dominating all three sectors with imports into South Africa, followed by the Americas and then Asia as a whole.
Women & Home South Africa reader’s choice awards for 2016 put the following products as the best value for money and quality:
Lip make-up and care products
L’Oreal / Lush Liquid / Revlon / Clinique / Dior / Estee Lauder / IQ
Best foundations/powders
Bobby Brown /Chanel / Clarins / Estee Lauder / L’Oreal / MAC / Maybelline /
Coverderm / Benefit / Boi-oing
Eye make-up and care product
L’Oreal / Inglot / Max Factor / Rimmel / Clarins / Stila Stay / Dior / Givenchy
Manicure/Pedicure products
Morgan Taylor / Satiskin / Nivea / Sally Hansen / Eucerin / Mavala / Catrice
Essence / Lush Lemony
As we can see from the list above, L’Oreal still holds the market when it comes to user choice (consumers may be using different products but from the same range). Clarins and Revlon still remain a popular choice with consumers.
In general, the personal care market is dominated by deodorants and deodorant and perfume brands. Shampoos and eye make-up round off the top 3 imports from the world into South Africa, followed by lip make-up, manicure and pedicure products, powders and pre-shaving, shaving and after shave preparations.
The top 5 imports into South Africa of beauty or make-up preparations are the United States of America, China, Hong Kong, the United Kingdom and rounding off the list is Germany.
Taiwan has shown consistent growth over the last two years throughout the beauty and make-up preparations as well as the hair products, but showed a slight decline in the shaving preparations market.
Throughout 2014 – 2016, imports from the United States of America have dominated the beauty and personal care industry. Followed closely by the United Kingdom and Germany. China and Hong Kong dominate over the United Kingdom and Germany when it comes to beauty or make-up preparations and preparations for the care of the skin. France, Canada and Japan feature strongly within the top 10 throughout.