The Colombia cosmetics market, worth US$ X bn as of 2014, is projected to grow at CAGR X.XX% to US$ X.X bn by 2020. While the countryâ€™s colour cosmetics mass market prompted Lâ€™Oreal to acquire the leading manufacturer Vogue in 2013, Colombia is actually a market where direct selling/multi-level marketing holds sway more than store purchases. This is demonstrated by the large market share held by companies like Avon, Peruâ€™s Belcorp, and recently, Mary Kayâ€™s latest investment in the country, and a few other direct selling companies. This investment heralds a competitive revival in direct selling for cosmetics, as people await to see how Mary Kayâ€™s strategies differ from those of Avon and Belcorp, which have been struggling in the recent past. In terms of distribution, makeup, combined with lotions claimed only 23% of the total distribution in the beauty, toiletries and cleaning market between 2000 and 2010. This trend has changed with high investments by companies in the subsequent years, in trained women professionals engaged in make-up and beauty products related direct selling.
International companies enjoy large market share and combined, capture more than half the market, in comparison with domestic brands.
Famous brands include Mary Kay, Lâ€™Oreal, Natura, Avon, Beiersdorf, Yanbal, Belcorp, Proctor & Gamble, Unilever, and Kimberly-Clark, among others.
The predominant trends for cosmetics include lasting power and new colour palettes, increasing market share for ethnic products, and an increased preference for vegan, organic and natural beauty products, enhanced through usage of other ingredients, to mitigate harmful effects of pollution, sun, dust, and harmful ingredients typically a part of cosmetic products.
Distribution is pervasive through exclusive stores of luxury products in malls or standalone, while ecommerce is emerging as a competitor to direct sales for all mass and premium brands. Customers are increasingly looking for value for money products which are natural and beneficial for the skin, provide a range of combined benefits of high priced premium products, at a lower than premium cost. This product class has been dubbed â€œmasstigeâ€. Mid income customers are trading down from premium to masstige, and from masstige to mass market depending on purchasing power and the multi-benefits offered in products.
An inclination to look good, availability of new markets, increased spends by international companies looking to invest in the market, teens growing older younger and a large body of ageing population wanting to look younger by using cosmetics are some of the drivers of this market.
Economic slowdown, a highly competitive market in both direct selling as well as store based selling, tighter purse strings, people wanting to opt for DIY beauty treatments at home instead of spending on salons, an insufficiently regulated cosmetics production and selling environment in the country, and some other factors make the challenges in this market.
This Report Offers:
Market Definition for the specified topic along with identification of key drivers and restraints for the market
Market analysis for the Colombia Cosmetics Market, with region specific assessments and competition analysis on a Colombia and regional scale
Identification of factors instrumental in changing the market scenarios, rising prospective opportunities and identification of key companies which can influence the market on a Colombia and regional scale
Extensively researched competitive landscape section with profiles of major companies along with their strategic initiatives and market shares
Identification and analysis of the Macro and Micro factors that affect the Colombia Cosmetics Market on both Colombia and regional scale
A comprehensive list of key market players along with the analysis of their current strategic interests and key financial information
1.1 Study Deliverables
1.2 Study Assumptions
2. Research Methodology
3. Executive Summary
4. Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat from new entrants
4.3.4 Threat from substitute Products
4.3.5 Competitive rivalry within the industry
4.4 Industry Policies
5. Market Dynamics
5.1.1 Innovation in Packaging and Design
5.1.2 Aging population
5.1.3 Growth of E-Commerce
5.1.4 Increasing access to Middle-bottom segment of pyramid consumers
5.2.1 New medical technologies for beauty enhancements
5.2.2 Volatile Raw Material Prices
5.3.1 Growing Demand for Organic Products
6. Colombia Cosmetics Market Segmentation
6.1 By Product Types
6.1.1 Hair care products
6.1.2 Skin care products
6.1.3 Oral care products
6.1.4 Make up & Color Cosmetics products
6.1.5 Fragrances & Deodorants
6.1.6 Soaps and shower gels
6.1.7 Sun care products
6.2 by Distribution Channel
6.2.1 Direct selling
6.2.2 Hypermarkets/ Retail Chains
6.2.4 Specialty stores
7. Vendor Market Share Analysis
8. COMPANY PROFILES
8.1 L'Oreal Group
8.2 Procter & Gamble
8.3 Beiersdorf AG
8.4 Avon Products, Inc.
8.6 The EstÃ©e Lauder Companies Inc.
8.8 Kao Corp.
8.9 Revlon Inc.
8.10 Mary Kay
8.11 Yves Rocher
8.12 Oriflame Cosmetics S.A
9. Investment Analysis
9.1 Recent Mergers & Acqisitions
9.2 Strategic Alliances
9.3 Investment Scenario
10. Future Of Colombia Cosmetic Products Market