Beauty and Personal Care in Egypt
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ReportsnReports.com adds Euromonitor International Research Report “Beauty and Personal Care in Egypt’’ to its store.
Strong growth driven by grooming trend and high inflation
There was strong current value growth for the review period as a whole, with sales growth encouraged by the grooming trend. Urban consumers increasingly focused on looking and smelling good, with this trend thus boosting sales across beauty and personal care. However, current value growth was also inflated by high annual inflation rates and by currency fluctuations. These factors resulted in sharp unit price growth for most products during the review period.
There was strong current value growth for the review period as a whole, with sales growth encouraged by the grooming trend. Urban consumers increasingly focused on looking and smelling good, with this trend thus boosting sales across beauty and personal care. However, current value growth was also inflated by high annual inflation rates and by currency fluctuations. These factors resulted in sharp unit price growth for most products during the review period.
Growing polarisation in 2010
There was growing polarisation in the last two years of the review period. Low- and mid-income consumers were hit the hardest by high inflation, the rising cost of fuel and food and increasing unemployment. Consequently, these consumers cut back on purchases of beauty and personal care and switched to the cheapest options. Upper-mid- and high-income consumers meanwhile became increasingly aspirational, being influenced by articles and advertising on satellite TV and online and in lifestyle magazines. These consumers consequently traded up to international brands and premium products and began to purchase a wider range of beauty and personal care.
There was growing polarisation in the last two years of the review period. Low- and mid-income consumers were hit the hardest by high inflation, the rising cost of fuel and food and increasing unemployment. Consequently, these consumers cut back on purchases of beauty and personal care and switched to the cheapest options. Upper-mid- and high-income consumers meanwhile became increasingly aspirational, being influenced by articles and advertising on satellite TV and online and in lifestyle magazines. These consumers consequently traded up to international brands and premium products and began to purchase a wider range of beauty and personal care.
Multinationals lead sales in 2010
Multinationals benefit from stronger advertising and new product development budgets in comparison to domestic players in beauty and personal care. In addition, many mid- and high-income consumers regard international brands as offering a higher degree of quality. In 2010, the leading players were thus Unilever and Procter & Gamble, with the top 10 also including Colgate-Palmolive, Avon, Oriflame and Henkel. The leading domestic player is meanwhile Lord Precision, which ranked third. This player benefits from its dominance of men’s razors and blades, where it offers affordable prices but stresses the high quality of the stainless steel it uses for its blades.
Multinationals benefit from stronger advertising and new product development budgets in comparison to domestic players in beauty and personal care. In addition, many mid- and high-income consumers regard international brands as offering a higher degree of quality. In 2010, the leading players were thus Unilever and Procter & Gamble, with the top 10 also including Colgate-Palmolive, Avon, Oriflame and Henkel. The leading domestic player is meanwhile Lord Precision, which ranked third. This player benefits from its dominance of men’s razors and blades, where it offers affordable prices but stresses the high quality of the stainless steel it uses for its blades.
Rapid expansion for supermarkets/hypermarkets
Supermarkets/hypermarkets saw a rapid growth in value share in 2010 over the previous year. This was partly due to ongoing outlet volume expansion for the channel and growing consumer interest in hypermarkets. In addition, supermarkets/hypermarkets extended their ranges of beauty and personal care towards the end of the review period, recognising the strong potential growth offered by these products. There was also a trend towards the use of dedicated display areas in supermarkets/hypermarkets for products such as men’s grooming and skin care. Supermarkets/hypermarkets also benefited from offering more affordable prices in comparison to beauty specialist retailers and chemists/pharmacies and also from the use of attractive price promotions.
Supermarkets/hypermarkets saw a rapid growth in value share in 2010 over the previous year. This was partly due to ongoing outlet volume expansion for the channel and growing consumer interest in hypermarkets. In addition, supermarkets/hypermarkets extended their ranges of beauty and personal care towards the end of the review period, recognising the strong potential growth offered by these products. There was also a trend towards the use of dedicated display areas in supermarkets/hypermarkets for products such as men’s grooming and skin care. Supermarkets/hypermarkets also benefited from offering more affordable prices in comparison to beauty specialist retailers and chemists/pharmacies and also from the use of attractive price promotions.
Uncertainty ahead at start of the forecast period
Following the 2011 Egyptian revolution, the future of beauty and personal care sales remains uncertain. Much will depend on whether political stability is rapidly achieved and on how issues such as income disparity and a lack of housing are addressed. If the country sees swift stabilisation, this is likely to be followed by good economic growth, while a reduction in poverty would enable low-income consumers to buy a wider range of beauty and personal care. Ongoing instability is however likely to result in continuing poverty for many. Consequently, while instability continues, sales will continue to be driven by mid- and high-income consumers.
Following the 2011 Egyptian revolution, the future of beauty and personal care sales remains uncertain. Much will depend on whether political stability is rapidly achieved and on how issues such as income disparity and a lack of housing are addressed. If the country sees swift stabilisation, this is likely to be followed by good economic growth, while a reduction in poverty would enable low-income consumers to buy a wider range of beauty and personal care. Ongoing instability is however likely to result in continuing poverty for many. Consequently, while instability continues, sales will continue to be driven by mid- and high-income consumers.
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Contact:
Mr. Priyank
7557 Rambler road,
Suite 727, Dallas, TX 75231
Tel: + 1 888 391 5441
E-mail: sales@reportsandreports.com
http://www.reportsnreports.com
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