Professional Documents
Culture Documents
PHILIPPINES
Euromonitor International
July 2014
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TRENDS
After double-digit retail value growth of 13% in current terms in colour cosmetics in 2012,
growth slowed to 3% in 2013. Generally, demand for the products continues to be robust. The
growing number of employed women in the country contributes to the increasing demand for
these products.
The growth of colour cosmetics was hampered by the effects of Typhoon Yolanda, which hit
the Philippines in November 2013. The devastation in Visayas affected both store based
retailers and direct sellers. For brands like Avon where more than 20% of direct selling agents
are from Visayas, the typhoon significantly weakened demand during the fourth quarter.
Other facial make-up eclipsed all categories with retail value sales growth of 15% in current
terms in 2013. This vibrant performance was driven by the increasing expansion of BB
creams in the Philippines. During 2013, well-known skin care brand Ponds launched its highly
advertised BB cream, which generated trial purchases by middle-income teens. With the
promise of giving coverage, sun protection, moisturising and even skin whitening, BB creams
are gaining popularity among consumers who are looking for a wide range of benefits from a
single product.
The local market for colour cosmetics is largely driven by product innovation. Manufacturers
continue to improve their products to keep customers interested and differentiate themselves
from competition. Market leader Avon Cosmetics Inc introduced True Color Technology,
assuring customers of more intense shades and colours which are true to what is shown on
the packaging. Aside from colours, the brands also develop products that offer moisturising
benefits. In order to educate consumers about make-up usage, Avons True Color Eye
Shadow Quads shade is numbered from one to four, which tells consumers the order of
application.
Mineral make-up continues to cater to a niche of more affluent buyers. These products are
taking a back seat as new innovations such as BB and CC creams gain popularity in the
Philippines. A number of CC creams were introduced in 2013 and are starting to generate
demand from more affluent urban women. Korean brands such as The Face Shop and Etude
House are among the most-sought brands in the local market.
Premium products accounted for 6% of retail value sales in colour cosmetics in 2013. While
most Filipinos settle for more affordable products, some are happy to spend more for
perceived product benefits. More affluent women buy premium brands, most of which are
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imported. Premium products are perceived to be made of higher quality ingredients, offer
better benefits and be gentler on the skin.
Mass brands continued to dominate the market and registered better growth than premium
products. Manufacturers product innovations, and new technology and shades enabled them
to gain better positioning and compete with higher-priced products. Mass brands are also
instrumental in expanding the customer base to incorporate younger consumers.
COMPETITIVE LANDSCAPE
Direct selling giant Avon Cosmetics Inc led colour cosmetics in 2013 with retail value share of
38%. Avon has customers at all income levels through its wide range of colour cosmetics
brands that span facial make-up, lip products and eye make-up. The companys success is
also attributable to its wide network of direct selling agents that ensures nationwide
distribution of products. Avon also allows customers to pay by instalment, which is more
convenient for lower- and middle-income consumers. The companys investment in
advertising campaigns featuring high profile celebrities and product innovation also strongly
supports its market leadership.
Cosnova GmbH experienced the fastest growth at 191% in 2013. Its retail value sales
increased as consumers were attracted by its new product offerings. Unilever Philippines Incs
shares in colour cosmetics also improved in 2013 due to the launch of its new Ponds BB+
Cream, which achieved a promising performance during its first year.
Ever Bilena Cosmetics Inc and HBC Inc are the largest local players in the category. Ever
Bilena Cosmetics Inc ranked second with a retail value share of 22% in 2013. The company
appeals to more price conscious consumers, especially students and provincial buyers. HBC
Inc, on the other hand, distributes through its chain of beauty specialist retailers Home of
Beauty Exclusives and HBC Shop More. HBC Inc was aggressive in product promotion in
2013, which helped bolster sales.
Players continue to tap into the influence of the internet and social media in their product
promotions. Brands continue to send free products to bloggers for review and conduct
exclusive blogger events. Most women consult online reviews of colour cosmetics products
before purchases. Beauty bloggers conduct reviews and often demonstrate new products. In
a category where tri-media advertising is not often used, social media and the internet help
generate consumer awareness.
Both local and imported products entered the market in 2013. Premium US colour cosmetics
brand NYX opened four stores during the year. BYS, an Australian brand, was also
introduced and products are retailed in SM Department Stores. Another entrant was Happy
Skin, which promises to care for Filipino skin through special skin care ingredients such as
Japanese tea leaf, cherry blossom and argan oil, among others. This new product tries to
overcome the apprehension of Filipinos in using colour cosmetic products. One of the most
cited reasons why Filipinos do not use colour cosmetics is the notion that these products can
harm the skin. Happy Skin boasts of being developed from Japanese technology.
PROSPECTS
Colour cosmetics will remain among the most vibrant categories in beauty and personal care.
The category is expected to register a CAGR of 4% at constant 2013 prices over the forecast
period. It is expected that this growth will be aided by the expansion of colour cosmetics
customer base together with Filipino customers willingness to experiment with new looks
through the use of a wider range of colour cosmetics products.
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Generally, colour cosmetics will be supported by the vibrant economic growth in the country
over the next five years. As the economy grows, disposable income, especially in urban
areas, will also increase. The growing number of working women will also increase demand
for colour cosmetics. Furthermore, the growing acceptance of colour cosmetics among
younger Filipinos is indicative of good growth prospects in these demographics. Teens are
being exposed to beauty products at an earlier age and good looks will be strongly valued to
be socially accepted.
As Filipinos become more open to bolder, more vibrant hues and attempt different looks, the
category may also be driven by new product developments. Aside from investing in more
colours, Filipinos also value the techniques shared by manufacturers to create the looks that
they want. Packaging and labelling innovation that will allow customers to properly apply and
use products according to their desired look is over the forecast period.
Despite the acceptability of colour cosmetics in the country, Filipino women remain concerned
about the safety of using these products on their skin. Consumers want assurance that the
products they are using are gentle, safe and have no adverse effects. This gives opportunities
to manufacturers to create more natural colour cosmetics brands or emphasise the safety of
their products.
Other facial make-up is expected to register the strongest retail value CAGR of 9% at
constant 2013 prices over the forecast period due to demand for BB and CC creams. The
warm welcome for Ponds BB Cream in the Philippines signalled the expansion of other facial
make-up, with manufacturers seeking to attract middle- and lower-income consumers. It
should be noted that BB and CC creams used to appeal to more affluent customers but the
forecast period is expected to see increasing demand from middle- and lower-income
consumers with the availability of lower-priced brands.
Sales through the direct selling channel have always been negatively affected by positive
growth in the economy. It should be noted that direct selling does well during periods of
economic slowdown as consumers are attracted to the more flexible payment schemes
offered by sellers. With the expectation of good economic performance over the forecast
period, it is possible that sales from direct sellers such as Avon and Ever Bilena could decline
and give opportunities to brands offered in store based channels such as department stores
and supermarkets. The opening of more shopping malls over the forecast period will further
help increase shares of store-based brands. However, direct sellers are expected to continue
to account for a huge proportion of sales.
CATEGORY DATA
Table 1
PHP million
Eye Make-Up
- Eye Liner/Pencil
- Eye Shadow
- Mascara
- Other Eye Make-Up
Facial Make-Up
- Blusher/Bronzer/
Highlighter
- Foundation/Concealer
- Powder
Euromonitor International
2008
2009
2010
2011
2012
2013
930.9
207.0
614.4
87.8
21.7
2,022.9
437.8
1,075.7
223.6
737.3
92.2
22.7
2,175.7
464.0
1,159.4
237.0
803.7
95.4
23.4
2,364.3
489.6
1,322.7
274.4
925.0
99.2
24.0
2,658.8
514.0
1,423.0
295.0
999.0
104.2
24.8
2,911.2
547.4
1,416.9
300.9
984.0
107.8
24.1
3,031.1
572.1
653.1
850.9
702.1
923.2
772.3
1,010.9
884.3
1,162.5
968.3
1,273.0
1,007.0
1,311.1
Passport
81.1
1,715.8
392.3
174.4
1,094.2
55.0
293.3
205.5
7.9
86.4
1,862.9
431.5
177.6
1,198.1
55.7
285.4
198.7
7.6
91.6
2,014.8
472.5
179.9
1,306.0
56.5
229.9
143.9
7.3
98.0
2,014.3
496.1
182.6
1,278.5
57.1
253.8
167.4
7.2
122.5
2,445.1
550.2
200.1
1,636.5
58.3
282.7
190.7
7.5
140.9
2,532.0
572.2
210.1
1,690.5
59.2
310.4
212.6
7.8
77.3
2.6
4,962.9
76.6
2.5
5,399.7
76.2
2.5
5,768.4
76.6
2.5
6,249.6
81.9
2.6
7,062.0
87.2
2.7
7,290.4
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 2
Eye Make-Up
- Eye Liner/Pencil
- Eye Shadow
- Mascara
- Other Eye Make-Up
Facial Make-Up
- Blusher/Bronzer/Highlighter
- Foundation/Concealer
- Powder
- Other Facial Make-Up
Lip Products
- Lip Gloss
- Lip Liner/Pencil
- Lipstick
- Other Lip Products
Nail Products
- Nail Polish
- Nail Treatments/Strengthener
- Polish Remover
- Other Nail Products
Colour Cosmetics
Source:
2012/13
2008-13 CAGR
2008/13 Total
-0.4
2.0
-1.5
3.5
-2.9
4.1
4.5
4.0
3.0
15.0
3.6
4.0
5.0
3.3
1.5
9.8
11.5
4.0
6.5
5.0
3.2
8.8
7.8
9.9
4.2
2.1
8.4
5.5
9.0
9.0
11.7
8.1
7.8
3.8
9.1
1.5
1.1
0.7
-0.2
2.4
1.0
8.0
52.2
45.4
60.2
22.8
10.9
49.8
30.7
54.2
54.1
73.6
47.6
45.9
20.5
54.5
7.6
5.8
3.5
-0.8
12.8
5.1
46.9
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 3
Premium
Mass
Total
Source:
2008
2009
2010
2011
2012
2013
6.3
93.7
100.0
6.3
93.8
100.0
6.2
93.8
100.0
6.2
93.8
100.0
6.1
93.9
100.0
6.1
93.9
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
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Table 4
Passport
2009
2010
2011
2012
2013
41.2
16.0
6.2
3.9
2.9
3.4
41.7
17.0
6.3
3.8
3.0
3.4
42.4
17.8
6.3
3.8
2.9
3.3
39.9
21.3
6.1
3.7
2.8
3.2
37.8
21.8
6.7
3.8
3.0
2.9
2.5
1.7
2.6
1.8
2.7
1.9
2.7
1.9
2.9
2.3
2.2
2.2
2.2
2.1
2.1
1.9
1.8
1.2
1.3
1.3
1.1
0.9
0.8
-
1.9
1.8
1.2
1.2
1.2
0.9
0.9
0.7
-
1.9
1.8
1.2
1.2
1.1
0.9
0.9
0.7
0.5
1.8
1.7
1.2
1.2
1.1
0.9
0.8
0.6
0.6
1.9
1.8
1.2
1.2
1.1
0.9
0.9
0.7
0.7
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.1
0.1
0.1
-
0.1
0.1
0.1
-
0.1
0.1
0.1
-
0.1
0.1
0.1
0.0
-
0.3
0.1
0.1
0.1
-
8.5
100.0
7.2
100.0
5.6
100.0
5.4
100.0
4.8
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 5
Company
2010
2011
2012
2013
Simply Pretty
AVON Color
Ever Bilena
Advance
Maybelline
Careline
Mary Kay
Revlon
21.9
18.9
9.8
3.4
3.9
3.9
3.4
3.0
23.1
18.9
10.3
3.7
3.9
3.8
3.4
2.9
20.4
19.4
12.0
5.5
3.9
3.8
3.3
2.8
20.0
17.9
12.4
5.3
4.3
4.2
3.5
3.0
Euromonitor International
San-San
The Face Shop
HBC Inc
LG Household & Health
Care Ltd
Procter & Gamble
Philippines Inc
L'Oral Philippines Inc
VMV Group
JVS Worldwide Inc
Tupperware Brands
Philippines Inc
Jemica Cosmetics Mfg Inc
St Essence Mfg Corp
Vibelle Mfg Corp
Unilever Philippines Inc
Procter & Gamble
Philippines Inc
Del Pharmaceuticals Inc
American International
Industries
Chic Centre Corp
Chic Centre Corp
Mary Kay Philippines Inc
Shiseido Co Ltd
Johnson & Johnson
(Philippines) Inc
St Essence Mfg Corp
Cosnova GmbH
Kateenson Industries
Avon Cosmetics Inc
Max Factor
L'Oral Paris
VMV
The Body Shop
Colour Collection
Nichido
Fashion 21
Caronia
Pond's
Cover Girl
Sally Hansen
China Glaze
Chic
Bobbie
MK Signature
Shiseido
Johnson's
Aido
Essence
Caress
Avon Solutions
Others
Total
Source:
Passport
2.6
1.8
2.7
1.9
2.7
1.9
2.9
2.3
2.6
2.6
2.4
2.1
1.8
1.9
1.8
1.4
1.8
1.9
1.8
1.4
1.7
1.8
1.7
1.3
1.9
1.9
1.8
1.4
1.2
1.0
0.9
0.9
0.8
1.2
1.0
0.9
0.9
0.8
1.2
0.9
0.9
0.8
0.8
1.2
1.0
0.9
0.9
0.8
0.7
-
0.7
0.5
0.6
0.6
0.7
0.7
0.6
0.6
0.4
0.4
0.3
0.6
0.6
0.4
0.4
0.3
0.5
0.5
0.4
0.4
0.2
0.6
0.6
0.4
0.4
0.3
0.3
0.1
0.2
9.5
100.0
0.3
0.1
0.2
7.3
100.0
0.2
0.1
0.1
0.0
7.0
100.0
0.2
0.2
0.1
6.5
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 6
Euromonitor International
Company
2010
2011
2012
2013
27.5
14.0
16.1
4.0
2.5
3.3
30.8
13.1
18.1
3.8
2.8
3.0
29.9
14.9
16.6
3.9
4.0
3.0
30.4
17.2
14.1
4.4
3.5
3.2
2.4
1.7
2.2
1.7
2.2
1.7
2.3
2.0
2.0
1.9
1.8
1.8
1.8
1.8
2.0
1.9
1.9
1.7
3.3
1.1
1.3
1.8
1.5
2.5
1.3
1.2
1.8
1.5
2.0
1.4
1.2
1.9
1.6
1.5
1.5
1.3
0.9
0.8
0.8
0.9
Fashion 21
Essence
Shiseido
Aido
Catrice
Mac
Kanebo
The Face Shop
Colour Collection
Colour Collection
Others
Total
Source:
Passport
0.6
0.4
0.3
0.1
0.1
-
0.5
0.3
0.3
0.1
0.1
-
0.5
0.2
0.3
0.3
0.1
0.1
-
0.6
0.4
0.4
0.3
0.2
0.1
0.1
-
12.8
100.0
10.2
100.0
10.0
100.0
8.2
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 7
Euromonitor International
Company
2010
2011
2012
2013
26.8
6.7
11.0
9.2
5.4
4.5
3.8
4.7
29.2
7.0
10.8
7.9
5.3
4.5
3.6
4.5
25.7
11.3
10.3
7.5
5.9
4.6
3.5
4.4
24.4
11.0
10.9
7.4
6.5
5.1
3.6
3.6
3.3
2.1
3.1
2.3
3.1
2.5
3.2
3.0
2.6
3.0
2.1
1.9
1.9
1.3
1.2
2.7
2.8
2.0
1.9
1.8
1.2
1.2
2.7
2.8
1.9
1.9
1.7
1.2
1.0
2.8
2.8
2.1
2.0
1.8
1.2
1.0
1.0
1.0
0.6
0.9
0.9
0.6
0.9
0.9
0.6
0.9
0.9
0.6
0.4
0.3
0.4
0.3
0.4
0.3
0.4
0.3
0.3
0.2
0.2
0.2
0.2
0.2
0.2
0.2
0.1
0.6
-
0.1
0.4
-
0.0
0.1
0.1
-
0.1
0.1
-
Colour Collection
Others
Total
Source:
4.1
100.0
4.2
100.0
4.3
100.0
3.6
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 8
Company
2010
2011
2012
2013
27.6
21.8
6.6
4.5
3.4
3.4
2.7
2.8
1.9
1.8
1.7
1.4
28.1
21.2
9.0
4.8
3.7
3.8
3.0
2.9
2.0
1.9
1.7
1.6
29.7
18.6
13.6
4.5
3.5
3.6
2.7
2.8
1.9
1.8
1.6
1.5
25.5
20.5
13.0
4.7
3.8
3.8
3.2
2.9
2.0
1.9
1.7
1.6
1.5
1.3
1.6
1.4
1.4
1.3
1.5
1.4
1.4
0.9
1.4
1.1
1.3
0.9
1.4
1.1
0.4
0.3
0.2
0.1
0.3
-
0.4
0.3
0.2
0.1
0.3
-
0.4
0.3
0.2
0.1
0.2
-
0.4
0.3
0.2
0.1
0.0
-
14.0
100.0
9.5
100.0
8.3
100.0
8.9
100.0
Others
Total
Source:
Passport
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 9
Euromonitor International
Company
2010
2011
2012
2013
23.5
18.3
-
21.9
16.7
11.3
21.5
16.1
14.8
21.6
16.0
15.4
Chic
Bobbie
The Face Shop
Revlon
Caress
San-San
Essence
Ever Bilena
Careline
Colour Collection
Catrice
Mary Kay
Maybelline
Avon
The Face Shop
Colour Collection
L'Oral Paris
Colour Collection
Queenie
Others
Total
Source:
16.0
15.1
6.2
14.5
13.7
6.3
13.7
13.4
6.4
13.6
13.3
6.5
5.5
3.3
2.4
3.2
1.6
0.6
5.0
3.0
2.3
1.5
1.4
0.5
4.9
2.9
2.1
0.6
0.9
1.2
0.5
4.9
2.9
2.1
1.0
0.6
0.5
0.5
0.1
2.6
-
0.1
0.4
-
0.1
-
0.2
0.1
-
1.6
100.0
1.3
100.0
0.9
100.0
0.9
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 10
Passport
Company
2010
2011
2012
2013
VMV Group
Shiseido Co Ltd
Este Lauder Cos Inc
Kanebo Cosmetics Inc
30.5
6.2
2.0
0.9
60.3
100.0
30.1
6.2
2.0
0.9
60.9
100.0
29.4
6.0
1.9
0.8
61.9
100.0
31.0
6.4
2.0
0.9
59.8
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 11
PHP million
Eye Make-Up
- Eye Liner/Pencil
- Eye Shadow
- Mascara
- Other Eye Make-Up
Facial Make-Up
- Blusher/Bronzer/
Highlighter
- Foundation/Concealer
- Powder
Euromonitor International
2013
2014
2015
2016
2017
2018
1,416.9
300.9
984.0
107.8
24.1
3,031.1
572.1
1,441.1
304.3
1,003.4
109.4
24.0
3,139.5
588.8
1,492.7
308.4
1,049.3
110.7
24.3
3,271.3
603.9
1,563.2
314.6
1,111.0
112.9
24.7
3,416.8
619.3
1,651.7
322.7
1,188.0
115.7
25.3
3,575.4
635.0
1,756.9
332.2
1,279.7
119.0
26.0
3,746.0
650.4
1,007.0
1,311.1
1,040.0
1,354.7
1,088.4
1,408.3
1,145.5
1,466.3
1,210.9
1,528.5
1,284.5
1,594.4
Passport
140.9
2,532.0
572.2
210.1
1,690.5
59.2
310.4
212.6
7.8
156.0
2,596.7
572.9
210.0
1,755.4
58.3
328.7
227.8
7.9
170.7
2,688.9
580.7
210.4
1,840.9
56.8
344.5
240.9
7.9
185.8
2,796.4
591.3
212.5
1,936.7
56.0
360.1
253.6
8.0
201.1
2,917.0
604.2
215.1
2,042.2
55.4
375.8
265.9
8.2
216.7
3,049.2
619.3
218.4
2,156.4
55.1
391.2
277.9
8.3
87.2
2.7
7,290.4
90.3
2.8
7,505.9
92.9
2.8
7,797.4
95.7
2.8
8,136.6
98.9
2.8
8,519.9
102.2
2.9
8,943.3
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Table 12
2013/18 TOTAL
4.4
2.0
5.4
2.0
1.5
4.3
2.6
5.0
4.0
9.0
3.8
1.6
0.8
5.0
-1.4
4.7
5.5
1.3
3.2
1.0
4.2
24.0
10.4
30.0
10.4
7.8
23.6
13.7
27.6
21.6
53.8
20.4
8.2
4.0
27.6
-6.8
26.0
30.7
6.7
17.2
5.1
22.7
Eye Make-Up
- Eye Liner/Pencil
- Eye Shadow
- Mascara
- Other Eye Make-Up
Facial Make-Up
- Blusher/Bronzer/Highlighter
- Foundation/Concealer
- Powder
- Other Facial Make-Up
Lip Products
- Lip Gloss
- Lip Liner/Pencil
- Lipstick
- Other Lip Products
Nail Products
- Nail Polish
- Nail Treatments/Strengthener
- Polish Remover
- Other Nail Products
Colour Cosmetics
Source:
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Table 13
Premium
Mass
Total
Source:
2013
2014
2015
2016
2017
2018
6.1
93.9
100.0
6.0
94.0
100.0
5.1
94.9
100.0
5.0
95.0
100.0
5.0
95.0
100.0
5.0
95.0
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Euromonitor International
10
Euromonitor International
Passport
11