Super Premium Beauty and Personal Care in The Philippines

SUPER PREMIUM BEAUTY AND
PERSONAL CARE IN THE

PHILIPPINES
Euromonitor International
July 2014
SUPER PREMIUM BEAUTY AND PERSONAL CARE IN THE PHILIPPINES
LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1
Trends .......................................................................................................................................... 1
Competitive Landscape ................................................................................................................ 2
Prospects ..................................................................................................................................... 3
Category Data .............................................................................................................................. 4
Table 1
Table 2
Table 3
Table 4
Table 5
Table 6
Table 7
Sales of Super Premium Beauty and Personal Care by Category:

Value 2008-2013 .......................................................................................... 4
Sales of Super Premium Beauty and Personal Care by Category: %
Value Growth 2008-2013 ............................................................................. 4
NBO Company Shares of Super Premium Beauty and Personal Care:
% Value 2008-2012...................................................................................... 5
LBN Brand Shares of Super Premium Beauty and Personal Care: %
Value 2009-2012 .......................................................................................... 5
Distribution of Super Premium Beauty and Personal Care by Format:
% Value 2008-2013...................................................................................... 6
Forecast Sales of Super Premium Beauty and Personal Care by
Category: Value 2013-2018 ......................................................................... 6
Forecast Sales of Super Premium Beauty and Personal Care by
Category: % Value Growth 2013-2018......................................................... 7
Passport
SUPER PREMIUM BEAUTY AND

PERSONAL CARE IN THE
PHILIPPINES
HEADLINES
Super premium beauty and personal care reaches Ps2 billion in 2013 registering current
value growth of 6%
Beauty subscription boxes facilitates product trial
Super premium facial care posts the fastest current value growth in 2013 at 9%
Luxury fragrance brands contribute to bulk of the sales
Super premium beauty and personal care is predicted to grow with a constant value CAGR of
2% over the forecast period
TRENDS
Beauty subscription boxes are now available locally. For a monthly fee of more or less Ps500,
beauty buffs can receive samples of several beauty products in a box delivered at their
doorstep. Some of the brands offering such service are Glamourbox, SaladBox and BDJ Box.
This provides a convenient method for consumers to try out several beauty products in small
packaging sizes to avoid costly mistakes of purchasing full-size packages which might turn
out to be not suitable to ones needs or tastes.
Super premium beauty and personal care registered 5% current value growth in 2013
marginally slowing down compared to 2012. The marginal decline in growth is indicative of the
preference for combination products which provides multiple benefits. Although these
products provide cost-savings, the means by which it can simplify ones pampering routine is
more sought-after by time-constrained affluent consumers.
Super premium facial care returned the fastest current value growth in 2013 at 9%. Affluent
consumers are known to invest on facial care products that help retain their youthful look and
provide remedies to their skin issues. This is a known fact among affluent women. It is
believed, however, that some affluent men are vainer than their female counterparts but are
not just very open about it.
Super premium unisex fragrances posted the slowest current value growth at 1% in 2013.
Aside from being fewer in number compared to the brands that have a specific fragrance for
men or women, unisex fragrances is not preferred due to the seemingly generic scent it
provides. Distinctly feminine or masculine scents are generally more desired as it can better
capture the tastes or personalities of either gender.
Despite the approximately equal male-female population split, womens super premium
fragrance continued to be greater than mens super premium fragrance in both value and
volume in 2013. This is indicative of the higher inclination among affluent women to maintain
not just their physical appearance but their overall presentation as well when they socialise in
public.
Innovations in terms of combination products include cosmetic products which incorporates
beneficial skin ingredients. The Laura Mercier Summer 2013 collection, for instance, contains
Vitamin E, Jojoba Oil, Olive Oil and Rose Seed Extract to keep skin smooth, moisturised and
Passport
protected from free radicals. Products with multiple benefits combining functions such as UV
protection, anti-ageing, skin lightening and hydration, among others, are also gaining in
number.
La Prairie is one of the brands that provide beauty products with natural ingredients. It has, for
instance, the Advanced Marine Biology Collection made from marine botanicals. While it
targets a younger age group, the Caviar Collection meanwhile which contains caviar pearls is
aimed at more mature women.
Product developments have included brand extensions such as those of Swarovski and
Charriol which now have fragrances available under the brand names Aura and Royal White,
respectively. There have also been collaborations between cosmetics brands and
designers/artists such as Shu Uemuras Karl Lagerfeld Mon Shu Collection and NARS Andy
Warhol makeup collection. Re-launch of classic scents were also witnessed in the new Be
Delicious Eau So Intense by DKNY taking inspiration from the original Be Delicious fragrance.
Super premium beauty and personal care brands that are available through luxury retailer
Rustans mainly consist of traditional super premium brands such as La Mer, Perricone, Bobbi
Brown, Nars, Shu Uemura and Laura Mercier. These brands are more visible and accessible
to high-income consumers than brands by fashion houses such as Burberry and Giorgio
Armani allowing it to enjoy better patronage than the latter.
Beauty subscription boxes is a new way of packaging as sample sizes are combined in a box
providing consumers with beauty products worth more than its retail price. An example is
Glamourbox which is the first premium online beauty subscription in the country launched in
November 2012. The subscription fee is affordably priced at Ps595 per month wherein one
can receive smaller pack sizes of beauty and personal care products including luxury brands
such Burberry, Bvlgari, Calvin Klein, Kanebo, YSL and Ralph Lauren. The Glamourbox online
boutique, meanwhile, makes the said products available for purchase in its regular packaging
size.
Rustans department stores continued to provide the widest selection of super premium
beauty and personal care brands. For super premium fragrances, meanwhile, consumers
have an option to shop at Art of Scent at Resorts World Manila. Online retailers such as
Lazada also carry a limited number of super premium fragrance brands such as Ralph Lauren
and Bvlgari.
COMPETITIVE LANDSCAPE
Luxury fragrance brands such as Ralph Lauren, Calvin Klein and Hugo Boss, account for a
majority of the sales in the category. Aside from high income consumers, middle income
individuals aspiring to have a piece of luxury are known to invest in these products. Luxury
fragrances which have a distinct scent are considered worth the cost compared with super
premium beauty products which can be easily substituted with more affordable premium
brands.
Local purchase of super premium beauty and personal care products can be conveniently
carried out in the country mainly through luxury retailer Rustans which provides a wide range
of brand and product lines. Purchase abroad, however, would be encouraged by promotions
in the form of product bundling whereby consumers can purchase several different items for a
lower price.
Product performance is one important consideration of affluent consumers in their purchasing
decisions aside from the popularity of the brand name. Since beauty and personal care
products are not normally flaunted in public, the attainment of the desired benefit is of higher
importance. Thus, though a conspicuous brand has an initial advantage against other lesser
Passport
known brands, it would be the attainment of customer satisfaction that will determine
continued patronage of a particular brand.
Super premium beauty and personal care is mainly advertised through glossy magazines.
Feature articles of events and new product launches are also utilised as promotions in
newspapers. Super premium beauty and personal care brands enjoy adequate popularity
among affluent individuals so that the advertising which is utilised is mainly geared towards
providing updates on new products and promotional events.
Efforts of brands to show care for the environment remain limited to global initiatives
implemented by international companies. For instance, Crme de La Mer which was
developed from sea kelp aims to manifest its support to World Oceans Day 2013 with the
introduction of a limited edition 100mL jar for the benefit of the Blue Marine Foundation.
During the review period, luxury fragrance house Maison Francis Kurkdjian was one of the
key brands that entered the category. The fragrances from one of the most renowned
perfumers are available at Adora in Greenbelt 5. The availability of this exclusive fragrance in
the country will add to the high-end brands that compete for the patronage of the elite sector
of society.
Competition for sales among affordable, aspirational and absolute luxury brands is mainly
through product formulation. Given that price is not an issue among affluent consumers when
it comes to beauty products, brands which provide the best combination of benefits or
incorporate unique beneficial ingredients are the ones that are able to capture the most
attention from the upper echelons of society.
PROSPECTS
Beauty subscription boxes are predicted to appeal to younger age groups who are more
adventurous in trying out new beauty products. More mature affluent individuals who, in
general, have an established brand preference are not likely to avail of such services.
Meanwhile, the beauty subscription service that is predicted to stand out from competition is
the one which can continuously offer the latest products and brands which are not highly
visible locally.
Super premium beauty and personal care is predicted to continuously grow at successively
smaller increments until 2018 with a constant value CAGR of 1%. The improvement in
product formulation and availability of combination products are among those that will lead to
a decline in value growth as consumers are able to purchase less or buy a smaller number of
items through innovative products that provide a concentrated formulation or multiple benefits
for their varying personal needs.
The opening of high-end skin and hair care clinics poses a threat to growth to super premium
beauty and personal care. Some affluent individuals may opt to go to these clinics run by
experts who can provide a more tailored approach to their beauty issues. Furthermore, these
clinics usually have their own line of personal care products to complement the treatment they
provide giving wealthy individuals alternatives to their current beauty regimen.
Super premium facial care is predicted to maintain its dominance over the forecast period with
a constant value CAGR of 5%. Affluent individuals are predicted to continuously be concerned
about maintaining their physical appearance, particularly the condition of their facial skin.
Facial care products with anti-ageing benefits are predicted to remain as among those that
will be continuously sought-after by consumers.
The unit price is predicted to decline over the forecast period. Among those that will contribute
to the decrease in unit price is the expected growth of internet retailing which offers price
discounts. Super premium fragrances, in particular, are the ones predicted to be mostly sold
Passport
Passport
through online portals. Consumers who are loyal to a particular fragrance brand will not
require product trial and will find shopping online a convenient alternative.
Social events are predicted to remain as the key marketing activity of distributors of super
premium beauty and personal care in reaching out to affluent individuals in the community.
Beauty subscription boxes are also predicted to be utilised more by companies especially as
these provide consumers an opportunity to try out products in small packaging sizes which
could eventually lead to repeat purchases.
Social media has the potential to affect the performance of super premium beauty and
personal care products mainly through the product reviews that consumers post in their
accounts which their peers can consider as a reliable source of information in making their
own personal choices. Currently, product reviews by fashion bloggers are already providing
the online community with information on different beauty products especially with regards to
new product offerings. Over the forecast period, this is predicted to continuously evolve to
possibly include online communities in social media wherein product reviews can be shared
within the network.
CATEGORY DATA
Table 1
Sales of Super Premium Beauty and Personal Care by Category: Value 20082013
PHP million
Super Premium Bath and

Shower
Super Premium Colour
Cosmetics
Super Premium Deodorants
Super Premium Fragrances
- Super Premium Men's
Fragrances
- Super Premium Women's
Fragrances
- Super Premium Unisex
Fragrances
Super Premium Haircare
Super Premium Skin Care
- Super Premium Body Care
- Super Premium Facial
Care
Super Premium Hand Care
Super Premium Sun Care
Super Premium Sets/Kits
Super Premium Baby and
Child-Specific Products
Super Premium Beauty
and Personal Care
Source:
Table 2
2008
2009
2010
2011
2012
2013
15.7
16.9
18.2
19.5
20.7
22.1
75.5
80.8
85.2
90.7
96.4
102.3
828.2
281.8
864.8
295.9
906.4
309.2
942.6
321.5
981.1
334.1
1,019.8
346.8
420.2
443.3
469.9
493.4
517.6
542.4
126.2
125.6
127.3
127.7
129.4
130.5
122.5
260.8
260.8
129.8
243.2
243.2
137.0
249.2
249.2
143.8
238.1
238.1
150.3
252.3
252.3
157.5
275.2
275.2
4.7
-
2.5
-
2.5
-
2.4
-
2.7
-
2.8
-
1,307.3
1,338.0
1,398.4
1,437.2
1,503.6
1,579.7
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Sales of Super Premium Beauty and Personal Care by Category: % Value

Growth 2008-2013
Passport
% current value growth
Super Premium Bath and Shower

Super Premium Colour Cosmetics
- Super Premium Men's Fragrances
- Super Premium Women's Fragrances
- Super Premium Unisex Fragrances
- Super Premium Facial Care
Super Premium Baby and Child-Specific
Products
Super Premium Beauty and Personal Care
Source:
2008-13 CAGR
2008/13 Total
6.3
6.1
3.9
3.8
4.8
0.9
4.8
9.1
9.1
1.8
-
7.1
6.3
4.2
4.2
5.2
0.7
5.2
1.1
1.1
-9.8
-
40.6
35.6
23.1
23.1
29.1
3.4
28.6
5.5
5.5
-40.5
-
5.1
3.9
20.8
Table 3
NBO Company Shares of Super Premium Beauty and Personal Care: %

Value 2008-2012
% retail value rsp

Company
L'Oral Groupe
Coty Inc
Procter & Gamble Co, The
Richemont SA, Cie
Financire
LVMH Mot Hennessy
Louis Vuitton SA
Salvatore Ferragamo SpA
Chanel SA
Michael Kors Holdings Ltd
PPR SA
Others
Total
Source:
2012/13
2008
2009
2010
2011
2012
20.4
14.8
10.6
4.7
19.0
13.0
11.7
6.1
19.4
12.5
11.8
7.2
19.5
12.3
11.9
8.2
17.2
12.2
11.7
9.9
8.3
8.8
8.6
8.6
8.7
3.9
1.5
0.1
35.7
100.0
3.3
1.5
0.1
36.6
100.0
4.6
1.5
0.2
34.1
100.0
5.1
1.6
0.3
0.2
32.4
100.0
8.3
1.6
0.4
0.2
29.8
100.0
Table 4
LBN Brand Shares of Super Premium Beauty and Personal Care: % Value
2009-2012
% retail value rsp

Brand
Ralph Lauren
Calvin Klein
Hugo Boss
Cartier
Company
2009
2010
2011
2012
L'Oral Groupe
Coty Inc
Procter & Gamble Co, The
Richemont SA, Cie
Financire
15.9
13.0
11.7
5.9
16.3
12.5
11.8
7.0
16.3
12.3
11.9
8.1
13.9
12.2
11.7
9.8
Christian Dior
Salvatore Ferragamo
Giorgio Armani
Chanel
Michael Kors
Balenciaga
Mont Blanc
LVMH Mot Hennessy

Louis Vuitton SA
Salvatore Ferragamo SpA
L'Oral Groupe
Chanel SA
Michael Kors Holdings Ltd
PPR SA
Richemont SA, Cie
Financire
Others
Total
Source:
Passport
8.8
8.6
8.6
8.7
3.3
3.1
1.5
0.1
0.1
4.6
3.1
1.5
0.2
0.1
5.1
3.1
1.6
0.3
0.2
0.1
8.3
3.3
1.6
0.4
0.2
0.1
36.7
100.0
34.1
100.0
32.4
100.0
29.8
100.0
Table 5
Distribution of Super Premium Beauty and Personal Care by Format: % Value

2008-2013
% retail value rsp
Store-Based Retailing
- Grocery Retailers
- Non-Grocery Retailers
Non-Store Retailing
Total
Source:
2008
2009
2010
2011
2012
2013
99.6
99.6
0.4
100.0
99.6
99.6
0.4
100.0
99.6
99.6
0.4
100.0
99.6
99.6
0.4
100.0
99.6
99.6
0.4
100.0
99.6
99.6
0.4
100.0
Table 6
Forecast Sales of Super Premium Beauty and Personal Care by Category:

Value 2013-2018
PHP million
Super Premium Bath and

Shower
Super Premium Colour
Cosmetics
- Super Premium Men's
Fragrances
- Super Premium Women's
Fragrances
- Super Premium Unisex
Fragrances
- Super Premium Facial
Care
Super Premium Baby and
Child-Specific Products
Super Premium Beauty
2013
2014
2015
2016
2017
2018
22.1
22.5
23.0
23.4
23.8
24.1
102.3
104.6
106.7
108.6
110.3
111.9
1,019.8
346.8
1,020.5
346.4
1,018.8
345.4
1,016.3
344.0
1,012.8
342.3
1,008.5
340.2
542.4
547.3
550.6
553.4
555.6
557.2
130.5
126.8
122.8
118.9
115.0
111.1
157.5
275.2
275.2
159.7
289.3
289.3
162.3
303.1
303.1
165.2
317.1
317.1
168.5
331.4
331.4
172.2
345.6
345.6
2.8
-
2.8
-
2.8
-
2.9
-
3.0
-
3.1
-
1,579.7
1,599.4
1,616.7
1,633.4
1,649.8
1,665.4
Passport
and Personal Care

Source:
Table 7
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Forecast Sales of Super Premium Beauty and Personal Care by Category: %

Value Growth 2013-2018
% constant value growth
Super Premium Bath and Shower

Super Premium Colour Cosmetics
- Super Premium Men's Fragrances
- Super Premium Women's Fragrances
- Super Premium Unisex Fragrances
- Super Premium Facial Care
Super Premium Baby and Child-Specific Products
Super Premium Beauty and Personal Care
Source:
2013-18 CAGR
2013/18 TOTAL
1.8
1.8
-0.2
-0.4
0.5
-3.2
1.8
4.7
4.7
1.9
1.1
9.3
9.3
-1.1
-1.9
2.7
-14.9
9.3
25.6
25.6
9.8
5.4
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

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SUPER PREMIUM BEAUTY AND

PERSONAL CARE IN THE

SUPER PREMIUM BEAUTY AND PERSONAL CARE IN THE PHILIPPINES

LIST OF CONTENTS AND TABLES

Sales of Super Premium Beauty and Personal Care by Category:

SUPER PREMIUM BEAUTY AND PERSONAL CARE IN THE PHILIPPINES

SUPER PREMIUM BEAUTY AND

SUPER PREMIUM BEAUTY AND PERSONAL CARE IN THE PHILIPPINES

SUPER PREMIUM BEAUTY AND PERSONAL CARE IN THE PHILIPPINES

SUPER PREMIUM BEAUTY AND PERSONAL CARE IN THE PHILIPPINES

Super Premium Bath and

Sales of Super Premium Beauty and Personal Care by Category: % Value

SUPER PREMIUM BEAUTY AND PERSONAL CARE IN THE PHILIPPINES

% current value growth

Super Premium Bath and Shower

NBO Company Shares of Super Premium Beauty and Personal Care: %

% retail value rsp

% retail value rsp

SUPER PREMIUM BEAUTY AND PERSONAL CARE IN THE PHILIPPINES

LVMH Mot Hennessy

Distribution of Super Premium Beauty and Personal Care by Format: % Value

% retail value rsp

Forecast Sales of Super Premium Beauty and Personal Care by Category:

Super Premium Bath and

SUPER PREMIUM BEAUTY AND PERSONAL CARE IN THE PHILIPPINES

and Personal Care

Forecast Sales of Super Premium Beauty and Personal Care by Category: %

% constant value growth

Super Premium Bath and Shower

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