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Beauty and Personal Care in Australia

Australia beauty and personal care market: Procter & Gamble Australia Pty continues to represent the market leader

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2014-04-17 02:45:02 - Beauty and Personal Care in Australia - a new market research report on

Procter & Gamble and L´Oreal continue to represent market leaders in the Australian beauty and personal care market. Procter & Gamble Australia Pty continue to lead the Australian market in terms of revenue share and the company´s Olay brand has successfully extended its product range with its Deep Cleansing range. In addition, Procter & Gamble Australia Pty has also extended its co-branded offering with CoverGirl through the introduction of a range of cosmetics incorporating anti-ageig benefits. Likewise, L´Oreal´s Garnier extende its successful 2011 launch of BB cream with an oil-free offering in 2012. Revitalift and Nude Magique with self-adjusting colour technology were also launched as part of L´Oreal´s anti-ageing BB Cream range.

Economic growth brings moderate value growth in 2012. Beauty



and personal care in Australia recorded moderate value growth in 2012. Unit price declines in fragrances and oral care were particularly pronounced, as price competition intensified especially amongst grocery retailers. Consumers were able to access lower prices from internet retailers, and the strong Australian dollar encouraged a flood of parallel imports across store and non-store retail channels.

Manufacturers target cross category benefits. Manufacturers are looking at opportunities to extend their existing products into neighbouring categories in order to attain growth. Product propositions often converge with those in high-growth areas, effectively enabling products to be marketed with key features such as time-saving, mini luxuries, instant gratification and long-lasting. By "borrowing" product attributes from adjacent categories, manufacturers aim to achieve wider consumer appeal through more holistic features, cross-category benefits, multi-functionality and value-driven price points.

Supermarkets foster higher discount expectations. Supermarkets invested heavily in beauty and personal care, refurbishing their beauty and personal care aisles and publishing in-house beauty care magazines to engage consumers, create greater relevance and promote specific offerings. The so-called price war between Woolworths and Coles also instilled a greater expectation for discounts among Australians, as the duopoly continued to roll out ever more creative discount schemes. Meanwhile, discount chemists/pharmacies such as Chemist Warehouse and discount salon retailers such as Hairhouse Warehouse continue to grow nationally on a proposition of price discounts. Internet retailers are perhaps having the largest impact on consumer expectations of pricing, with lower cost bases, access to parallel importing and tax loopholes providing them with a competitive edge over traditional retailers.

Growth to be fuelled by manufacturer innovation and marketing. An ageing population and an increasing demand for health and wellness among consumers will power positive value growth over the forecast period. Ageing baby boomers will have more discretionary income to spend on products which promise anti-ageing and rejuvenating benefits. In addition, in line with the demand for healthier lifestyles, Australians will be attracted to products that promise to enhance the self. The Australian market is relatively mature and many products already enjoy a high degree of household penetration. Moving consumers up the price scale where possible, backed by stronger marketing and development of value-added products will remain a key strategy to drive value growth.

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