Consumers around the world like a good bargain, but in Southeast Asia and particularly in the Philippines, companies are entering price wars to win customers and gain loyalty. As beauty and personal care in The Philippines is expected to increase by 3% CAGR in the next five years, the sector is preparing to capture the advances in disposable income through campaigns promoting a comfortable and better lifestyle.
Social media has not only provided a channel for brands to reach a younger audience but has also increased the sophistication of beauty product buyers as they are exposed to global trends and products advertised on Instagram and Facebook content.
The influence of global brands have an advantage here as their established names are very much highly regarded by locals as they are correlated with a more upscale look and feel in developing economies.
For beauty brands looking to build a bridge to millennials, digital integration is not only recommended but necessary.
In 2016, the rise of e-retailers such as Sephora online, Zalora, GlamourBox and BeautyBar Philippines encouraged major brands to jump online. An example is Avon Cosmetics’ change in distribution after launching on Zalora last year; the company previously sold only direct to consumer (MLM) exclusively through offline sales representatives.
Brands are also selling on beauty specific marketplaces such as GlamourBox and taking a lesser approach to their own branded site in The Philippines. The ability to buy makeup from multiple retailers is nurturing ecommerce behavior in the country.
Imagine is a shopper lands on MAC cosmetics Philippines website – it isn’t equipped for ecommerce, merely a catalogue – and how frustrated they will feel when they learn that ordering online isn’t possible.
As price consciousness in the Philippines is still a major factor in any type of purchasing, Euromonitor notes that global brands can leverage their own web stores to implement an installment payment scheme as it attracts consumers who refrain from buying at offline store retailers because they automatically need to pay for the items in full.