The cosmetics industry in the Middle-East

                      

The demand of luxury goods is growing in the Middle-East, thanks to economic growth, high incomes and migration of foreign professionals.

The demand of fragrance accelerated up to 6% in 2012. The growth of luxury brand consumption encouraged the lunch of products such as Burberry Body Crystal Baccarat Limited Edition, sold at the price of 3.850 $. The demand of Oriental fragrances rose too, mainly due to the demand of male customers. 

Male consumer buy fragrances,but even other cosmetics products and this is leading to changes in the marketing strategies of companies operating in the Middle-East. Investments in advertising accelerated (the growth is up yo 6% only for TV advertisement) and billboard describing cosmetics products for men appeared in malls and cities. Chains of cosmetics stores, such as Sephora or Paris Gallery, are offering samples to boast the demand of sets&kits.

Western companies are now trying to expand themselves in this market and have understood the importance of adapting products to meet local preferences. L'Oréal opened a filial in Saudi Arabia to monitor the market and study need and taste of consumers, while other companies started to develop fragrances with oriental element (such as jasmine).

Cosmetics companies are trying to achieve a great opportunity. The CAGR (Gulf Cooperation Council) market will grow with a rate of about 5%, between 2011 and 2016, but the rate for the same spam of time in the global market is only 2,8%.

(Kosmetica, 01/02/2013)