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Beauty and personal care in Malaysia [e-book]

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COVID-19 IMPACT ON BEAUTY AND PERSONAL CARE
The response to COVID-19 in Malaysia is set to have a polarising effect on beauty and personal care in 2020; colour cosmetics, fragrances and sun care in particular are not deemed essential during the lockdown as most consumers remained confined to their homes apart from visiting grocery retailers, resulting in lack of demand as they are not socialising or going to work, while sun care, driven by sun protection, is set to decline due to limited opportunities to use this product, including baby and child-specific sun care as schools were closed early once the pandemic emerged.


COVID-19 COUNTRY IMPACT
As of 10 May 2020, Malaysia has seen around 110 deaths due to COVID-19 and 6,700 cases. Borders have been closed to foreigners since 17 March.


BRANDS CONTINUE TO EXPLORE USE OF NATURAL INGREDIENTS IN NEW LAUNCHES IN ADDITION TO OFFERING MULTI-PURPOSE TIME-SAVING PRODUCTS DUE TO DEMAND FOR GREATER CONVENIENCE
A number of trends were evident amongst both mass and premium beauty and personal care products in 2019 including skin care, deodorants, and oral care. Most notable was the continuing emergence of interesting and natural active ingredients including charcoal (due to its absorbing and bacterial-combating qualities), flower extracts (extremely popular with Japanese and Korean brands) in addition to healthy food ingredients such as avocado, and honey.


HIGHLY FRAGMENTED COMPETITIVE LANDSCAPE IN 2019 LED BY INTERNATIONAL BRANDS
Beauty and personal care remained a highly fragmented competitive landscape in 2019, led by major international players Procter & Gamble, L'Oréal, and Unilever, which have a long-standing presence in Malaysia and enjoy strong consumer trust in their wide product portfolios in addition to benefiting from expansive distribution networks. While mass brands continued to dominate the market due to their affordable prices and accessible distribution channels, an increasing number of premium players are launching standalone stores in an effort to offer a more exclusive and luxurious experience for affluent consumers including French brand Henry Jacques, which has now opened its own standalone store in Kuala Lumpur for its premium fragrances, Gucci Beauty which opened its first Gucci standalone store in Suria KLCC offering its colour cosmetics and fragrances and Armani Beauty (which opened in Kuala Lumpur.


POSITIVE OUTLOOK FOR BEAUTY AND PERSONAL CARE OVER THE FORECAST PERIOD, DRIVEN BY DEMAND FOR MASS PRODUCTS
Following the response to COVID-19 in 2020, a return to normalisation in purchasing behaviour is predicted from 2021 onwards for beauty and personal care in Malaysia. With the country set to reopen many non-essential businesses and retailers in the latter half of 2020, local consumers will gradually return to working and socialising outside of the home environment leading to increasing demand for a number of beauty products which were deemed surplus to requirements during the lockdown including colour cosmetics and fragrances.[by Euromonitor international]


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