Global TGI

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Beauty and the BRICs
Thanks to continuous economic growth and increasing spending power of the population, BRIC countries (Brazil, Russia, India and China) have become important players in the beauty and personal care1 industry. Accounting for over 20% of the markets world value, they are one of the strongest drivers of its growth and slowly they are also becoming global trend setters. Products like BB creams, which originated from Asia, but managed to conquer developed markets, are a good example.
This trend is bound to last as, despite a temporary slowdown, the BRICs will continue to develop thanks to events like the 2014 World Cup and the 2016 Olympics in Brazil or the 2014 Winter Olympics in Russia. Therefore let us have a closer look at the beauty and personal care market in these countries and try to understand their dynamics by focusing on women aged 18-552.
continued > > > Author: TGI France Brand Owners Team
1 Source: BRIC: Continued Domination of Global Beauty Sales by Carrie Lennard, Euromonitor International Jul 2011

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2 Source : TGI Russia, Brazil, China and India 2011 data bases

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3 Source: Euromonitor International

Body cult in Brazil

Out of the four BRIC markets, Brazil can boast of the strongest growth of beauty and personal care3 in the last couple of years. Amongst the most popular segments with high penetration levels there are: hair care (hair conditioners in particular), nail polish and varnish, body care and fragrances purchased by over 80% of women and girls aged 18-55 years old. While hair care products are over-performing amongst older women, makeup shows more affinity with the younger target. The strong development of the beauty segment in Brazil can be explained by the importance of being attractive to the opposite sex which seems to be a particularly relevant lifestyle statement for Brazilian women compared to other BRICs. Over half of them also claim spending a lot of money on toiletries and cosmetics for personal use. The way their body looks is extremely important to Brazilian women as 40.5% agree to desire to have surgery to improve their appearance compared with only 5.2% of Europeans who are considering this solution.

Figure 1: Comparative attitudes towards beauty in BRICs countries

Base: Females aged 18-55 Source: Global TGI

The importance of looking young in Russia

The recent recession has had a relatively strong impact on the beauty and personal care market within Russia and it is expected to grow at a slower pace than the other BRICs. Fragrance seems to be least affected and keeps recruiting new buyers especially amongst the lower social classes. Even when purchasing a luxury product like perfume Russian women pay attention to price, which comes up as the second most important purchase driver after aroma. In terms of buyers reach, makeup is the most penetrated beauty segment used by almost 9 out of 10 women. The eye makeup segment stands out in Russia with 69.4% penetration, far above the other BRICs. Like in Brazil, some makeup segments show a strong affinity with younger women, in particular blusher, face powder and nail polish. Russian women manifest a strong interest in keeping a young look (it is essential for over 72% of them), and over half of them also appreciate the importance of being attractive to the opposite sex.
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India
In India most beauty and personal care segments still have relatively low penetration levels compared to other BRICs, indicating huge future growth potential as the population evolves and a middle social class emerges. Like in China, skin whitening products prove popular reaching 68% of Indian women. The most mature and highly penetrated segment is makeup used by 83% of women aged 18-55 years old. Within makeup, nail polish/varnish and lipsticks are the biggest segments used by 70% and 59% of women respectively. Unlike in the other BRICs, Makeup products in India are equally used by all age groups, including older women. Indian females declare trying to keep up with the latest fashion trends (51%) and being influenced by celebrities in their purchase decisions (49%). On the other hand it seems that they are much less concerned by keeping a young look than the other nationalities.

Figure 2: BRICs beauty markets penetration comparison

Base: Females aged 18-55 Source: Global TGI

Immaculate skin is most valued by Chinese women

In China skin care remains the most important segment of beauty, purchased by over 90% of Chinese women. Between 2009 and 2011 it continued to gain new users and the strongest recruitment took place amongst the lower social classes. Skin whitening care was one of the fastest recruiting segments, now used by 39 % of Chinese women, an increase of 10% since 20094. Its penetration increased across all social classes. Anti-wrinkle is another fast growing segment, seeing its penetration double between 2009 and 2011. With the gradual ageing of the population, the anti-wrinkle segment is likely to grow even further, as seven out of ten Chinese women think it is important to keep young looking. Compared to Brazil, they are also more likely to be influenced by celebrities in their purchase decisions. On the other hand Chinese women seem to be less interested in seduction, as only one in three claims that being attractive to the opposite sex is important. Interestingly, we see a big generation gap between younger women aged up to 35 years old and those over 35. It seems that some beauty products are very popular amongst younger generations, but are struggling to get into the older groups repertoire. This is the case with skin cleansers, hair conditioners, perfume and makeup products. As some habits remain unchanged when consumers grow older, we can therefore expect the penetration of these segments to grow considerably in the next few years.
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4 Regular use at least twice a week. Please note that in 2009 we asked about use in the past 6 months, while in 2011 we asked about use in the past 3 months.

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Identifying growth opportunities

Makeup is the most developed segment of beauty and personal care in BRIC countries reaching over 80% of women. China is an exception with only one in three women using makeup products. Russia and Brazil have reached high penetration in most segments, while India and China still have great development potential as the emerging middle classes grow. In terms of high potential segments, hair care and styling are still likely to deliver strong growth in each BRIC market by recruiting new buyers. As each of the BRIC countries is very unique with a different cultural background and mentality, it is crucial to communicate with women of each country using the right message. Indian women seem to be more easily influenced by celebrities, while for Brazilians it is more important to emphasize the attractiveness to the opposite sex. Chinese and Russian women on the other hand are more likely to respond to a claim that refers to looking young.

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