Vast opportunities abound for investors in the budding local make-up industry with the annual value put at $1.6million according to a research by CIUCI Consulting, a Nigerian research firm.
With a total female population of 86. 9 million, 60 percent of whom are active make-up users, who spend an average of N10, 000 a year on make-up, the market grosses annual revenue of N258, 904, 734.
According to the report, the global beauty industry generated $35 billion in 2010 having recorded a yearly growth in excess of four percent for four preceeding years.
The world beauty market in make-up includes face, eye, nail and lip make-ups. The beauty and cosmetics industry is divided into skin care, hair care, make up, fragrance and others.
Skincare had a market share of 33 and 34 percent in 2011 and 2012 respectively, while hair care had 25 and 24 percent in 2011 and 2012. Make up had a market share of 17 and 16 percent in 2011 and 2012 while fragrances had a market share of 17 and 13 percent in 2011 and 2012 respectively.
Face cosmetics is the leading segment of the market, with over $12 billion in sales revenue in 2010 accounting for 35 percent of the overall market value. However, market growth is expected to remain the same until 2015 when it will be valued at $42 billion.
The beauty industry in Middle East and Africa was estimated at $20.4 billion in 2011.
South Africa, Nigeria and Kenya are top three countries with the highest demand for makeup products. The market for face makeup is said to have grown by 35 percent between 2009 and 2014.
The advent of the internet is said by analysts to have contributed to this growth, as makeup companies now sell their products online, affording consumers in countries where they don’t have representatives the opportunity to buy their products.
“As technology and internet penetration advances,” states the report, “the beauty and cosmetic industry continues to adapt new strategies to interact with consumers in a more experiential way. This is happening through social media interaction sites such as Twitter, Facebook and blog websites, online makeup tutorials and smartphone applications.
Hence both local and foreign make up brands are utilising online advertising and e-commerce as most of their target consumers are users of internet.
“I used to shop for my makeup online,” said Bukola Olukoya, a consumer. “But with indigenous brands like Tara, I don’t buy foreign ones anymore. I particularly fancy Tara’s lip gloss and lip pencil. The shine lasts longer than others I have tried.”
Globally, makeup brands like L’oreal, Estee Lauder, MAC, Sephora are dominant players in the market. However, these international brands are creating stand alone stores, in order to break into the market for premium products.
For instance, Estee Lauder and its rival L’Oreal have realised that the answer to success in the global makeup industry is in offering a variety of products to meet the needs of different consumers.
In Nigeria, the local make up industry has evolved with the likes of Bicu Cosmetics leading the industry in the 1990s. However, more than ten years ago, House of Tara owned by Tara Fela-Durotoye sparked a revolution that reverberated in different corners of the country with the makeup brands.
Indigenous makeup brands like Tara, BM Pro, Zaron, LISE, Arike and others are creating interesting makeup lines which are now competing with foreign brands.
The demand for local brands is increasing almost on a daily basis, Tara Fela-Durotoye said. According to her, indigenous make up brands like hers are changing the game of how make up is used and they are offering distribution platforms for foreign brands. Recently, Tara opened her 14th store in Lagos.
“International make up brands that are opening stand alone stores in the country are consulting us to distribute their products for them through our platform. When international brands come to Nigeria they will request for makeup artists. Where will they get them from? From those whom we have trained, of course. They will call me to say: ‘I am bringing Mac to Nigeria. On the day of the Mac launch, I was there. And the partnership is not just giving them makeup artists. I know the role that House of Tara plays in that,” she explained.
According Banke Meshida-Lawal, CEO, who started her BMPro line in 2002, some consumers have accepted her range of products. “Some people have accepted BMPro but I believe it can be better. We are working towards extending our reach within Nigeria and outside the country. We currently have three stores and we are planning on opening more soon,” she said.
FUNKE OSAE-BROWN
