July 21-27, 2008 Myanmar's first international weekly © Volume 22, No. 428
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Cosmetics distributors see a bright future in Myanmar

By Juliet Shwe Gaung and Kyaw Zin Htun
The market for beauty products has grown significantly in the last decade but distributors expect further growth.
Pic: Lwin Maung Maung

THE local market for cosmetics will continue to grow because of increasing customer awareness and high demand for the latest products, according to cosmetics distributors in Myanmar.

The market has grown markedly in the last decade, says Ma Cho Thet Nwe, the product manager of Revlon’s sole Myanmar distributor, and many more global brands are now distributing their products locally. This has been driven by a change in customer demands, she adds.

“Shampoo and cosmetics were the two most popular product categories for Revlon when we began distributing here in 1996. At that time there was no market for skin care, only for cosmetics,” Ma Cho Thet Nwe, product manager of New Link Marketing Ltd, said.

Ma Cho Thet Nwe says of the five categories of beauty products – cosmetics, skin care, hair care, hair colour and personal care – the demand for cosmetics, skin care and hair colour are high, while hair care and personal care are still yet to take off here.

“There is still weak demand for personal care products in Myanmar but cosmetics are more widely used now among Myanmar women,” said Ma Cho Thet Nwe, adding that demand is highest for beauty products like lipstick, face powder and foundation.

With hundreds of stockists nationally, Revlon is now the leading brand for lip and facial products in the local cosmetic market.

“Foundation and lipstick are Revlon’s best-selling products and people are now often choosing ‘age-defying’ make-up and lipsticks that contains moisturiser. There is a greater awareness of the dangers of sun exposure and more women are now checking what the sun protection factor of the make-up is,” she said.

To develop the market further, Revlon makes its products more affordable in Myanmar – compared to other Asian countries – and most are priced between K15,000 and K25,000

“The product prices are 10 to 15 percent less than the price sold in Singapore,” said Ma Cho Thet Nwe.

But she says many products take sometime to hit our shelves. It is possible for Myanmar to receive newly-released products at the same time as developed markets but this is dependent on market demand. Accordingly, we often receive products months after they are released.

“The latest products sometimes go straight to Myanmar but it depends on the market demand. During Thingyan Water Festival there is high market demand and many of the latest products are imported at that time, maybe six months after they first hit the global market,” said Ma Cho Thet Nwe, adding that new Revlon products usually take about two months to reach Myanmar from the production plant in Asia.

This means there are also different products available in Yangon and Mandalay, where the weather and lifestyle dictate customer demand. As the market trend of whether to bring in the latest products of Revlon varies depending on the demand, the difference is also on Yangon and Mandalay.
“Demand in Mandalay is more on mattes. This is because many people are travelling by motorbike and they prefer matt rather than gloss, lip gloss is not popular.

Decleor is another well-known brand in the local market. The company began life in Paris about 40 years ago and has been distributing their products in Myanmar in 1997. Francois-Xavier Laude, the company’s Asia Pacific regional manager, says the company is making a concerted effort to expand the local market for their products by letting customers try products they may never have used before.

Decleor also emphasises the need for giving customers professional advice on their cosmetic needs as well as ensuring their products are price positioned suitably for the Myanmar market.

“It’s true that Decleor is not a mass-market brand and you definitely cannot find our products everywhere. But we feel we provide very good prescription from professional people,” Mr Laude told The Myanmar Times.

He says the company is confident that its sales will increase about 20 percent in 2008 on last year.

“We understand very well of the customer’s needs and their expectations. We work with [Myanmar] people who understand very well the nature of the market,” said Mr Laude.

 
         
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