netrashetty
Netra Shetty
apata Corporation (NYSE: ZAP) is a holding company based in Rochester, New York and originating from an oil company started by a group including the former United States president George H. W. Bush. Various writers have alleged links between the company and the United States Central Intelligence Agency.
Market Demand
South Africa has a population of approximately 44 million people of which the adult population is over 29 million, 14.7 million are adult females and 14.04 million are adult males. Consumer demand for cosmetics and toiletry products has created a robust local industry and manufactures are emphasizing more and more products specifically geared for local skin and hair types. The industry is set to grow continuously for the next five years particularly in the following market segments: cosmetics, sun care products, hair care and treatment products (particularly hair pieces and wigs) and specialized facial creams for the ethnic skin/hair market. According to industry sources, there are over 15 million potential consumers in the ethnic hair (maintenance) market alone.
There continues to be a growing interest in international brands, but for the most part, imported products remain unaffordable for most South Africans. Consequently, price rather than brand loyalty is still the biggest deciding factor among lower income consumers. There is therefore a demand for cost-effective but quality products. New entrants (especially those not known to local consumers) are usually most successful with a significant advertising budget, adequate sales promotions and strategic pricing to ensure successful market entry.
Cosmetic, toiletries and fragrances imported into South Africa cater primarily for the local market, but Increasingly, cosmetic companies are expanding their business to the greater SADC (Southern African Development Community) region. The SADC is comprised of Angola, Botswana, Lesotho, Namibia, Mozambique, Malawi, Mauritius, Democratic Republic of Congo, Tanzania, Swaziland, Seychelles and Zimbabwe .The SADC has a population of over 180 million people and countries such as Zambia (5.3 percent) and Angola (16.3 percent) are showing rapid GDP growth.
Market Data
The United States currently faces a cosmetic and toiletry trade deficit with South Africa. Cosmetic imports from the United States grew by almost 15 percent for the period 2006-2007, while South African exports to the United States for the same period increased by 47 percent. According to the South African Department of Customs, the United Kingdom is the largest exporter of cosmetics and toiletries to South Africa (in value terms), followed by Germany, France and the United States. Imports are growing from the East also.
Best Prospects
Listed below are some of the products presenting best prospects for the country:
Anti-aging beauty products
Hair color and maintenance (after care) products for ethnic hair
Hair care maintenance products for hair pieces (wigs)
Ethnic skin care products
Spa products
Spa products are mentioned since the South African Spa and Beauty Salon industries have experienced a one thousand four hundred percent growth rate over the past two years, with more than 140 spa venues presently in operation (from the original ten spas a few years ago) countrywide, offering half-day, full-day and evening spa facilities to consumers. These locations offer luxury treatment options to middle and high-income consumers, and specially to corporations who offer incentive packages to their employees.
Key Suppliers
The principle U.S. and international cosmetic brands available to the South African market include:
L’Oreal
Colgate-Palmolive
Estee Lauder
Revlon
Reckitt Benckiser
Wella
Ladine
Unilever
Maybelline
Sally Hansen
Clinique
Max Factor
Elizabeth Arden
Avon
Gatineau
High-profile local cosmetic manufacturers include Dermaxime, specializing in anti-aging treatments and SDK Agencies, a contract color cosmetics manufacturer. Direct selling has become popular in South Africa in the last decade. The following cosmetic Houses who sell directly through beauty consultants and agents offer a full spectrum of beauty and personal care products: Annique, Environ, Avroy Shlain, Nimue, and Virgin Cosmetics (recently launched in South Africa).
Prospective Buyers
Prospective buyers for large volumes of cosmetics, toiletries, and fragrances include major retail chain stores, department stores, pharmacy chain stores and wholesalers - who in turn sell to smaller retail stores. The spa industry buyers seek exclusive - often organic-products, frequently customized for that specific industry.
Examples of cosmetic product pricing in South Africa
Cosmetic product Brand name Volume Market Price
Foundation creams Yardley Super Star 30 ml R70 ($10)
Lip make up Dior Rouge 15ml – 1 stick R225 ($32)
Eye make up Clarins Color Quartet 1 compact - 4 shades 3.4g R335 ($48)
Anti-aging facial cream ROC Retin-Ox 50ml R350 ($50)
Nail preparations Girl2Go French manicure 2 bottles - 10ml each R35 ($5 )
Hair color L’Oreal Velvet Browns developer 72ml, color 48ml R80 ($11)
Hair relaxes L’Oreal Soft & Sheen 450ml R60 ($8.50)
Salon quality shampoo SAMY Salon Systems 75ml R49 ($7)
Self tan suntan lotion Rimmel Sun Shimmer 50ml R80 ($11)
Female fragrances Jean Paul Gaultier Summer 100ml R495 ($70)
Male Fragrances Hugo Boss 100ml R480 ($68)
Market Entry
For international companies to enter the South African cosmetics and toiletry market it is imperative to find a local representative, distributor or agent. South African industry is extremely brand and supplier loyal, and the quickest road to success in the market is teaming up with a well established, and widely networked local partner.
The U.S. Commercial Service in South Africa offers a number of services enabling U.S. firms to achieve their goals in the Southern African market. For more information on U.S. Commercial Service products and services, contact [email protected].
Market Demand
South Africa has a population of approximately 44 million people of which the adult population is over 29 million, 14.7 million are adult females and 14.04 million are adult males. Consumer demand for cosmetics and toiletry products has created a robust local industry and manufactures are emphasizing more and more products specifically geared for local skin and hair types. The industry is set to grow continuously for the next five years particularly in the following market segments: cosmetics, sun care products, hair care and treatment products (particularly hair pieces and wigs) and specialized facial creams for the ethnic skin/hair market. According to industry sources, there are over 15 million potential consumers in the ethnic hair (maintenance) market alone.
There continues to be a growing interest in international brands, but for the most part, imported products remain unaffordable for most South Africans. Consequently, price rather than brand loyalty is still the biggest deciding factor among lower income consumers. There is therefore a demand for cost-effective but quality products. New entrants (especially those not known to local consumers) are usually most successful with a significant advertising budget, adequate sales promotions and strategic pricing to ensure successful market entry.
Cosmetic, toiletries and fragrances imported into South Africa cater primarily for the local market, but Increasingly, cosmetic companies are expanding their business to the greater SADC (Southern African Development Community) region. The SADC is comprised of Angola, Botswana, Lesotho, Namibia, Mozambique, Malawi, Mauritius, Democratic Republic of Congo, Tanzania, Swaziland, Seychelles and Zimbabwe .The SADC has a population of over 180 million people and countries such as Zambia (5.3 percent) and Angola (16.3 percent) are showing rapid GDP growth.
Market Data
The United States currently faces a cosmetic and toiletry trade deficit with South Africa. Cosmetic imports from the United States grew by almost 15 percent for the period 2006-2007, while South African exports to the United States for the same period increased by 47 percent. According to the South African Department of Customs, the United Kingdom is the largest exporter of cosmetics and toiletries to South Africa (in value terms), followed by Germany, France and the United States. Imports are growing from the East also.
Best Prospects
Listed below are some of the products presenting best prospects for the country:
Anti-aging beauty products
Hair color and maintenance (after care) products for ethnic hair
Hair care maintenance products for hair pieces (wigs)
Ethnic skin care products
Spa products
Spa products are mentioned since the South African Spa and Beauty Salon industries have experienced a one thousand four hundred percent growth rate over the past two years, with more than 140 spa venues presently in operation (from the original ten spas a few years ago) countrywide, offering half-day, full-day and evening spa facilities to consumers. These locations offer luxury treatment options to middle and high-income consumers, and specially to corporations who offer incentive packages to their employees.
Key Suppliers
The principle U.S. and international cosmetic brands available to the South African market include:
L’Oreal
Colgate-Palmolive
Estee Lauder
Revlon
Reckitt Benckiser
Wella
Ladine
Unilever
Maybelline
Sally Hansen
Clinique
Max Factor
Elizabeth Arden
Avon
Gatineau
High-profile local cosmetic manufacturers include Dermaxime, specializing in anti-aging treatments and SDK Agencies, a contract color cosmetics manufacturer. Direct selling has become popular in South Africa in the last decade. The following cosmetic Houses who sell directly through beauty consultants and agents offer a full spectrum of beauty and personal care products: Annique, Environ, Avroy Shlain, Nimue, and Virgin Cosmetics (recently launched in South Africa).
Prospective Buyers
Prospective buyers for large volumes of cosmetics, toiletries, and fragrances include major retail chain stores, department stores, pharmacy chain stores and wholesalers - who in turn sell to smaller retail stores. The spa industry buyers seek exclusive - often organic-products, frequently customized for that specific industry.
Examples of cosmetic product pricing in South Africa
Cosmetic product Brand name Volume Market Price
Foundation creams Yardley Super Star 30 ml R70 ($10)
Lip make up Dior Rouge 15ml – 1 stick R225 ($32)
Eye make up Clarins Color Quartet 1 compact - 4 shades 3.4g R335 ($48)
Anti-aging facial cream ROC Retin-Ox 50ml R350 ($50)
Nail preparations Girl2Go French manicure 2 bottles - 10ml each R35 ($5 )
Hair color L’Oreal Velvet Browns developer 72ml, color 48ml R80 ($11)
Hair relaxes L’Oreal Soft & Sheen 450ml R60 ($8.50)
Salon quality shampoo SAMY Salon Systems 75ml R49 ($7)
Self tan suntan lotion Rimmel Sun Shimmer 50ml R80 ($11)
Female fragrances Jean Paul Gaultier Summer 100ml R495 ($70)
Male Fragrances Hugo Boss 100ml R480 ($68)
Market Entry
For international companies to enter the South African cosmetics and toiletry market it is imperative to find a local representative, distributor or agent. South African industry is extremely brand and supplier loyal, and the quickest road to success in the market is teaming up with a well established, and widely networked local partner.
The U.S. Commercial Service in South Africa offers a number of services enabling U.S. firms to achieve their goals in the Southern African market. For more information on U.S. Commercial Service products and services, contact [email protected].
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