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However, adapting formulas, formats and no cookie-cutter plan for Africa,” says Iman consumers,” comments Skingsley pricing to consumers’ tastes and spend is key in Cosmetics general manager and senior vice Many companies in the prestige sector appoint the region. president of brand development Desiree Reid. a master distributor based in South Africa, who “We offer products that are adapted to the works with sub-distributors in individual markets consumer in terms of their specifc [hair and Prestige’s potential on fne-tuned strategies, although controlling skin] needs, and in terms of their purchasing The market is mostly mass and that is unlikely brand image can be diffcult in this context. power. Our prices range from a few cents to to change, but increasingly, beauty players are “We go with distributors who are in these €10 […]. Small formats sell better and 40% realizing that prestige products also have their regions. We’ve learned that you have to have of the volume is in products that are less than place. “Our goal is to have Africa be second a partner on the ground who knows the 100ml,” L’Oréal head of French speaking Africa only to the US,” says Iman Cosmetics’ Reid. The market, the channels of distribution and the consumer products Christian Nyassa commented company has a broad presence in South Africa shipping requirements, and who has the correct at a press conference earlier this year. and is present via sub-distributors in several contacts,” says Reid, adding that transporting It is important for beauty players targeting other Sub-Saharan markets. “Africa defnitely products over vast distances and currency are Africa not to fall into the trap of looking at the has the potential, because we know the also issues that need to be factored in. customers are there.” Distribution drawbacks “What the potential for this customer will be is “ really unknown,” Reid continues. “This market For selective brands looking to target African markets, the main element holding them back is is up-and-coming and there are parts of it that Luxury brands have a role to play and there is an appetite are very rich, but you still have parts of it that are the lack of prestige distribution. “Luxury brands very poor. We don’t know yet what it will look have a role to play, and there is an appetite for for these products; however, like in fve or 10 years’ time,” she says. these products; however, retail is not that n n n Mainstream prestige players are also getting in retail is not yet that developed, on the market—Estée Lauder Companies has even if we are seeing new been particularly active, launching in several Sub- Africa’s highest growth beauty markets perfumeries emerging Saharan markets over the past year or so. Country 2013 growth 2014 growth “We are excited about Africa. We have a modeled % modeled % ” use as a springboard into Sub-Saharan Africa,” Mozambique +22.3 +12.2 strong platform in South Africa, which we will +21.0 Burundi +14.1 L’Oréal managing director of Africa and ELC group president international Cédric Prouvé the Middle East Geoff Skingsley told BW Confdential late last year. “Nigeria Zimbabwe +17.6 +14.9 is the big market there; we are in Kenya and continent as a homogenous entity, as consumer Botswana, and will soon be going to Zambia. It Zambia +17.6 +14.9 habits and tastes vary from country to country. is an undeveloped market and there is a lot of Madagascar +17.1 +14.0 In make-up, for example, stronger looks are aspiration for brands. MAC and Clinique will be Angola +16.5 +16.1 favored in Nigeria, while more natural tones are our main brands for this region.” popular in countries like Kenya. Haircare brands L’Oréal, too, is looking at the potential of its Uganda +16.3 +15.9 are also seeing a boom in demand for natural luxury brands in the market, but with certain Malawi +16.2 +16.3 products in certain countries, as consumers product tweaks. “For our international brands, Tanzania +16.1 +16.4 move away from chemical treatments and we are looking at formulas and formats such as increasingly choose to enhance their natural hair. smaller sizes that are more accessible for these Source: Euromonitor International; Beauty and personal care, retail sales Adapting products to consumers’ skin and hair is just one part of the equation. ELC-owned MAC resonates with consumers in Africa, not Africa’s biggest beauty markets only because it has adapted its product offer, but Country 2013 sales % change Projected 2014 Projected 2014 also because of its Viva Glam AIDS fund and its $bn 2013/2012 sales $bn growth % association with the music and entertainment industries, say industry sources. South Africa 3.7 +12.0 4.0 +8.1 It is not only consumer tastes that vary between countries. Logistics, distribution and Nigeria 2.2 +10.0 2.5 +13.6 political climate can also be very different in each Egypt 0.9 +12.5 1.0 +11.0 market, although the arrival of trade blocs is Morocco 0.7 0.0 0.8 +1.0 making business between countries easier. “Each country is very different. It requires going Algeria 0.5 0.0 0.6 +20.0 in, scouting the market, understanding who the Kenya 0.5 0.0 0.5 0.0 players are and where you should be; there’s Source: Euromonitor International; Beauty and personal care, retail sales September-October 2014 - N°19 - BW Confidential 51