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Kenya: country analysis Market watch: Africa Waiting for growth Sub-Saharan Africa’s third-largest market, was fat last year. But there may be opportunities for those prepared to make a long-term investment by Alex Wynne espite being the third-largest beauty “The growing middle class—my target Dmarket in Sub-Saharan Africa, Kenya market—is very aspirational,” says Suzie has not seen the same growth levels as Wokabi, founder of homegrown make-up its neighbors in recent years. According brand Suzie Beauty. “The consumer is also to Euromonitor International, the very aware of trends going on worldwide country’s health and beauty and wants to keep up. Her disposable market was fat in 2013, income allows her to be able to do so.” and is not expected to return to growth Preparing the future this year. While the Import duties on cosmetics were reduced country’s low GDP from 10% to 5% in 2009, in a government growth and per bid to boost the beauty industry, and there capita spending has been an infux of investment since. on beauty make Many international beauty companies, it perhaps less particularly in the mass segment, have appealing than set up headquarters for East Africa in the other markets country, preparing the ground for future in the region, it growth. This trend is likely to continue, nevertheless has thanks to Kenya’s situation as a strong plenty of potential. regional hub with good connections via “Challenges are the port city of Mombasa, and its stable many, as duties political climate. on luxury products According to data from local market- are high and rents for research frm Consumer Insight, Nivea spaces in malls are quite is Kenya’s most popular skincare brand, expensive,” says Nadia while Nice and Lovely (L’Oréal) leads in Osman, founder of perfumery haircare. Local brand Luron is also popular. chain The Fragrance Lounge. “On the According to Osman, the most popular other hand, there are many opportunities fragrance brands in Kenya are currently credit: istock and the Kenyan market for beauty still Chanel, Lancôme, Escada, Paco Rabanne has yet to be exploited,” she continued, and Hugo Boss. pointing out the increasing number of Kenyan consumers are reported to be younger consumers with high spending especially brand loyal, and prefer natural power in the country. looks to more outgoing styles when it A recent survey for Visa International comes to make-up and, increasingly, in found that Kenyan women spend 6% of haircare. Products containing natural their income on personal care, and the extracts like almond oil and shea butter are country has a booming beauty treatment on the rise, according to Euromonitor. culture, with many independent salons. In April last year, L’Oréal announced it 62 September-October 2014 - N°19 - BW Confidential