We at KResearch forecast that Bangkok residents, especially those with income below THB20,000/month, will spend less on cosmetics in 2017, due mainly to the high cost of living and hefty household debt. However, those with income over THB20,000/month will likely spend at nearly the same levels as they did in 2016. Our poll also shows that the levels of spending on cosmetics by people here tend to rise with increased income.
2017 Cosmetic Spending by Bangkok Residents
Consumers with monthly income lower than THB20,000 to spend THB23.22 billion (-12.6% YoY)
Consumers with monthly income greater than THB20,000 to spend THB10.08 billion (0.0% YoY)
The respondents overall seem to attach some importance to cosmetics, as reflected in our survey showing that 70.5 percent of the respondents will continue to purchase cosmetics despite the sluggish economy, though they may have to moderate their spending behavior, e.g., economizing on travel and/or entertainment (cinemas/music), or even cutting such expenses altogether, if needed. The cosmetics sought by such respondents will preferably be at discount stores because they are cheaper there, or have lower brand positioning than products bought before. One interesting finding from our poll is that retail beauty product stores have been able to market their cosmetic products very well to teenagers and careerists via a wide range of innovative and trending products.
In 2017, the cosmetic market may face some headwinds, e.g., eroding consumer purchasing power and intense competition. Therefore, producers and retailers will likely need to seek new market opportunities to bolster their sales over rivals. Aside from using pricing as a means to ensure that their cosmetic buyers receive the best value for money, they may need to expand their media channels into online/social media, because these portals have become increasingly more important to consumers. Businesses may also seek to create a more satisfying experience for consumers via the introduction of natural or organic products that are now popular with younger consumers; these often feature DIY, or unique packaging, as well as other innovations and ingredients, to attract retail buyers.
Enter the code from the poll