Market Assessment for Premium Cosmetic Products in UAE

  • Premium skin care represents ~20% of the skin care market in UAE. Masstige, prestige and ultra-prestige premium segments are defined by price, availability, customer service and marketing. Prestige is the largest subsegment of premium skincare. Premium skin care has grown 0.4 annually and expected to remain stable through 2025. Masstige segment showing the strongest growth
  • Facial care products — especially anti-aging, moisturizer, cleanser, toner, and acne treatment is the major segment in premium skincare market. Body care products such as general-purpose body care products are the second largest category in premium segment
  • Premium skincare market is dominated by U.S., French, and Swiss beauty brands such as Estee Lauder, Loreal, La Prairie, La Mer, etc. Local beauty products such as Huda Beauty are also witnessing increasing interest among consumers
  • Grocery retail and departmental stores are the main sales channel for premium skincare retail. Health and beauty specialist stores such as Sephora, and Bloomingdale is growing faster. Pharmacies are main sales channel for prescription-based skincare products
  • Emiratis, Arabs, and Westerners of age group 30+ years are primary customer segment for anti-aging products, while moisturizer, toners and cleansers can be targeted to age group 18+ years

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Table of Content:

Macroeconomic Framework

  • Macroeconomic Framework in UAE Market in Terms of Population, Population by Age Group, Income Group and Emirates
  • GDP and Personal Disposable Income, Spending on Luxury Goods in India, Spending on Personal Care

Market Assessment

  • Market Assessment in Terms of Revenues for Gel, Body Oils, Facial Moisturizer, Lotions and others during the period 2012–2022
  • Demand Assessment for Gel, Body Oils, Facial Moisturizer, Lotions and other categories
  • Market Classification for Sales Channel and Relevant Price and Costs
  • Target Customers in Terms of Different Customer Cohorts and their Preferences for Italian Lotion and other Products
  • Price Preferences and Customer Willingness to pay for Lotions and other products as mentioned above

Field Research and Spot Checks

  • 10–15 Pharmacies and Specialized Stores Visit to understand their Interest in Selling these Products, Major Brands Preferred by Customers, Brand Recall and Strategies used by Client to Market their Products

Competition Framework

  • Competition Framework for 3–4 Major Players into Lotion/Gel/Facial Moisturizer/Body Oils and others. Cover parameters such as Company Overview, USP, Best Selling Product, Price, Target Customers, Channels through which Product are Sold, Margins, Product Portfolio Revenues

Industry Analysis

  • Legal compliance including listing of products with ministry of health and the cost
  • Current Market Trends
  • SWOT Analysis
  • Financial Feasibility In terms of Price Testing, Volume and any Specific Costs or Revenues Associated

Strategic Recommendations

  • Preferred Price Points and Suggested Target Customers with Different Customer Cohorts
  • Marketing Strategies and Sales Plan for the above Discussed Products
  • Potential Risk Factors and Strategies to Beat other Competitors in Market

Section 1 — Review of Retail Competition in Riyadh

  • Snapshot of Riyadh Mall based retail market overview with a relevance to these locations
  • Population in the trade area and its growth
  • Existing Centers (analysis of 3–4 shopping malls that can be defined as competitors in the trade area)
  • Positioning of the current mall supply in the vicinity
  • Identification of retail gaps in trade area
  • To plot and profile key retail facilities located within Riyadh

Section 2 — Population Analysis & Trade Area Analysis

  • Site location maps and existing surrounding land uses
  • Accessibility and visibility; proximity to relevant demand generators
  • Accessibility maps; site characteristics
  • To review and comment on the composition of Riyadh’s population and provide socio economic and demographic indicators (gender / age / nationality / etc.)
  • To define Riyadh population annual actual and forecast growth from 2021 to 2027
  • To distribute Riyadh population by density / wealth / zone and generate heat mapping illustrations
  • To delineate the catchment areas of the site into Primary & Secondary Catchment Area and to estimate the Retail Potential for the same.

Section 3 — Consumer Research Analysis

  • To define and estimate average retail expenditure per household / per capita / total city
  • To define and estimate average disposable income per household / per capita
  • To forecast annual growth rates for retail spending and disposable income 2021 to 2027
  • Age/ gender/ nationality/ income level/ family size/ size of party visiting
  • How often visit — for what (shopping/ eating out/ entertainment), when (weekday/ weekend), with whom?
  • How much does a shopper spend; Which mall they tend to shop in
  • How do they go to the shopping mall (walking, taxi, private car etc.); Satisfaction with current visit and identification of need gaps
  • What did they do at shopping malls (activities — shopping — types of outlets visited, entertainment, food court)?
  • What offering was most liked and why? Satisfaction with mostly visited place versus other competitors (if visited prior)
  • Sources of awareness
  • Media / Social Media habits
  • Interests / Leisure time spending
  • Entertainment habits & interests (especially what they want when they visit Malls and what they would like to see in Malls)
  • F&B / Restaurant / Eating Out — Habits & Preferences

Section 4 — Recommendations & Conclusions

  • To conduct a Huff’s Gravity Modelling exercise to determine the optimal Mall GLA and corresponding Footfall by Zones
  • Retail potential forecast
  • Retail potential by category (Sales Mix)
  • Expected sales forecast
  • Expected footfall forecast
  • Sales density estimation
  • SWOT analysis
  • Critical success factors

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