A dynamic while modest industry
The Australian cosmetics and toiletries industry has domestic sales of approximately A$ 5 billion (EUR 2.5 billion). Domestic production is estimated to about EUR 400 million for 2008, with a production tool belonging to global cosmetics manufacturers such as Unilever Procter & Gamble and Colgate, but also to several small and medium enterprises such as Jurlique, Bloom, Napoleon Perdis, Ultraceuticals, Nutrimetics and ModelCo.
While the country is 14 times bigger than France, Australia counts 20 million inhabitants only. The small size of the market encourages cosmetics makers to conquer abroad markets. One of the main assets helping Australian products to achieve global success in Europe, the USA and in Asia, is their reputation for being clean and green.
In terms of exports, the Australian cosmetics and toiletries industry had exports of around A$400 million (EUR 200 million) in 2008, an increase of over 8% on 2007. While the figure remains modest, it is important to consider that exports have been skyrocketing since 2004 when they were estimated at EUR 145 million and the industries are expected continuing strong export growth.
Simultaneously, about EUR 550 millions cosmetics and toiletries industry were imported in 2008, growing by 20% over the last four years, the USA and France being the countries first suppliers.
Drugstores are the main distribution channel for cosmetics and toiletries in Australia (14% of sales), followed by department stores (12,5%), beauty salons and speciality stores (5%) and duty-free stores.
“High quality French cosmetics brands have an in with the Australian market”, says Sylvie Patinec, from the French trade commission in Sydney. “From a general point of view, there’s a permanent interest for French products. The demand is mostly on innovative products with new ingredients, on natural and organic products, being original and with a good price-quality ratio. Cosmetic products with therapeutic effects, as well as so-called ‘holistic’ products are trendy too.”
According to Patrice Curien [1], General director of Intercos Australia and R.D. Prestige Packaging, “Consumers of cosmetics and toiletries in Australia are highly interested in high-end products, but there is also a strong demand in the mass market. It is also important to note that all these young Australian brands that were created a few years ago feel they have an in with overseas markets, thanks to the originality of their products and Australia’s ‘exotic’ image. For all these reasons, all forecasts say their market share abroad should be strongly growing”.
Maxime Elgue, General Director for the Oceania Area at the DFS group, one of the world’s leading travel retailers , is on the same opinion: “It is true that the Australian market changed a lot during the latest years. Several Australian brands are successful abroad, such as Jurlique, for instance. In parallel, Australian customers travel a lot. For our group, perfumes and cosmetics offer real opportunity for growth”.
Fast growing Australian brands
The impressive raise of Napoleon Perdis, the make-up “phenomenon” of the latest years, is perfect illustration of the strong dynamism of young Australian bands. Napoleon Perdis is a self-made man who was born in Sydney. Three years after the opening of its make-up studio in1992, he was launching its own make-up line in its first concept store on Oxford Street. Today, Napoleon Perdis is heading a real little empire. Its brand is distributed through 59 stand-alone concept stores and over 800 point-of-sale locations in Australia and New Zealand. Napoleon Perdis is also stocked at over 300 Ulta stores across the USA. Further, its mass-market line, NP Set, is now available at over 1600 Target stores as well as at 300 Target Australia stores.
Another perfect example of Australian fastest growing innovative beauty brand ModelCo. Launched in 2003 by Shelley Barrett, ModelCo immediately got resounding worldwide results with its heated eyelash curler and its tan line products in spray.
With a turnover of A$ 15 million last year, a talented staff of 30 people, an astonished distribution network in 1000 stores in 27 countries, the «young» brand using pink colour as a reference and focusing on innovative packaging, has known, thanks to its ambitious manager, how to take benefit of a growing interest for Australian « niche » brands from America (40% of the total sales) and Canada, Asia, Middle East, South Africa and Scandinavia as well.
Since, ModelCo has enlarged its cutting-edge creativity to a complete range of makeup products, with eyes and lips key products.
« The Australian market itself is essential for us, says Shelley Barrett, as far as we are concerned it has increased by more than 20% between 2007 and 2008 ».
Actually, one’s just needs to visit a department store in an Australian city there’s no shortage of high quality Australian cosmetic brands. Jurlique, Aesop and Napoleon Perdis, of course, but there are also: Natio, Bloom, Inessence, Sugar Baby, Mor, Invisible Zinc, Chi Chi…
