Beauty brands are jostling hard for
the year-end spending spree, writes
Syida Lizta Amirul Ihsan
With the arsenals in place and the battlefield long drawn, the year-end beauty war is well underway.
This is the time when holiday sets, fragrances and other beauty products are peddled in massive numbers as brands try to outperform each other (and their own company’s sales target) at a time when customers are willing to spend.
In a year when retailers complain about slow sales and reduced tourist spending, the intensity of this battle is more pronounced.
In the two months leading up to the New Year, every brand hopes to sell more to make up for sluggish sales from January to October. With this period making up the bulk of some beauty brands’ annual revenue, they leave no stone unturned when it comes to marketing their goods.
In Kuala Lumpur’s Bangsar South last month, French brand L’Occitane launched its holiday season goodies, delighting the Press with a dessert bar, free-flow of hot chocolate and coffee, accompanied by sweets.
There was a photo booth and a stall outside the cafe where attendees can paint an artwork. It was an offshoot activity for the launch of its new year-end fragrance L’Arlesienne, inspired by the women living in the south of France.
The event was lavish by this year’s standards as many brands have scaled back on events, preferring to do “product presentations” in their offices. Others just e-mail Press releases.
GOING ALL OUT
“We need to go all out for the year-end pie. This is the last leg for us to increase our numbers. Couple that with consumers who are willing to spend more this period of the year — I think we need to catch this moment,” says L’Occitane Malaysia director Tan Seong Teck.
Year-end sales contribute 25 to 30 per cent of the brand’s annual revenue so this is a very important period for the company, he says. “The most popular product for the holiday season is fragrance and we have a number of them for customers to choose from
“L’Occitane has a complete selection of beauty products — from hand cream to fragrance — making it easier for us to weather this coming season.”
The company also distributes organic line Melvita but Tan says that unlike customers who buy L’Occitane scents or its bestselling shea butter hand cream, Melvita’s customers are a different crowd to whom colours and fancy packaging aren’t big considerations.
“They are more health conscious and they put more emphasis on ingredients which is why we don’t hold a big event for Melvita.”
ENGLISH ROSE
This year-end battle is a very important retail period for Crabtree & Evelyn. Its sales for November and December make up 40 per cent of its annual profit, says brand general manager Coey Goh.
During this period, its shops will be decorated with gift sets to tempt customers into the spirit of giving.
“This season is very competitive but we have a wide range of products from skincare and bodycare to fine foods so that helps.”
With gift sets ranging from RM98 (for three tubes of hand cream in a metal box) to RM850 for an elaborate food basket, the company is casting a wide net to capture individual and corporate markets. But the no-festive-gift policy which has been adopted by many corporations also affects its sales, Goh says.
“We are known for our gifts. Our Hari Raya hampers are quite popular. Since some companies have adopted the no-festive-gift policy, we just have to be more creative in selling our products,” Goh says, adding that the brand is looking into tapping the wedding gift market.
For its year-end line-up, Crabtree & Evelyn banks on customer favourites. Its hand cream, for instance, is so popular that a box set comes with 12 tubes.
“Some customers buy this as stocking fillers or for year-end gift exchange with colleagues. Some will keep all 12 for themselves — one in the bag, office, kitchen and living room,”
The company says it felt the pinch from declining sales since July due to the double aviation tragedies and it hopes to “lift the spirit” of Malaysians through year-end gift-giving.
“I think when we suffer, we have to move on and cheer ourselves up,” Goh says.
With 170,000 Facebook friends, it is no surprise that its current customers are in their late 20s and 30s. “This is a very cost-conscious group and we’re hoping to expand our market to reach out to mature customers.”
For Ken Lim, owner of the multi-brand beauty store Kens Apothecary, the year-end “is a better sales period than other months.”
“In other markets like the United States, holiday season sales can contribute up to 60 per cent of annual sales. Ours isn’t that much but it’s still substantial.
“Urban malls record slower sales due to lower tourist arrival, especially from China. We really feel the pinch there.
“ For the year-end business, our hopes lie on residential malls like Bangsar Village, where locals shop,” he says.