INVESTOR sentiment is often guided by the state of the economy. When the economy is in a downturn, investors tend to shy away from sectors like automotive and banks that are by nature cyclical and start looking at sectors that are defensive.
The cosmetics and personal care sector is deemed defensive as the products are a necessity for both men and women.
Halal Industry Development Corp chief executive officer (CEO) Datuk Seri Jamil Bidin said demand for products under this category is on the rise despite the economic downturn.
“The demand for this type of products will likely remain stable against the backdrop of the weakening economy,” he said.
Local beauty brand D’Herbs founder Datuk Aliff Syukri Kamarzaman said with the current economic uncertainty, demand for beauty care products has increased as consumers are shifting to local brands which are cheaper.
“Cosmetics and personal care products are like food. Now, it is common for both men (the urban young and metrosexual) and women to use cosmetics,” said the cosmetics tycoon, whose products are priced from as low as RM15.
SimplySiti Sdn Bhd CEO Muhammad Zain Ibrahim said it is important to maintain a healthy look and good skincare regime, which will help to improve one’s persona.
“Using skincare products would definitely improve one’s appearance and ensure that the skin stays healthy. As for cosmetics for women, we truly believe in using makeup to bring out the best in you and to enhance your features,” he said.
Despite the slowdown in the retail market, Zain said SimplySiti has been outselling some international brands.
“Even though the company is only five years old, we see a positive trend in Malaysians using our products. We are now among the top 10 self-select cosmetics brands in the stores that we compete in.
“We foresee the (market) situation improving in the next six months as we have put in place exciting new launches to address the slower demand for our products,” he added. Cheryl Yvonne Achu and Amir Hisyam Rasid