How to start and run a Cosmetic Retail shop.
Overview
This quick guide focuses on the retail of beauty and personal care products commonly referred
to as cosmetics.
Value of Kenya Cosmetics Industry
The Kenyan Cosmetics industry is estimated to be valued at least Kshs.100 billion (2016). This
is the value of cosmetics goods sold and distributed in the country. The value is the accepted
estimate quoted by the Kenya Association of Manufactures, Kenya National Bureau of Statistics
(KNBS), and even multinationals such as L’Oreal and P&G. In 2011 KPMG, a consultancy,
estimated the value to be Kshs. 20 billion.
The exact value of the industry is not known. This is because of the high number of cosmetics
traders operating informally: from those illegally importing products to backyard manufacturers
who are not documented. Thus the value could exceed Kshs. 100 billion.
Positive Trends Since 2008
Flame Tree Group acquisition of Suzie B, (a local niche cosmetics line ) in 2016
Flame Tree Group acquisition of Beauty Plus Trading East Africa brands such as Miss
Africa and Black Angel (2014)
Tiger Brands purchasing 51% of Haco Industries in 2008. Haco is a leading local
cosmetics manufacturer and distributor. (They divorced in 2017 due to management
realignment not poor sales.)
Nakumatt partnering with Revlon in an investment worth about Kshs100 million.
Nakumatt investing in the cosmetics section. They sell an average of 37,000 units
annually valued around 40million.
L’Oreal purchasing Interconsumer Products. This resulted in the former selling an
average of 40m units of different products.
Increase in indigenous cosmetics brands.
Proctor and Gamble targeting the mass market (2015).
Increase in training on cosmetics making.
No of traders selling small scale cosmetics items has increased.
Small and large scale independent importers of cosmetics products have increased.
Middle class expansion and with it socially conscious woman with money to spend.
Increase in the number of career women.
Social competition and pressure.
Social exposure.
High end international brands establishing a formal local presence. These include Mac,
Black Opal, Essie Nails, Estee Launder and more.
Studies by Consumer Insight, since 2013, which show that the Kenyan woman prioritizes
spending on cosmetics before saving, paying rent or even paying school fees.
This quick guide focuses on the retail of beauty and personal care products commonly referred
to as cosmetics.
Value of Kenya Cosmetics Industry
The Kenyan Cosmetics industry is estimated to be valued at least Kshs.100 billion (2016). This
is the value of cosmetics goods sold and distributed in the country. The value is the accepted
estimate quoted by the Kenya Association of Manufactures, Kenya National Bureau of Statistics
(KNBS), and even multinationals such as L’Oreal and P&G. In 2011 KPMG, a consultancy,
estimated the value to be Kshs. 20 billion.
The exact value of the industry is not known. This is because of the high number of cosmetics
traders operating informally: from those illegally importing products to backyard manufacturers
who are not documented. Thus the value could exceed Kshs. 100 billion.
Positive Trends Since 2008
Flame Tree Group acquisition of Suzie B, (a local niche cosmetics line ) in 2016
Flame Tree Group acquisition of Beauty Plus Trading East Africa brands such as Miss
Africa and Black Angel (2014)
Tiger Brands purchasing 51% of Haco Industries in 2008. Haco is a leading local
cosmetics manufacturer and distributor. (They divorced in 2017 due to management
realignment not poor sales.)
Nakumatt partnering with Revlon in an investment worth about Kshs100 million.
Nakumatt investing in the cosmetics section. They sell an average of 37,000 units
annually valued around 40million.
L’Oreal purchasing Interconsumer Products. This resulted in the former selling an
average of 40m units of different products.
Increase in indigenous cosmetics brands.
Proctor and Gamble targeting the mass market (2015).
Increase in training on cosmetics making.
No of traders selling small scale cosmetics items has increased.
Small and large scale independent importers of cosmetics products have increased.
Middle class expansion and with it socially conscious woman with money to spend.
Increase in the number of career women.
Social competition and pressure.
Social exposure.
High end international brands establishing a formal local presence. These include Mac,
Black Opal, Essie Nails, Estee Launder and more.
Studies by Consumer Insight, since 2013, which show that the Kenyan woman prioritizes
spending on cosmetics before saving, paying rent or even paying school fees.
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