Despite facing more competition than ever before thanks to an influx of local brands and a shift towards online shopping, the Australian beauty market continues to go from strength to strength. Far from succumbing to the challenge, the Australian beauty industry has responded with stronger retail initiatives and a standard of product that has become the envy of countries around the globe. Here, we talk to several Australian-owned skincare, cosmetic and cosmeceutical brands about some of the challenges facing our local market.
The Australian consumer
A common theme across all beauty sectors is that the Australian consumer is quickly becoming more and more savvy to what is in the products they use and where they’re from. Lindsay Quanborough, brand and export development manager for attributes this to the growing online community of shoppers. With social media at the helm of all things brand interactive, users are becoming beauty and skincare authorities themselves, effectively owning online forums and blogs to share their views and experiences,” she says.
Ere Perez, founder of Ere Perez Natural Cosmetics agrees: Women are more aware of their options and can make conscious choices. This is a trend that will only grow.”
The majority of brands are confident consumers will use this knowledge to make smarter decisions that go beyond an effective marketing campaign. Leanne Stewart, founding director of says increasing customer awareness can only benefit the cosmeceutical industry. As consumers become more empowered I think there will be an even greater shift towards products that actually work, rather than the ‘fluff and puff’ products that don’t actually do anything.”
In the face of globalisation, there has also been a shift in consumer priorities, with many seeking out local brands over their international counterparts. Interestingly, a recent Sukin brand survey including purchase decisions highlighted that over 20 per cent of customers buy the brand because it’s Australian owned and made.
Local competition
Say what you will about the global economic prices, it hasn’t prevented competition becoming increasingly fierce in the local beauty market. It seems everywhere you look another Aussie brand is pushing its way onto pharmacy and department store shelves. Alison Vickery, founder of Pod Skincare, says that since her brand’s entrance into the market in 2008, the number of small skincare competitors has increased dramatically. Far from feeling threatened, Vickery explains that it’s a healthy competition, and promotes a higher standard of product. I know that Australia has a tremendous reputation overseas, particularly in the natural market,”
The skincare market isn’t the only category facing an influx of local brands in recent years. Perez has witnessed plenty of growth in the natural cosmetic sector over the past decade. When I started out in 2003, Ere Perez was the first natural make-up brand available in Australia. Since then, a few other natural and mineral brands have emerged.”
Stewart isn’t phased by the growing number of cosmeceutical brands on the market. Increased competition simply means that we have to stay focused on what we do and ensure we continue to deliver simple, effective and affordable skincare products.”
International brands
When it comes to competing with overseas companies, most brands agree that product price isn’t the toughest part, despite the overwhelming popularity of online retail. The cost of the product isn’t the issue; it’s actually getting in front of the consumer and getting their attention,” Vickery explains. When you don’t have the big advertising budget [that international companies often have], it’s difficult to get a share of voice. That’s the expensive part of being an Australian brand.”
Tina Henry, assistant brand manager of agrees that product price isn’t the issue, but international marketing budgets are near impossible to compete with. Henry also says that Australia’s population makes for added challenges in developing innovative products. Australia is a lot smaller in population in comparison to American, European and Asian markets, so any products launched here need to have universal appeal or they wouldn’t be commercially viable. This forsakes our ability to launch potential great niche products.”
Michael Oliver, managing director of Uandi Natural, an Australian skincare brand founded as recently as 2010, says the brand found great success in having a stand at Cosmoprof Asia last year. We not only got noticed by a number of distributors we otherwise wouldn’t have been exposed to, but we were also able to find all our suppliers this way.”
Online retailing
If there’s one thing to get tongues wagging in the beauty industry, it’s the topic of online retailing. Favoured by more and more consumers, brands are divided on the impact it’s had on the local industry, depending how it’s affected the brand.
Henry cites online shopping as the reason behind the Face of Australia’s increase in retail sales, while Quanborough says online shopping channels have actually broadened the retail market in Australia. [It allows] remote as well as time-poor customers to harness a brand that they otherwise might not be able to,” Quanborough explains. The internet also provides ample space to inform and educate the consumer that can sometimes be lost in retail space.”
Vickery suggests that failing to embrace new retail platforms is to the detriment of the brand only. If you have a money-back guarantee, free shipping and a reply-paid envelope for returns, anyone, anywhere in the world, will try your product,” she argues.
Unfortunately online shopping hasn’t had such a positive impact across all categories, with cosmecutical and salon-only brands having to work harder than ever to protect the integrity of their products. Marie Enna-Cocciolone, CEO and founder of InSkin Cosmedics, the exclusive distributor of EmerginC and O Cosmedics, says her company has gone to great lengths protecting the brand from internet fraud. Our clinic partners having signed agreements that prevent them from selling O Cosmedics online,” she says. We have done this for various reasons, primarily because O is a cosmedical product (medical grade strengths of actives are used) and it requires a professional to prescribe it. This also ensures our clinic partners never compete with internet discounting.”
Stewart understands the pressure facing retailers as a result of online shopping, but believes they should find ways to stand up to this competition. It is our belief that salons really have to play to their strengths, which is offering professional consultations and treatments, something consumers will never be able to get online.”
