Beauty industry set for growth in 2022 thanks to new digital-savvy consumer landscape
Despite the fact that many salons were forced to close or to let staff go during the Covid pandemic, reports indicate that the Middle East is one of the fastest growing cosmetics markets in the world and industry experts are forecasting very strong growth in the region.
Saudi Arabia is expected to grow at a rate of 12% and the United Arab Emirates at a rate of 5.8% annually. Although this may have slowed slightly because of the pandemic, there is currently a faster than expected rebound to pre-pandemic levels, which means these growth rates are not only still very much achievable but according to VR Beauty Consulting Founder, Valerie Reynaert, those salons that were able to cope with reduced capacity and complex planning to keep their doors open are perfectly positioned to take advantage of this growth if they keep up with recent consumer trends.
“Covid has had a huge impact on how consumers shop and how they choose to spend their money, with many in the United Arab Emirates and Saudi Arabia prioritising ‘needs’ over ‘wants’ in their shopping decisions following the outbreak. A number of other factors including digital adoption, innovative business models and new entrants to the market have further fuelled the evolution and shifting of shopping behaviour and habits. For salons to gain a foothold in this new market, they need to cater for this new shopper and do things differently than they have done before,” she says.
The UAE represents a very youthful consumer market – with a consumer that is empowered, knowledgeable and more eco-conscious and health-aware than ever before. This consumer is also very much influenced by social media, digital advertising and influencers. Research conducted by global market research firm IPSOS indicates that women are one of the most powerful consumer segments in the world and this is no different in the Middle East. Their influence extends across major shopping categories and they are the main influencers when it comes to purchase decisions for their household.
Furthermore, research shows that 55% of women are more focused on choosing quality or a trusted brand name, while 45% are motivated by lower prices, offers and promotions. While 40% of women say they always buy things they didn’t intend to on impulse, 53% say they always look for information to help them shop, before they buy. Access to the internet is exceptionally high in the Middle East. Across the region, 86% of women with internet access use social media. YouTube is the top social media platform, with three quarters using it, but all the key social media platforms – Facebook (71%), Instagram (64%) and Snapchat (59%) are used by the majority.
“If salons can cater their marketing and service offerings with an understanding of these new purchasing trends and dynamics, they will be uniquely placed to capture this market and ultimately establish themselves in this new economic landscape,” says Valerie. Digital can no longer take a back seat according to Valerie, who says that “salon clients must be able to experience your service, your unique brand proposition, or simply find a solution to their needs, through digital channels. It is now an expectation, not a nice to have.”
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