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How the Brexit
can impact the
Beauty & Personal
Care business?
The United Kingdom population has made
a vote, and the Brexit is now a closer
reality for Europe.
Forecasting its impact i...
Overall, UK sales over 2020 are previewed to be US$205 million less
in a Brexit scenario. This is a combination of higher ...
 The result would be a stronger premium-mass switching in
fragrances. Skin care and colour cosmetics would also
witness w...
We could say the price-efficacy value becomes crucial
more than ever in this Brexit context, keeping in mind
that quality ...
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How the Brexit can impact the Beauty & Personal Care business?

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How the Brexit can impact the Beauty & Personal Care business?

  1. 1. How the Brexit can impact the Beauty & Personal Care business?
  2. 2. The United Kingdom population has made a vote, and the Brexit is now a closer reality for Europe. Forecasting its impact is difficult, and in those inevitable, given the unprecedented political scenario
  3. 3. Overall, UK sales over 2020 are previewed to be US$205 million less in a Brexit scenario. This is a combination of higher operational costs operational costs plus lower consumer spending that could result in the premium segment being hit hardest, especially at the mid- to low-end of this segment. Consumers are likely to trade down, and the industry may have to moderate its premiumisation efforts in the beauty business – the consumer spending could switch to smaller formats, lower concentrations and less frequent shopping missions. Therefore raw materials, especially in high-end fragrances, can be costly to import, and trade restrictions, coupled with a lower currency, could result in higher cost to the shopper or personal care brands absorbing the cost and/or lessening the quality of the products to limit price increases. Consumers are likely to trade down
  4. 4.  The result would be a stronger premium-mass switching in fragrances. Skin care and colour cosmetics would also witness weaker activity. Potentially, this could facilitate a resurgence of the mass segment, which in pre-Brexit times had weaker forecasting than its premium counterpart in these beauty channels.  Furthermore, green and health-related categories, such as oral care and derma cosmetics are likely to remain growing because consumers assess their priorities in health-aligned beauty regimes. Resurgence of the mass segment
  5. 5. We could say the price-efficacy value becomes crucial more than ever in this Brexit context, keeping in mind that quality is non-negotiable. Sources: euromonitor/nielsen Conclusion

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