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BEAUTY'S EMERGING ETHNIC FRONTIER

Coming off the holiday season— a time when an excess of glitter and gloss doesn’t just go unjudged, but is actually celebrated— is the perfect time to reflect on what was a fabulous year for big-name cosmetic brands in multicultural markets.

Leading the pack was L’Oréal Canada, which kicked off the year by partnering with Omni Television, and with new CMO Stéphane Bérubé highlighting ethnic women as the company’s next big opportunity. In May, Iman Cosmetics reached out to South Asian consumers with a sponsorship of the New York Indian Film Festival, while CoverGirl invested in the Miss Chinese Toronto pageant. Back home, India welcomed Sephora, with its first store opening in New Delhi. While there’s reason to get excited, it also prompts the question: Is there more that can be done to engage multicultural consumers in 2015? I think so, and here’s why.

In understanding Canadian multicultural consumers, it’s often helpful to observe consumer cultures from immigrant home countries. In India, four out of the top five cosmetic makers are local brands — the only exception being L’Oréal, which has a strong grasp over emerging markets, owing in part to astutely-selected brand ambassadors from India and China. Being the only brand that bridges the move from India to Canada makes South Asian women an obvious low-hanging fruit for L’Oréal. Furthermore, according to AIP research, 65% of women in India prefer shopping for make-up at specialty cosmetic stores, due to larger selections and informed advice from sales associates. In North America, this need is primarily fulfilled by drugstores that provide ample variety in cosmetic aisles, and sometimes even hire make-up experts as part of their staff. Considering geo-targeted brand activations at these drugstores during key purchase periods (ethnic holidays, relevant product launches, etc.) is one way to reinforce the connection with language and culture-dependent women. As with any multicultural initiative, however, understanding nuance is integral to cultivating brand loyalty. For example, when selecting product samples or giveaways, keeping the appropriate shades and skin tones of the target consumer in mind is paramount.

But what about high-end cosmetic retailers like Sephora or The Bay? South Asian women are price-driven consumers, making them less likely to experiment with expensive brands without assurance that the products are tailored to their skin. At the same time, market research also says brand recognition and popularity trump price-related incentives. This is a critical insight for high-end cosmetic retailers. Leveraging a growing influencer network online (blogs, YouTube content, etc.) is key to attracting South Asian women to any retailer’s product offerings.

In comparison, Chinese consumers are less deterred by high price-points, preferring high-quality products to value brands. Unsurprisingly, global brands are a lot more proactive in courting consumers in China, with international brands occupying 54% of the country’s cosmetic market, and China’s top three cosmetic brands being Western manufacturers. It is a clear case for high-end retailers to invest in in-language advertising for this market, nearly a quarter of which has a limited proficiency of either English or French.

Moreover, one can’t deny the influence of these emerging markets on the cosmetics industry, overall— we’ve witnessed it unequivocally through the rise of ethnic beauty products like BB Creams and Kohl Pencils into mainstream product offerings. These products have a much greater relevance to multicultural women, and are perhaps the most promising gateway to induct even the most make-up-shy women into cosmetic consumption. What’s important is for advertisers to start thinking globally, for the Canadian market.

Ghostwritten on behalf of Meghna Srinivas, Director of Client Services, McCann Cultura.
Photo Courtesy: Iman Cosmetics.