THE Philippine Exporters Confederation, Inc. (Philexport) is urging its members to venture into mass-market beauty products in the Middle East.
Citing a report by global market intelligence firm Mintel obtained by the Department of Trade and Industry’s Export Marketing Bureau, Philexport said that consumer spending on beauty and personal care products in Saudi Arabia has “slightly increased.”
“(This is) supported by stable oil and gas reserves, booming tourism and significant government infrastructure investment, making it the top market for beauty products like makeup in the GCC (Gulf Cooperation Council),” it added.
To tap this market, Philexport noted that Saudi customers associate high cost with high quality, but lower-spending segments of the market are an opportunity.
“Middle Eastern consumers, especially in the beauty sector, refuse to compromise on quality due to the importance of these products in their lives,” it said. “Although consumer spending power is increasing, it’s important to engage with overlooked, less affluent consumers.”
Customers from the Middle East also have a strong preference for in-store shopping, with 29% of Saudi adults buying beauty and personal-care products in stores, with only 13% buying online.
“This trend provides mass-market brands a chance to enhance in-store experiences, leveraging the prevalent mall culture in the Middle East,” it said.
However, Philexport said that mass-market brands should build on “heritage storytelling and local culture” to compete better.
“Consumers seek brands that value and use local resources and preserve indigenous traditions, contributing to a more authentic and memorable product experience,” it added.
Exporters were also advised to cater to the evolving lifestyle needs of the younger generation, which is now looking for “clean beauty” products.
“While not new to the West, sustainability is gaining traction in the Middle East, with Saudi Arabia’s NEOM Green Hydrogen Plant being the world’s largest green hydrogen producer and Egypt aiming to be a green-energy hub,” it said. — Justine Irish D. Tabile
