Market Trends of Saudi Arabia E-Commerce Cosmetics and Fragrances Industry
Rising Number of Active Social Media Users
In Saudi Arabia, the strong internet penetration has majorly contributed to driving awareness about cosmetics and beauty products among consumers. The country has the highest number of active social media users in the region on various social media platforms, including Instagram, Facebook, Snapchat, and Twitter. Furthermore, the country also has the global highest YouTube watch time per capita. Having gained their popularity through social media, Arabian beauty influencers are slowly becoming today's most modern entrepreneurs. These influencers have been redefining the industry and are driving the demand for beauty products in the country. Huda Kattan, one of the world's first and biggest beauty influencers, turned businesswoman through her beauty brand, Huda Beauty, which earns USD 250 million annually and is dominating the color cosmetic market.
In this digital age, social media has its significance. People can now express their ideas more easily, and marketers can now reach more consumers. The same principles apply both abroad and in Saudi Arabia. According to World Bank data, 100% of the users used the internet in Saudi Arabia last year. The growth opportunity for the sales of cosmetics and fragrances through online channels has forced online vendors to improve their purchase processes through their websites in terms of security and reliability, which, in turn, has propelled the demand for these products across the region.
Fragrance Segment Dominate the Market Share
Perfumes are used by both women and men, and they signify the consumer's personality, style, and individuality. Historically, there has been an inclination for exotic ouds and fine perfumes in Saudi Arabia, which has attracted numerous international perfume manufacturers to invest in the region. On account of this, Saudi Arabia has established itself as a major hub for the creation of trendsetting perfumes. A shift in consumers' preferences for natural perfumes over synthetic perfumes led to the introduction of oud-based perfumes by several Western brands. This is further supported by increasing promotional campaigns by the manufacturers. The new brand intends to present a traditional product in a contemporary manner. Like most other oriental fragrance brands, the product was retailed through the company's standalone store network.
Currently, the company is planning to sell its product on the online platform to broaden its customer base and geographical presence after achieving success in the offline platform. Owing to the higher demand for fragrances, the market has been witnessing an increase in the import of such products. For instance, according to the UN Comtrade data, the import value of perfume and toilet water was USD 405.43 million last year as compared to the imports from the previous year, which were USD 348.17 million. From the above factors, it is evident that the fragrance segment of the market studied has been witnessing substantial growth over the past few years.
