This study delves into the literature on the luxury cosmetics market and areas in the African consumer, the limited literature specific to Africa was an identified gap. Four objectives were considered during the research: Determining who the luxury cosmetics user is, establishing usage and consumption patterns, understanding purchase frequency, and determining factors that influence/influence purchase decisions.
Motivation of the study
Sub-Saharan Africa, dubbed the next consumer hotspot, is experiencing the second fastest economic growth in the world after Asia-Pacific and is home to 821 million consumers. According to Euromonitor International, sub-Saharan Africa is expected to have a $2 trillion economy by 2020, the same size as Russia today. (Euro Monitor, 2013) Despite some notable challenges within the region, Africa is benefiting from its wealth of natural resources, a new era of stability, domestic investment and economic development.
Focus of the study
Problem Statement
Aim and Objective
Research Questions
Methodology
Chapter Outline
- Introductory Chapter
- Literature Review
- Research Methodology
- Data Analysis
- Conclusions and Recommendations
- References
- Appendices
With the information obtained from the preliminary literature review, the objectives of the problem will be formulated and provide essential information to support the research topic. This section will look at the results themselves; a sample of how the data is articulated to produce the final product will be provided.
Limitations of the study
Summary
All information on ethical clearance will be included, as well as an example of the questionnaire used for data collection. In order to establish a connection with the research question, a thorough understanding of the topic had to be established.
The Global Luxury Cosmetic Consumer
Market Trends
Time-saving products are those that save the busy consumer with a quick morning or evening ritual, such as a 3-in-one moisturizer (moisturizer, sun protection and anti-aging), while being a long-lasting product known to it is relatively more expensive because it extends use compared to conventional products (24-hour long-lasting foundation or pro long wear lipstick) (Lennard, 2011). Organic products – this trend is becoming the talking point internationally as consumers make better informed and informed decisions.
The Sub Sahara African Luxury Cosmetic Consumer
- Quality and Brand Matter
- Value
- Modern Tastes and Sophistication
- Increasing Digital Era
- Traditional Media and Word of Mouth
As the African consumer is exposed to more choices, quality and branding play a significant role in purchasing decision behaviour. The graph below, adapted from the Mckinsey study, shows the increase in internet usage across Africa.
The Spending Power in Sub Sahara Africa
Local Relevance
Page | 6 essential for marketers as the majority of companies in Africa have not used the trends above to market their products and communicate with customers. Television is still frequently used and trusted, print media is also widely distributed, but word of mouth is still extremely important.
Route to Market
Capitalising on the Youth Movement
The Luxury Cosmetic Industry in Sub Sahara Africa
Page | 8 The educated African consumer is looking for products specific to their body and skin type.
The Buying Decision Process
- Identify the Problem
- Search for Information
- Evaluation of Options
- Purchase Decision
- After Purchase Behaviour
In a competitive environment, the consumer business has many options to choose from in almost every category. The nest stage is the purchase decision when the consumer decides whether he or she will buy the product.
The Impact of the Buying Decision Process on Luxury Goods
The Impact of the 5Ps on the Purchase of Luxury Goods
Luxury cosmetic marketing strategies
Mass media forums are completely avoided like newspapers because of the quality of the print. It involves people directly in terms of consuming the product, selling the product - the level of training and skill required to understand the product and build a sales story.
The Opportunity to market Luxury Cosmetics in Africa
This affects the volume of production, the range of products and the level of relevance to the target consumer. Direct distribution is required so that the face-to-face customer experience is managed and the brand image is not diluted. The advantage of direct distribution is that the customer gets the full customer service experience, such as gift wrapping, alterations, etc.
While indirect distribution wins the brand in terms of cost savings through distribution, but risks losing a customer because the full brand experience is not met. Roeland Burger suggested in his research that different product strategies are needed, so that either existing brands are adapted to the African consumer, or exclusive brands or products are developed for the market. He further discussed the possibility of designing specific packaging by cutting costs on packaging, which will reduce costs for consumers.
Consumer buying patterns of cosmetics
What are consumers?
How do consumers acquire luxury products?
The Sub Sahara African Consumer’s buying patterns of luxury cosmetics . 17
Consumers are an amalgamation of all types of customers. For a nation, customers build an economy in terms of supply and demand required for products and services, while for a consumer, a brand performs a function. Nigerians are among the most affluent people in the West African region, and the culture and customs of Nigerian women are changing. According to the World Economic Database, Nigerian women spend more than the EU12 and even more than French women.
Among the strengths Africa has is its young and growing demographic profile, especially in the context of global aging – 70% of the population in sub-Saharan Africa is under the age of 30, according to Euromonitor International's emerging markets report. Beauty is important for both men and women. In the past, big giants like Esteee Lauder focused on women as a target market, but this has shifted to both men and women. In Nigerian culture, woman is as an influential person and is an integral part of Nigerian culture.
Summary
Aim and objectives
Type of study
Approach (Quantitative/Qualitative)
Sampling
- What and why
- Sampling design (probability/non-probability)
- Description of the population
- Sample size
The only limitation of this approach is that a sample size of 100 is small compared to the potential of a larger market population. The target population for this research was 100 and is discussed below in terms of sample size. The sales of these two markets were evaluated by the sales managers and operations managers for the sub-Saharan region of the stores based in these markets.
Based on the CCTV footage, about 514 customers enter the store in a month (in a poor performing month). That leaves the remaining 208 customers to shop during the rest of the month. Therefore, the sample size is a guess based on the quieter morning/afternoon periods during the first two weeks of the month. Participants were selected based on those customers who enter the store and purchase their luxury cosmetics.
Data collection
Instrument
Construction of instrument
Do not ask two questions in one and make sure there are no leading or ambiguous questions. Pre-test: Test the questionnaire among a small group of people to test the understanding and flow of the questions. For the purpose of this research, a pre-test was conducted to ensure that there was a clear understanding of questions.
Question order: In general, it is good practice to start the questionnaire with simpler questions, leading to more thought-provoking questions.
Ethical issues
Validity/reliability
The results of this study, conducted in Estee Lauder stores, can be compared to a similar study in another market. The conclusions are therefore valid and applicable in different contexts and situations (Leedy and Ormrod, 2001). During the validity and reliability of this study, Cronbach's alpha was taken into account to ensure consistency.
Pre Test
Administration of interview/survey
Page | 29 well analyzed the data collected to interpret the data to gain insights and trends about the study. Nominal: nominal scale is known for its labeling and has no quantitative value. Interval: while the nominal scale allows us to quantitatively segment groups into mutually exclusive and collective sets, ordinal allows us to rank data – Interval scale allows us to calculate the date mathematically in terms of the difference between points on ' a scale
An interval scale allows the collection of data that helps us understand the data in terms of preference and magnitude of differences in variables (Sekaran, 2015). Ratio: The most powerful of all scales, the ratio scale not only measures the magnitude of the difference between points on the scale, but also goes further to determine the extent or magnitude of the differences.
Summary
The low level of internet in the region does not allow electronic questionnaires to be sent out. The conclusions were extracted and shared in chapter four with recommendations in the following chapter. This chapter contains the analysis of each question after the consolidation of the raw data.
Consumer Age Groups
Employment Status
Monthly Income
Product Usage
Product Group Consumption
Product Usage Frequency
Product Group Purchased within 12 months
Popular Luxury Cosmetic Brands in Nigeria
Purchasing Frequency of Product Groups
Last Product Purchased
The importance of Promotions
Factors that impact Purchasing Decisions
Product Knowledge
Above the line marketing influencers
Trustworthy source of information
Online Purchasing
Introduction
Conclusions on the study’s results
Recommendations of the study
- The first objective: who the luxury cosmetic user is in Nigeria
- The second objective of this research study: Establish the usage and
- The third objective of this research: understand the purchasing
- The fourth objective of this research is: understand the factors that
Gender also plays a significant role in consumer behavior (Pentz,Terblanche and Boshoff, 2014) Income levels are important to consider in the luxury segment. This links back to identifying the problem, which is the first step in the purchase decision process for the consumer. In the data collected and analyzed for this project, we see that the demand for products that focus on pigmentation and repair serums relates to the climate and the need for skin protection.
In the literature review, the researcher discussed the purchasing decision process and the impact that the 5 P's have on the purchasing decision process. A cosmetics brand like Estee Lauder or L'Oreal that wants to expand into Africa will therefore need to analyze consumer purchasing behavior in the cosmetics market and then tailor an IMC specific to the market. These factors are critical when considering the information seeking step in the purchasing decision process.
Future Study Recommendations
Page | 56 navigation, layout and ease of purchase process should be considered for the African market in terms of currency and language considerations. Supplier pressure entering Africa is to supply collections in the launch month, with severe challenges in the market, marketers need to plan efficiently. With limited collections launching in the luxury cosmetics market, this news explodes on social media platforms creating buzz and excitement, so follow-up at the store level is important.
Contribution of the study
Summary
Measuring consumer ethnocentrism in a developing context: An evaluation of the reliability, validity, and dimensionality of the CETSCALE. The purpose of this study is to: understand the luxury cosmetics shopping patterns of African consumers. With your cooperation, I hope to understand the decision-making process experienced by consumers in the luxury cosmetics sector in Africa.
The results of the questionnaire are intended to contribute to, as part of my fulfillment of an MBA degree at the University of Kwa-Zulu Natal, the completion of an Investigational Research Project. I………(full names of . participant) hereby confirm that I understand the content of this document and the nature of the research project and I consent to participate in the research project. On a scale of 1 to 5 (5 being the most important), how much do the following motivate you to buy cosmetics?
