Fighting the crisis

COSSMA: Why are some companies changing their production? What is the thinking behind this?

Belinda Carli: A lot of what we are seeing currently is a change to support what is needed most by consumers. It could be to help boost sales, but I believe it is mostly to support consumers and what they need. There is a global shortage of hand sanitizers and cleaning products as well as good personal hygiene care. We are also seeing a decline in colour cosmetics purchasing because this is one item that people usually like to try before they buy. And since people aren’t going out, they aren’t using as much make-up or similar personal care that they would normally use if going to work or out socially in their free-time. Switching production to meet these needs not only enables a company to survive in these challenging financial times, it also helps employers keep staff, and helps replenish shelves that are currently sitting empty because of high consumer demand.

There may be some companies that see the opportunity and profit from switching their manufacture to these highly sought-after goods – but for many, I believe it is more about giving consumers sanitising products, cleaning goods and hygiene products to stay safe. It also keeps people in jobs, which is helpful for our struggling economy.

What impact is expected to have on the cosmetic industry? Should customers expect delays their personal care products?

Regular personal care items aren’t showing short supply – or if some brands are showing shorter supplies because of delayed manufacturing or material supply delays, consumers will switch to another similar brand that is in stock. Regular personal care in general is not in short supply and demand for products used for work or social reasons (styling products and makeup) simply aren’t moving the same volumes. The longer term effects on the supply chain of many raw materials hasn’t been impacted significantly yet. At this stage we are seeing suppliers doing as much as possible to minimise this, but even where there are short delays in raw materials, the manufacturers can work around this because of the increased manufacture of sanitising products. At-home spa products and home beauty treatments will thrive as many beauty salons are closed. People

have always looked for an inhome experience – now they have no other choice!

Many ingredients, packaging components and more are produced in Southeast Asia. Will there be bottlenecks due to the lockdown?

Southeast Asia is as open for business as it can be – there may be slight delays in sourcing some materials but at the same time, there is a global decrease in demand for many of their products as the West is under partial (or in some areas, complete) lockdown. Here in Australia, for example, we are getting many emails daily from colleagues in Southeast Asia reminding us they are there and open for business – and working as hard as possible to minimise any delays in the supply chain. If anything, they are trying to get more business to reboot their economy as they’ve now reinstated their capacity!

Can you imagine how the cosmetic market will change after the “Corona crisis”?

I believe we’ll see things return pretty much to normal once the world is back to operating again – demand for hand sanitiser and hygiene products will return to normal, beauty salons will re-open with a flourish of customers needing to catch up on beauty treatments, and people will need styling products and make up when they start socialising and going back to work.

There will be some lasting economic impacts in that some businesses may not make it through and there will be a slower return to our normal economic pace, but in general, it will return to normal. Innovation in a time of crisis like this goes by the wayside – so innovation will also have a strong surge when things return to some sort of normal.