Eveandboy, a Thai cosmetics and perfume retailer, says the domestic beauty market looks promising as shoppers become more sophisticated about their appearance amid a stagnant economy.
"The Thai cosmetics market and retailers will not be affected by the sluggish economy," said Hiran Tanmit, chief executive of Eveandboy.
He said Thais are increasingly using more complex skincare and makeup products, adding more steps and items into their routines as they become more concerned about their personal care.
This ongoing trend is expected to further drive market growth.
Mr Hiran said customers aged 25-34 accounted for nearly half of the sales, while those aged 18-24 contributed 10% of the sales.
Moreover, data from the company's loyalty programme found that most of the customers are women, with only 5% of purchases by men.
In fact, the company believes women are buying cosmetics products for men.
Male customers' behaviour has shifted as they are more likely to buy cosmetics products which meet their needs and preferences rather than those with "for men" stickers, said Mr Hiran.
Despite the proliferation of e-commerce purchases by customers mostly aged under 34, he said the company still relies on offline channels as the company's current sales distribution reveals an 87% contribution from offline stores, while online sales account for 13%.
"Beauty shoppers still prefer to test and experience the products, thus the offline channel is still prominent," said Mr Hiran.
As a result, the company plans to open a new flagship store at Siam Square in late June, aiming to attract more tourists to the store, he said.
The Thai beauty market grew by 11.6% in 2023, with a total value of 258 billion baht, according to the Thai Cosmetic Manufacturers Association.
Mr Hiran said the beauty market, which comprises skincare, fragrance, makeup and haircare, is expected to grow by 10% in 2024.
"Eveandboy set a target to grow by 30% this year, higher than the overall market," he said.