• Should local brands worry about global brands?

Sri Lanka is no stranger to cosmetics, whether locally made or imported. Consumers in Sri Lanka have been accessing cosmetics through various means, including personal contacts, intermediate resellers, and official partners with globally established brands.

Interestingly, while Sri Lanka boasts a number of locally produced cosmetic lines, the vast majority of these brands focus on skin and hair care, and do not, in fact, produce makeup. The makeup industry itself is largely catered to by foreign brands whose products are imported, either to retail by themselves or to retail with other stores and brands in Sri Lanka.

Of late, the market for makeup within Sri Lankan has grown to an extent where international brands are beginning to invest in retail footprints locally. One such example of a globally recognised brand establishing itself in Sri Lanka with its own footprint was seen with MAC Cosmetics opening its first flagship store at the One Galle Face Mall. This caused The Sunday Morning Brunch to wonder – how will the formal entry of these international brands into the Sri Lankan marketplace impact the local makeup industry?

Of course, from a consumer perspective, the presence of international makeup brands in Sri Lanka in their own right means good things. For instance, Dinushi Halloluwa, a regular makeup user, shared that she was personally a fan of international makeup brands opening up stores in Sri Lanka as this added legitimacy to the market. 

“I am very happy that this is happening because one of the major challenges for people who want to use imported products is the concern regarding whether the product is legitimate, as there are numerous dupes in the market,” she said. “I also feel that we can now buy the product at a more reasonable rate as opposed to when buying from intermediate sellers, who can set arbitrary prices.”

The business perspective

Brunch also investigated how local brands were feeling about international brands moving into the Sri Lankan consumer market on a large scale. 

British Cosmetics Chief Executive Officer (CEO) Nirosha Jagodaarachchi said: “The entry of standardised branded cosmetics through official distributors is advantageous for the market. It sets high standards for consumers and fosters healthy competition. Local companies should prepare to meet this challenge, as it can drive improvements and innovation. I always encourage international brands to enter the market for this reason.”

Interestingly, Jagodaarachchi also added that local makeup producers should be most concerned about quality. “The market is currently flooded with substandard cosmetic products, which confuses consumers who struggle to differentiate between original and fake items. When original branded products come through the correct channels, this issue can be significantly reduced. Addressing the problem of substandard products is more critical than concerns about the competition from original brands entering the market.”

Similarly, a representative from Janet Sri Lanka said: “As a local manufacturer with deep roots in and understanding of our market, we believe it’s crucial to balance global trends with the unique needs and preferences of Sri Lankan consumers. 

“While global brands coming in helps elevate the industry as a whole, in terms of what we offer our customers, our marketing, and R&D, we believe that Sri Lankan brands, with their deep understanding of our consumers and products specifically tailored for a Sri Lankan audience, will always have a place in the market and an edge over international brands in that respect if leveraged effectively. Our commitment to quality and authenticity will continue to set us apart in this evolving landscape.”

As an international brand operating in Sri Lanka, MAC Cosmetics India Brand Director Karen Thompson shared MAC’s perspective, saying: “I think we have a real opportunity in Sri Lanka as we’re one of the prestige brands. They’re happy to have good quality makeup products.” 

She further emphasised MAC’s commitment to quality service, stating: “We make sure our staff are very well trained. Our staff are artists and it’s a full experience. If you want to buy a product, the team will do a demonstration.” 

Thompson also spoke of MAC’s plans for the future: “Later, we’re going to offer makeup services where you can book an appointment and go.” She highlighted the importance of authenticity, noting: “In India, the products are available through all affiliated official partners. If you get an official partner, it’s an authentic MAC product. It’s a great way for consumers to learn about the product. Our national makeup artist programme is founded by makeup artists for makeup.”

The consumer perspective

Sharing her thoughts on international products entering the market, Sathya Ramanayake said: “Users of branded items will continue to use international brands, but this might cause the local industry to break down. Everyday users don’t use a lot of local products since there isn’t a big range available for items like foundation and concealer, let alone items like eyeliner and mascara. 

“International brands offer a larger range of choices. While local products are tested for our skin textures and tones, that is not to say that they are without issues, as I’ve had skin issues with local products. Branded items, though expensive, don’t cause such issues often, in my experience.”

She also highlighted a growing trend: “I think the organic cosmetic trend is growing, which should be promoted because Sri Lankans don’t wear heavy makeup. Personally, I prefer organic lipstick as it’s healthier, especially given our humid, tropical climate.”

Shirani Mills, a mother of two teenagers who have recently started using makeup, said: “I struggled when it came to buying them makeup products because originally, I would have given them the items that I use. These are brands I have used for years and am loyal to. Some of them have even been discontinued, but I still manage to hold on to some products or purchase them on Amazon, etc. But I want to give my daughters products that are easily accessible and I also want to encourage them to buy locally.” 

She added: “The problem is that there is a lack of variety in local products, especially when it comes to shade ranges in foundations and concealers as well as diversity in formulas. My youngest has very sensitive skin and needs to use a combination of cream and liquid products. I get her entire set from the US because she can’t risk having serious breakouts and ruining her skin.”

Sharing her thoughts on this lack of variety, Mithila Lashani noted: “Now that I am settled abroad, I see what I was missing. There is a serious lack of choice when it comes to makeup products that are locally produced. Living in Sri Lanka, we are really not spoiled for choice because we buy what we can get, especially since imported products tend to be so expensive.

“There is also the issue that most of these local products, despite being made in Sri Lanka, are rarely made to withstand the heat and tropical climate. It is unfortunate that we don’t seem to have the technology for this. Regardless, I have definitely noticed that there is a lack of choice, so I am really hopeful that with international brands moving in, they could potentially be more affordable, which would increase competition amongst local brands to step up their game,” she said.

It appears that consumers and producers alike share a similar opinion: despite concerns about market saturation, some healthy competition can only be a good thing. The presence of internationally recognised brands has the potential to raise standards, increase choices, and ultimately benefit both the local industry and consumers.