Lipsticks out, lotions in: Beauty industry set for facelift and comeback, says DBS

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SINGAPORE (THE BUSINESS TIMES) - Prepare for a surge in online beauty shoppers and skincare-mask fanatics.. Read more at straitstimes.com.

While the ubiquity of surgical masks and the work-from-home trend are unlikely to spell the end for make-up, more consumers will be ditching their lipsticks and blushes while stocking up on serums and cleaners.

"Pamper yourself" will also become the new mantra in the post-Covid world, as more opt to go bare-faced as well as focus on their personal well-being. DBS CIO dubbed the industry a"sleeping beauty" while adding it as an investment idea to the"vaccine discovery" thematic basket, on top of its earlier recommendations of the athleisure, restaurant, hotel, casino and leisure segments.

As the virus curve continues to flatten in the US and overall work/social life returns to normalcy, DBS CIO believes that demand for cosmetics and other beauty-related products will continue to rebound. Besides, the industry delivers plump margins. DBS CIO noted that the operating margin for the global cosmetics and personal care industry stands at 18 per cent - substantially higher than global equities' 9.4 per cent as well as the global consumer-discretionary sector at 5.2 per cent.

Beauty-product stores around the world have shuttered as a result of the Covid-19 pandemic, and some of these closures are permanent, Mr Cheang wrote.

 

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