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

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Lipsticks out, lotions in: beauty industry set for facelift and comeback, says dbsbank

Even with the arrival of a vaccine, the WFH phenomenon is here to stay."Not only have companies realised that WFH is equally effective in terms of workers' productivity, this practice will also help companies reduce their operating expenses via reductions in office rental costs," Mr Cheang said.

DBS CIO has urged investors to embrace some optimism and position their portfolios for when a novel coronavirus vaccine is found. It noted that industries that suffered the most during the pandemic will, conversely, be the biggest beneficiaries of a vaccine discovery. From an investment perspective, the global beauty industry is attractive given its strong secular tailwinds and lucrative margins, according to DBS CIO.

"The beauty industry has been outperforming global equities over the years, and we expect this positive trend to persist," Mr Cheang wrote.[FIGURE 6 + 7] "To deal with the new environment, beauty-product brands will increasingly shift their sales from in-store to online," he added.

 

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