NEARLY 400 beauty salons have shuttered and about 2,000 beauticians made jobless during the Covid-19 pandemic, said Malaysia Cosmetology Chamber of Commerce (PAMM) president Alvin Loh.

The number could be more because the exact figure is difficult to determine, he said.

“People celebrate when they open a shop, but they are afraid to inform others when they have to close it down. We managed to find out after talking to several beauty product suppliers.

“These 2,000 job losses also include salons that have reduced the number of employees working in a shop from about six to only three or four,” Loh told The Malaysian Insight.  

There is an estimated 10,400 beauty salons throughout Malaysia and the beauty industry generates about RM5 billion each year, he added.

However, there is some good news to the industry as business owners have seen an improvement in sales volume when the movement-control order (MCO) was relaxed.

“While 30% of customers are happy to purchase their skincare and cosmetic products online, statistics show 70% still prefer buying at retail stores,” he said.

PAMM has about 250 beauty companies and 3,000 individual members working in the beauty industry as its members.

Loh said members of the association reported that business from walk-in customers is still viable.

“Members saw a rebound in sales once physical stores were allowed to reopen.”

For beauty services, such as nail salons and facial treatments, 50% of customers showed enthusiasm in returning for appointments.

“About 30% were cautious over the risk of exposure to Covid-19 while 20% had cut their expenditure on personal care after their incomes took a hit during the pandemic,” he said.

“Many clients enjoy testing out products, to feel textures. They also love to unwind at a beauty salon.

“People might put on a simple facial mask at home, but not give themselves a manicure and pedicure. DIY beauty is not a big trend.”

Loh said many industry players went into a state of panic when the first MCO was implemented last March and fearing a total loss of income, switched to selling hand sanitisers.

“After the MCO, they realised that a customer base still existed for the beauty market, but not for hand-sanitising products.

“Customers tend to scrutinise the prices of hand-sanitising products because they are for everyday use.”

Loh was optimistic that the beauty industry still holds much potential for growth.

“The dip in business brought on by the pandemic is only for the short-term. We are quite confident that better prospects are coming in the second half of 2021,” he said. 

Less need to wear make-up

Dr Wong Chin Chin, an analyst from Kantar Group, an international market research company, said the cosmetics category suffered the most among all fast-moving consumer goods (FMCG) in Malaysia.

“Take-home purchases for cosmetic products faced a double-digit decline. Eye make-up saw a smaller drop as opposed to lip and face make-up.

“We hypothesised that eye make-up is more important than lip and face make-up, which could be covered by a mask when we are on the go.”

As for the skincare category, facial masks were popular among shoppers during the pandemic season, she told The Malaysian Insight.

“In pre-MCO, there were recorded masks shoppers from 159,000 households. During MCO, masks gained 35,000 shoppers. And during recovery MCO, masks further gained buyers from 35,000 households.”

She added that many brands were observed to have started manufacturing hand sanitisers and soaps.

“Hand soaps have grown 89% in value YoY, as we adapt to the new habit (of regular hand-washing).”

According to Kantar’s research, 50% of hand soap buyers in 2020 did not purchase any hand soap in 2019.

Enthel Tan, 28, a management consultant, said she spent less on make-up since the start of the pandemic.

“I mostly definitely wore less make-up because of the stay-at-home order. Even if I do put on make-up, I don’t bother putting on full make-up, just sunscreen and concealer.”

She said her circle of friends shared the same sentiment.

“We are more relaxed now when it comes to our appearance. I think we now accept our bare faces more than we did during pre-Covid times.”

Chang Jean Lee, a freelance artist, said she too spent less on products now. The 29-year-old had begun looking up skincare tutorials and topics on social media during the MCO.

“Many dermatologists started sharing product information and educating people on TikTok.

“I used to think that I needed to invest in expensive skincare products but I have learnt from the videos to be more ingredient-savvy instead of price-oriented,” she said. – April 2, 2021.