I have bought shares from diverse sectors of automotive, gaming, manufacturing, banking, pharmaceutical and even property. However, I have never bought any counter which focuses on personal care and cosmetics. Today, I would like to share just that since I read something interesting in the news.
My wife does not put on much make-up when she was working in the private sector just 2.5 years ago. She said, it does not make a lot of difference. I have colleagues who could not do without make-up. In fact I think there are many ladies who may not even come to work if someone stole their cosmetic set. I think this is one major reason why I read in a news report that the cosmetics and personal care sector is considered a defensive sector during a slowdown. Yes, I think this is definitely considered a CRITICAL good.
In fact, a recent Chinese New Year (CNY) advertisement proved it too. Watson’s CNY TV commercial focused on ‘pan leng leng, cap tou cheng’ (It’s Cantonese but translated into English loosely meant “make-up to look beautiful and groom ourselves to look great”) I always believe Watsons is a pharmacy chain? Perhaps it’s because ‘being beautiful’ is an easier message compared to ‘eat more medicine..’ The CNY advertisement can be considered extremely successful because my 3 year old daughter can sing/hum the whole song, even if most of the words are incorrect.
Aside from ladies, well, I must admit that just last week, I changed to a slightly more expensive facial wash as I wanted to look ‘younger.’ Haha. This is what happens when men gets older I guess. In conclusion, I think I should also start noticing some of the BURSA counters which are focused in the cosmetics and personal care sector. It would not show a sudden explosion in result but as we get older, perhaps investments should be centred on more defensive stocks instead. Dividends may be a better bet. Happy scouting for the right stocks and please drop me a note if you have identified a few okay. We can share information.
written on 16 Feb 2016
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