Speaker
Description
The cosmetic industry has been expanding rapidly in both developed and developing countries. In Malaysia, the value of cosmetic trade is increasing due to the emerging of homegrown cosmetic brands and competitive market penetration of international brands. There are plenty of international brands as well local brands such as Simply Siti, Nita Cosmetics, SO.LEK cosmetics, and Silky Girl are targeting younger generation or so called as Generation Z (Gen Z). Gen Z refers as the most influential generation in today’s digital era of consumers that prefer luxury brands of international market rather than local product brands. This is the biggest untapped emerging market that have huge potential to be explored by businesses in cosmetic industry. Findings from past studies have shown that cosmetics users in older market segment of Gen X and Y are mostly influenced by self-appearance, brand referral behaviour and brand popularity when making their purchase decision in cosmetics products. However, little is known on what are the values that Gen Z referring to when making their purchase decision particularly the homegrown cosmetics products? Hence, the primary objective of this study is to determine factors that influence Generation Z’s purchase decision making of homegrown cosmetics products which subsequently to construct a model that deem to fit the study. Conceptual framework and questionnaire are developed by using theory of consumption. Quantitative research with purposive sampling techniques will be employed to gather data from Gen Z in selected public and private universities that are located at urban cities of Malaysia. The study analysed data from 244 respondents, predominantly female (86.9%), aged 23–27 (42.6%), and single (70.9%). Common Method Variance (CMV) was addressed, confirming no severe bias (VIF < 5). The measurement model demonstrated strong reliability (Cronbach’s alpha: 0.728–0.887; CR > 0.7) and validity (AVE > 0.5). Discriminant validity was established using HTMT (< 0.9). The structural model revealed significant positive effects of appearance, environmental factors, health, experiential value, safety value, symbolic value, and social media on purchase intention (p < 0.05), explaining 66.3% of variance (R² = 0.663). Need for uniqueness and quality value were non-significant. Findings from this research would offer useful insights in consumer behaviour to local cosmetic producers, manufacturers, pharmaceutical agencies, health ministry and retailers in Malaysia to revisit existing guidelines or policy for products development, market expansion as well as marketing strategies for sustainable business that protect mankind, animals and planet.
