DETERMINANTS OF THE HALAL COSMETICS ADOPTION AMONG YOUNG CONSUMERS IN THE KLANG VALLEY

Abstract

The global increase in young consumer population and purchasing power has created a new demand for halal cosmetics product development. In Malaysia, it is now the trend in the industry of cosmetics for local manufacturers to produce halal cosmetic products. As the market growth is rapid, the manufacturers of cosmetics are eager to dominate the market and come up with many product varieties in order to pursue and satisfy customers. However, most consumers are conscious of the ingredients used in the making of cosmetic products. While the introduction of new products may facilitate companies in gaining competitive advantage, the failure rate of local products is high. Therefore, the objectives of this study are to understand the relationship between product characteristics, social influence and individual innovativeness with halal cosmetics adoption among young consumers in the Klang Valley, Malaysia. The sampling of this study comprised 350 respondents using survey questionnaires that were distributed in shopping malls in the Klang Valley. In order to test the model, this study used the structural equation modelling (SEM) technique using partial least squares (PLS) with SmartPLS 3.2.8. The findings of this study show that there is a positive relationship between product characteristics, social influence and individual innovativeness towards halal cosmetics adoption among respondents. This study demonstrates that halal cosmetics adoption is increasing among young consumers. Therefore, cosmetics producers or marketers need to understand the behaviour of young consumers in order to ensure that failure rate can be minimised.