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Beauty & Personal Care in Asia:Examining the Up & Coming
Paulene OngResearch Analyst
Euromonitor International
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In-cosmetics Asia 2010
Agenda
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In-cosmetics Asia 2010
Euromonitor International
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Helping clients make informed decisions
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support teams
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In-cosmetics Asia 2010
Euromonitor International – Beauty & Personal Care
Beauty & Personal Care
Baby Care
Bath & Shower Products
Deodorants
Hair Care
Colour Cosmetics
Men’s Grooming Products
Oral Hygiene
Fragrances
Skin Care
Depilatories
Sun Care
Sets/Kits
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In-cosmetics Asia 2010
Agenda
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In-cosmetics Asia 2010
Beauty & Personal Care – Skin Care in China
Skin care in China grew by 13% in value during 2009Drivers:
Greater penetration through rural and urban areasBrand consciousness drive growth of premium cosmetics despite recession
“Gene-Repair” concept currently the hottest trend
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In-cosmetics Asia 2010
Beauty & Personal Care – Skin Care in Japan
Japan was the worst performer in 2009 due to:Shrinking population Consumers seeking to cut back, trade down and be more economical in product usage
Rising trend of non-traditional companies entering the beauty and personal care industry
Gekkeikan Sake (Moist Moon), Fuji Film (Astalift)
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In-cosmetics Asia 2010
Agenda
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In-cosmetics Asia 2010
Trends across Asia
Multinationals looking towards the East for inspirationLancaster’s Skin Therapy RangeBB Cream: MAC, Maybelline, Estee Lauder
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In-cosmetics Asia 2010
Trends across Asia
Natural/Organic ingredients directing new market entrants, product innovations and marketing campaigns
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In-cosmetics Asia 2010
Trends across Asia
Social marketing/branding increasingly popularEco-Friendly bottles - Garnier FructisLimited Edition collections – Estee Launder, La Mer, Clinique for the Breast Cancer Foundation
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In-cosmetics Asia 2010
Trends across Asia
Emergence of private labels
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In-cosmetics Asia 2010
Trends across Asia
Retail Climate – Non-traditional StoresDirect selling generated US$10 billion in 2009Internet retail sales of beauty and personal care products, the fastest growing in 2009
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In-cosmetics Asia 2010
Trends across Asia
Mass versus PremiumDefinitions:
These are determined on an industry level and is not country-specific.
Mass dominating with over 70% value share in 2009
Developing countries recording the best value growth for premium cosmetics• Top 3: Vietnam, India, China
Premiumisation trend evident across APAC
Mass Masstige Premium
Hada Labo
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In-cosmetics Asia 2010
Agenda
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In-cosmetics Asia 2010
Agenda
Male-specific products in greater demand
High-definition cosmetics fulfilling demand for flawless skin
Doctor’s brands increasingly popular
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In-cosmetics Asia 2010
Current Development of Men's Toiletries
Drivers Celebrity endorsements
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In-cosmetics Asia 2010
Current Development of Men's Toiletries
Drivers Changing attitudes towards men's beauty perceptionsEvolving social and culture norms
The Straits Times, 10/10/10
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In-cosmetics Asia 2010
Current Development of Men's Toiletries
Men's grooming is not limited to the young
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In-cosmetics Asia 2010
Current Development of Men's Toiletries
TrendsStill underdeveloped in most countriesManufacturers seeking to expand product ranges
Vaseline Men launched in TH, IN, IDHydration Anti-ageing, whitening
Convenience a key emphasis on packaging
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In-cosmetics Asia 2010
Current Development of Men's Toiletries
More males are now shopping for themselvesMen’s Care Studio at Miramar Shopping Mall, Taiwan
Miramar Shopping Mall, Taiwan
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In-cosmetics Asia 2010
Case Study - South Korea
Domestic companies developing extensive product linesOnly 1 out of the top 20 brands, is a multinational
Cho-Sik men a rising aspiration
Hera Homme
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In-cosmetics Asia 2010
Case Study - South Korea
Colour cosmetics the next big thing
BB Cream for Men
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In-cosmetics Asia 2010
Agenda
Male-specific products in greater demand
High-definition cosmetics fulfilling demand for flawless skin
Doctor’s brands increasingly popular
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In-cosmetics Asia 2010
Drivers of HD Colour Cosmetics
Emergence of HD TV Favoured by celebrities and make-up artists
Advancement of Full HD TV & Cameras
Social Networking & New Media drive consumer
demand
Physical imperfections are magnified with the advent of HD technologyHD colour cosmetics offer full coverage, yet appear light and natural
Light reflecting particles assist in concealing flaws
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In-cosmetics Asia 2010
Drivers of HD Colour Cosmetics
HD colour cosmetics omits the need for photoshop, facilitating quick uploads of picture-perfect images
Blogger, Benshee, posing with an Anna Sui Perfume that she is reviewing
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In-cosmetics Asia 2010
Case Study - Ex:Beaute (Japan)
JapanLaunched in 2000, in collaboration with Fuji TV StationSold over 20 million of its HD foundation within 5 years of its launch
Hong KongEntered HK in 2005, but received lukewarm response despite celebrity endorsement Sponsored 野蠻奶奶大戰戈師奶(War of In-Laws II), the first HD drama in Hong KongCurrently has 4 outlets.
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In-cosmetics Asia 2010
Case Study - Cargo (North America)
"Life happens in high-definition.""Picture perfect make-up that looks perfectly natural."
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In-cosmetics Asia 2010
Agenda
Male-specific products in greater demand
High-definition cosmetics fulfilling demand for flawless skin
Doctor’s brands increasingly popular
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In-cosmetics Asia 2010
Current Development of Doctor's Brands
Success DriversEndorsement by an expert in dermatologyPrevalence of beauty clinics
Whitening drips, skin peels, botox injections Demand for speed and efficacy
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In-cosmetics Asia 2010
Case Study – Dr Wu (Taiwan)
About Dr WuWell-known dermatologist and lecturer at the Taiwan Medical University
Brand DevelopmentProducts were initially available only at Dr Wu’s private practice2004: Word-of-mouth, recommendations by celebrities drove up the brand’s popularity2005: Dr Wu became available at health & beauty specialistsCurrent: Dr Wu available in HK, USA, NZ, CN, SG
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In-cosmetics Asia 2010
Current Development of Doctor's Brands
TrendsDoctor’s brands have evolved into brands positioned as such, or endorsed by someone considered to be an expert in the field
Endorsements by a Beauty Expert
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In-cosmetics Asia 2010
Case Study – Naruko (Taiwan)
About NarukoDeveloped by Niu Er, local celebrity famed from his books on skin care & frequent appearances on Beauty Maker, a popular television program in TaiwanGraduated with a degree in Medical Technology from the Taipei Medical University; Work experiences include The Body Shop and Sisley.
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In-cosmetics Asia 2010
Agenda
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In-cosmetics Asia 2010
Beauty & Personal Care – Performance by Category
Sector Top 3 Colour Cosmetics India
VietnamChina
Skin Care VietnamIndiaIndonesia
Men’s Grooming ChinaIndiaThailand
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In-cosmetics Asia 2010
Looking Ahead
Seeking inspiration from the East: Heighten use of herbal/traditional ingredients, alongside raised awareness of Traditional Chinese Medicine (TCM)
Leverage on LOHAS and 森ガール (mori-girl) to tailor marketing campaigns or new launches
Leaders in industries (such as food, alcohol and consumer electronics) may consider penetrating the beauty industry
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In-cosmetics Asia 2010
Looking Ahead
High-definition (HD) colour cosmeticsHD offers a good selling point for men’s grooming productsStrong marketing required to raise awareness and sharpen differentiation from mineral make-upHD presents a suited platform for leaders in consumer electronics to penetrate beauty and personal care
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In-cosmetics Asia 2010
Looking Ahead
Doctor's BrandsCollaborations with popular local personalities, such as plastic surgeons will be valuable to strengthening brand equity• Dr Woffles Wu in Singapore would be attractive to both locals, as well as upper-class
Indonesians
Men's GroomingA more elaborate skin care regime set to sit well with males • AmorePacific in South Korea presents a role model to multinationals, such as L’Oreal,
Shiseido and Estee Lauder• Leveraging on Kdrama fever, AmorePacific should expand presence in AsiaRetail climates need to accommodate male shopping habits
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In-cosmetics Asia 2010
Questions?
Paulene OngResearch AnalystEuromonitor [email protected]
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