AMONGST CONSUMERS FROM CHINA, HONG KONG, SINGAPORE AND TAIWAN

UNDERSTANDING THE PERCEPTION AND SUCCESS OF KOREAN BEAUTY BRANDS

NIELSEN RESEARCH 2015 - INTRODUCTION

Co

pyr

igh

t ©

20

14

Th

e N

iels

en C

om

pan

y. C

on

fid

enti

al a

nd

pro

pri

etar

y.

2

KOREAN BEAUTY BRANDS ARE EXPANDING AMONGST ASIAN CONSUMERS

China’s cosmetic and skincare market is growing continuously, with expected

2-digit growth in the coming years. Korean beauty brands showed their

success in grabbing part of this expanding market from established brands.

(Advertising Age.com)

According to a Korean government survey, the items tourists want to purchase

the most while visiting are Korean beauty products. Korean beauty products

ranked number one amongst the wish list items of tourists. There was an overall

high level of interest in Korean cosmetics from affordable brand shop products to

high-priced department store brands. (http://travel.cnn.com/korean-cosmetics-

shopping-guide)

According to Korea Customs Service Report in December 2013, cosmetics

exports have increased significantly: skincare exports showed explosive growth

of 1,500 percent over the past 15 years (1998~2012), accounting for 61 percent of

commodity exports, exemplifying the popularity and quality of Korean skincare

products.(koreatimes.co.kr)

Co

pyr

igh

t ©

20

14

Th

e N

iels

en C

om

pan

y. C

on

fid

enti

al a

nd

pro

pri

etar

y.

3

To understand the perception and identify the strengths of Korean Beauty brands

in comparison with established western brands, amongst Female beauty

consumers from Mainland China, Hong Kong, Taiwan & Singapore. Our survey will

explore the following dimensions:

OBJECTIVES COVERED IN THE RESEARCH

Korean beauty consumer’s lifestyle

and hobbies : To understand the

impact of the K-pop culture on

Asian Consumers

Overview on Korean and

International Beauty Brands perception : Brand Awareness,

favorite brands , brands

recommendation, perception of

beauty products from different

countries

Focus on Skincare and Make Up

Usage and purchase frequency

Reasons to buy, product benefits

Shopping experience : purchase

preparation and channels

Beauty basket composition,

budget and future shopping

Korean Beauty

Perception and

Awareness

Beauty Routine and

Purchase Journey

Co

pyr

igh

t ©

20

14

Th

e N

iels

en C

om

pan

y. C

on

fid

enti

al a

nd

pro

pri

etar

y.

4

AREAS OF INVESTIGATIONS : EXPLORING CULTURAL IMPACT

Do they watch Korean Drama?

Who are the Korean celebrities that they know?

Where do they see Korean brands for the first time?

Did they check on social media? Did they share info with Korean product lovers on digital platforms?

What about their last trip(s)to Korea?...

Co

pyr

igh

t ©

20

14

Th

e N

iels

en C

om

pan

y. C

on

fid

enti

al a

nd

pro

pri

etar

y.

5

AREAS OF INVESTIGATIONS : KOREAN BEAUTY PURCHASE DRIVERS

What is there perception of Korean beauty products? Are they seen as more efficient, more adapted to Asian consumers’ skin in comparison with established international brands?

What is the level of awareness vs. international leaders?

Are Korean beauty brands buyers loyal?

Co

pyr

igh

t ©

20

14

Th

e N

iels

en C

om

pan

y. C

on

fid

enti

al a

nd

pro

pri

etar

y.

6

Online interviews amongst 1,900 Women aged 18-55 :

20 minutes Online interviews amongst Women from Hong Kong, Taiwan, Singapore and from four segmented geographic regions North-East-South-West in Mainland China who:

Have purchased Korean Beauty products for their personal use in the past 6 months

Quota on Chinese Respondents who have bought Korean beauty products in Korea over the past 6 months

RESEARCH DESIGN AND TARGET RESPONDENTS

Co

pyr

igh

t ©

20

14

Th

e N

iels

en C

om

pan

y. C

on

fid

enti

al a

nd

pro

pri

etar

y.

7

Age Average - Monthly Household Income (RMB)

20%

21%

19% 18%

12%

10%

(45+)

(35-39)

(18-24)

Avg. Monthly Household Income: RMB 14,247

(25-29)

SAMPLE DEFINITION : BASIC DEMOGRAPHICS KOREAN BEAUTY BUYERS-USERS PROFILES

(30-34)

(40-44)

% of Respondents

Gender & Countries of Residence

100% Women

From China N=1003

From HK N=304

From Singapore N=302

From Taiwan N=305

Avg. Monthly Household Income: HKD 40,327

Avg. Monthly Household Income: TWD 93,480

Avg. Monthly Household Income: SGD 8,895

Co

pyr

igh

t ©

20

14

Th

e N

iels

en C

om

pan

y. C

on

fid

enti

al a

nd

pro

pri

etar

y.

9

WHAT WILL YOU LEARN ABOUT KOREAN BEAUTY BRANDS BUYERS-USERS ?

To understand the perception and identify the strengths of Korean Beauty brands in comparison with established western brands, amongst Female beauty consumers from Mainland China, Hong Kong, Taiwan & Singapore, our survey will explore the following questions:

2 What is their perception of Beauty Products from Korea in comparison

with other international beauty products?

1 What is the impact of the Korean Culture ? Do they watch Korean dramas?

How do they describe their interest for the K-Pop Culture?

4 Where do they shop for Korean beauty products? How much do they

spend ?

3 Why do they buy Korean beauty brands? What is driving their purchase?

5 Did they prepare their purchase? What are the main sources of

information they consult before shopping for beauty products?

6 What are the strengths and weaknesses of Korean beauty brands vs.

established brands ?

Co

pyr

igh

t ©

20

14

Th

e N

iels

en C

om

pan

y. C

on

fid

enti

al a

nd

pro

pri

etar

y.

10

KOREAN BEAUTY SURVEY REPORT : KEY OUTPUTS

AGENCY CONTACTS:

MARIE DUPRE MANAGER, CONSUMER INSIGHTS

MARIE.DUPRE@NIELSEN.COM (852) 2856 4579

Thank You!