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Beauty & Personal Care in Asia:

Examining the Up & Coming


Paulene Ong
Research Analyst
Euromonitor International
In-cosmetics Asia 2010 © Euromonitor International

Agenda

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In-cosmetics Asia 2010 © Euromonitor International

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In-cosmetics Asia 2010 © Euromonitor International

Euromonitor International – Beauty & Personal Care

Beauty & Personal Care

Baby Care Oral Hygiene


Bath & Shower Products Fragrances
Deodorants Skin Care
Hair Care Depilatories
Colour Cosmetics Sun Care
Men’s Grooming Products Sets/Kits

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In-cosmetics Asia 2010 © Euromonitor International

Agenda

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In-cosmetics Asia 2010 © Euromonitor International

Beauty & Personal Care – Skin Care in China


™ Skin care in China grew by 13% in value during 2009
™ Drivers:
ƒ Greater penetration through rural and urban areas
ƒ Brand consciousness drive growth of premium cosmetics despite recession
™ “Gene-Repair” concept currently the hottest trend

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In-cosmetics Asia 2010 © Euromonitor International

Beauty & Personal Care – Skin Care in Japan


™ Japan was the worst performer in 2009 due to:
ƒ Shrinking population
ƒ 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
ƒ Gekkeikan Sake (Moist Moon), Fuji Film (Astalift)

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In-cosmetics Asia 2010 © Euromonitor International

Agenda

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In-cosmetics Asia 2010 © Euromonitor International

Trends across Asia


™ Multinationals looking towards the East for inspiration
ƒ Lancaster’s Skin Therapy Range
ƒ BB Cream: MAC, Maybelline, Estee Lauder

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In-cosmetics Asia 2010 © Euromonitor International

Trends across Asia


™ Natural/Organic ingredients directing new market entrants, product
innovations and marketing campaigns

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In-cosmetics Asia 2010 © Euromonitor International

Trends across Asia


™ Social marketing/branding increasingly popular
ƒ Eco-Friendly bottles - Garnier Fructis
ƒ Limited Edition collections – Estee Launder, La Mer, Clinique for the Breast Cancer
Foundation

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In-cosmetics Asia 2010 © Euromonitor International

Trends across Asia


™ Emergence of private labels

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In-cosmetics Asia 2010 © Euromonitor International

Trends across Asia


™ Retail Climate – Non-traditional Stores
ƒ Direct selling generated US$10 billion in 2009
ƒ Internet retail sales of beauty and personal care products, the fastest growing in
2009

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In-cosmetics Asia 2010 © Euromonitor International

Trends across Asia


™ Mass versus Premium
ƒ Definitions:
ƒ These are determined on an industry level
and is not country-specific.

ƒ Mass dominating with over 70% value


share in 2009

ƒ Developing countries recording the best


value growth for premium cosmetics
• Top 3: Vietnam, India, China

ƒ Premiumisation trend evident across


APAC
ƒ Mass Æ Masstige Æ Premium

Hada Labo
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In-cosmetics Asia 2010 © Euromonitor International

Agenda

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In-cosmetics Asia 2010 © Euromonitor International

Agenda

ƒ Male-specific products in greater


demand

ƒ High-definition cosmetics fulfilling


demand for flawless skin

ƒ Doctor’s brands increasingly popular

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In-cosmetics Asia 2010 © Euromonitor International

Current Development of Men's Toiletries


Drivers
™ Celebrity endorsements

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In-cosmetics Asia 2010 © Euromonitor International

Current Development of Men's Toiletries


Drivers
™ Changing attitudes towards men's beauty perceptions
™ Evolving social and culture norms

The Straits Times, 10/10/10

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In-cosmetics Asia 2010 © Euromonitor International

Current Development of Men's Toiletries


™ Men's grooming is not limited to the young

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In-cosmetics Asia 2010 © Euromonitor International

Current Development of Men's Toiletries


Trends
™ Still underdeveloped in most countries
™ Manufacturers seeking to expand product ranges
ƒ Vaseline Men launched in TH, IN, ID
ƒ Hydration Æ Anti-ageing, whitening
™ Convenience a key emphasis on packaging

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In-cosmetics Asia 2010 © Euromonitor International

Current Development of Men's Toiletries


™ More males are now shopping for themselves
ƒ Men’s Care Studio at Miramar Shopping Mall, Taiwan

Miramar Shopping Mall, Taiwan

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In-cosmetics Asia 2010 © Euromonitor International

Case Study - South Korea


™ Domestic companies developing extensive product lines
ƒ Only 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 © Euromonitor International

Case Study - South Korea


™ Colour cosmetics the next big thing

BB Cream for Men

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In-cosmetics Asia 2010 © Euromonitor International

Agenda

ƒ Male-specific products in greater


demand

ƒ High-definition cosmetics fulfilling


demand for flawless skin

ƒ Doctor’s brands increasingly popular

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In-cosmetics Asia 2010 © Euromonitor International

Drivers of HD Colour Cosmetics

Emergence of HD TV Favoured by celebrities Advancement of Full Social Networking & New


and make-up artists HD TV & Cameras Media drive consumer
demand

™ Physical imperfections are magnified with the advent of HD technology


™ HD colour cosmetics offer full coverage, yet appear light and natural
ƒ Light reflecting particles assist in concealing flaws

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In-cosmetics Asia 2010 © Euromonitor International

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 © Euromonitor International

Case Study - Ex:Beaute (Japan)


Japan
™ Launched in 2000, in collaboration
with Fuji TV Station
™ Sold over 20 million of its HD
foundation within 5 years of its
launch

Hong Kong
™ Entered 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 Kong
™ Currently has 4 outlets.

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In-cosmetics Asia 2010 © Euromonitor International

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 © Euromonitor International

Agenda

ƒ Male-specific products in greater


demand

ƒ High-definition cosmetics fulfilling


demand for flawless skin

ƒ Doctor’s brands increasingly popular

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In-cosmetics Asia 2010 © Euromonitor International

Current Development of Doctor's Brands


Success Drivers
™ Endorsement by an expert in dermatology
™ Prevalence of beauty clinics
ƒ Whitening drips, skin peels, botox injections
™ Demand for speed and efficacy

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In-cosmetics Asia 2010 © Euromonitor International

Case Study – Dr Wu (Taiwan)


™ About Dr Wu
ƒ Well-known dermatologist and lecturer at the Taiwan Medical University

™ Brand Development
ƒ Products were initially available only at Dr Wu’s private practice
ƒ 2004: Word-of-mouth, recommendations by celebrities drove up the brand’s
popularity
ƒ 2005: Dr Wu became available at health & beauty specialists
ƒ Current: Dr Wu available in HK, USA, NZ, CN, SG

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In-cosmetics Asia 2010 © Euromonitor International

Current Development of Doctor's Brands


™ Trends
ƒ Doctor’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 © Euromonitor International

Case Study – Naruko (Taiwan)


™ About Naruko
ƒ Developed by Niu Er, local celebrity famed from his books on skin care & frequent
appearances on Beauty Maker, a popular television program in Taiwan
ƒ Graduated with a degree in Medical Technology from the Taipei Medical University;
ƒ Work experiences include The Body Shop and Sisley.

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In-cosmetics Asia 2010 © Euromonitor International

Agenda

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In-cosmetics Asia 2010 © Euromonitor International

Beauty & Personal Care – Performance by Category

Sector Top 3
Colour Cosmetics India
Vietnam
China
Skin Care Vietnam
India
Indonesia
Men’s Grooming China
India
Thailand

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In-cosmetics Asia 2010 © Euromonitor International

Looking Ahead
™ Seeking inspiration from the East:
ƒ Heighten use of herbal/traditional
ingredients, alongside raised awareness of
Traditional Chinese Medicine (TCM)

ƒ Leverage on LOHAS and 森ガール (mori-


girl) to tailor marketing campaigns or new
launches

ƒ Leaders in industries (such as food, alcohol


and consumer electronics) may consider
penetrating the beauty industry

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In-cosmetics Asia 2010 © Euromonitor International

Looking Ahead
™ High-definition (HD) colour cosmetics
ƒ HD offers a good selling point for men’s grooming products
ƒ Strong marketing required to raise awareness and sharpen differentiation from
mineral make-up
ƒ HD presents a suited platform for leaders in consumer electronics to penetrate
beauty and personal care

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In-cosmetics Asia 2010 © Euromonitor International

Looking Ahead
™ Doctor's Brands
ƒ Collaborations 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 Grooming
ƒ A 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 Asia
ƒ Retail climates need to accommodate male shopping habits

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In-cosmetics Asia 2010 © Euromonitor International

Questions?

Paulene Ong
Research Analyst
Euromonitor International
paulene.ong@euromonitor.com.sg

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