Trends on Cosmoprof Asia 2013
After 2 days of attends to Cosmoprof ASIA, I will give to you my feedback and feelings about this event, and try to express Trends about cosmetics in Asia.
Success of South Korean Cosmetics companies in Asia
Korea is on the way to surpass Japan as Asian Leader in Cosmetics. The country maintained a high growth rate since 2006 with an average annual increase of 10.4%. In 2011 Chinese market value based on consumer price stood at KRW8.9 trillion ($8bn), with the growth rate at 12.3%.
High level of Suppliers , and new brands.
The South Korean cosmetics and skin care market has shown strong growth thanks to its ability to respond quickly to consumer needs.
Seoul’s busiest shopping districts, gives a good idea of the magnitude of the popularity of South Korea’s cosmetics and skin care industry. According to the Korea Tourism Organisation there are around 1,000 cosmetics players and hundreds of skin care manufacturers
On the tradefaire, we can see new ingredients or new technologies in cosmetics led to positive growth in 2012. Manufacturers’ efforts to innovate in order to meet consumer demand resulted in positive growth in the beauty and personal care industry and consumers fully embraced the variety available in beauty and personal care products.
Products such as 100% organic skin care, stem cell skin care, vibrating facial make-up tools, cosmetics for chilled cosmetics and smart cosmetic packages to keep the products fresh, were all introduced towards the end of the review period and attracted consumer demand in 2012.
Domestic players continue to expand their share in beauty and personal care
Two leading domestic players maintained their solid positions by introducing new products and brands in 2012. In particular, LG Household & Health Care acquired a famous colour cosmetics brand and expanded its colour cosmetics line to compete with AmorePacific. Meanwhile, domestic beauty specialist retailers, The Faceshop, Etude, Innisfree, Nature Republic, Skin Food and Tony Moly continued to perform well, recording double-digit growth. On the other hand, growth of international players and domestic mid-sized players, which mainly distribute premium brands, contracted or stagnated.
South Korean consumers’ ever growing consumption of personal care products can in large part be credited to the various channels that brands and manufacturers use to reach consumers.
One brand shops dominated the distribution channels in 2011 in terms of growth with a market size of $1.17bn and a growth rate of 32.1% from the prior year. The increase in growth of this type of shop to continue well into this year, however not at such a high rate. Projected figures from the company predict a market size of $1.35bn for 2012, an increase of 15.4% from the previous year.
Brand shops which stock only one brand or a selection of named brands make up 28% of South Korea’s total cosmetics market. The reason why these types of stores have been so successful is due to “the quick response to consumer needs, increased product types, enhanced quality and the development of a wide range of items”.
China the most difficult market in Asia
Due to the economic restructuring and the acceleration of urbanisation, to the huge population , China is expected to be the world’s largest consumer market in cosmetics by 2015. Sales of beauty and personal care in China stood at US$24 billion, more than triple what it was just 10 years before. source
And this year, its market value is expected to hit US$34 billion, according to researcher Euromonitor International.
aller and midsized players can take a leaf from the leaders’ pages. As tier 1 markets mature, cosmetics makers such as L’Oreal and Estee Lauder are growing their brand awareness in tier 2 and 3 cities, where a growing middle class is creating millions of potential new customers – up to 260 million more over the next 10 years.
Cosmetics makers must also look to fast-growing online sales. Direct selling of skincare is well rooted in China and swanky department stores and boutiques are indispensable to attracting higher-end clienteles. But customers are increasingly taking their shopping online, interacting in forums, swapping retail tales via social media. source
Online shopping will be key in the years ahead and for a cosmetic brand to succeed
“its social media networks need to be personalised.” comment of Feng Guoqiang
Chinese online shopping at 20 percent of the market value currently – and believes it will be even bigger in the future.
Chinese consumers wants Brands
Branding and Marketers must interact with their customers as never before, adapting strategy when necessary while conveying a positive, consistent image. See Top Tips to sell your cosmetics in China here.
It behooves the smart marketer to be in the e-commerce game, and ahead of the social media curve.
Succeeding in this market takes considerable work ! say the CEO of Lefeng
For the Chinese beauty and skincare market is diverse and far from monolithic. There is a significant difference in disposable income between urban and rural… see how to adapt your Strategy to Chinese Market
Body Shop Beauty Shop
Chinese Australian Owner … inspired by Body Shop. 😉
L’Oreal Paris Laurene Paris
100% Chinese Brand From Paris Made in France, but produced in China.
The distribution is changing
With the development of internet , new distribution channels like online shopping and shopping TV change the way people buy and sell beauty products.
Every time when there is change of distribution channel, it brings challenges but also opportunities to cosmetic brands.
The seminar will offer an in-depth analysis on the characteristics and changes of cosmetic distribution channels, and identify their needs towards cosmetic brands. It aims at helping companies who are going to expand their footprints in China with a better understanding of the market.
The Regulation in China is the first barrier to developp Business in this country. One to 2 year to have the certification, and a cost of 1000-2000€ per product/formula.
Problem of communication and trust with wholesalers
Chinese whosesaler have different vision of Business. They want fast money, and serious wholesaler already worked with companies.
Many business men in China, enter in cosmetics market to make money, without understand the product, the distribution and the consumers.
If a foreign brand is successfull in China, many Chinese distributors will create their own brands based on the ADN of the parnership that they have establish with the Brands.
Example of Copy Cat
Development on online Business
In China , Social media, ecommerce are changing the consumption. New way of distribute your products appear, and traditional way, shops, and corner know a leck of popularity because of the low Retour on Investment.
Chinese Locals companies have problem to create and developp Brands
In China, you can find thousands of producers who are trying to developp their own brands without success.
Copycat, leck of marketing, image or simply to focused on Chinese local market … Chinese Brands have problems to developp their own branding and pass the step of cheap “supplier”
In-depth analysis of the Chinese cosmetic market, the change of sales channels and the needs of consumers. The seminar will help foreign brands understand the chance and challenge for entering the cosmetics market in China, and foster cooperation between the brands and the Chinese beauty industry.
Trends in Japanese Market
Japanese women are known to be trend-conscious. They are most particular and critical when it comes to cosmetics from around the world. However, factors such as the prolonged stagnation of the Japanese economy and the growing interest in environmental issues have recently resulted in major changes in the purchase behaviour for cosmetics and the best-selling products.
The speaker will present the latest trends in cosmetics preferences and changes in perceptions and attitudes toward beauty that have been observed through Japan’s largest cosmetics web portal ‘@COSME’ operated by istyle, Inc., as well as through the operation of ‘ispot’, a beauty salon reservation website.
Meyumi Yamada President and CEO, ispot Inc., Japan
apan starts to be a mature Market.The Japanese market is one of the most watched and ighly regarded in the beauty industry, thanks to the high standards for personal care that Japanese people are known for.
Experts can see a rapid growing market for “Healthy long life, and beauty” in Japan whose population is aging faster than other Asian countries.
Japanese Consumption; with $200 per capita spending, they spend more than four times on toiletries and cosmetics than the average person in the United States. Beauty regimens are carefully followed; beauty experts dispense advice on everything from proper cleansing to facial massage; and everything that goes on the skin or body – from facial lotion to serums, from shampoos to massagers that refine facial contours – are scrutinized by knowledgeable consumers. source
Many beauty products are being brought into the market one after another.
The Competition in Japan is also heated up by the new entrants from outside the beauty industry, such as international brand manufacturers of food, pharmaceutical, chemical, alcohol, eye-wear,…
Japanese cosmetics market are changing of styles and retails way. Atsushi Ebuchi Chief Editor, Diet & Beauty Magazine, Japan
France is the image of Beauty and cosmetics everywhere in the world but few company are really innovative and put enough effort to penetrate Asian Market. French Companies have good reputation but a leck of adaptability to Asian demand.
Parfums de Versailles are every year in China and developp their branding step by Step.
A brand developp a range of products based on Champagne.
An other Brand “Marianne Rose” developp a partnership with Miss France Laetissia Bleger
See more information about Cosmoprof Asia here ! cosmoprof-asia.com