BEAUTY AND PERSONAL CARE: WHAT THE FUTURE HOLDS
IN-COSMETIC ASIA 2013
WARANGKANA ANUWONG
SENIOR RESEARCH ANALYST
29 OCTOBER 2013
2
INTRODUCTION
Global presence, local coverage
Vilnius
Serving Eastern
Europe and
Scandinavia
London
Tokyo
Serving Japan
Headquarters
Serving Western Europe
Chicago
Serving North America
Dubai
Shanghai
Serving Middle East and
North Africa
Serving China
Bangalore
Singapore
Serving India
Serving Asia
bar China, India, Japan, Australasia
São Paulo
Serving Latin America
Santiago
Serving Latin
America
Cape Town
Serving South Africa
Sydney
Serving Australia, New
Zealand and the Pacific region
© Euromonitor International
INTRODUCTION
A trusted business intelligence source
© Euromonitor International
3
4
INTRODUCTION
Euromonitor International’s beauty and personal care
80
countries worldwide
Multiple
Categories
Baby Care
Bath & Shower Products
Deodorants
Hair Care
Colour Cosmetics
Men’s Grooming Products
Oral Hygiene
Fragrances
Skin Care
Depilatories
Sun Care
Sets/Kits
© Euromonitor International
GLOBAL AND REGIONAL SITUATION
ASIAN CONSUMERS – GROWTH DRIVERS
WHAT’S ON
FUTURE OUTLOOK
Global Beauty and Personal Care Value Market Size 2012
500
6.0
450
4.0
400
350
2.0
300
250
0.0
200
-2.0
150
100
-4.0
50
0
-6.0
World
Asia Pacific
Western Europe North America
Sale value $US billion
Source Euromonitor International
Latin America
Eastern Europe Middle East and
Africa
Value growth 2012
Australasia
Asia Pacific Beauty and Personal Care Value Sales
Geographic Breakdown, 2012
50
16
45
14
40
12
35
10
30
25
8
20
6
15
4
10
2
5
0
0
Japan
China
South
Korea
Source Euromonitor International
India
Thailand
Taiwan
US$ billion
Indonesia Philippines Malaysia Hong Kong Singapore
Value growth rate
Vietnam
Asia Pacific Beauty and Personal Care Value Sales
Category Breakdown, 2012
14.0
50
45
12.0
40
10.0
35
30
8.0
25
6.0
20
15
4.0
10
2.0
5
0
0.0
Skin Care
Hair Care
Colour
Cosmetics
Oral Care
Bath and
Shower
Men's
Grooming
US$ million
Source Euromonitor International
Sets/kits
Fragrances
Sale Value Growth
Baby and
child
specific
Suncare
Deodorants
GLOBAL AND REGIONAL SITUATION
ASIAN CONSUMERS – GROWTH DRIVERS
WHAT’S ON
FUTURE OUTLOOK
Income
Age
Gender
Annual Disposable Income Per Capita
% CAGR growth 2007-2012
20
18
16
14
12
10
8
6
4
2
0
China
Vietnam
Indonesia
Source: Euromonitor International
Malaysia Philippines
India
Japan
Thailand
Singapore Hong Kong,
China
Taiwan
South
Korea
Case study: South Korea
12
Internet retailing and homeshopping grow well in response to economy slow down
900
64%
800
700
600
500
400
300
200
100
0
2007
2008
2009
2010
2011
2012
South Korea Internet Retailing Sale Value Local Currency
Internet Retailing Growth 64%
from 2007-2012
Source Euromonitor International
© Euromonitor International
TV demonstration
Middle-aged women
Word of mouth
Source Youtube
Case study: Taiwan
13
Waiting is a virtue
Department store anniversary sales attract consumers to wait and purchase
Beauty products is one of the best selling product category
Source: Own photos
© Euromonitor International
Income
Age
Gender
Almost 20 years difference in age across the “oldest” and “youngest” countries
Asia Pacific sees diversifying consumer groups
Mean Age Of Population
50.0
45.0
45
40.0
35.0
30.0
26
25.0
20.0
15.0
10.0
5.0
0.0
Japan
Hong Kong
South
Korea
Source: Euromonitor International
Taiwan
China
Singapore Thailand
Mean Age Of Population
Vietnam
Indonesia Malaysia
India
Philippines
Anti-Agers
US$ Value Sales and Growth 2012
4,000
25.0
3,500
20.0
3,000
2,500
15.0
2,000
10.0
1,500
1,000
5.0
500
0
0.0
Sale Value US$ million dollars
Source Euromonitor International
US$ Sale Value Growth
Anti-Agers US$ Value Sales
Asia Pacific
US$ million, y-o-y exchange rates
10,000
9,000
8,000
13% CAGR
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
2008
Source: Euromonitor International
2009
2010
2011
2012
What’s new in anti-agers
18
Stem cells is one key new ingredient
Anti-aging moves beyond anti-agers in skin care
SKII Stempower
Kérastase Initialiste
New anti-aging line from SKII
featuring Stem-Acanax Complex,
Artichoke Extract, Kinren Extract and Pitera
Hair serum with Stem Cell Technology
Anti-aging hair care
http://www.moodiereport.com/document.php?c_id=
33&doc_id=35806
© Euromonitor International
http://www.lookfantastic.com/kerastase-initialisteadvanced-scalp-and-hair-concentrate60ml/10647030.html
Average children per household is declining year-on-year
providing higher purchasing power for parents
1.4
1.3
1.3
1.2
1.2
1.1
1.1
1.0
2007
2008
2009
2010
2011
Average Number of Children per Household at Jan 1st 2013
Source: Euromonitor International
2012
Generation Z beauty trends
20
Share of population in Asia Pacific
Baby Boomer (46-64), 20%
Gen X (31-45), 22%
Swing Generation (65+), 8%
0-7 years old, 13%
Gen Y (20-30), 18%
Gen Z
8-19 years old
19%
Source: Euromonitor International
Source Own Photo
© Euromonitor International
Young consumers – Is this segment expanding?
Barbie Digital Makeover Mirror
http://mattelbrandsmedia.com/product.php?category=0&product=11
0
Sephora Hello Kitty Tokyo Pop Eye Shadow
http://www.sephora.com/tokyo-pop-eyeshadow-palette-P378212?skuId=1469170
Income
Age
Gender
Mars vs Venus: The male-female divide in skin care
2,020
2,000
1,980
0.90
23
1,960
25
0.80
1,940
0.70
1,960
1,940
1,920
1,900
1,880
1,860
1,840
1,820
1,800
20
1,920
0.60
0.50
0.40
0.30
2008
2009
2010
2011
2012
Male population in Asia
Male US$ per capita spending on skincare
102% growth
Source: Euromonitor International
© Euromonitor International
1,900
15
1,880
10
1,860
0.20
1,840
0.10
1,820
0.00
1,800
5
0
2008
2009
2010
2011
2012
Female population in Asia
Female US$ per capita spending on skincare
42% growth
For men only
24
From mass brands to premium brands and now, even direct selling brands have
jumped on the men skin care bandwagon
http://www.prachachat.net/news_detail.ph
p?newsid=1342095599
© Euromonitor International
http://www.philstar.com/shopping-guide/2013/06/14/953595/how-showdad-you-love-him
Beyond skin care for men
25
The shift from East to West – will make up for men become a global trend?
Marc Jacob For Sephora – Boy Tested, Girl Approved
Brow Tamer Grooming Gel
Remedy Concealer Pen
Lip Balm
http://marcjacobsbeauty.com/inspiration#boy-tested-girl-approved
Tom Ford For Men– June 2013
Cleanser, Moisturizer, Mud mask, Lip Care, Eye Care, Bronzing Gel, Concealer
http://www.amongmen.com/style-grooming/grooming/tom-ford-launching-skin-careand-grooming-products-men
© Euromonitor International
Will the rough and rugged look be the next big trend – again?
Energizer Holding Inc sales value
went down by nearly -1% in 2012
Source Euromonitor International
The new product development from
Gillette ProGlide Styler is beard trimmer
http://www.tikkabik.com/?p=2707
© Euromonitor International
Source www.esquire.com
26
GLOBAL AND REGIONAL SITUATION
ASIAN CONSUMERS – GROWTH DRIVERS
WHAT’S ON
FUTURE OUTLOOK
Technology savviness: The rise of beauty tools
28
Hair Care Appliances vs Hair Styling Agents
35,000
74,000
30,000
72,000
25,000
70,000
20,000
68,000
15,000
66,000
10,000
64,000
5,000
-
62,000
2009
2010
2011
'000 units
Source: Euromonitor International
© Euromonitor International
2012
million litres
2013
29
Facial cleansing systems and automated makeup applicators – how will these drive
beauty and personal care sales?
Missha Real Patting Auto Puff
Source own photos
© Euromonitor International
Talika Cream Boosters
Source own photos
Olay Regenerist Advanced
Cleaning System
Source own photos
Living an online life
Asia Pacific Percentage of Population Using The
Internet
30
200%
25
20
15
10
5
0
2007
Source: Euromonitor International
2008
2009
2010
2011
2012
Beauty brands’ social media usage in Asia Pacific
Facebook hits over 250 million users in
Asia. Asia accounts for over 20% of total
Facebook users world wide. South Korea
has the highest growth of active Facebook
users.
In some countries like Thailand , beautyrelated pages such as Kute Club is among
the top 3 based on highest number of
fans.
In India, Indonesia, Philippines, Axe
Deodorant’s Facebook Page is among the
top 30 brand pages in terms of number of
fans.
Interestingly, in some countries, the same
brand appears twice on the ranking such
as Clear in Indonesia. Are consumers
getting confused between companies’
global and local pages?
Source Information derived from www.socialbakers.com and
http://www.internetworldstats.com/asia.htm
©
Euromonitor International
31
Population
Internet Population
Facebook Members
million in
2012
Apps and augmented reality – A new marketing tool
http://www.revlon.com/Revlon-Home/Interactive-Tools-Menu/Interactive-Face-Tool.aspx
Influential bloggers – Can it be something different?
https://www.facebook.com/No
yneungmakeup
6,399 likes on September (9
months after the account
started)
Source Courtesy from Noyneung Make up Blogger
Sephora + Pantone Color IQ
Tweet Mirror used by apparel specialist retailers – What are the
applications for beauty and personal care brands?
Try it on – Share it now – Get instant feedback!
New products: How creative can manufacturers get?
Chanel Weekend Cream
50 ml – US$149
Rodial Bee Venom
US$ 200
Rose water and glycolic acid
to prepare skin
for the upcoming week
Bee venom extract
which stimulates the skin
to produce collagen
in response to the venom
http://www.herworldplus.com/beauty/triedtested/review-get-reactivated-rechargedrenewed-skin-chanel-skincare
© Euromonitor International
http://www.rodial.co.uk/product/Skin-CareBee-Venom-Range/Bee-VenomMoisturiser/387
36
OHUI The First
Cream Geniture
US$500
Embryo derived stem
cell culture
http://hope-inablog.com/ohui/ohuireleases-high-end-750000-cream/
New products: Thinking outside the box
http://www.wetpaint.com/reve
nge/articles/2013-06-21revenges-double-infinityfragrance-hits
© Euromonitor International
http://news.naver.com/main/read.nhn
?mode=LSD&mid=sec&sid1=103&oid=1
09&aid=0002368651
37
http://laurensinwonderland.blogspot.com/2013/07/opioz-great-and-powerful-collection.html
GLOBAL AND REGIONAL SITUATION
ASIAN CONSUMERS – GROWTH DRIVERS
WHAT’S ON
FUTURE OUTLOOK
Beauty and personal care in Asia Pacific continues to grow
155.0
150.0
19% constant value
period growth
145.0
140.0
135.0
130.0
125.0
120.0
115.0
110.0
2013
2014
2015
Sale Value US$ Billion
Source: Euromonitor International
2016
2017
Asia Pacific US$ sales value CAGR
Breakdown by product 2013-2017
12
10
8
6
4
2
0
Source: Euromonitor International
In summary
© Euromonitor International
41
Men’s grooming can
be more
complicated but
trends need to be
monitored as they
develop
Technology will play
a bigger role, with
rising desire for
convenience,
effectiveness and
interactivity; still
lacking tie-ups with
manufacturing side
Online marketing
continues to be
necessary; mobile
marketing is
emerging; apps can
excite consumers
New product
development is still
a key way to
maintain consumer
interest; innovation
and creativity are
needed
THANK YOU FOR LISTENING
Warangkana Anuwong
Senior Research Analyst
Euromonitor International
w.anuwong@euromonitor.com.sg
+65 6429 0590 Ext 6737
www.euromonitor.com
@euromonitor
www.facebook.com/euromonitorinternational
Search for “Euromonitor International Market Research Group”