beauty and personal care what the future holds

BEAUTY AND PERSONAL CARE: WHAT THE FUTURE HOLDS

IN-COSMETIC ASIA 2013

WARANGKANA ANUWONG

SENIOR RESEARCH ANALYST

29 OCTOBER 2013

© Euromonitor International

2

Global presence, local coverageINTRODUCTION

Chicago Serving North America

LondonHeadquartersServing Western Europe

VilniusServing Eastern Europe and Scandinavia

SantiagoServing Latin America

Cape TownServing South Africa

DubaiServing Middle East and North Africa

BangaloreServing India

SingaporeServing Asia bar China, India, Japan, Australasia

ShanghaiServing China

TokyoServing Japan

SydneyServing Australia, New Zealand and the Pacific region

São PauloServing Latin America


3

A trusted business intelligence sourceINTRODUCTION


4

Euromonitor International’s beauty and personal careINTRODUCTION

80 countries worldwide

Multiple

CategoriesBaby Care

Bath & Shower Products

Deodorants

Hair Care

Colour Cosmetics

Men’s Grooming Products

Oral Hygiene

Fragrances

Skin Care

Depilatories

Sun Care

Sets/Kits

GLOBAL AND REGIONAL SITUATION

ASIAN CONSUMERS – GROWTH DRIVERS

WHAT’S ON

FUTURE OUTLOOK

Source Euromonitor International

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

0

50

100

150

200

250

300

350

400

450

500

World Asia Pacific Western Europe North America Latin America Eastern Europe Middle East andAfrica

Australasia

Global Beauty and Personal Care Value Market Size 2012

Sale value $US billion Value growth 2012

0

2

4

6

8

10

12

14

16

0

5

10

15

20

25

30

35

40

45

50

Japan China SouthKorea

India Thailand Taiwan Indonesia Philippines Malaysia Hong Kong Singapore Vietnam

Asia Pacific Beauty and Personal Care Value SalesGeographic Breakdown, 2012

US$ billion Value growth rateSource Euromonitor International


0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

0

5

10

15

20

25

30

35

40

45

50

Skin Care Hair Care ColourCosmetics

Oral Care Bath andShower

Men'sGrooming

Sets/kits Fragrances Baby andchildspecific

Suncare Deodorants

Asia Pacific Beauty and Personal Care Value SalesCategory Breakdown, 2012

US$ million Sale Value Growth



WHAT’S ON

FUTURE OUTLOOK

Income Age Gender

Source: Euromonitor International

0

2

4

6

8

10

12

14

16

18

20

China Vietnam Indonesia Malaysia Philippines India Japan Thailand Singapore Hong Kong,China

Taiwan SouthKorea

Annual Disposable Income Per Capita % CAGR growth 2007-2012


12

TV demonstrationMiddle-aged women Word of mouth

Internet Retailing Growth 64% from 2007-2012

0

100

200

300

400

500

600

700

800

900

2007 2008 2009 2010 2011 2012

South Korea Internet Retailing Sale Value Local Currency

64%

Source Euromonitor International Source Youtube

�Internet retailing and homeshopping grow well in response to economy slow down

Case study: South Korea


13

Source: Own photos

�Waiting is a virtue

�Department store anniversary sales attract consumers to wait and purchase

�Beauty products is one of the best selling product category

Case study: Taiwan

Income Age Gender

Almost 20 years difference in age across the “oldest” and “youngest” countriesAsia Pacific sees diversifying consumer groups

45

26

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

Japan Hong Kong SouthKorea

Taiwan China Singapore Thailand Vietnam Indonesia Malaysia India Philippines

Mean Age Of Population

Mean Age Of PopulationSource: Euromonitor International


0.0

5.0

10.0

15.0

20.0

25.0

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Anti-Agers US$ Value Sales and Growth 2012

Sale Value US$ million dollars US$ Sale Value Growth

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

2008 2009 2010 2011 2012

US$ million, y-o-y exchange rates

Anti-Agers US$ Value SalesAsia Pacific

13% CAGR



18

Kérastase Initialiste

Hair serum with Stem Cell Technology Anti-aging hair care

SKII Stempower

New anti-aging line from SKIIfeaturing Stem-Acanax Complex,

Artichoke Extract, Kinren Extract and Pitera

http://www.moodiereport.com/document.php?c_id=33&doc_id=35806

http://www.lookfantastic.com/kerastase-initialiste-advanced-scalp-and-hair-concentrate-60ml/10647030.html

�Stem cells is one key new ingredient

�Anti-aging moves beyond anti-agers in skin care

What’s new in anti-agers

1.0

1.1

1.1

1.2

1.2

1.3

1.3

1.4

2007 2008 2009 2010 2011 2012

Average Number of Children per Household at Jan 1st 2013

Average children per household is declining year-on-year

providing higher purchasing power for parents



20Generation Z beauty trends

Source Own Photo

Share of population in Asia Pacific

Gen Z 8-19 years old

19%

Gen Y (20-30), 18%

Gen X (31-45), 22%

Baby Boomer (46-64), 20%

Swing Generation (65+), 8%

0-7 years old, 13%


Barbie Digital Makeover Mirror

Young consumers – Is this segment expanding?

http://mattelbrandsmedia.com/product.php?category=0&product=110

Sephora Hello Kitty Tokyo Pop Eye Shadow

http://www.sephora.com/tokyo-pop-eyeshadow-palette-P378212?skuId=1469170

Income Age Gender


23

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

0.90

1,800

1,820

1,840

1,860

1,880

1,900

1,920

1,940

1,960

1,980

2,000

2,020

2008 2009 2010 2011 2012

Male population in AsiaMale US$ per capita spending on skincare

0

5

10

15

20

25

1,800

1,820

1,840

1,860

1,880

1,900

1,920

1,940

1,960

2008 2009 2010 2011 2012

Female population in AsiaFemale US$ per capita spending on skincare

42% growth102% growth


Mars vs Venus: The male-female divide in skin care


24

http://www.prachachat.net/news_detail.php?newsid=1342095599

http://www.philstar.com/shopping-guide/2013/06/14/953595/how-show-dad-you-love-him

�From mass brands to premium brands and now, even direct selling brands have jumped on the men skin care bandwagon

For men only


25

Tom Ford For Men– June 2013

Cleanser, Moisturizer, Mud mask, Lip Care, Eye Care, Bronzing Gel, Concealer

Marc Jacob For Sephora – Boy Tested, Girl Approved

Brow Tamer Grooming Gel

Remedy Concealer Pen

Lip Balm

http://www.amongmen.com/style-grooming/grooming/tom-ford-launching-skin-care-and-grooming-products-men

http://marcjacobsbeauty.com/inspiration#boy-tested-girl-approved

�The shift from East to West – will make up for men become a global trend?

Beyond skin care for men


26

Energizer Holding Inc sales valuewent down by nearly -1% in 2012

The new product development from Gillette ProGlide Styler is beard trimmer

http://www.tikkabik.com/?p=2707 Source www.esquire.com


Will the rough and rugged look be the next big trend – again?



WHAT’S ON

FUTURE OUTLOOK


28


Technology savviness: The rise of beauty tools

62,000

64,000

66,000

68,000

70,000

72,000

74,000

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2009 2010 2011 2012 2013

Hair Care Appliances vs Hair Styling Agents

'000 units million litres


29

Olay Regenerist Advanced

Cleaning System Missha Real Patting Auto Puff

Source own photos

�Facial cleansing systems and automated makeup applicators – how will these drive beauty and personal care sales?

Talika Cream Boosters

Source own photos Source own photos

0

5

10

15

20

25

30

2007 2008 2009 2010 2011 2012

Asia Pacific Percentage of Population Using The Internet

200%

Living an online life



31Beauty brands’ social media usage in Asia Pacific

Facebook Members

Internet Population

Population

�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 , beauty-related 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

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?

Source Courtesy from NoyneungMake up Blogger

https://www.facebook.com/No

yneungmakeup

6,399 likes on September (9

months after the account

started)

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!


36

Chanel Weekend Cream50 ml – US$149

Rose water and glycolic acid to prepare skin

for the upcoming week

http://www.herworldplus.com/beauty/tried-tested/review-get-reactivated-recharged-renewed-skin-chanel-skincare

Rodial Bee Venom US$ 200

Bee venom extractwhich stimulates the skinto produce collagen

in response to the venom

http://www.rodial.co.uk/product/Skin-Care-Bee-Venom-Range/Bee-Venom-Moisturiser/387

http://hope-inablog.com/ohui/ohui-releases-high-end-750000-cream/

OHUI The First Cream Geniture

US$500

Embryo derived stem cell culture

New products: How creative can manufacturers get?


37New products: Thinking outside the box

http://laurensinwonderland.blogspot.com/2013/07/opi-oz-great-and-powerful-collection.html

http://www.wetpaint.com/revenge/articles/2013-06-21-revenges-double-infinity-fragrance-hits

http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=103&oid=109&aid=0002368651



WHAT’S ON

FUTURE OUTLOOK

Beauty and personal care in Asia Pacific continues to grow


110.0

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155.0

2013 2014 2015 2016 2017

Sale Value US$ Billion

19% constant value

period growth

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2

4

6

8

10

12

Asia Pacific US$ sales value CAGRBreakdown by product 2013-2017



41In summary

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

[email protected]

+65 6429 0590 Ext 6737

www.euromonitor.com

@euromonitor

www.facebook.com/euromonitorinternational

Search for “Euromonitor International Market Research Group”

beauty and personal care what the future holds

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