14 ANALYSIS
Beauty opportunities in Southeast Asia
n Sharon Kwek – Mintel, Singapore
Southeast Asia is a microcosm of business on a global scale, as companies are focusing brand developments and expansions within the region. The beauty landscape is revolutionising along with modern consumerism, which, in turn, offers infinite opportunities. Beauty retailers have taken notice of the opportunities and are also investing in the region. In Thailand, Japanese beauty retail giants have entered the market and are making plans for expansion. For example, Japanese drug store chain Tsuruha is executing major expansion plans, targeting 1,000 new stores over the long term, while Matsumoto Kiyoshi, also a Japanese drug store, opened its first store in Bangkok a couple of years back. In Singapore, Sephora Asia Pacific regional headquarters continues to expand its developments within the region, and today, is in Southeast Asian markets like Malaysia, Thailand, and Indonesia.
Meanwhile in Vietnam, Guardian opened its 49th store earlier this year, just six years after the first store opened in 2011. Additionally, the Asia-based personal health and beauty retailer boasts an extensive number of locally-produced products on store shelves. Finally, Thai skin care retailer Beauty Community entered the Indonesian market in 2015. Today, there are nearly 300 stores across Southeast Asia, including three separate brands: Beauty Buffet, Beauty Market and Beauty Cottage.
Riding the digital wave Digital platforms are emerging within the region, tailoring to various market and consumer targets. These new platforms are generating the need for newly designed shopping channels, digital payments, online activities or a hybrid of business models that engage consumers and enhance the shopping experience as well as brand value. In Indonesia, a new start-up, Slingshot, is allowing anyone to become virtual shopkeepers under micro-franchise agreements with retailer Alfamart, where they can stock their augmented reality shelves with any items from the retailer’s
PERSONAL CARE ASIA PACIFIC
inventory. The virtual stores are designed to add a social element to the online shopping experience and provide a more familiar setting for those who still prefer the brick-and-mortar store. Meanwhile in Singapore, Singapore- based Ulab launched HotSpotting World, a fashion concierge mobile app that allows users to purchase what they see via the use of object-recognition technology. App users can buy items they see in magazines, videos, on billboards or social media, simply by scanning the fashion item in question. The software will then proceed to search through a database for the closest match. Moreover, beauty brands, in particular, are leveraging technology to market themselves and their products to a broader consumer audience. Also in Singapore, beauty brand Bioré launched a new non-human digital influencer that is designed to help the brand appear more authentic. Together with ‘her’ very own Instagram page, the ‘digital’ influencer provides updates with tips on beauty products while adding information about her daily life. According to the brand, this activation aims to capture the voice of young women in the country, by becoming
relatable through social stories. Southeast Asia is riding the digital wave
as more and more consumers are using the internet for various social media activities and online purchasing. More consumers across the region are shopping and making purchases online than ever before, supporting a lively eCommerce market. In fact, reports have shown that the sales value of Southeast Asia’s eCommerce market is projected to grow exponentially in the years ahead—and a growing middle class and an improved infrastructure are helping with this growth. What is more, key eCommerce giants the likes of Alibaba, Amazon and
JD.com have expanded across Southeast Asia as a result of the region’s potential.
As technology and eCommerce continue to evolve, Southeast Asia is moving towards mCommerce (mobile commerce) and consumers are using their phones to browse and buy products while on-the-go. Singapore reportedly has the greatest potential for eCommerce businesses in Southeast Asia.
Diverse and connected, Southeast Asia is an amalgamation of the US and China; it drives unique eCommerce and
November 2017
©Maridav/Fotolia
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