24 ANALYSIS


a tech-enabled beauty counter in their Singapore branch decked with digitalised and automated functions to engage customers. One of a which is the SkinScope LED which assesses patients’ skin through two modes that simulates daylight and an LED-UV light for detecting underlying damage happening underneath the surface. Taiwan-based Perfect Corp announced the


latest generation of their AI Skin Diagnostic Solution in September as part of their rapid digital acceleration efforts. They teamed up with Neutrogena to launch the Skin360 app, which is powered by the firm’s YouCam technology. The AI Machine-learning algorithm and patented AgileFace technology, created using 70,000 clinical skin images, allows the assessment of not only various skin-types but of different ethnicities, a factor which is key in APAC where there are so many different skin shades. Striking a more fun and playful note, Korea’s


Amorepacific has launched custom 3D face masks that are patterned after user’s face measurements with formulations that are suited for exact skin types. Its other beauty brand Laneige also brought in My Delicious Therapy – their own version of the Lip Sleeping Mask – where clients can choose their own personal fragrance and packaging design.


PC: Are there any particular countries or companies leading the way here? NF: Japan, Korea, China, Taiwan and Singapore are leading the innovation pack thanks to its demanding and financially mature consumers, while more companies hoping to engage APAC consumers are strengthening their digital presence by collaborating with established e-commerce brands. Shiseido, for instance, has joined with Shoppee to offer some lesser-known brands under its portfolio. So interestingly, we are seeing the collaboration of huge cosmetic giants - including key players such as L’Oréal - double down on tech globally but particularly in APAC — and join forces with tech companies that straddle every component from shopping to app development. Beauty products are the output, but tech is the enabler across almost every single touchpoint.


PC: How important is the use of natural ingredients in the key markets? NF: Let’s start by saying that natural is such an amorphous word globally, let alone in APAC markets. Natural means different things to different people, partly because of lack of regulation and partly due to environmental as well as social context. However, we predict that the next frontier in natural will tap into local traditions and cultural nuances to provide a rich source of product and ingredient innovation. Many countries in the APAC region have an indigenous heritage focused on beauty and health practices, and as appreciation for ‘supporting local’ accelerates due to the impact of COVID-19 on consumer purchasing, brands can dig deeper into these rituals to help differentiate from


PERSONAL CARE January 2021


increasingly focused on consolidating their marketing efforts into these big festivals, and young consumers have responded particularly well as they see it as a chance to save money, be caught up in a community-driven experience as well as getting their hands-on new product launches which are now being timed to launch with these festivals.


Nicole Fall


global brands. Thus, we see natural shifting to more ‘local’, ‘indigenous’ and ‘ritualistic’ over the coming year.


PC: Could you highlight a specific current trend in Asia you can imagine making waves globally in the next 12 months? NF: Japan’s beauty firm I-style Inc has tapped into live-commerce to reach the Chinese market who have not been able to travel to Japan by joining T-mall and JD.com. The company hopes to use the concept of “shoppertainment” to offer unique shopping experiences through China’s 138-billion-dollar business of live-streaming that allows consumers to interact and buy from brands in real time. Another legacy brand tapping into South East


Asia’s Live-commerce boom is L’Oréal, which quickly bounced to double digit growth in China thanks to China’s strong e-commerce stance and the market’s appetite for beauty. Thanks to its partnership with sites such as T-mall and Lazada, the company experienced a 30% sales growth. In a nutshell, live commerce is set to grow and


grow and will tip over into non-APAC markets in a significant way over the next few years. It’s a really exciting way of connecting with consumers, enabling product explanation, demonstration and sales all in the same platform in the most efficient way imaginable.


PC: How are brands trying to appeal to younger consumers in Asia? NF: Digital, digital and digital! Did I mention digital?! Campaigns held across multiple digital platforms and in-store experience featuring AR games which allow users to receive free samples are particularly popular, while pop up stores have also received a digital overhaul and engage consumers with various virtual touchpoints. These transcend geography and allow consumers access to the brand when a physical footprint does not, which is key in such an enormous region with so many consumers. What else? Cosmetic players have proven


to perform explosively during popular date- driven “sale festivals” such as the 6.18 Festival in China as well as the 11.11 sale across APAC. We identified this as a growing trend that we dubbed as ‘Shoppingmas’ a few years back for a trend report we put together for Google. Our prediction stated that brands were


China As part of Personal Care’s World of Chemistry presentations for the NYSCC’s At Home Live series, Jessica Qu of Bloomage gave some insight into how Chinese BPC companies had dealt with the pandemic and associated lockdowns, as well as how consumer behaviours are changing. Jessica said that brands have been emphasising their strong R&D ability to provide more innovative products, a process which has been driven by the rise of consumers with a greater depth of scientific knowledge, which has in turn impacted their views of the BPC market. Skin care is still the most important


subcategory of the market, while ‘efficacy cosmetics’ have become increasingly attractive to Chinese consumers, in particular cosmetics with claims for ‘anti-ageing’ and ‘for sensitive skin’. As a result of the COVID-19 pandemic,


consumers had begun to recognise the importance of health and safety, and developed a preference for products with natural ingredients, because they think they offer increased safety. This is important, because many people believed that there has been a lower interest in natural ingredients in China compared to most other countries, but this may now be changing. Online sales have become the largest retail


channel of the Chinese personal care market, benefiting from the rapid development of e-commerce since 2010, with mobile online traffic also increasing rapidly since 2018. Mobile sales have been boosted by the development of sites such as Little Red Book, wechat, microblog, KOL, etc. In terms of geographic spread, Jessica Qu


said the growth of first tier cities has tended to be stable, while the main growth of FMCG, including personal care, has shifted to middle/ western China and lower tier cities. The growth of BPC consumption from tier 3-tier 6 cities increased 143% during the 618 promotion (an online shopping festival created by JD.com) of 2019, which indicated that online retail platforms were a vital way for brands to expand into lower-tier cities. In addition, beauty and personal care consumption of female consumers from lower tiers cities has increased more rapidly, compared to first-tier cities. Jessica also revealed a big shift towards


premium brands has kept on growing, with total consumer attention towards TOP10 premium brands surpassing 50%. Mass brands have seen a decline, especially Korean brands like Laneige, Inn Is Free, A.H.C, etc. Speaking again to Sneha Varghese, of Future


Market Insights, she highlighted how competitive the market is in China: “Despite the economic distress around the world, owing to the impact


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