BEAUTY REPORT: RISE OF ASIAN BEAUTY


other way around, as she explains: “Estée Lauder launched a Chinese


targeted brand several years ago, called Osiao, which was based on formulas linked to traditional medicine, but it failed to resonate with local consumers. “So, there really is a big difference


Chantecaille partially credits the rise of K-Beauty to savvy product placement.


skincare products. “This group is more experimental


and wellbeing-focused, gravitating towards niche and Asian-branded skincare products,” he remarks. Best-selling brands for DFS include


both J- and K-Beauty names. “While classic and premium


skincare continue to be a favourite for DFS customers, the emergence of Japanese and Korean brands are building a strong fan base,” elaborates Marque. “The innovation of Japanese


brands, for example, creates products that are authentic, reliable and versatile, making them a natural choice for many of our traveling customers.” Meanwhile, companies like


AmorePacific are banking on the Chinese consumer in the long run, despite recording a year-on-year Q4 net profit decline of 76.2% that it attributes largely to the group travel ban hitting South Korea. Duty free sales of Innisfree and


Etude House were ‘sluggish’, despite an active calendar of product launches, new openings and differentiated customer experiences.


Cultural learnings Returning to K-Beauty and Chantecaille’s Mong de Verchère isn’t convinced that it will be able to secure the hearts, minds and wallets of western consumers en masse in the long term. “Brands like Innisfree have opened in the US, but I don’t think they’ll see the same success as in Asia as there’s still quite a big culture gap,” she observes. And it doesn’t necessarily work the


JUNE 2018


between a western company trying to be Asian, versus Korean brands launching into the US or Europe that have a clear point of difference. Although I think it will be the Asians living there who are the right target, not westerners.” According to its 2017 annual


report, Gebr. Heinemann took the opposite tack. The Hamburg-based travel retailer increased appeal among more European customers, who are picking up on the trend and buying into the range of intensive creams, fluids and serums on offer. “In our Heinemann Duty Free


shops in Frankfurt and at our distribution client at Munich Airport, we were the first company in travel retail to introduce products from Sulwhasoo, a premium brand in Korean skincare cosmetics,” says the report. It continues: “We spotted the trend very quickly and still see great potential for it, given the many Asian customers at our international sites.” Sheet masks in particular have


grabbed the attention of the travel retailer. “This hits the spot with younger,


care-conscious customers in the European market as can be seen by the strong revenues right from the date the masks from Face Inc and Dr. Jart+ were launched in Autumn 2017 and the continuous notable growth in demand,” adds the report. «


“While classic and premium skincare continues to be a favourite for DFS customers, the emergence of Japanese and Korean brands are building a strong fan base.”


Christophe Marque, Senior Vice President Beauty and Fragrances, DFS Group


J before K


Japanese beauty brands are banking on century- old traditions and quality to attract new consumers.


While K-Beauty is viewed as dynamic and trend driven, its Japanese equivalent is decidedly low-key with a steady emphasis on high-tech product development and quality messaging. A recent Gartner L2


daily insights briefing reveals that Chinese consumers are scaling back on K-Beauty product favourites in favour


of Japanese brands, buoyed by 15% growth in relocated 2017 tourism arrivals. The Chinese RED travel app also registered


growing interest in Japanese brands such as SK-II, Labo, DHC, Pola, Fancl, Kate and Dr. Ci. A veteran of the beauty business with an 80-


year pedigree, Kanebo Cosmetics agrees there is significant global potential for the brand beyond traditional borders. “The quality of Japanese brands has been


spreading rapidly through word of mouth and social media, especially from visitors to Japan who have actually purchased and tried the products,” says Yasunao Sawada, Director of Travel Retail Business Development Group, International Business Department, Kanebo Cosmetics (pictured above). New travel retail-exclusive products were rolled


out In Autumn 2017 and March 2018 and these represent a 50% share of Kanebo’s total travel retail sales, according to Sawada. In addition, an ultra-premium line is being lined


up for release in Autumn this year. For Sawada, J-Beauty is not a trend, rather it’s a


quality-led proposition for the long term. “We will accelerate the launch of new counters


Kanebo Lunasol Skin Modeling Eyes.


at major airports and cities in Asia, and are also proactively thinking about inflight sales in the region,” he tells TRBusiness.


TRBUSINESS 55


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