BEAUTY IN ASIA


“Essential oils, pollution-free skin care, sleeping balms, hand and nail creams and foot relief sprays are just some of the most-liked products and we offer these in our stores.”


Surabhi Batra, Beauty Category Manager, Mumbai Duty Free


in the P&C category is the controversial Chinese daigou shuttle trader phenomenon. These traders travel to countries


like South Korea to pick up bulk quantities of in-demand products for direct or online resale back home, thus avoiding paying the exorbitant luxury taxes imposed by the government. Not restricted to Chinese


“In our P&C stores we focus on international brands and display the local homegrown brands in our drug store,” says Tasa Meng’s Chau. McAndrews notes


strong


performance for Japanese brands in Taiwan, especially in luxury department stores, as well as the domestic market strength of leading Korean brands.


Daigou phenomenon Unsurprisingly, Asia continues to lead the way in terms of industry growth. According to a 2018 forecast from Swiss research firm m1nd-set, three out of the five largest markets [in terms of duty free sales share] are China, Japan and South Korea. The only potential blot on the horizon for prestige brands


Natural angles, high-tech innovations


Holistic beauty may be shaping the new beauty landscape, but communicating product promises and benefits is firmly in the hands of digital innovation.


From the Shiseido stable, bareMinerals’ Made-2-Fit App ‘leverages revolutionary skin- matching technology from MatchCo to


create personalised products tailored to individual users’. Digital engagement via the use of


immersive animation experiences coupled with targeted digital content is supporting the brand push of a next wave of beauty products. Elisabeth Jouguelet, Vice President,


Shiseido Travel Retail (pictured above left) says: “We launched Essential Energy in January 2018 with the


130 TRBUSINESS


#BeautyofTravel campaign, a collaboration between China skincare spokesperson and popular actor Huang Xuan, who has a massive social media fan base, and ShiShi Yamazaki, a Japanese contemporary artist. “We had animations taking place in


Beijing, Shanghai, Hong Kong, Singapore and Thailand. The space design of these outposts was inspired by the skin’s receptive network and the ReNeura Technology behind the product’s formulation. As guests entered the space, they were able to interactively explore and learn more about Essential Energy using an iPad.” To further drive campaign


engagement, Shiseido Travel Retail also developed an interactive game allowing them to journey with Huang Xuan and re-energise themselves by collecting ‘Essential Energy’, which earned them chances to win products.


A new interactive counter unveiled at T Galleria Beauty by DFS in Causeway Bay, Hong Kong promoted the same range, together with the launch of the #ShareBeauty app that helped inform customers on the range and the Japanese art of beauty and revitalisation. “As part of a special in-store event,


DFS also launched a service allowing bloggers and media to use social media channels Weibo and Yizhibo to live stream on the day,” adds Jouguelet. Tasa Meng’s Chau is also a fan of


blogger tie-ups. He says: “Social media and bloggers play a leading role in driving marketing trends for skin care and make-up. We also found that, from 2017, the implementation of pop-up stores and outpost design with added social media elements created more customer interaction and our Chanel, Christian Dior and recent Jo Malone activations, for example, were very successful.”


MAY 2018


traders, South Korean nationals are also cashing in by taking goods to and from China, including Apple electronics. A cause for concern for both


brands and operators, the duty free community is largely adopting a practical approach to managing this increasing and potentially brand equity-damaging issue. Chau explains: “Daigou trade is


huge business in Korea duty free but we have a strong system of internal control and work with our partners to impose strict limits on the number of pieces sold to customers. “Luckily, we primarily serve


international travel retail customers and we don’t have an issue with shuttle traders.” Perricone MD takes a similar


stance, working with its exclusive e-commerce distributor in China to


help manage any potential issues. Elsewhere, Shiseido’s Jouguelet


flags a broadening Asia customer base as the determinant for future business growth. “The region’s travel boom is


being driven by a growing middle class, millennial travellers and, increasingly, senior travellers and is supported by rapid developments in infrastructure and technology. “Asia’s popularity as a travel


destination, especially for the Chinese, is also a key factor, as developing and emerging markets boost their tourism marketing efforts,” she says. This demands highly targeted


activity as seen with Shiseido’s May 2017 ‘Beauty of Thailand’ activation, which targeted Chinese travellers through ads on key online media channels such as WeChat and major Chinese travel websites. “This campaign also leveraged


the popularity of influential Chinese blogger Magic Yang to increase exposure,” she adds. “The campaign was further


amplified on other digital platforms such as Facebook and Instagram, and integrated with in-store experiential activities to create the perfect retail storm scenario.” «


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