Global Trends in Beauty and Personal Care

GLOBAL TRENDS IN BEAUTY AND PERSONAL CARE: OPPORTUNITIES FOR FUTURE

IN-COSMETICS ASIA 2014

PEI YING LOH – RESEARCH ANALYST

© Euromonitor International

2

About Euromonitor International

INTRODUCTION

• Strategic research for over 20 industries • Extensive network of analysts in 80 countries • Global presence, local coverage

Chicago Serving North America

London Headquarters

Serving Western Europe

Vilnius Serving Eastern

Europe and Scandinavia

Santiago Serving Latin

America

Cape Town Serving South

Africa

Dubai Serving Middle East and

North Africa

Bangalore Serving India Singapore

Serving Asia bar China, India, Japan, Australasia

Shanghai Serving China

Tokyo Serving Japan

Sydney Serving Australia, New

Zealand and the Pacific region

Sao Paolo Serving Latin

America

http://www.euromonitor.com/


3 INTRODUCTION


GLOBAL OVERVIEW

CHARACTERISTICS OF CONSUMERS

KEY THEMES IN 2014

ASIA PACIFIC TRENDS

WHAT’S NEXT

CONCLUSION


5 GLOBAL OVERVIEW

US$454 of total beauty and personal care retail sales globally in 2013

billion

2% value growth generated in 2013

represented by Asia Pacific in 2013

29%

Source Euromonitor International



6

Most categories see better performance in 2013

GLOBAL OVERVIEW

Performance by Category – 2012 vs 2013

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GLOBAL OVERVIEW


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GLOBAL OVERVIEW



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GLOBAL OVERVIEW


KEY THEMES IN 2014

ASIA PACIFIC TRENDS

WHAT’S NEXT

CONCLUSION


10

Market driven by brand loyalty vs experimentation


Brand Loyalty Experimentation

• Product effectiveness

• Brand image

• Habit

• Desire for more effective products

• New claims and innovative

ingredients

• Unique product benefits

• In-store availability and price

Source Euromonitor International consumer survey, Personal Appearance Survey 2014


GLOBAL OVERVIEW


KEY THEMES IN 2014

ASIA PACIFIC TRENDS

WHAT’S NEXT

CONCLUSION


12

Key themes to define the industry in 2014

KEY THEMES IN 2014

Multi-benefits products

At-home beauty experience and

pampering

Dominance of ‘Selfie’ trend

Fashion Beauty



13

Products with multiple claims feature strongly

KEY THEMES IN 2014 – MULTI-BENEFITS PRODUCTS

Convenience Cost-saving Novelty

Moisture Anti-

Ageing Fragrance

Sun

Protection

Whitening Colours Coverage Gentle to

Skin



14

Haircare & colour cosmetics stand out

KEY THEMES IN 2014 – MULTI-BENEFITS PRODUCTS

Two-in-one product used as a foundation with high coverage

corrector, enriched with LR 2412, the active ingredient

integrated in Visionnaire skincare. Also claims to reduce imperfections.

Maintains moisture, and also protects hair from daily stress, colour fade

and future damage

Peel off technology for easy removal, protects

and strengthens the natural nail. Finished in 60

seconds under LED.

Source: Analyst’s own photos

Caviar Anti-Aging Replenishing

Moisture Conditioner

Striplac Peel-off UV/LED Nail Polish

Lancôme Teint Visionnaire



15


KEY THEMES IN 2014



pampering


Fashion Beauty



16

Consumers increasingly going for self-pampering in the home

KEY THEMES IN 2014 – AT-HOME BEAUTY EXPERIENCE AND PAMPERING

Cost-saving

Time constraints to achieve

instant results

Growth of “self-

service” trend



17

Multiple sectors benefit from at-home beauty experiences

KEY TRENDS IN 2014 – AT-HOME BEAUTY EXPERIENCE AND PAMPERING

Consumer Appliances

Masks Hair Treatments

Clarisonic Mia 2

The Face Shop 3D Ampoule Mask Sheet Red Ginseng

and Ceramide

Shiseido Tsubaki Damage Care Hair Mask


Claims to offer a gentle and effective cleanse at home,

than traditional manual cleansing.

Two steps facial care using both ampoule and mask sheet. Used to achieve

whitening, hydrating and firming of skin.

Integrated with Camelia Oil, most suitable for dry,

permed, sun-damaged, colour-treated and coarse

hair.



18


KEY THEMES IN 2014



pampering

Dominance of ‘selfie’ trend

Fashion Beauty



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Strong appeal for “Selfie” Beauty KEY THEMES IN 2014 – DOMINANCE OF “SELFIE” TREND

Tailored innovations with specific solution-

based products

Skin Perfections

Colours to portray individuality



20 KEY THEMES IN 2014 – DOMINANCE OF “SELFIE” TREND

Social media and “Selfies”, the connection with consumers


Source: https://www.facebook.com/notes/sunsilk/sunsilk-

dreamstarter-digital-promo-mechanics/774253665954734

• Lancôme USA has launched a social media campaign #bareselfie

• Encouraged users to use the product and take bare-look/ no make up

Lancôme’s Dreamtone

• Launched “#NoFilterSephoraSg”.

• collaboration with CLEO Magazine

• Offering tips on different types of selfie

Sephora Singapore

• Launched a social media campaign, #SunsilkDreamStarter, in Philippines

Sunsilk Dream Starter

• Launched the #realsies campaign

• Fans can post selfies with lashes applied with “They’re Real!” mascara to win long supply

Benefit



21


KEY THEMES IN 2014



pampering


Fashion Beauty



22

Fashion apparel brands make a stronger mark within beauty

KEY THEMES IN 2014 – FASHION BEAUTY

Brand consciousness

Rising Affluence

expansion in fashion brands beauty range

Fashion Brands

Consumers


GLOBAL OVERVIEW


KEY THEMES IN 2014

ASIA PACIFIC TRENDS

WHAT’S NEXT

CONCLUSION


24

Growing appeal for “safe” cosmetics in Asia Pacific

ASIA PACIFIC TRENDS

Non-preservatives beauty and personal care

Derma-cosmetics

Natural and organic beauty and personal care

APIVITA Suncare First Aid Beauty Ultra Repair Cream Intense Hydration for

Dry Parched Skin

Himalaya Herbals Purifying Neem Face

Wash Source: Analyst’s own photos



25 ASIA PACIFIC TRENDS

Internet retailing shows fast growth

0%

20%

40%

60%

80%

100%

2008 2009 2010 2011 2012 2013

Internet Retailing

Department Stores

Direct Selling

Modern Grocery Retailers

Health and Beauty Specialist Retailers

Asia Pacific Beauty Sales by Key

Distribution Channel – 2008-2013


Growing presence of internet retailing



26 ASIA PACIFIC TRENDS

Xiaxue Top Blogger in Singapore

Jane Chuck Top Blogger in Malaysia

Bryan Tan Top Blogger in Thailand

Bloggers are a big influence on young consumer trends

Source: http://bryantanmakeupartist.blogspot.sg/ Source: http://chuckei.com/ Source: http://xiaxue.blogspot.sg/


GLOBAL OVERVIEW


KEY THEMES IN 2014

ASIA PACIFIC TRENDS

WHAT’S NEXT

CONCLUSION


28 WHAT’S NEXT

Global market: other facial make-up to be the driving force


Fastest Growing Beauty and Personal Care Categories 2013-2018 Constant Value CAGR (%)

Other Facial Make-Up

Face Masks

11%

6%

Anti-Agers

5%

Men’s Skin Care

8%

6%

Baby and Child-Specific

Skin Care



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Asia Pacific: Other Facial Make-Up to have the strongest growth

WHAT’S NEXT


South Korea fastest constant value CAGR of close to 18% expected from 2013 to 2018

0 5 10 15 20

Taiwan

Japan

Thailand

India

Singapore

Malaysia

Hong Kong, China

Indonesia

Philippines

China

South Korea

Other Facial Make-Up constant value CAGR 2013-2018 by countries (%)

Constant value CAGR 2013-2018 (%)

13% constant value CAGR expected from 2013 to 2018 in Asia Pacific

18%



30

Global market: “Selfie” creates opportunities

WHAT’S NEXT

Consumers

Retailers Manufacturers

Look good factor

• Personality • Individuality

Skin perfection

• Even tone

• Spot correction

• Smooth texture

Tailored innovation

• Solution-based

• Hyperpigmentation

• Scalp health


GLOBAL OVERVIEW


KEY THEMES IN 2014

ASIA PACIFIC TRENDS

WHAT’S NEXT

CONCLUSION


32

Ideas to take away

CONCLUSION

The continuous success: Multi-benefits and at-home beauty products

Technology will be a main focus for manufacturers and consumers

Other Facial Make-Up to be a main focus of major manufacturers


THANK YOU FOR LISTENING

Pei Ying Loh

Research Analyst

[email protected]

mailto:[email protected]

Business

Global Trends in Beauty and Personal Care