In beauty and personal care industry, it is perhaps foreseeable that Asia Pacific will be the next market to look at. Asia Pacific’s influence is stronger in skin care in particular. The region is predicted to generate over half of the total global skin care revenue by 2019, according to Euromonitor’s estimate. A growth engine is growing middle class and its disposable income in emerging countries in Asia Pacific. More importantly, innovative products in Asia Pacific highly contribute to the sales. International players also perceive Asia Pacific as where they can get new sources of inspiration for their new products. South Korea in particular is on centre of the trend after series of success of its own invented products to globe such as BB creams or Air cushions – a new make-up format from South Korea.
South Korea beauty is being presented by celebrities. The rise in popularity of K-pop culture and soap opera across Asia Pacific has helped South Korean brands expand beyond their home market. South Korea’s top two leading players, AmorePacific and LG Household & Health Care have stepped into global markets. Although their performance in global markets is not yet significant, both have achieved to be top 10 beauty companies in Asia Pacific. AmorePacific increased it total actual sales nearly by 400% since 2009, compared to 84% growth in the domestic market during the same period. The beautiful, flawless and natural make-up presented by actress and actors in Korean TV dramas led to the relevant cosmetic and skin care products in China and other Asian countries.
Korean beauty wave in Asia Pacific has also transformed the landscape of beauty and personal care in South Korea. As one of main purposes to visit South Korea became to purchase beauty products, brands favoured by tourists perform greatly. For example, Innisfree became the fourth player in 2014 which was the rank higher than in 2010 in mass skin care thanks to its reputation to tourists. It is also well-known that Soothing & Moisture Aloe Vera by Natural Republic and Prestige Crème d’escargot by It’s Skin are loved by Chinese tourists and highly rise in sales over the past few years.
South Korean beauty wave is likely to continue and even spread to the West in future. However, there is a potential challenge to slowdown the growth. With the rise in popularity and availability of Asian beauty, there will be more players stepping into the market. Chinese brands are increasingly appealing to consumers with skin care products using traditional Chinese medicine and natural herbs. Also, international brands are also aggressively adopting concepts of South Korean beauty trends. In order to be lead the competitive market, it will be important for manufactures to develop innovative products with new ingredients, unique features while maintain a good quality. Establishing user-friendly platform to purchase products online will be another key to success in the market.
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