Thai consumers have two strategies for making their beauty budget last longer: they buy affordable mass brands, and opt for premium brands that are extremely effective.
As inflation increases, and the money in Thai shoppers’ pockets is worth less and less with each week that passes, people are seeking greater value for money from their beauty buys. This is not about always opting for the cheapest products, however: they are willing to pay more for brands that offer exceptional effectiveness.
As a result of this behaviour, the facial beauty market in Thailand is polarising.
In one direction, we have mass brands growing strongly. These offer basic products with single functions, such as moisturisers. They succeed by making products from cleanser to mascara accessible and affordable, with smaller sizes and sachets. They also grab attention by using simple natural ingredients, such as carrot, Vitamin C and tomato.
Emerging mass brands are creating a point of difference by building their own areas of expertise. Browit, for instance, positions itself as an expert in eye makeup through a range that has been developed by a famous Thai makeup artist.
At the same time, luxury and prestige brands are also growing. Consumers still want to pamper themselves and treat themselves to something special.
Brands that offer high efficacy, advanced functions and ‘hero’ ingredients justify the premium price they charge, by clearly demonstrating the value they provide. They successfully persuade shoppers to spend more by emphasising advanced technology and innovation. For example, Lancôme highlights its hero ingredient, Microbiome, which has the claim of playing an integral role in healthy skin, while Kiehls promotes its innovative Micro-Dose fast release packaging.
Give people a clear and compelling reason to buy, by highlighting efficacy. Thai consumers have to believe a product is worth spending their hard-earned money on.
Affordability is about much more than offering promotions and price cuts. Explore the potential of launching smaller formats.
