South Korea, Indonesia and India
In South Korea and Indonesia, where inflation is greater than Mainland China, continued purchasing of beauty staples as well as premium offers highlights a strong resilience for beauty compared to other categories. Even with the higher pricing of brands that results from inflation, strong unit sales have ensured continued market growth.
In India, with where inflation has dropped since its peak at the start of the pandemic, prices continued to rise, but the affect was a slowdown of purchasing that has kept the market stable.
South Korea, India and Indonesia
Beauty staples such as face body moisturizers as well as facial cleansing products are driving growth in India, while selective investment influences the brand selection. Brands that claim to add brightness, fairness or natural ingredients are becoming premium purchases for Indians who are willing to pay more for products that improve the brightness and fairness of their skin. As a result, this segment has seen value sales grow by 36 percent.
On the other hand, body moisturizers are showing notable growth but the core growth drivers are local, mass market brands rather than premium offers.
India beauty category composition
Indonesia beauty category composition
Indonesia is a market with huge growth potential, thanks to its large population and the opportunity to increase average spend per buyer by addressing their specific beauty requirements and educating consumers.
More sophisticated beauty routines are influencing facial skincare purchases. Sun protection and serum products in particular are adding buyers to the category.
Innovative local Indonesian brands like Scarlett and Implora are adept at catering to these skin goals and others. Serums that address diverse skin conditions is growing the category and attracting more consumers to brands. Implora for example, with its Luminous Brightening Serum, has seen 132 percent value growth in the last year (to end q2, 2022).
These more sophisticated facial skincare purchases, which are being added to existing skincare routines, are helping to drive growth for the facial skincare segment.
South Korea is a beauty hot spot and one of the top 10 markets for beauty products in the world.
Many new and pioneering Korean beauty brands are succeeding at home and in other markets in Asia. They have overtaken Japanese brands as the most highly regarded and in demand products for Asian consumers.
Key to their success is commercial innovation. They are engaging with and delivering their products to consumers, with compelling brand propositions that leverage the symbiotic relationship between pop culture and beauty. As a result, all four categories are showing strong growth. This is for several reasons.
With products and marketing tailored to the diverse needs of Asian consumers, Korean consumers are opting for a more individualistic approach for their colour cosmetics. Beauty is very important in Korea and matters in everyday life and work as a reflection of their self.
With the widespread availability of make-up tutorials gaining pace and celebrity influencers showing consumers how to maximise under skintone and improve overall beauty, sophisticated Koreans are seeking broader colours and shades that are better for them.
They either choose the best-matching colours available, considering their hair and skin tone, or create their own shades by blending colours and playing with makeup.
So, eye shadow palettes in similar tones such as Daisique or liptints that allow consumers to control the colour intensity, such as the Natural Shine Lux triple lip cure balm and Peripera, are satisfying consumer demands.
Beauty is no longer something that happens at home at the beginning of the day. Consumers want to extend their beauty moments around the clock. With a focus on beautification of people’s personal space, brands are developing portable ‘to-go’ formats that enable consumers to extend their beauty moments around the clock.
Products such as sunstick-to-go and cushion foundations for touch ups at any time have been around for a while, but now advanced skincare options are providing on-the-go formats so that consumers can multi-layer advanced skincare anytime and anywhere.
With under eye and wrinkle creams that are blasting out commercials that show relatable occasions and demonstrate the benefits of multi-layering, there has been a 557 percent increase in volume sales. Facial mist is another part of the multi-layering trend and sales of these products have grown by 12 percent in the last year (MAT Q2, 2022).
The need for ease is transferring into haircare as well, especially in shampoo where hair colouring can now be part of the regular hair wash. Likewise, the application of intensive conditioning ampoules are now much simpler to use in new spray formats which eliminate the need to wash their hands after application of oil-based ampules.
Many luxury beauty brands are also enhancing their lines to body care. And some beauty brands are expanding their products into home care. Diptyque, for example, has launched a home care line of detergent, dishwasher and treatment milk for leather care. Beauty is no longer for just the person but for the space around them.
1. Sophisticated care of oneself
South Korea is a pioneering market in Asia beauty. Koreans are expanding their skincare regimes and extending their beauty regime throughout the day and in the space around them. Brands that accommodate convenience-oriented and me-centric use of their products are more able to support premium pricing
2. Indonesia is the third biggest market in Asia
With more awareness of skincare and beauty amongst Indonesian consumers, brands can be more active in helping them to enhance their skincare regimes. The third biggest market in Asia, Indonesia presents a big growth opportunity for those brands that can provide localized products and communications, following the lead of Korean brand leaders.
3. Fairness and brightness is gaining momentum in India
South Korean beauty products are driving a premium price with consumers across Asia Their perceived innovation with products that are tailored to specific market needs and symbiotic relationship with popular culture, these brands are gaining huge momentum in markets like India.
