Beauty and personal care reached US$454 billion in 2013 globally, with Asia Pacific region demonstrating highest value sales. This presentation focuses on performance across categories, and highlights some key beauty and personal care concepts currently prevalent across these countries, including the growth of multi-benefits products, at-home beauty experiences, as well as the dominance of "selfie" trend, and the rise of fashion beauty.

1. GLOBAL TRENDS IN BEAUTY AND PERSONAL CARE: OPPORTUNITIES FOR FUTURE
IN-COSMETICS ASIA 2014
PEI YING LOH – RESEARCH ANALYST

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About Euromonitor International
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INTRODUCTION

4. GLOBAL OVERVIEW
CHARACTERISTICS OF CONSUMERS
KEY THEMES IN 2014
ASIA PACIFIC TRENDS
WHAT’S NEXT
CONCLUSION

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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

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Most categories see better performance in 2013
GLOBAL OVERVIEW
Performance by Category – 2012 vs 2013
US$ billion
Value Sales Growth rates (%)
Source Euromonitor International
-1
0
1
2
3
4
5
6
7
8
9
10
0
20
40
60
80
100
120
US$ billion
Value growth 2011-2012 (%)
Value growth 2012-2013 (%)

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Most categories see better performance in 2013
GLOBAL OVERVIEW
Performance by Category – 2012 vs 2013
US$ billion
Value Sales Growth rates (%)
Source Euromonitor International
-1
0
1
2
3
4
5
6
7
8
9
10
0
20
40
60
80
100
120
US$ billion
Value growth 2011-2012 (%)
Value growth 2012-2013 (%)

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Most categories see better performance in 2013
GLOBAL OVERVIEW
Source Euromonitor International
Performance by Category – 2012 vs 2013
US$ billion
Value Sales Growth rates (%)
-1
0
1
2
3
4
5
6
7
8
9
10
0
20
40
60
80
100
120
US$ billion
Value growth 2011-2012 (%)
Value growth 2012-2013 (%)

9. GLOBAL OVERVIEW
CHARACTERISTICS OF CONSUMERS
KEY THEMES IN 2014
ASIA PACIFIC TRENDS
WHAT’S NEXT
CONCLUSION

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Market driven by brand loyalty vs experimentation
CHARACTERISTICS OF CONSUMERS
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

11. GLOBAL OVERVIEW
CHARACTERISTICS OF CONSUMERS
KEY THEMES IN 2014
ASIA PACIFIC TRENDS
WHAT’S NEXT
CONCLUSION

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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

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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

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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

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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

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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

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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
Source: Analyst’s own photos
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.

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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

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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

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KEY THEMES IN 2014 – DOMINANCE OF “SELFIE” TREND
Social media and “Selfies”, the connection with consumers
Source: Analyst’s own photos
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

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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

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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

23. GLOBAL OVERVIEW
CHARACTERISTICS OF CONSUMERS
KEY THEMES IN 2014
ASIA PACIFIC TRENDS
WHAT’S NEXT
CONCLUSION

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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

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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
Source Euromonitor International
Growing presence of internet retailing

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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/

27. GLOBAL OVERVIEW
CHARACTERISTICS OF CONSUMERS
KEY THEMES IN 2014
ASIA PACIFIC TRENDS
WHAT’S NEXT
CONCLUSION

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WHAT’S NEXT
Global market: other facial make-up to be the driving force
Source Euromonitor International
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
Source Euromonitor International
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%

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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

31. GLOBAL OVERVIEW
CHARACTERISTICS OF CONSUMERS
KEY THEMES IN 2014
ASIA PACIFIC TRENDS
WHAT’S NEXT
CONCLUSION

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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

33. THANK YOU FOR LISTENING
Pei Ying Loh
Research Analyst
Peiying.loh@euromonitor.com.sg