Asian Market Personal Care Industry Libre
Cosmetics, Asian Rush
ASIANS DRIVE
THE PREMIUM
SKIN CARE
MARKET
All roads lead to China. What's happening in the new frontier?
By Ahn Sol (Reserch Analyst at Mirae Asset Global Investments(HK))
Worldwide cosm et ics sales have never declined in the past 18 years, and their annual growt h rat e was 4.4% bet ween 1993 and
2011. From 2001 to 2011, the Chinese skin/ cosmetics market has shown a 17.0% growth rate, and prem ium skin/ cosm etics m arket has grown by an even faster rate of 22.3% .
This is why China is often cited by cosmetics companies as a key market for growth. Estée
Lauder, L’Oréal, Shiseido, Proctor &Gamble, et c. have been m aking subst ant ial investments in the country over the past decade.
Cosm etics m arket growth rates in China are expected to decelerate compared to the past 10 years, but we believe the industry can
EMERGING MARKETS INSIGHT
9
Cosmetics, Asian Rush still continue to grow by double
like Hong Kong, New York, and Paris. Accordi-
Asian markets including China tend to offer
digit s and even fast er for
ng to Estée Lauder, every $1 spent in China
higher ret urns for m any global cosm et ics
premium cosmetics in the
implies an extra $2 in sales from Chinese out-
players. This is because Asians spend more
next five years. In addi-
side of China.
on skin care products that tend to have higher
tion to nominal GDP
The Chinese cosm et ics indust r y t r end
price points. Also, it is easier for companies to
growth and popu-
favors foreign luxury cosmetics players not
prem ium ize skin care products with added
lat ion gr ow t h ,
only because of its faster organic growth but
functions. There are m ore opportunities to
urbanization will
also because China ( and Asia overall) is a
add values on skin care products with whiten-
b e t h e st r o n g
more profitable market. The Asian cosmetics
ing, anti-aging, brightening, etc., compared to
growth driver of
market is over-indexed to premium markets.
color cosm et
ASIANS DRIVE
THE PREMIUM
SKIN CARE
MARKET
All roads lead to China. What's happening in the new frontier?
By Ahn Sol (Reserch Analyst at Mirae Asset Global Investments(HK))
Worldwide cosm et ics sales have never declined in the past 18 years, and their annual growt h rat e was 4.4% bet ween 1993 and
2011. From 2001 to 2011, the Chinese skin/ cosmetics market has shown a 17.0% growth rate, and prem ium skin/ cosm etics m arket has grown by an even faster rate of 22.3% .
This is why China is often cited by cosmetics companies as a key market for growth. Estée
Lauder, L’Oréal, Shiseido, Proctor &Gamble, et c. have been m aking subst ant ial investments in the country over the past decade.
Cosm etics m arket growth rates in China are expected to decelerate compared to the past 10 years, but we believe the industry can
EMERGING MARKETS INSIGHT
9
Cosmetics, Asian Rush still continue to grow by double
like Hong Kong, New York, and Paris. Accordi-
Asian markets including China tend to offer
digit s and even fast er for
ng to Estée Lauder, every $1 spent in China
higher ret urns for m any global cosm et ics
premium cosmetics in the
implies an extra $2 in sales from Chinese out-
players. This is because Asians spend more
next five years. In addi-
side of China.
on skin care products that tend to have higher
tion to nominal GDP
The Chinese cosm et ics indust r y t r end
price points. Also, it is easier for companies to
growth and popu-
favors foreign luxury cosmetics players not
prem ium ize skin care products with added
lat ion gr ow t h ,
only because of its faster organic growth but
functions. There are m ore opportunities to
urbanization will
also because China ( and Asia overall) is a
add values on skin care products with whiten-
b e t h e st r o n g
more profitable market. The Asian cosmetics
ing, anti-aging, brightening, etc., compared to
growth driver of
market is over-indexed to premium markets.
color cosm et