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Considering Asia’s Beauty Markets
Posted: September 21, 2012
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Another challenge that companies face is difficulties with regulatory bodies. Certain Asian countries require foreign manufacturers to register their products before they are sold in the market, and this sometimes ends up being a long-drawn and costly procedure.
“The registration process in some countries can take up a lot of time and money, even before the products are distributed,” said Venet. “Eventually, some companies change their minds about entering a new market in Asia because they find that it takes up too much of their resources.”
But very often in business expansion, it is not just what you know that counts. Who you know also matters. For this reason, networking platforms are essential for companies looking to break into a new region. Cosmetic Valley considers China a region of interest for market penetration, particularly due to its size. When asked about strategies to overcome this challenge, Venet said, “Based on our experience, participating in exhibitions such as PCHi has helped companies under Cosmetic Valley meet the right partners.”
While there are several other concerns global companies need to battle with (such as language barriers and possibility of counterfeits), Asia remains an attractive region for business expansions.
“The region is a young, dynamic market with an open approach,” said Houghton. “Customers are interested in new ideas and are willing to listen. We intend to maintain a high level of customer support and visibility, as well as understand the commercial and technical demands of the market. This will allow us to respond accordingly with novel products for Asia.”
Gattefossé holds a similar stance about the Asian market. Moyrand-Gros said, “Asia is made up of many emerging economies, so the region’s cosmetics and toiletries market will keep growing. Gattefossé has a strong presence here, and it has proven to be vital to answering requests to market-specific requests in Asia. We expect to see continued growth in China, South Korea, India and also South East Asia.”
Asia’s C&T market is expected to continue growing in the years to come. For premium cosmetics alone, Euromonitor International foresees that sales from the region will likely add up to US$5 billion by 2016. In addition, the research firms reports that less developed nations such as India, Indonesia and the Philippines present great potential for growth. If these facts are anything to go by, there is plenty of pie to go around for a growing number of global companies looking to enter Asia.
Over the next few years, Euromonitor expects hair care and skin care to be the two main drivers in the region, as has been the case for a while. Brands can also take advantage of other upcoming trends including anti-aging, whitening, naturals and men’s personal care.
Gattefossé, Northstar Lipids and Cosmetic Valley are among the companies participating in PCHi 2013, organized and managed by Reed Sinopharm Exhibitions, in association with the in-cosmetics series of events. As part of the annual conference program, delegates will hear from other industry experts about current demands of consumers in the region in order to better equip their businesses for success in Asia. The three-day event is expected to attract more than 6,200 industry professionals, and will feature nearly 300 ingredient suppliers.