Trends: Beauty and Personal Care

Understanding the growing Beauty and personal care market and how to maximize what it has to offer

Market Trends & Opportunities

Published in 18 September 2014

 

Anti-ageing is no longer about control but prevention. Apart from a growing ageing population, younger Singapore consumers are becoming increasingly image-conscious and are more knowledgeable about beauty care. This has led to younger consumers purchasing anti-agers to prevent and delay the formation of fine lines and wrinkles. In the presence of high beauty standards, younger consumers are willing to invest to in products that promise supple and glowing complexion. UV Protection is also a popular prevention line of products. 
 
 
Growing desire for natural, flawless-looking skin. South Koreans have found their way into our make-up pouches and skincare regimens through the K-POP and K-Drama wave. South Korean and Japanese brands are increasingly making their presence felt at personal-care stores and multi-brand beauty specialist stores which have traditionally been dominated by American and European brands. Asian originated products are beginning to be well-accepted as the desire for personalized hair/skin care grows. Asian formulations are perceived to be best suited for the local hair/skin types.
 
 
Health & Beauty care specialist retailers lead the way. Consumers today tend to seek advice and recommendations from experts who understand the product. Beauty specialist stores in Singapore have trained representatives to advise and recommend products to suit your skin/hair type to tackle the encountered problems. Moreover, the range of product lines in beauty stores and drug stores are more comprehensive than those in Departmental stores or supermarkets. Furthermore, these stores tend to carry out promotional events and customer loyalty programmes which allow for cost saving as well. 
 
Hair damage is a major issue. Singapore consumers are increasingly facing hair damage problems due to frequent dyeing, rebonding and perming to keep in trend. In view of this, hair care products (shampoos to conditioners) which minimize hair damage are desirable such products tend to be labelled as anti-frizz or damage control or repair.
 
 
Consumers seek products with additional benefits. Singapore consumers tend to be discerning when making a purchase as the general population seek value-for-money purchases such as a one-product that does all. For instance, think BB-Creams, CC-Creams and UV-Protection/Anti-ageing creams with Whitening.  
 
 
Consumers are seeking natural & organic products. With the increased availability of information online as well as frequent contact with beauty care experts, consumers are increasingly aware of harmful chemicals in mass produced hair care and skin care products. It is perceived to be harsh on hair/skin and unbeneficial in the long run. Companies have since released product extensions containing plant/fruit extracts which portray a ‘natural’ image. Key drivers behind the rising consumer enthusiasm include increased disposable income, increased urbanisation, rising health concerns and better-informed customers.
 
 
Do you have a product that may be of interest for the consumers in the Singapore market? Contact Tina at tina@britcham.org.sg  to find out more about what works or to identify potential clients.
 
 

Maximize the potential

 
 
Leverage on the market information available. Identify where you fit in. Is your beauty product able to meet the consumers’ desires? You might like to contact us to find out more.  
 
Leverage on Singapore’s IT Savviness. Apart from traditional media channels of information transfer, Singapore’s population is largely informed through social media. Internet Penetration in Singapore is significantly above the global average at 73% (wearesocial.sg, 2013). Social Media Penetration is also significantly above the global average at 59%. A fun fact - Internet users in Singapore view social network sites 3.1B times every month!
 
Leverage on Singapore’s increasingly sophisticated growing middle class.  The growing middle class are educated and IT Savvy. They are well-informed, capable and willing to purchase premium products so long as they are able to provide substantial benefits. Younger consumers (below 40) tend to follow trends and pick up information through social media reviews as well as word-of-mouth recommendations. By effectively engaging consumers through social media, you will be able to tap into the market through cost effective means. 
 
Leverage on Singapore’s International Agreements. 20 Regional & Bilateral Free Trade Agreements/Economic Partnership Agreements (FTAs/EPAs), 74 Double Taxation Agreements (DTA) and 41 Investment Guarantee Agreements (IGAs). With FTAs, Singapore-based exporters and investors stand to enjoy a myriad of benefits like tariff concessions, preferential access to certain sectors, faster entry into markets and Intellectual Property (IP) protection. Should you re-export your product to countries which Singapore has FTAs with, you can lower the cost price of your product due to savings on taxation! (This is crucial as other Asian countries have weaker currencies and hence you have a narrower market to tap on if the prices are too steep)
 
Leverage on Singapore’s multiracial and multinational society which is ideal for conducting market research and testing the APAC market Companies such as Unilever & P&G use Singapore as a base to access a wide range of nationalities and race types for their market research at one go. Singapore is reputed as product and services test-bed prior to launching products in the rest of Asia.  Singapore is positioned as a link between the West and Asia. A large pool of foreign population from the rest of Asia arrive in Singapore for education or work and eventually return to their countries. They provide a link to their home countries and eases the entry to other markets in Asia. Beyond this, Singapore is home to many from the West – another niche market to support your brands’ entry to Singapore.
 
Leverage on Singapore’s reliable distributors which have access to the APAC Market. Many distributors have experience working with international companies and a wealth of knowledge of import/export laws and logistical issues. 
 
Leverage on the desire for personalized products. Consumers today want something that’s unique and reflects their personality. Retailers understand this and we can observe an increasing no. of companies offering personalised products. As this trend gathers pace in 2014, there is a huge opportunity for small to medium enterprises to carve out a market niche against bigger retailers, while adding value to existing products through customisation.
 

References:
Singapore HPB Website
We are Social & Euromonitor Passport
http://www.mycustomer.com/

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