Asia Personal Care & Cosmetics Market Guide 2016

Johnson’s. Consumers are increasingly expecting multi-benefit products and Australians tend to be
brand loyal, purchasing multiple products from the same brand line. Increasingly in color cosmetics,
consumers desire anti-aging benefits, seeking products that emphasize, preserve and protect rather
than just improving cosmetic appearance, e.g. wrinkle reduction and evening out skin tone.
Trends in social media, including the “selfie trend” and the need to always be camera ready has younger
consumers looking for products that offer a flawless look, with contouring, air brushed, and more
prominent color combinations in demand.
In the premium market, niche products in terms of new active ingredients and products for sensitive
skin are in demand. There are also an increasingly number of Aussie produced products, particularly in
this segment with brands leveraging direct sales to drive growth.
Perfumes and Fragrances: Local market research reports that this segment is somewhat static, due to
saturated product offerings, particularly for women’s products. Aggressive price-competition continues
to characterize fragrances in Australia, with discount pharmacies such as Chemist Warehouse increasing
their share in the category. Discount pharmacies have increased their share through the offering of a
wide range of heavily discounted fragrances. In addition, the depreciation of the Australian dollar in
2015, encouraged consumers to shop locally, which lead to the decline in exports in the sector that year.
Coty Australia leads sales in the category, with its product line including both mass and premium
fragrances such as Marc Jacobs and Calvin Klein, as well as celebrity fragrances It is expected that
manufacturers may use brand extensions, such as scented hair sprays and other multi-function products
to diversify and increase sales. 3
Hair Care: In the mass segment, similar to other products high levels of competition are driving down
value for these products, with L’Oreal the most popular brand. Shampoo sales are somewhat stagnant,
with the highest growth in colorants and hair styling products. In the next two years, natural ingredients
will drive new product innovations leveraging oils and fruit oils and essences, with consumers also
looking for multifunctional benefits. Celebrity endorsements and professional hair products are
increasingly penetrating this segment. For example, Kate Middleton’s hair stylist, Richard Ward,
launched a 14-piece hair care range, The Chelsea Collection, in 2016, which includes ingredients such as
Argan oil and keratin as well as an anti-ageing elixir. 4
Men’s grooming: Vis-a-vis other Asian markets, there is stagnant demand for men’s grooming products,
due to increasing acceptance of facial hair and a stubble look. Specialty products such as beard
grooming may offer prospects.
3 “Fragrances in Australia.” Euromonitor International. June 2016.
4 “Hair Care Products in Australia.” Euromonitor International. June 2016.