17th Cosmetics Seminar 2018

Finding New Beauty Shoppers:

Agenda

Subject Name / Department

Lecture 1 Global: In the era of Fast Beauty Ashely Kang KANTAR Worldpanel Asia

Lecture 2 Finding New Shoppers in USA Erica WILLIAMS KANTAR Worldpanel US

Lecture 3 Finding New Shoppers in Indonesia Nadya ARDIANTI KANTAR Worldpanel Indonesia

Lecture 4 Finding New Shoppers in Vietnam Antoine LOUAT DE BORT KANTAR Worldpanel Vietnam

Coffee Break

Lecture 5 Finding New Shoppers in China Laura CHU KANTAR Worldpanel China

Lecture 6 Finding New Shoppers in Korean Personal Care Market Jinwon Kim KANTAR Worldpanel Korea

Lecture 7 Finding New Shoppers in Korea Koeun Shin KANTAR Worldpanel Korea

2
FINDING
NEW
In the era of FAST BEAUTY
SHOPPERS
Ashley Kang
May 2018
What is Fast Beauty?

4 4
Fast Beauty means diversified needs, various beauty occasions, and be
available at times!

More
Need
Smaller
Moments
Be Available

5
 More
Need

See the world through Shoppers Eye

“I have a need, do I see a brand?”

6
With more brands available & visible in the market,

# of Brands bought Likely to buy different brands # of New brands

Y2015 Y2017 21,311 NPDs in Y2016

+17% vs. Year 2015

Kantar Worldpanel Beauty Korea Kantar Worldpanel Usage Link Q June 2017 Sample 272 Females GB Kantar Worldpanel Beauty China

7
Which is why we see so many Multi-function products continuously rising…

Pantene ‘10 in 1’ Cleansing Balm – Banila co. Clean it

BB
Roc ‘5 in 1’
Multi-Function

Tone Up Cream
Boots No.7 Face and Neck Moisture + Coverage
serum

8
Another reason for diversified need is from the change in the population
with the purchasing power & the environment we live
Age of population

Need for Anti-Aging

Wide Color Spectrum for Colors

Whitening Needs
Diversity of Ethnicity

- Embracing of Natural look

- Environmentally Friendly
- Protection

Environmental
Condition

9
 What is norm to me won’t be norm to them: Anti-Aging can have various
demand and Whitening can have different expectation
Less irritable ingredients, Skin barrier build Younger Older

Extra moisture with other care Others

Dryskin

Anti-wrinkle
Skin aging
Skin elasticity
Even Skin Tone Skintone

VALUE
Pore/Blackhead
%
Healthy Skin with Pore care
Black heads
Flaw Fair
Sensitive/Trouble Luminescent
Non irritable Darkspot
Anti-Pollution Kantar Worldpanel Beauty Korea, Y2017

Acne Y2017/ N=2,905/ Kantar Worldpanel Korea

10
CLEAN BEAUTY
RMS beauty
Tagline: Organic meets luxury
Mission: a makeup that doesn't damage but rather heals and cares for your skin, giving your natural beauty the chance
to be

11
See the world through Shoppers Eye
“I have a moment, do I see a brand?” Smaller
moments

12
Change in lifestyle is influencing the way we live and how we see the
moments

Middle of the day

Ready for work/school Workout Close of the day
routine

Ready for work Meditation Close of the day

Work from home Family night out Online shopping

Camping/weekend away Ready for next week

13
We see the routines break particularly with more advanced markets,
starting from the morning routine

US Brazil Europe Japan China

All excluding JP: Usage Panel 15 vs. 16; JP: 12 vs 13

14
And many lifestyle products addressing new beauty moments are coming
which carries different purpose by occasion Convenience
Cushion to go Water Cleansing Pre-wash

Finishing wash

Waterless wash

Speed Up hair drying Spray

Little Happiness Sheet Mask
Beauty Moments

In Shower Moisturizer

Hair Sheet Mask Convenience

Extra Moisture

15
Moment is more determinant of behaviour than the
person

16
Moment ONE: On the move / Travel

17
Moment TWO: Special Events / Everyday Selfies

18
Moment THREE: Ritual – EOD / Weekend

19
Moment FOUR: Work out

20
WINNING THE MOMENTS THAT MATTER
de Mamiel
Through beauty, find well-being
Mission: nourishing the skin, enriching the soul

21
We have many products and may not use all of them regularly but, they
have purpose for various beauty moments – seize the moment

Special home care

Party out/Special day

Weekday working day

22
See the world through Shoppers Eye
“I see a brand, where can I get it?
Be available

23
Why do we have so many products? We don’t want to run out, we like to
try different brands and we stock up when promotions are on!

% Occasions
(multiple response)
53% 52% 46%
Like to try different brands Never want to run out Promotions make it worthwhile
stocking up

% Occasions

Purchase occasion of Have different morning/night Beauty purchased with

Small brands routine promotion%

Kantar Worldpanel Usage Link Q June 2017 Sample 272 Females GB

Kantar Worldpanel Beauty LinkQ 2017 Sample 9,700 Females Korea
 All this is also related to landscape changes – rising online purchase and
offline specialties

Top 3 Fast Rising Top 3 Fast Rising Top 3 Fast Rising

1. Online 1. Online 1. Provision store 1. PC Store 1. Chemist 1. Cosmetic store

2. Super/Hyper/CVS 2. PC Store 2. PC store 2. Online 2. Department store 2. Online

3. Cosmetics store 3. Cosmetics store 3. Hyper & Super 3. Mini store 3. Hyper & Super 3. Drug store

Kantar worldpanel Beauty CN Y2017; Kantar Worldpanel HH VN 2017; Kantar Worldpanel HH GB 2016

25
And it’s a platform to learn, share, be influenced and to buy

Discovery
Destination

26
On the other hand Offline has become more focused on “Discovery” & a
“Quick impulse buy”
AFFORDABLE TRIAL
PACK – REACHES MAT Jun'16

EXPERIENCE CONSUMERS BETTER MAT Jun'17

& DISCOVER

Garnier

Anthropologie – King of Prussia mall

27
Therefore, allowing your full senses to be engaged is very important

Ensure you are visible online with positive remarks

when searched for the information at the store

28
The most important is to help “Stay On” at the offline
and ensure “You are On” for the right digital platform

32% of influencers
Of teenage 32% who currently work
70% YouTube 86%
Of women turn to
with brands cite
social networks
subscribers trust before making a Facebook as the
influencer opinions purchase 24% best platform,
over traditional followed by
celebrities Instagram at 24%

Of the most-viewed
Of consumers are beauty videos on Of beauty and
71% more likely to 86% YouTube were made 57% fashion companies
make a purchase by influencers, use influencers as
based on a social compared to 14% by part of their
media reference beauty brands, marketing strategies
themselves.

1. Source: http://starngage.com/influencer-marketing-thailand/
2. Source: http://www.euromonitor.com/skin-care-in-thailand/report
There are many shoppers out there waiting for you to reach!

Availability
Need
Finding new
Shoppers

Moments

30
FINDING
NEW Targeting Changing Consumers and
SHOPPERS Behaviors in America
Erica Williams
May 10th, 2018
The power has shifted from manufacturer to consumers
New brands and channels are disrupting the market

Manufacturer-led Consumer-led

Doubled
users in 1
year!

22%
Cosmetic
Users
Specialist Beauty

Subscription Beauty
23%
Department Avon Lady Cosmetic
Drug Stores Users
Stores (Direct-to-Consumers) Online Independents

USA | Females Ages 13+ | 12me December 2017

32
Skincare grows as women add more specialized and Anti-Aging products to
their regime

Facial Skincare • Facial cleanser • Moisturizer (Non SPF) • Anti-aging cream

• Wipes • Night cream • Anti-aging serums
Over half of Women Use Weekly • Eye cream

2 Skincare occasions per Day

2-3 Categories Used per Week
2017

USA | Ages 13+ | 12me December 2017, September 2010-2015

33
The day-to-day use of Cosmetics is declining
Only half of women use Cosmetics in the week, and the largest categories are declining. There is a sub-set of women who
are experimenting more with Cosmetics, growing new formats and colors

All major categories including:

Cosmetics Foundation, Concealer,

Eyeshadow, Mascara, Lipstick
A half of Women Use Weekly
14 Times per Week New Formats & Color
3-4 Categories Used per Week • Blush stick
2017 • Liquid eyeliner
• Lip crayon
• Nail polish
Occasion Growth/Decline
2015 vs 2010
USA | Ages 13+ | 12me December 2017, September 2010-2015

34
K-Beauty continues to grow in America
“K-Beauty” is almost a brand in itself, when a beauty product is from Korea, it is automatically considered premium and
effective

Drugstores are stocking K-Beauty

Sephora has a permanent K-

Beauty fixture Korean brands set up independently
(Innisfree opens NYC stores in 2017)

35
Changing Consumers
Multicultural
America is increasingly diverse, we need to target the beauty needs of
different ethnicities
Targeting the needs of Non-White consumers is increasingly important, especially when targeting younger age groups

2012 37%
Non-White
Hispanic American
17%  29% (+115%)

2060 53%
Non-White
African American
13%  14% (+42%)
% 2012  % 2060 (% Population Change)
https://census.gov/content/dam/Census/library/publications/2015/demo/p25-1143.pdf

37
Brands are reacting by broadening product ranges and communicating
inclusivity

Fenty Beauty Maybelline CoverGirl

- Launched September 2017, - Expanding shades available, up to 40 per - First male “CoverBoy”
- $72 million in one month range - 17 year old James Charles
- 40 shades of foundation at launch
- Inclusivity “Beauty for all”

38
What does this mean for Skincare?
Women across ethnicities have different skincare needs and regimes to target

Total Women Caucasian (White) African American Hispanic

Fine lines/wrinkles Fine lines/wrinkles, dull skin, Acne, uneven skin tone, Acne, blackheads, open
Facial Skin Conditions
Blackheads under eye circles sensitive skin, shiny skin pores, shiny skin

Categories more likely to

Daily Face Moisturizer Face Wash Wipes
use

USA | Ages 13+ | 12me December 2017

39
What does this mean for Cosmetics?
Engagement in cosmetics varies by ethnicity. Caucasian women are the most likely to use Cosmetics in their average
routine, but it’s African American and Hispanic women seeking more niche/specialist brands

Total Women Caucasian (White) African American Hispanic

% Using Cosmetics In Avg.
50 52 33 49
Week
Eyeshadow
Nail Polish Concealer
Winning Formats Mascara
Brow Lipstick
Concealer

CoverGirl
Winning brands CoverGirl, Avon MAC, Mary Kay, NYX Clinique, MAC, Tarte
Maybelline

USA | Ages 13+ | 12me December 2017

40
Changing Consumers
Centennials
The mind-set of Centennials is different, but physical needs and
hormonal changes influence product usage currently
Physical Differences Products Used Attitudes
Simple  Complex Image Driven
More likely to use: “My looks are important to me
Face Wash & “Like to use latest brands/products”
No Facial Skin Acne Cleansers,
 Blackheads
Conditions Deodorants Varied Lives
“I regularly exercise/participate in sports”
No Hair Concerns  Hair difficult to
“I look for pampering”
manage, Tangles
easily

X
“Modern”
formats

Naturals is important to Centennials

(but it’s even more important to Millennials)

Target Needs Target Behaviors Connect

When this group graduates from their teens, products positioned to
meet their needs and mindsets will win
USA | Ages 13+ | 12me December 2017

42
Cosmetics brands that are winning with Centennials
New brands with natural credentials and playful marketing

USA | Females Ages 13+ | 12me December 2017 Brands more likely to be used by 13-17s Vs Average Women. Over-Indexing in Occasions

43
Changing Behaviors
Lifestyle
 US: Total
Personal Care
Americans have 9 Personal Care occasions every day…

…but they are simplifying their

regimes, using less categories
USA | Ages 13+ | 12me September 2010-2015

45
The time when consumers use products is changing, more products are
now used at Night
The majority of Personal Care occasions occur in the Morning, but it’s during the Day & Night where use has grown.
2010 – 2015
“FOR ME” TIME

DAYTIME
+16%

NIGHT
+11%

Occasion Growth by Daypart

MORNING Occasion Growth %
-5% Actual Occasion Change
Personal Care Occasions
By Daypart
% Occasions
TIME-POOR
USA | Ages 13+ | 12me September 2010-2015
ROUTINE

46
Products must address the value proposition: Time Vs Benefit
Save me time, target my niche needs, give me an experience

Multi-Benefit & Convenient Time-Saving Products Pamper & Wellness

Make it Easy: Wipes, BB/CC Cream Target a Moment: Dry Shampoo For Me Treats: Face Masks & Bath
Cleansing: Used on Coming Home, Before Used Before Socializing & Getting Ready Bombs
Bed An incremental product in the hair regime Event and benefit-led messaging
Cosmetics: Cosmetics leveraging Skin Used on coming home, freshening up
benefits for double-win and before/after exercise

47
Changing Behaviors
Naturals
There has been a boom in Naturals across the US
But there are different elements of natural that we need to address

believe natural
choose/prefer natural
Embracing Natural products are more
PC products
Natural Beauty Ingredients effective
“Natural Hair Movement”

”I wear very little make-

up and prefer a natural Achieving the Environment
look” Natural Look Friendly
Females
Sustainable
they avoid PC products that are
harmful to the environment

USA | Ages 13+ | 12 m/e December 2017

IMAGE IMPACT Males & Females

49
 In the US, the largest opportunity in Natural is to communicate benefits to
the individual, with messaging around embracing their natural self
% Population within each
attitudinal group USA BRAZIL WESTERN EUROPE

77%

52%

43%

ENVIRONMENT IMPACT PERSONAL IMAGE

ENVIRONMENTALLY CONCERNED INGREDIENT IMPACT ON ME BE MY NATURAL SELF
“I want to use products that are safe for “I care about the products that I put on “I aim to feel happy in my skin and look
the environment” my skin” natural”

Total Western Europe + Brazil + US | Global Usage Care information

50
“We are at a tipping point in the US Beauty market”

MULTICULTURAL: CENTENNIALS:
TARGET DIFFERENT SKIN NEEDS FOCUS MESSAGING AROUND
AND BE INCLUSIVE MEANING & PURPOSE

LIFESTYLE: NATURALS:
TARGET A SPECIFIC BENEFIT OR TO SAVE TALK ABOUT INDIVIDUALITY AND BEING
TIME THEIR BEST NATURAL-SELF

51
 Asian Brands Winning in the US

Be realistic about the size American Consumers are experimenting.

Have a “flagship” product Retailers are looking for new and
Skincare regime
exciting products, standout on shelf
Focus on
Benefit - Time – Experience

Eg. Tony Moly: Face Masks. Cosrx: Pimple Patches. Belief: Aqua Bomb

Shout about being Korean!

Have a clear brand identity &
communicate heritage

Premium – Effective - Innovative

52
FINDING
NEW In The Fast & Ever-changing
SHOPPERS Indonesia Landscape
Nadya Ardianti – Indonesia Comercial Director
May 10th, 2018
Beauty sees strong growth in Indonesia as Indonesians are becoming
increasingly aware of their appearance and this means growth opportunity

18% 3% 4%
MARKET VALUE PENETRATION FREQUENCY
CAGR 2017 vs 2015 CAGR 2017 vs 2015 CAGR 2017 vs 2015

54
However, keys to growth in Indonesia are changing!
TO

The ability to anticipate changing

shopper mind-set, need and lifestyles

FROM

Economic opportunism
and geographic expansion

55
SEEKING EXPERIENCE
More Indonesians are looking for experience
derived from beauty
More Indonesians are looking for look good, feel good experience derived
from beauty hence as the result, more buyers purchase beauty products
HOUSEHOLD PENETRATION – URBAN INDONESIA MACRO CONTEXT
FY 2015 FY 2016 FY 2017 WHAT SHAPES THE GROWTH

 Female population is over 130 million

and they are increasingly aware about
beauty

 A growing number of men are

increasingly aware about grooming

 Enabled by more exposure to

international beauty and grooming
trends via internet

 Supported by increase of purchasing

power
FACIA L FACIAL FACIAL M ASK FACIAL LIP COSM E T IC E Y E COS M E T IC
CLEA N S E R M OIST URISE R COSM E T IC

57
Beyond purchasing products, Indonesians also seeking product/service
that enable them to have beauty experiences be it at home or at
professional parlor
Mariska P. Brow and lash
Indonesia Travel Journalist
service in the
16% spotlight
Penetration Eyelash Extension Service

growth of
hair colorant
for in home
usage Indonesia market
show important
growth for hair
salon industry*
(Kline Salon Hair Care Study)

58
Expanding Experimentation
Indonesians beauty shoppers start to expanding
their beauty experience
 Indonesian shopper expanding their beauty experimentation by
purchasing non basic product such as eye brow kit and micellar water
U R B A N P E N E T R AT I O N G R OW T H
CAGR 2015 – 2017

54% 23%

EYE BROW KIT EYE SHADOW MAKE UP REMOVER MASCARA EYE LINER

60
Indonesian shopper also expanding their beauty experimentation by
trying different color, format, texture and benefit

61
Making Smart Choice
Indonesians consumer continue seek value
through personal relevance
As like any consumers in the world, Indonesians consumers are continue
seeking value through personal relevance to balance their aspiration &
budget

MAKING
HAVING BALANCING
INCREASED WITH WHAT SMART
ASPIRATION THEY HAVE CHOICES

63
Personal relevance can mean different things for different folks and this
translate on how they seek value in beauty product

RELEVANCE = ACCESIBILITY
RELEVANCE = HIJABER FRIENDLY RELEVANCE = AFFORDABLE PREMIUM (SMALLER SKU, CUSTOM OFFER, TRIAL PACK)

64
 IN THIS CONTEXT

HOW TO REACH
BEAUTY SHOPPER
IN INDONESIA?
TO REACH INDONESIA
BEAUTY SHOPPER

#1
CREATE DESIRABILITY
AMONG HIJABI
Indonesia hijabi are key target for beauty players as they represent
majority of Indonesian beauty shopper with specific need to fulfill

WHO IS HIJABI?

Muslim women who cover their head in public

for religious reason

35 million Indonesia Households

68% of Indonesia Population
more than two times South Korea household population

Naturals, Care and Freshness

important benefit for hijabi

67
To fulfill the need & want of hijabi, there are particular opportunities to
penetrate where beauty products can tie faith and beauty

Scalp and hair Benefit that is relevant for

nourishing to prevent humid condition such as
long term effect of body refreshing and
covering hair deodorization function

Permeable/water based Natural and organics

formulation and claim products that are vegan
such as “wudu” friendly. and free of alcohol

Example is Inglot O2M Example is LUSH and

and MAYA breathable Korea-based beauty
nail polish brand Puresh

68
More beauty brands targeting hijabi but not much succeed suggests that
there are uncovering growth by targeting hijabi better by focusing on their
need

Hand & Body Lotion

aim to provide
instant coolness

Shampoo aim to keep hijab's

hair and head scalp clean,
Personal care brand fresh, and stay healthy
aim to meet the needs
of modern Muslim
women & men

69
CASE STUDY: WARDAH
WARDAH has strong desirability among hijabi but also among wider shopper

Wardah portray Indonesian women

balancing modernity with religion

The brand use prominent aspirational

hijaber in its imagery

KEY SUCCESS FACTOR:

 Smart use of digital esp. social media
 Leverage beauty influencer
 Aspiring tone and cue in communications

70
TO REACH INDONESIA
BEAUTY SHOPPER

#2
PROVIDE
ACCESIBILITY
Provide accessibility by manage affordability as more than 70% Indonesia
consumers are middle low class consumers - relook price/performance
equation.
Average Spend per Trip (KRW)

Facial Cleanser Facial Moisturizer Facial Toner Facial Mask Facial Cosmetics Lip Cometics Eye Cosmetics

Facial Cleanser in 9 GR Ovale (local brand) Purbasari (local brand) Inez (local brand)
sachet format with price facial mask with price matte liquid lip cream with Eyeshadow Palette with
at 300 KRW at 400 KRW price at 4 K KRW price at 18 K KRW

72
Provide accessibility also means ensure availability in minimarket to reach
mass of Indonesia shopper beauty

WHY 48% 27K

MINIMARKET Beauty Stores allow
shopper to help
purchase reach mass
beauty consumers
FOR SHOPPER FOR MANUFACTURER
products in throughout
Minimarket Indonesia
# PROXIMITY # DISTRIBUTION
# CONVENIENCE # WAREHOUSE
73
Beyond proximity channel, specialty store and online are increasingly
relevant for Indonesia beauty shopper as Indonesia retail scene evolving

T R A D E C H A N N E L P E N E T R AT I ON G R OW T H
CAGR 2015 – 2017

25%
Specialty Store Nature Republic
Incl. Department Store, Personal Care Store, open first flagship
Cosmetic Store, Drug Store and Pharmacies
store in Indonesia on
Jan 21st, 2018

100% 1.6%
Online Online penetration
for beauty products

74
TO REACH INDONESIA
BEAUTY SHOPPER

#3
ELEVATE
DIGITAL STRATEGY
Beyond place of purchase, internet also offer opportunity to reach and
communicate with Indonesia beauty shopper through mobile

31%
Urban Internet Fourth largest Facebook user in the world
Penetration Growth with Jakarta named as world’s capital

Third largest Instagram user in the world

and most active user of Instagram Story

73% Indonesia is affiliated society, we love to

connected to each others
Urban Internet
Daily Usage Growth

76
Beyond media to place ad, more beauty brands use social media as
platform to better connect with consumers and leverage beauty online
influencer

And they
work and
partner
with online
beauty
influencer
The rising power of beauty bloggers and vloggers
(i.e. video bloggers) help brand to build awareness and
influence path to purchase decision

77
CASE STUDY: BLP BEAUTY
BLP (by Lizzie Para) BEAUTY use Instagram as market place and touchpoint
BLP Beauty is Through a series of
cosmetics brand marketing campaigns
own by Indonesia #defineyourbeauty
beauty blogger on Instagram

The brand sells BLP was able to

exclusively online successfully sell
through an
Instagram more than
account and
Sociolla, a beauty
4,000 lipsticks
online market in only two
place
hours.

78
3 GOLDEN RULES
TO REACH INDONESIA
BEAUTY SHOPPER
FINDING NEW BEAUTY SHOPPERS IN INDONESIA

CREATE DESIRABILITY PROVIDE ACCESSIBILITY ELEVATE DIGITAL

AMONG HIJABI TO THE BRAND STRATEGY
Hijabi is key target for beauty Manage affordability by rethink Brands have opportunities to
players Indonesia beyond price & promotion – reach consumers where they
provide custom offer, small SKU, etc. spend their time most
Portray aspirational brand that can
resonate with hijabi and penetrate Ensure availability both in physical Use digital to reach consumers
particular opportunities where and online store - To reach mass and work in conjunction with
beauty products can tie faith and consumers, expand presence in Indonesia online beauty
beauty to fulfill the need & want minimarket while continue drive influencer to build awareness
of hijabi traction in specialties store and influence path to purchase

80
FINDING
NEW Riding The Beauty Wave In Vietnam
SHOPPERS
Presenter: Antoine Louat de Bort
Contributor: Nguyen Thi Tram Oanh
May 10th, 2018
Despite challenging global environment, Vietnam is still among the fastest
growing economy.

GDP GROWTH REGISTERED FDI

+6.8% vs YA +47.3% vs YA

URBANIZATION RATE DOMESTIC CONSUMPTION

+3.4% per year +12.0% vs YA

Source: GSO VIetnam

82
The FMCG market is expected to grow by 5-7% YoY over the next 5 years –
buyers inflow and trade up on H&B will be amongst the key growth driver!

Household FMCG Share of Wallet Hygiene & Beauty categories growth drivers in ’17
(in % of Value Spend)
+12.6% +14.5% +10.9% +17.9% +7.3% +18.8%
2017

Buyers

15.9%
13.8%

2012 Purchase
Frequency

Avg Price Paid

Oral Care
Hair Care

Facial Care
Personal Wash

Make-Up

Hand & Body Care

Avg Vol per Trip
Dairy Beverages Packaged Foods
Personal Care Home Care

Source: Household Purchase Panel | Urban 4 cities

83
Who are the Vietnamese
beauty shoppers nowadays?
Vietnamese millennials account for the largest population group and are
key future consumers to win. They are more self-aware than older
generations.
About 36% of Vietnam population
“Nowadays you have Millennials Older Gen
is called “millennials” to take care more
(32% global population) and more of your
skin” 77% 71%
(% agree)

>33 Millennials Older Gen

millions “I am very conscious
about my
8x (30-39yo) 9x (20-29yo) appearance” 56% 50%
(% agree)

16 17
millions millions
“I often go for skin
care services” Millennials
16% of VN population 18% of VN population
25% 50%
(% agree) +2.6 pts vs YA

Source: United States Census Bureau | | Lifestyle survey 2017 | VN Urban 4 Cities

85
Mind the differences between northern and southern shoppers.

Income per capita Bigger trip size White skin preferred Growing channels
HANOI “Having a white skin is nicer” Fastest growing channels

HANOI 27% population * Hanoians beauty E-commerce ▲

21% val. contribution in Hanoi (9% contribution)
shopping trip is 14%
beauty market HCMC
Approx. 220K higher in value than
Hand-carry ▲
Saigonese
KRW Whitening Moisturizer ▲
(20% contribution)
(32% contribution)

Income per capita More frequent trips International oriented Growing channels
HCMC “International brands are of Fastest growing channels
In one year, Saigonese higher quality”
58% population * shop beauty products Drugstores ▲
Hanoi (3% contribution)
HCMC 61% val. contribution in 1.5 more often than
beauty market Approx. 200K Hanoians
HCMC
E-commerce ▲
KRW Korean brands on the rise!
(7% contribution)
3CE +1.2pts penetration
Missha +1.0pts
* population: Total households in Urban 4 key cities
Amore Pacific +0.7pts

Source: Kantar Worldpanel | Households Panel | Urban 4 Cities Vietnam | Beauty categories | Full year 2017 & Lifestyle Survey 2017

86
What’s hot in the basket of
Vietnamese beauty
shoppers?
6 key trends that are shaping the beauty market in Vietnam

Noisier market
6 1 Regime sophistication

International wave
5 2 Premiumization

Health consciousness &

natural products 4 3 Convenience

88
1 | REGIME SOPHISTICATION
As a good appearance and well being becomes more important, there is an increasing number of people
adopting more advanced beauty products.
Beauty consumers repertoire expanding over the years…

# categories
2.45

“Nowadays you 2015 2016 2017

have to take care … through various formats

76% Facial Care Cosmetic Remover

more and more of ValueGR. PenetrationGap ValueGR. PenetrationGap

your skin” Essence

Emulsion
▲▲▲
▲▲
+1.0%p
+0.7%p
Micellar
water
▲▲ +0.9%p

Oil ▲▲▲ +0.4%p

Gel ▲▲ +0.4%p
Lancôme Visionnaire
Advanced Skin Corrector 30ml L’Oreal Micellar Water 3-in-1 250ml

Facial Foam Sun Protection

Milk: +28% shoppers Serum: +120% shoppers Nivea

Protect & White SPF50
Cream: +7% shoppers Thorakao Oil Control Sun Protection Serum
Curcuma Cleansing Milk 100GR 30GR
Source: Kantar Worldpanel | Households Panel | Urban 4 Cities Vietnam | Personal Care | Full year 2017 vs YA

89
2 | PREMIUMIZATION
With deeper pockets, consumers opt for more premium products.
% of up-traded
Top Up-traded categories Price tier interaction among Makeup products (Vol
Personal Care categories
units – FY 2017 vs YA)

1 Facial Moisturizer 2 Sun Protection

3 Feminine Wash 4 Toothpaste

5 Blade 6 Hair Colorant

FY 2017 vs. YA

Source: Kantar Worldpanel | Households Panel | Urban 4 Cities Vietnam | Personal Care | Full year 2017 vs YA

90
3 | CONVENIENCE
The busier is one’s lifestyle, the more their need for beauty products that can help them take care of their
appearance in shortest time with less effort will grow.
The rise of easy-to-use products

“I would like to see Long-lasting lipstick

% households having working
housewives more new products to ▲ ▲ value GR
+2.7pts penetration
ease my life” BOURJOIS

(% agree)
68 Sheet Mask
65 ▲ ▲ ▲ value GR
+2.8pts penetration
INNISFREE

68% Sun Protection Spray

2014 2017 ▲ ▲ ▲ value GR

+0.6pts penetration
NATURAL REPUBLIC ICE
SUN SPF50

Source: Kantar Worldpanel | Households Panel | Urban 4 Cities Vietnam | Personal Care excluding Gift | Full year 2017 vs YA & Lifestyle Survey and Family Form 2017

91
4 | HEALTH CONSCIOUSNESS & NATURAL PRODUCTS
Under a context of fast rising healthier lifestyle steamed from recurrent scandals around counterfeit products
or harmful ingredients, this trend is growing aggressively.
… leads to growing adoption of … innitiatives push from big global players
Mindful Consumerism
natural-oriented brands “Natural” concept of fresh and detox

“I prefer to chose natural beauty

products”
(% agree)

80% INNISFREE ▲ ▲ ▲ value GR%

Tresemme Detox Biore Pore Detox Botanical
Beads facial foam
Colgate Nature
(+0.9pts pen.)
… and emerging local handmade/ DIY brands
“I prefer to buy brands which take “Natural” theme of organic & authentic ingredients
care of the environment”
(% agree)

82%
ST. IVES ▲ ▲ ▲ value GR%
(+0.4pts pen.) NAUNAU TUTAYLAMHET LÁ HOUSE

Source: Kantar Worldpanel | Households Panel | Urban 4 Cities Vietnam | Personal Care excluding Gift | Full year 2017 vs YA & Lifestyle Survey 2017

92
5 | INTERNATIONAL WAVE
Consumers have an increasingly positive attitude for international and imported products.

“International brands are of higher quality”

Value growth of top imports to Vietnam Reach of top imported brands in Urban 4 cities
(fragrance, cosmetics, toiletries) (2017 vs. YA)

Value contribution St.ives

+12,500 HHs
Thailand + 37.4% Facial
12%
Cleanser Senka
+25,000 HHs
Korea
6%
“I would buy more international brand if the price was
the same as the local brands”
Facial L’Oreal
France + 9.1% Moisturizer +17,500 HHs
5%

China
8%
Makeup
Remover
2014 2016 2017
US + 5.0%
7%
Nivea Byphasse
+20,000 HHs +12,500 HHs

Source: GSO Vietnam & Kantar Worldpanel | Household panel & Lifestyle Survey | Urban 4 cities & Rural Vietnam | Personal Care excluding Gift | Full year 2017 vs YA

93
Where do they shop for
beauty items?
Traditional trade still dominates the market yet the growth is driven by
the rise of modern channels. As more specialized and convenient format
emerge, channels repertoire increase.
Top choice of channels are pretty similar between Makeup and Time to offer omni-channel experience,
Skincare – highest consumer reach in Street shops esp. for the millennial generation
# of channels per Household
but Personal Care – Beauty products
Specialty Stores & E-
Street Shops
commerce are more Makeup
popular when shopping
Wet Market 1.8 2.0
Makeup
Personal Care Specialty

% shopping occasion 2015 2017

Hyper & Super

Online …by age groups

and more preference for
Hyper&Super when Ministore 2.2
Skincare
shopping Skincare Hwife Age -30
Others
1.9
products Hwife Age 30-39
Hwife Age 40-49
Hwife Age 50 & +
2015 2017
Source: Kantar Worldpanel | Households Panel | Urban 4 Cities Vietnam | Beauty categories | Full year 2017 vs YA

95
Fast growth of Drugstores well supported by the booming number of
stores. Make sure to be visible in this channel to reach young women with
middle income.
More consumer reach of Drugstores MT thanks to rapidly Drugstore MT shopper portrait
increasing accessibility

Mostly in HCMC

Women 26YO
+21,539 HHs
Middle Income PC
Guardian Medicare (1.75-4.5ml)
Number of Store Number of Store
2017 2017
Young adults living
with parents
62 65

Source: Kantar Worldpanel | Households Panel | Urban 4 Cities Vietnam | Beauty categories | Full year 2017 vs YA

96
Besides, digital explosion well reflecting to the global trend generates a
huge impact on the beauty world via beauty bloggers/Youtubers/websites
etc.
Changing the way people communicate and spend their time Educating beauty routines &
And pushing for market competitiveness
reshaping market trends
TOP SOCIAL PLATFORMS - BEAUTY DICUSSION From brand supporters
Online time

81% To collaborators

Social media
LILY MAYLAC x 3CE CHANGEMAKEUP x MIRACLE APO
Others (video, news, etc.) * Source: Buzzmetrics
To personal brand owners

The Skincare EM COSMETICS by OFELIA by

ChangeMakeup Love at 1st shine TheMakeaholics Trinh Pham
Junkie Michelle Phan CHANGEMAKEUP
Source: Kantar Worldpanel | Household panel & Family form | Urban 4 cities Vietnam | Full year 2017 & Internet

97
Subscription box (e.g. Ma Belle Box, Lixibox) is quite new but thanks to
digital development this new format can help reach beauty shoppers more
easily, esp. for small new players entering Vietnam market.

Source: Internet

98
RIDING THE BEAUTY WAVE IN VIETNAM

Define your hero

SKU (lipstick and
cushion first) and
leverage your
country of origin
Target millennials: and Asian skin
Omni-channel expertise
shopper strategy colorful products to build
with a focus on recruitment and excite,
specialized stores face to build loyalty and
and ecommerce premiumization with
advanced benefits, layout
Surf on wining and shape items for
themes: diversification
sophisticated Be active on social
but convenient media and choose
& quick, trendy, the right brand
natural, value ambassador, KOL
for money beauty blogger /
vlogger

99
Example of a top performer within the mass segment
3 CONCEPT EYES – 3CE

Trendy & Relevancy matter

Targeting the young who need to
nail the coveted K-beauty look

Appearing as a “trend-setting”
brand offering the right shades for
me and innovative makeup products
with appealing packaging *

Endorsed by both Korean and

Vietnamese beauty bloggers and
influencers

+1.1 pts penetration Hottest items – Lipstick

Gained +1.2 pts penetration &
+2.7pts value share Highly purchased by Female <26YO
in Multi-branded Personal Care reached 7% value of Lipstick
(2017 vs YA) Specialty Stores and E-commerce value (2017 vs YA)

Source: Kantar Worldpanel | Households Panel | Urban 4 Cities Vietnam | Total Makeup | Full year 2017 vs YA & (*) Kantar Millward Brown U&A Study Jun 2017
FINDING
NEW In China Beauty Market’s Untapped
SHOPPERS Potentials
Laura CHU
May 10th, 2018
China FMCG fell harder than GDP in the past 5 years yet slightly warmed
up and grew 4.3% in 2017, accelerated by a stronger premiumization trend.
GDP & FMCG Value Evolution Market Driver
FMCG, 2017 vs. YA
(2016 vs. YA)
GDP FMCG
Sluggish
8.0% Basket Size -1.3%
5.9%
(Volume/Trip)

4.1% 4.3%
3.6%
Decreasing
Frequency -1.8%
7.8 7.3 6.9 6.7 6.9

2013 2014 2015 2016 2017

GDP & FMCG Value Evolution

Continuous
Premiumization +4.0%
(Price/Kg)

102
Growth engine of China FMCG has shifted to Southwestern and Central
provinces, as well as mid-tier cities.
Total FMCG Value GR by
TTL FMCG Value GR Y2017 vs YA
Regions Y2017 vs YA
0%< - <3.5% Heilongjiang City Tier Value GR

3.5%<- <7%
KEY CITIES
Jilin
A CITIES +4.8%
>7%
Xinjiang Liaoning
Inner Mongolia
B CITIES +4.4%
No data available Beijing
Gansu
Tianjin C+D CITIES
Hebei

Ningxia Shandong
Shanxi
Qinghai
Jiangsu
Henan
Shaanxi A number of A/B cities in Southwestern and
Anhui Shanghai
Tibet
Hubei
Central provinces (marked ) launched preferred
Sichuan Chongqing Zhejiang
Jiangxi
housing and Hukou policies to attract young
Hunan Fujian talents.
Guizhou
Taiwan
Yunnan Guangxi Guangdong
Hong Kong

Hainan

103
Skincare and Makeup are the biggest opportunities in personal care.
Personal Care Category Performance Y2017 vs YA

Penetration
Mature Star
Skincare
Shampoo

Bar Soap
Body Care Shower Gel Makeup

Conditioner

Hand Wash

Hair Styling
Deodorant Hair Colorant
Fragrance Intimate Wash
Opportunity
Value Growth Rate
Bubble size = Absolute Value

104
Cosmetics competition environment became more fair.
Embracing international standards help build trust and competitiveness for
Chinese brands.
Import tax cut and inland duty free stores lower the entry barriers for foreign brands.
MORE STANDARDIZED MORE OPEN

Category Before Current

• 2015 June
Launched whitening and freckle • 2017 December Skin care 6.5% 2%
treatment function official certificate Reduced import tax for Makeup 10% 5%
most personal care categories Fragrance 10% 5%
Shampoo 6.5% 2%
Conditioner 10% 5%
Deodorant 10% 5%

• 2016 June
Raised SPF and PA limit • 2018 April
from SPF30/PA+++ Tmall duty free shop opened
to SPF50+, PA++++ in Hangzhou

105
WHO are new shoppers
Young females in their 20’s are the market leader and growth driver.

Average Spend per Buyer on Cosmetics Y2017 VS YA

Y2016 Avg. Spend per Buyer Y2017 Avg. Spend per Buyer

960
723 717
561
441
AGE 15-19 AGE 20-29 AGE 30-39 AGE 40-49 AGE 50-64

Currency used in this deck is CNY

107
In 10 years’ time, the importance of 30+ females will increase for Cosmetics
market. Pre-empting their needs in innovations help win the future.
Value Contribution to Total Cosmetics by Age
Y2017 Y2028E*

8%
AGE 15-19 18%

AGE 20-29
24%
AGE 30-39

20%
AGE 40-49

AGE 50-64

30%

108
WHERE to find them
Lower tier cities experienced a major boom of consumer spending in
Y2017; mid-tier (A+B) cities have exceeded Key cities.
Avg. Spend per Buyer on Cosmetics Y2017 vs YA

1029
Y2017
994
Avg. Spend per Buyer
952 952

899 Y2016
Avg. Spend per Buyer

TTL URBAN CHINA KEY CITIES A CITIES B CITIES C+D CITIES

All analysis onward based on females

110
A cities and below tiers are still riding on E-commerce boom, driven by
both young and mature females; while a strong surge happens in Dept.
Store/ Shopping Mall in Key cities.
Cosmetics Value GR by Channel Y2017 vs YA

TTL CHANNEL

ONLINE (AGE <30)

ONLINE (AGE >=30)

DPT STORE/
SHOPPING MALL

KEY CITIES A CITIES B CITIES C+D CITIES

111
Behaviors of young and mature females are different in online channels.
Mature consumers rely heavily on traditional EC platforms, while young
consumers are diversifying.
Cosmetics Value GR by e-Retailer Types Y2017 vs YA Other Online Channel Value Share

Traditional E-commerce Platform

Other Online Channels

50% 51%
40% 40% 43%
Other Online Channels Value Share

AGE 15-19 AGE 20-29 AGE 30-39 AGE 40-49 AGE 50-54

112
WHAT product to offer
 Skin care: consumers are trading up in basic routines, while adding on
functional and protection regimes
Skin care sub-segments performance Y2017 vs YA Luxury/Premium penetration point increase Y2017 vs YA
70.0
Penetration
Star
60.0
Facial Lotion +1.7 +1.4 +1.6
Wash
50.0
Cream
Mask TONER LOTION CREAM
40.0
Toner
Penetration point increase Y2017 vs YA
30.0
Eye Care
20.0 Essence
Sun Care
+1.0 +1.4 +1.8 +0.8
10.0
Makeup Removal MAKEUP
0.0
Opportunity REMOVAL
ESSENCE EYE CARE SUN CARE

10% 15% 20% 25% 30% 35% 40%

Value Growth Rate

114
Anti-age and Hydration are still the biggest recruiters, followed by Oil
control and Sensitivity. ‘Others’ is also expanding, indicating newly emerged
unmet needs beyond traditional functions.
Penetration and pen point increase of skin care functions Y2017 vs YA

Y2016

Y2017

ANTI-AGE HYDRATION OIL CONTROL SENSITIVITY WHITENING OTHER

Anti-age Hydration Oil Control Sensitivity Whitening Other
FUNCTION

115
Prevention is better than cure, young females are core AA buyers; yet
mature opportunity should definitely be developed. Repairing the skin
barrier to restore to young skin condition is the new anti-age claim.

Anti-age Penetration
Unmet need: Repair

TTL Woman
Y2017
TTL Woman
Y2016

AGE 15-19 AGE 20-24 AGE 25-29 AGE 30-34 AGE 35-44 AGE 45-54

116
Hydration has become the fundamental need in all skin care routines;
hydration+ performs better than single function in attracting new shoppers.
Penetration GR 2017 vs YA

Hydration
70%

62% +Hydration

Single Function

Y2015 Y2017 Anti-age Whitening Oil Control

Skin care usage occasions with a purpose of 'hydrating my skin'

117
Sensitivity is an opportunity function for both young and mature, new shopper
opportunity is from those suffering sensitive skin conditions but have yet tried
sensitive products. Some are using sensitive products without a concern for their
mild and additive-free claim.
Sensitivity

Using Sensitive Products

Additive-free
WITHOUT sensitive concern

Using Sensitive Products

with sensitive concern

Not Using Sensitive Products

with sensitive concern
amino acid
%Buyer

AGE <=30 AGE >30

118
Makeup: face makeup routine is sophisticating, adding on pre and post
procedure to create a flawless base is the trend.
20.0
Penetration

Mature Star
Flawless coverage
16.0

Makeup Base
+Primer

12.0 BB
Cream

Cushion
8.0 Foundation

Powder
Makeup Base Foundation Concealer
4.0

Blush Concealer
CC Cream Cake Opportunity
0.0
-40% -10% 20% 50% 80% 110%
Value Growth Rate

119
Adding to the flawless coverage, Colors on Lip/ Eye is gaining popularity.

20.0
Penetration

Mature Star
Colors on lip / eye
16.0 Lip Stick

12.0

or
8.0

Mascara Brow

Liquid Liquid Lip Stick Lip Stick Eye Shadow

4.0
Eye Liner Lip Stick

Nail Eye Shadow

Opportunity
0.0
-40% -10% 20% 50% 80% 110%
Value Growth Rate

120
Consumers go for bolder lip colors and brighter / colorful eye shadow to
express their personalities.
Lip Colors – Usage Occasion% Index* Eye Shadow Colors – Usage Occasion% index*

Pink，Orange，Red Orange, Pink, Red, Purple

Dard Red，Purple，Brown，Black Brown, Grey, Black

2014 2015 2015 2016 2017 2017 2014 2015 2015 2016 2017 2017
fall/winter spring/summer fall/winter spring/summer fall/winter spring/summer fall/winter spring/summer fall/winter spring/summer fall/winter spring/summer

*Index = Occasion% / 14 fall/winter Occasion%

121
HOW to play
Young consumers in C+D cities still have faith in Korean products,
especially through Online.
Value GR in cosmetics Y2017 vs YA

KOREAN Brands Online

Made it to foundation Penetration

No.1
TTL KOREAN Brands
Penetration Index
Consumers Age <30 (compares to TTL foundation)
+22%
Buyer Age <30 111

KEY CITIES A CITIES B CITIES C+D CITIES Online Channel 164

123
The biggest competitor for Korean brands in lower tiers are local brands,
who perform strongly in recruiting new shoppers. +5.2M new buyers
Y2017 vs YA
Value GR in cosmetics Y2017 vs YA
Penetration% Pen% GR

67
57 Local Brands
16.9 +5%
49 Value %
40
LOCAL Brands
Value GR

KOREAN Brands 4.3 +23%

Value GR

1.7 +23%

KEY CITIES A CITIES B CITIES C+D CITIES

124
China local brand successful factors:
Local origin and ingredient (traditional Chinese medicine)
Value +17% Value +14% Value +4% (recovered from decline)
Chando boosts ingredients from Herborist boosts Chinese medicine Inoherb cooperates with Shanghai Chinese
the Himalaya recipe Medicine University

125
China local brand successful factors:
Ingredient + high tech / innovation to create star SKU
Value +4%
(recovered from decline)
Value +34% Inoherb best seller Rhodiola Rosea Essence: Value +54%
Cathy best seller Miracle Essence Water: Award winning technology to extract Marie Dalgar best seller Red Ginseng Foundation +
Niacinamide as well as herbal ingredients essence from herbal ingredients Fun and unique tool to apply

126
Cultural image+: limited editions from international brands and consumer
DIY

G. Armani
Givenchy Tom Ford YSL Dior

127
Finding New China Shoppers ABC
Anticipate:
future demands from an aging society. Grasp the trade up trend in basic routines and the
further diversifying skin unmet needs; continue to invest and drive makeup penetration.

Broaden:
geographic horizon to lower tiers. E-commerce the weapon to reach the high spending
power young females, with the right mix of (content) media touch points to capture their
impulsive purchase occasions.

Connect:
Chinese/ Asian elements in product (ingredient, packaging) offering with strong bonding
with technology or tool innovation. Culture linkage is not limited to Chinese local brands,
can be leveraged by foreign brands as well.
Personal Care Market in Korea

Jiwon Kim (Group Account Manager)

2018.05.10
Continuous Growth of Personal Care Market
Hair & body show a sharp increase in spending as well as traffic, yet toothpaste is recently growing in spending

Average Spending

Hair

Body Toothpaste

Traffic

Hair & Body: Individual panel

130
Toothpaste: Household panel
Social Background of Personal Care Market Growth
The increase in single households and value consumption affect the growth of personal care market

Increase in single households

27.2 27.9

23.9 ~ 20s
99
95 Yolo, Cost-satisfaction, Solo-economy, and Reasonable Prices Are Popular
30s
20.0 51.6%
95 95
81
40s
15.5 84
72 79 85
50s
63 63 91
56 88
47 59 60s ~
42
37 Single Households and Cost-effectiveness is the keyword for ’Value
30
25 158 170 Rate of Single Consumption,’ ‘Favorite Consumption’
132
71 98 HHs

(Mil. HHs, %)
Y2000 Y2005 Y2010 Y2015 Y2016
As ‘Solo-economy’ grows, new terms such as Yolo, Singlesumer appears
Statistics Korea, 2018

131
Changes and evolutions in consumers’ needs develop Personal Care Market
Consumers’ needs become more complexed and diversified  product usage varies by TPO

T IME Occasionally Daily

VALUE for ME
Professional Self Care &
+ P LACE
Treatment Home Care
VALUE for MONEY

O CCASION

Morning/ Seasonality Morning/ Seasonality Fine Dust Emotional

Night Night factors

132
DAILY
HOME
CARE
133
Product Perspective

134
Product Segmentation/Diversification - Body
In case of Body Care Market, the expansion in product segmentation/diversification occurs not only in main category but also in sub-category, and it leads
the increase in number of types and brands of each product (by TPO or usage)

Value Number of Duplication Type

* Body Others: body sun care, body makeup, bath salt, etc.

1.99
OTHERS
2015Y 2017Y

Number of Duplication Brand

Wash

Moisture
2.97

2015Y 2017Y 2015Y 2017Y

135
Product Segmentation/Diversification - Hair
The share of uncategorized product(New type or cross-typed) in Hair Market is also increased

15Y 16Y 17Y

Treatment
Lotion/Cream
Essence
Serum
Ample
Treatment Others

Hair Glaze
Hair Mousse
Hair Spray
Hair Wax
Hair Gel
Hair Styling Others

Styling

Cover

Bridge

Hair Dyeing Others

Styling & Cover

136
Product Segmentation/Diversification - Toothpaste

Toothpaste that provides

ingredients for the right Toothpastes available
time without spatial constraints
(morning/afternoon/evening)

Demands
for new types of oral care

137
Product Premiumization - Body
As various brands including premium enter the market, the price and the number of purchased brands increased

Moreover, these premium brands appear not only in main-type but also in sub-type categories, and that threaten to the exisiting mass brand

Body Moisture Body Wash

Number of Brands Number of Brands

203 169

2015Y 2017Y
2015Y 2017Y
Average Price(KRW/Liter) Performance Ratio by Segment
Mass brands
33.8 30.2 Avg.Price 6,229원

66.2 69.8 Other brands

2015Y
+7% 2017Y 2015Y 2017Y

138
Product Premiumization - Toothpaste
Toothpaste displayed on the store in the past appears in a drugstore/department store with a fancy package recently
Rapid growth of the premium segment has contributed to the increase in traffic as well as the price
Design+function, premium products enter the market
Premium Brand Value

2015Y 2016Y 2017Y

Average Price(KRW) INDEX of Premium Segment

(VS. 2015Y)

2015Y 2016Y 2017Y

139
Product Premiumization - Hair
Premium trend in hair care market related to hair-loss protection shampoo causes the increase in price and user expansion; As consumer age & gender of
hair-loss protection shampoo is expanded, concept/brand/price are diversified

Changing in Average Price Age 15-19 Age 20'S Age 30'S

Traffic % by User Age
Total Hair Age 40'S Age 50-65
category
Shampoo

2015Y 2016Y 2017Y

Change trend in Hair loss Shampoo

60,000 2015Y 2016Y 2017Y
탈모환자 성별 나이 구분 점차 없어져…시장
Number of hair확대
loss 및 제품 판매 증가
patient
Value

1000만 탈모인 시대…7000억대 황금시장 들썩인다

50,000 Ten million of hair loss persons … The market reaches 700 billion2017Y
Korean dollars Consumers who have hair loss problem is diverse, resulting in market expansion
대한탈모치료학회에 따르면 국내 탈모 인구는 잠재적 질환자를 포함해 젊은층, 여성 등으로 탈모 환자가 확대되면서 H&B매장의 탈모 관련 제품들의 판매
40,000 약 1000만명에 달한다. 한국인 5명중 1명이 탈모에서 자유롭지 못하다. 증가
최근 탈모증으로 병원에 방문한 환자는 매년 20만명을 넘으며 계속 증가
30,000 2016Y
진료비 지출도 2012년 272억 대비 최근 355억원으로 증가
20,000 2015Y
탈모 관리제품 등을 포함한 시장 규모 고속 성장 중,
10,000
2016년 이미 4조원 규모 대형 시장으로,
- 이는 2004년 대비 10배의 규모
600,000Market size including
700,000 800,000 hair loss 1,000,000
900,000 products 1,100,000
has increased ten-fold
1,200,000 since 1,400,000
1,300,000 Y2004 1,500,000
Traffic

140
Product + α - Hair (Home care+Home shopping)
Home shopping and SNS trigger ‘Product+α’ trend in hair care market and leads an influence to homecare-trend growth

홈 뷰티 기기시장, 매년 10% 이상 급성장

Home beauty device market grows rapidly by 10% each year
홈 뷰티 기기 시장은 올해 4500억원 규모로 추정되며
최근 10%연 성장률로 시장규모 확대 중
1인가구의 증가와 가성비 트렌드의 확산이 배경

미용 관리에 대한 시간적, 비용적 부담이 증가함에 따라

최근에 경제적인 소비를 추구하는 소비자들이 늘어나고
'셀프 케어 및 미용'에 대한 정보가 활발하게 공유
Time/cost burden of beauty care makes the sharing of self-care information more active
온라인 미용실전문 헤어브랜드샵 아론샵은 산성 샴푸 기반의 각종 기능성 샴푸 뿐만
아니라 헤어에센스, 헤어트리트먼트, 헤어오일, 헤어팩 등의 케어 제품, 스넬염색약,
헤나 염색약, 셀프염색약과 함께 최근에는 전문가용 티타늄 고데기 시리즈를 출시하여
드라이기, 헤어캡 등 단일 브랜드 최대 규모의 제품 구성을 이루고 있다.

141
Product + α - Body
“Body oil + Bodybrush” & “shower head for high water pressure, Shower filter”

손담비, 마이프라이빗tv 오일워시&바디브러쉬로 바디셀프케어 비법 공개

She disclosed the secret of body self-care using body oil & bodybrush

미세먼지와 황사로 찌뿌둥한 피부 깨끗이 씻어줄 바디브러쉬 제품 눈길

Body brush products that wash skin with dust
미세먼지와 황사, 샤워필터로 씻어내자
Wash away dust using shower filter

집에서 샤워하면서 힐링해볼까

‘홈배쓰(Home Bath)족’ 늘어난다
Increasing demand for home bath
집에서 샤워하면서 힐링 추구하는 ‘홈배쓰족＇ 늘어
Body oilwash market value 옥션, 비타민 샤워기 등 관련 품목 최대 5배 껑충

3,630

1,086
2015Y 2016Y 2017Y

142
Channel Perspective

143
 Change in Channel Usage of Personal Care Market
Traffic of Internet, drugstore, and TV home shopping gradually increased
Internet

Total Hair Shampoo Toothpaste

Moisturizer Wash
Drugstore

Total Hair Shampoo Moisturizer Wash

Shopping
TV Home

Total Hair Shampoo Toothpaste

Latest 3yrs, Traffic

144
 Omnichannel Trend in Personal Care Market
With the growth of online, the traffic of premium offline channels continues to increase
 In channel perspective, consumers tend to capitalize on various channels as many as possible at a particular TPO
as well

Offline Online
Omni shopper Only Only

Penetration
42.0% 51.5% 3.7%
2015Y 2016Y 2017Y 2015Y 2016Y 2017Y 2015Y 2016Y 2017Y

2017Y Approx. 17K Approx. 90K Approx. 70K

Spending KRW KRW KRW

145
Spread of millennium generation trend

All Household Trends

Men buying luxuries, Seniors loving mobile … Previous consumption formula in retailers is broken

Enhanced
Expansion of social status Efficient
M-commerce of women spending
due to due to
Professional pursuing
Increase in
economic eco-
New Product convenience recession friendly
Niche channels
to experience spending

‘Active Senior’ becomes ‘Key consumer’ for retailers

Millennials that knows to spend wisely for themselves & family
Spending of ’50, 60s’ increases by 78% for two years

146
Consumer Evolution and Background in Personal Care Market
Finding good
products for me
Complex
product consideration
Information through
SNS / Beauty shows

Expanding touch-point D
of small brands

Basic
Needs
C

147
 Seize
Consumer’s
DAILY Moment!!!
HOME
CARE
148
 BEAUTY

Korea
Cosmetics in
Evolving
Beauty Rituals
Koeun Shin
May 10th, 2018
In Y2017, cosmetics market turned volume-oriented growth

VALUE(M.KRW) VOLUME(‘000 UNITS)

Y2012 Y2013 Y2014 Y2015 Y2016 Y2017 Y2012 Y2013 Y2014 Y2015 Y2016 Y2017
This resulted from consumption increase albeit price drop

FREQUENCY AVG.UNIT/TRIP AVG.PRICE/UNIT

14.02

2.26
14,001

Y2012 Y2013 Y2014 Y2015 Y2016 Y2017 Y2012 Y2013 Y2014 Y2015 Y2016 Y2017 Y2012 Y2013 Y2014 Y2015 Y2016 Y2017
Market change resulted from…

Color Cosmetics Skin Care Channel

Growth Commoditization Dynamics
Color Cosmetics continues growing

Color Cosmetics Importance in Total Cosmetics (Value%)

Y2012 Y2013 Y2014 Y2015 Y2016 Y2017

Always-On consumers accelerate Color Cosmetics growth

Millennial Age 15-34 Gen X Age 35-54 Baby Boomer Age 55-65
Importance of
Color Cosmetics
by Generation
(Value%)

여학생 기준

출처: 머니S MNB 2018년 5월 1일

- 10대, '먹방' 보다 '뷰티' 1인 방송 선호…
"유튜브 가장 많이 본다"

교복 브랜드 엘리트학생복
10대 학생 2258명 대상
4월 2일부터 4월 14일
엘리트 공식 SNS를 통한 설문조사 결과

출처: 네이버 블로그 "XOXO조언니"

Skin Care price tumbled down further

GR% in Avg. Price/Unit

Facial Cleanser Toner Essence/Serum Cream

+5
+3
+1

-0

Y2016
Y2017
…which enabled unit consumption increase

GR% in Avg. Price/unit

Facial Cleanser Toner Essence/Serum Cream

+1
+1

+3% -1

Avg. Unit/Buyer Y2016

Y2017 vs Y2016 -4 Y2017
Sophisticated usage of Cleansing / Diverse Toner usage
Facial Cleanser Toner

Sub-category Occassion
Value Importance & GR%(Y17)
INDEX vs. 2015

Usage as Toner Pack

▲

Usage as a facial mist

Essence texture & Cream benefit diversified
Essence Cream

Unit GR% by Sub-category

Penetration% by Benefit
vs. 2016

Normal Water 2016

2017

Essence Essence
+9% +3%

Facial
Ampoule Oil
+10% +16%
Roadshops providing curated consumer experience

One Brand Shop Multi Brand Shop Select Shop

Amore Pacific- ARITAUM

Missha- sells low price like 3,300 KRW

CJ Olive Young CJ Olive Young

Viche + Uirage+ LRP VMD Corner dedicated to new&small brands

Skin Food- Single 1 Brand Shop

LG H&B- Nature Collection

SSG Chicor
SSG Chicor SSG Chicor
Lingerie Corner
Makeup Show Facebook Live Corner dedicated to new&small brands
After all, Beauty moments become more fragmented

 Bedroom, Washroom
 Office, ON THE GO

 Morning/Daytime/Evening
 Weekend/Weekday

PLACE
TIME
BEAUTY MOMENT  Internal Env.: Skin condition(Trouble/Dryness), mood
 External Env.: Season change, Micro dust
 Lifestyle: Travel, Work-out, NIGHT OUT, DATE, FUNTIME

OCCASION
Finding New BEAUTY Shoppers

Skin Diverse Diverse

Condition Beauty Moments Beauty Occasions
01
Skin Condition
More complex Skin Concern - Sensitive stands out

Younger Age Others Older Age

Cosmetics Value Composition%

Dryness
AA by Skin Concern
> WH of Younger age
Skin tone

VALUE%

Pore/Blackhead

Flaw > WH of Older Age

Trouble

Sensitive Q: No.1 Skin Concern of past 6 months

Y2017/ N=2,905/ Total Cosmetics/ Response% / excl.gift&giveaways
 Highly conscious consumers embrace
both Cosmetics & professional treatment

Has experienced professional skincare treatment(Respondents%)

평균

AA FLAW SENSITIVE TROUBLE PORE/BLACKHEAD SKIN TONE DRYNESS

02 Diverse
Beauty Moments
Different skin care needs by application time

54% Responded to use different SC product at Morning/Evening

Weekday
More steps than morning
Morning - Special Care
2-3 step cleansing
Weekend
Weekday Intensive Cleansing
No irritation cleansing Intensive Special Care
Minimal steps in busy morning Beauty Device
SC as a base for better color MU
Weekend Evening
Minimal steps in relaxed morning
 No-irritation cleansing, Simplified skin care, UV Sunscreen

Cleansing Moisturizing Finish

Total Age
(n=3,198)
1st step Facial Soap
Just water Facial Soap
2nd step Toner

3rd step Lotion/Emulsion

Top 1 1st step for
Combination of Age 15-19, 4th step Cream
Age 20s (n=551) above 40s
5th step UV
Toner>Lotion>UV 5.1
 More steps – both in cleansing and moisturizing

Top1 Combination Top 5 Combination of Age 50s

of Age 20s
Rank Cleansing Moisturizing

Cleansing Lip&Eye>Oil>Foam #1 Oil>Foam Toner>Essence>Eye Cream>Cream

#2 Water>Foam Toner>Essence>Cream

Moisturizing Skin>Essence>Cream #3 Oil>Foam Toner>Essence>Cream

#4 Oil>Foam Toner>Essence>Lotion>Eye Cream

#5 Oil>Foam Toner>Essence>Lotion>Cream
Needs to understand different needs
by Beauty moment

Busy Morning Active Weekend

Tired Evening Relaxed Work day

weekend evening
03 Diverse
Beauty Occasions
Point Make Up diversifies to address specific beauty moments

30% 42%
Lip MU Use of Use of Eye MU
Lipstick, Lipblam, Gloss Eye Shadow, Eyebrow, Mascara
by needs by needs

Gen X Gen X
Millennial Millennial

Baby Boomer Baby Boomer

Age Composition(Response%) Age Composition(Response%)

 Important to provide specific color/texture
by aspiration & Occasion
Lip-oriented User

Key Brands (Value%) Key Categories(Value%)

Total Respondents
Lip-oriented User Lipstick

Liptint

Lipbalm

Lip Multi
Total Respondents
Lipgloss Lip-oriented User
Bobbi Lancom Estee
Mac Chanel Nars Hera Dior Missha YSL
Brown e Lauder
 Party

Work-out

Shopping

Business Date
Trip
Religious Ritual

Work Hobby
Understand diversifying beauty moments and
Serve More Unique & Specific Value Proposition

Skin Diverse Diverse

Condition Beauty Moment Beauty Occasion
Contact
Presenter Branch Email

Ashely Kang KANTAR Worldpanel Asia Ashley.Kang@KantarWorldpanel.com

Erica WILLIAMS KANTAR Worldpanel US Erica.Williams@Kantarworldpanel.com

Nadya ARDIANTI KANTAR Worldpanel Indonesia Nadya.Ardianti@kantarworldpanel.com

Antoine LOUAT DE BORT KANTAR Worldpanel Vietnam Antoine.Louat@KantarWorldpanel.com

Laura CHU KANTAR Worldpanel China Laura.Chu@CTRCHINA.CN

Jiwon Kim KANTAR Worldpanel Korea Jiwon.Kim@KantarWorldpanel.com

Koeun Shin KANTAR Worldpanel Korea Koeun.Shin@kantarWorldpanel.com