Page 14 - BWConfidential19_2

Best of BW highlights BW Confdential delivers an electronic publication by email to subscribers every two weeks, with a focus on analysis of major issues facing the international industry, interviews with key players and insight into new trends. Here we bring you excerpts of some of our reports. To see the articles in full, log on to our website www.bwconfdential.com Beauty insight Japan Korean brands in Asia Japan’s beauty market is performing Korean brands are growing slightly better than what it has done their share of the beauty market over the past few years. Euromonitor abroad. According to fgures International put the market growth at from the Korea Customs Service, +0.2% in 2013, with sales of $47.33bn, in 2013, cosmetics exports a slight growth rate, but one that reached $539m. Asia makes up B.I. PACKAGING comes after several years of decline. Local players are more upbeat the bulk of cosmetics exports www.bi-packaging.com for 2014 and remark that prices have increased since the beginning for Korean brands—industry of 2013, another sign of recovery. “We assume that the rising prices estimates say more than 80% of Korean-exported beauty products in 2013 refect both the comeback of the Japanese economy, as well as signs were sold in the region. China is the biggest importer of Korean cosmetics that the consumer has tired of years of penny-pinching during the and Japan comes in second, followed by Taiwan. Consumers in Indonesia last defation-ridden years,” Kanebo head of international corporate and Vietnam are also hungry for Korean brands. The youth population in communications Shinji Yamada tells BW Confdential. these countries is particularly attractive to these brands. Russia Chinese brands A slowing economy, China has become a rampant infation, a key market for Western falling ruble and ferce beauty players, but discounting are taking more questions are their toll on the Russian being asked about beauty market. In addition, the emergence and the political situation potential of local following Russia’s brands in the country. annexation of Crimea has some foreign companies worried about risks There are currently hundreds of Chinese cosmetics brands in the market, to their business there. Value sales have been hit by strong discounting mainly in tier-two and tier-three cities, and predominantly in the mass or 50ml 30ml campaigns. With the major chains now basing their strategies heavily mid-market segments. Local brands are primarily found in the skincare on a discount component, consumers have changed their shopping sector (including masks) and also in make-up. 100ml behavior and now hold off on making purchases, preferring to wait for a The main Chinese groups are Shanghai Jahwa, Jala Group, Jiangsu price promotion. Given these practices, some high-end brands have even Longliqi Group and Shanghai Inoherb Cosmetics. Another local player sought to pull out of certain retailers in the market, due to worries over to watch out for is the Vaqua Group, which is owned by Grandway their brand image. International Cosmetics. 14 September-October 2014 - N°19 - BW Confidential E-mail: david@bi-packaging.com