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Last word Guest column Moving ahead In our guest column, Singapore- based business and brand strategist Martin Roll explores key trends and emerging opportunities for the global beauty industry credit: stock.xchng Emerging trends in terms of investment, innovation centers The increasing consciousness of natural that focus on producing Asia-specifc beauty ingredients in beauty will gather momentum products and developing and implementing over the next few years. This trend has the local marketing and distribution strategies. But potential to signifcantly disrupt brands and increasingly, startups in beauty are disrupting product lines in the industry. According to traditional marketing and retailing models. a recent analysis, global sales of natural Online retailer Zalora’s success is a case in cosmetics increased by 10% year-on-year in point. In 2014, it raised an additional $100m 2014, outperforming global beauty industry in funding from venture capitalists. In 2014, growth. For natural cosmetics, Brazil and Asia Zalora’s net revenues were $140.4m, up Pacifc were the strongest-growing regions, 70% on 2013 and the website’s transactions with double-digit growth rates. Brazil is now increased by 90%, from two million in 2013 considered to be at the forefront of some of to 3.9 million in 2014. For traditional beauty these new trends in beauty. retailers, the emergence and success of In the same natural and wellbeing platform, e-commerce is a signifcant threat. we are witnessing rapid growth of the nutricosmetics segment of the beauty market. New forces According to reports from analysts and research “ From both a global and Asian perspective, the frms, the global nutricosmetics market was The beauty industry is going beauty industry is going through a phase where valued at $3.36bn in 2013, with a projected through a phase where forces forces like health and wellbeing, developments CAGR of 11.5% from 2014 to 2020, with like health and wellbeing, in technology, online retail, customization segment valuation to reach $7.16bn in 2020. and more focus on sustainability will have a Another emerging trend is individual level developments in technology, signifcant impact. Also, traditional beauty retail customization, with DNA technology slowly online retail, customization and needs to evolve from standard models driven by coming to the fore. With technology, individual more focus on sustainability will retail stores. specifc product lines can be developed, which Brands and retailers need to keep pace are a perfect ft with skin tone, skin requirements have a signifcant impact with how technology and social media are and previous and current risk factors. We transforming consumer needs through sharing. just cannot ignore the “selfe” phenomenon The emergence of video is also transforming anymore. This growing trend for constant self- ” how beauty products are being marketed. There promotion through visuals on social media Business and brand strategist Martin Roll are millionaire success stories of YouTubers who platforms has signifcantly impacted the beauty enjoy a massive following by running YouTube industry. There is now constant demand for channels where they showcase make-up tips quick-acting and immediate-effect beauty innovation hub in Asia, also saw beauty industry and the latest styling trends. Brands need to products that lead to excellent “selfes”. growth rates slowing down. However, the open up to these new infuencer and advocacy- challenge for the Asian beauty industry is not driven marketing models. n Asian challenges necessarily the slowdown in growth, which is The Asian beauty industry has some catching sometimes cyclical and also driven by broader Martin Roll is a global business strategist, senior advisor and facilitator to Fortune 500 companies, Asian frms and family up to do. There is a resurgence in consumer factors, but to continue driving change in the owned businesses focusing on building and managing strong, global brands. He is experienced in advising clients at all demand in the US, but a slowdown in China. global beauty industry. management levels and his specialties are branding, marketing, South Korea, which has long been seen as an Multinationals have long focused on Asia strategy, leadership, business coaching, Asia and emerging markets. www.martinroll.com. 130 November-December 2015 - N°24 - BW Confidential