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credit: istock Market watch: South East Asia Regional overview Long-term potential The market in South East Asia is perhaps more diffcult than several years ago, but there are still many bright spots in the region outh East Asia has long been held up as In one of the region’s biggest beauty full-year 2014, Euromonitor says sales rose by Sa region of much potential for beauty. markets, Thailand, sales increased by 7.1% 14.3% to $1.12bn). Regulations in Vietnam However, growth in many of the key markets to $4.94bn. The prestige market is also are complicated and constantly changing, there has slowed over the past two years. In doing well there and the market is seeing putting off companies thinking about addition, analysts are nervous over the impact good retail development, which should boost launching in the country. of China’s slowdown on certain economies beauty. This is all against a background of South East Asia may not appear as the in the region. In the aftermath of China’s Eldorado it was once made out to be, and Black Monday in late August, many South Optimists say that jitters China’s economic woes could have a major East Asian countries saw their currencies fall negative effect on these markets. But the and economists have said that investors have over China could beneft region holds promise for those who are been pulling capital out of emerging-market South East Asia’s emerging prepared to weather the storm and are ready countries in Asia for some time. Optimists countries as companies look to look for results more in the long than the however, say that jitters over China could short term. n beneft South East Asia’s emerging countries for better growth rates and as companies look for better growth rates and lower costs there lower costs there. South East Asia beauty and personal-care Enviable growth rates political instability and recent security threats. sales* by country 2014 It is not all doom and gloom for the region. Malaysia, meanwhile, saw growth of Country Sales $bn % change Growth rates in some of the key markets 5.5% to $1.97bn in 2014, according to 2014/2013 there are enviable. Last year, Indonesia for Euromonitor, although sales are expected Thailand 4.94 +7.1 example saw beauty and personal-care sales to slow this year, in part due to a drop in Indonesia 3.87 +16.5 grow by 16.5% to $3.87bn, according to tourism, especially from Chinese travelers. Euromonitor International. The prestige sector Vietnam is seeing tough times, with prestige Malaysia 1.97 +5.5 reported an even higher growth rate, with sales falling 25% at the beginning of this Vietnam 1.12 +14.3 sales up 25%, say sources. year, according to sources (although for the Source: Euromonitor International *Retail sales November-December 2015 - N°24 - BW Confidential 83