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Lancôme’s number-one bestselling sku. generated content on social media.” previously only available in Sephora stores, in At the same time, new brands continue to While department stores still represent the Kuala Lumpur in October, for example. The arrive in Malaysia, keen to capture its avid lion’s share of beauty sales—around 75%, Estée Lauder Companies operates stores for consumer base. “In the past few years, we according to sources—this is beginning to MAC, Bobbi Brown, Clinique and Origins, while have seen the emergence of Korean brands change as new concepts arrive on the market. Shiseido-owned Nars marked its entrance in Malaysia, partly due to the Korean pop “We see younger consumers gravitating to the country with a store in the Pavilion culture that has a strong following,” says Lau. towards self-service stores like Sephora and Mall in 2013. Niche fragrance brand Maison Amore Pacifc’s Innisfree launched in Malaysia standalone boutiques that offer a unique Francis Kurkdjian has two standalone stores in through Parkson stores last year, for example, shopping experience,” says Lau. “E-commerce Malaysia. “Given the absence of credible luxury and generated a buzz on social media even is also growing very fast.” fragrance retailers, we have opted to operate before the launch, according to the company’s Sephora has 14 stores in the country. Hong our own boutiques with a local partner,” says annual report. Kong-based beauty retail chain SaSa, which the brand’s ceo and co-founder Marc Chaya. operates 61 outlets in Malaysia, is also opening L’Oréal’s Lau reveals that Kiehl’s has seen Growth in prestige make-up new stores with a more prestigious environment strong double-digit growth in the market thanks The prestige make-up market is doing in the country. “SaSa is opening new stores and to its store design and its “try before you buy” particularly well with the young, fashion- trying to make the link between prestige and campaign, which has helped to recruit new conscious Malaysian consumer. “The color mass market, creating shop-in-shop concepts, consumers. Services are also seen as a good new areas where people can try products, and recruitment method. “For La Prairie, facial employing make-up artists,” says ArtDeco vice services and at-counter events continue to work “ standalone-store route rather than department positive about the future outlook for Malaysia’s well,” says Rasquinet. president of marketing Anna Blasco. Many brands have preferred to choose the Despite its maturity, industry players remain The luxury cosmetics market in Malaysia has enjoyed stores in Malaysia. This is partly because prestige beauty market, which is predicted to department stores are largely seen as discount become increasingly segmented to cater to the steady growth over the past outlets. It is also due to the propensity of good growing sophistication of consumer demands. fve years at an average of retail space, and because the country has no “There is still a lot of room to grow, as the perfumery chains as such. market has not fully penetrated each category,” 3-4%. We expect 2015 to L’Oréal added a standalone for Urban Decay, L’Oréal’s Lau concludes. n continue to grow, albeit at a slower rate due to the maturity of the market Malaysia retail at a glance SaSa: 61 stores ” SaSa has been opening new outlets and upgrading stores with more of a prestige image, as well as adding branded areas and in-store events to bridge the gap between mass and L’Oréal Malaysia Luxe division general manager prestige. The company has also announced plans for a Malaysian loyalty program to boost its Sook Ping Lau competitiveness, to be launched before the end of its fscal year ending March 2016. Parkson: 43 stores cosmetics category is expected to grow due Owned by Lion Group, Parkson has been revamping some of its key stores and has opened fve to consumers paying more attention to their new stores over the past two years. Its most recent opening, in July, is a store at Maju Junction, appearance as a factor of success in their social Kuala Lumpur, and its revamped KLCC store also opened in July with an upgraded beauty life and career,” says beauty consultant and department. Parkson is the country’s leading prestige beauty seller and one of few chains with training company Red Scout founder Simone nationwide coverage. Pedersen, who adds that waterproof cosmetics products are particularly popular because of Sephora: 14 stores the hot, humid climate in Malaysia, especially Sephora has rapidly expanded its presence in Malaysia since it entered the market in 2011, eyeliners and mascaras. nearly tripling its store count since 2013. The retailer is credited with changing the way young “We see this group of younger and more Malaysian consumers shop for beauty with its self-service concept and introduction of new connected youth driving the make-up category brands to the market. with strong double-digit growth,” says L’Oréal’s Lau. “One of the key success factors Isetan: 4 stores for Urban Decay is how the brand engages Japanese retailer Isetan has been present in Malaysia since 1990, and offers a range of niche with consumers through key opinion leaders brands, as well as prestige cosmetics and fragrance staples. to generate positive word of mouth and user- November-December 2015 - N°24 - BW Confidential 89