Is Singaporean Beauty and Personal Care Industry is the way to Enter the SouthEast Asian Market?

Beauty and Personal Care

The Singaporean beauty and personal care market value recorded an assertive current value growth in 2018. The forecasted growth of the cosmetics and personal care market is expected to grow at a CAGR (compound annual growth rate) averaging 2.3 % annually from 2018 to 2021. In 2018, the total revenue amounts to US$ 937 million (S$ 1294 million) in this segment of the industry. The top five leading suppliers are the US, France, European Union, Japan and China for the cosmetics, toiletries and fragrances. Brazil, Indonesia, India and Russia re-established their place among the promising growth markets. To stay and lead the competition of the market, brands are heavily investing in the advertising, promotions, marketing, market research & development.

The tourism industry of Singapore is contributing in the total retail sales, as the country hosts a significant number of emigrants, who are not only demanding a high-quality lifestyle and enjoying it but also boasts a great knowledge of international products. The domestic retail market segment of Singapore includes both consumers with high disposable incomes are seeking premium and high-quality products, mass-market buyers and price-sensitive as well. The beauty and personal care business continues thriving in Singapore and it is more volatile to economic cycles. Every year approximately five new brands enter the market but it is not necessary that they transform into a significant growth in the consumer base.

Singaporean Domestic Market of the Beauty and Personal Care and Its Trend:

In 2016, there are 70 or more business listings of companies which import and manufacture cosmetics and toiletries ranging from luxury, premium brands to mass-market products in Singapore. Most of the firms are manufacturing its products in the low-cost country because Singapore’s manufacturing cost is too high. E-commerce is the fastest growing market segment and the traditional retailers are ensuring to have an online presence. International ecommerce sites are the centre of attraction among the consumers as they offering skincare and cosmetics at better pricing. With the penetration of ecommerce, the online forums and blogs are increasing through which companies are spreading awareness about brand and product. Most importantly consumers are accepting and valuing the opinions conveying through the online forums and blogs.

The retail trade directly competes with a significant broad market segment, such as doctor/dermatologists, beauty salon, spa and medi-spa sector. The consumers who seek these services buy retail products to use at home. For entering the market of the Southeast Asian region, Singapore is the gateway and many brands are targeting the opportunity to grasp the market effectively and providing a full range of products. Cosmeceutical brands is a niche segment of the product that features new and trending products of both the pharmaceutical and cosmetics sector, such as Perricone MD, Murad Inc., Obagi Medical Products, Allergan Inc. and SkinMedica Inc., etc. The mass market of the retail sector is covered by the top brands, like Hada Labo, L’Oreal, Olay, Biore, Bio-essence, Neutrogena, Nivea, etc.

Consumer Trend of the Beauty and Personal Care Industry:

The image-conscious and affluent male and female of Singapore are more interested in the personal grooming and appearance products and giving high priority to such cosmetics, toiletries and fragrances among all other products. With this, child-specific products are in more trends with the ongoing trend of health and wellness. Parents are more conscious about the health and wellbeing of their children and do not want to take any risk with their children’s product. Thus they are seeking more for natural and organic products in order to avoid the damaging effects for their children in Singapore.

Consumers are more convinced with the skincare and cosmetics products which are centric of hydration and protection. Cosmeceutical brands are one of the most dynamic categories which is dominating the market through its niche product, which is combined of the revolutionary ingredients with ease of use. In this segment, the line is so thin between skincare and cosmetics that cosmetics include both functional ingredients and healing properties, such as lip balms combines of colour and skincare.

Consumers are seeking products which have fewer chemicals and more environmentally-friendly, natural and organic ingredients for their skincare, make-up and hair care products. The trend of Skincare brands with topical products with nutraceuticals is increasing to improve skincare by just not applying but also through oral nutritional supplements. Unique colour products (both make-up and hair) are more trending among the young and trendy who wants to look different from their peers.

The consumers in Singapore have embraced the changing trend of these products, such as sunscreen, anti-ageing, hair care, oral care, deodorants, fragrances, depilatories, shower and bath, etc. All these products have seen a dynamic growth over the last few years as it is correlated with the changing demographics of the population. Also, women are experimenting with their looks with the Korean beauty trends, beauty blogs and the increasing range of skincare products and colour cosmetics.

Popular Products Trend in the Beauty and Personal Care in Singapore:

Premiumization is the key trend that will drive the sales growth of cosmetics and toiletries due to the increased disposable income levels of the consumers and the rising the affluence of the general population. Singapore is the first in the neighbouring markets to adapt and develop new fashion trends. Sales of colour cosmetics and skincare are highly influenced by the latest market trends and the consumers are willing to try different looks using different colour cosmetics. The increasing factor of this trend might be the exposure to social media marketing, where Singaporean audience discovering new products and popular demands.

Beauty products, such as facial make-up, BB and CC Creams, dewy, fresh, light-weight, no make-up look creams, cushion compact/foundation, facial masks, anti-ageing creams, etc are performing more dynamically. Products incorporated with healing and anti-ageing properties made of argan oil serum green tea extract, Vit C, Mandelic acid ingredients are more popular.

Increased usage of styling agents, colourants, and salon hair care products continue to underpin the haircare sales. Salon stylists are actively participating in the marketing tactics to sell their products to the consumer by attracting them with promotion packages and loyalty programs, etc. Haircare products that address hair and scalp problems have a more loyal customer following in comparison to the more generic product.

In Singapore, nail spas, pedicure and manicure products are popular among women of all ages and have sustained growth of such products. Women’s premium fragrances have the major market potential than the male, who likes to have more fragrances products. Light, fresh and fruity as opposed to strong, flower scents are the major consumer preferences.

Market Entry and Opportunities in Singapore Beauty and Personal Care:

Singaporean beauty and personal care are covered by the famous leading brands. As the consumers of Singapore are more brand conscious and are only go for the products that are organic and natural. The leading country products in the market are from the US. The leading brands of the beauty and personal care are opening brick and mortar stores in Singapore. The country’s small market size is easy to target through advertising, promotion, retailers and distribution channels. It is the major segment of the Southeast Asia market; retailers also operate in other reasons as well with Singapore.

Growth in the cosmetics and toiletries market is expected to be more competitive as the premium brands are more specialized in niche market segments and increasing numbers of companies are also the major the reason. The niche market players of the beauty and personal care are presenting unique or complementary products to consumers to expand their reach and some for successfully penetrating the market.

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