Beauty Industry Business News

Beauty Industry
Affluence, e-commerce make Vietnam a lucrative cosmetics market
Rising incomes, higher demand for beauty products and online shopping are throwing up enormous opportunities for businesses in the cosmetics market. Many local and foreign health and beauty retail chains are eyeing the market. Hong Kong cosmetics giant Watsons, which has 12,800 stores worldwide, opened its first outlet in Vietnam in January. Hong Kong cosmetics distributor Guardian has opened more than 90 stores in Vietnam since entering the country in 2011. Local personal care chain, Medicare, established in 2001, said it is constantly looking to expand its product range as it faces mounting pressure from international competitors. Bart Verheyen, commercial director of Medicare, said: "We are constantly looking for new brands that are looking to penetrate and find exclusive partners in the Vietnamese market. We are also looking for producers that can make our exclusive products." Next week pharmaceutical and cosmetics producer GeneWorld will begin selling natural cosmetics and organic beauty products. Vu Duy Quang, its director, said having newly entered the industry it wanted to begin with organic cosmetics products since it is the current trend. According to global research firm Nielsen, the Vietnamese beauty and cosmetics market has much going for it like the growing middle class and increasing demand from young people, including men. Vietnam’s per capita spending on cosmetics is still very low at $4 spent compared to $20 in Thailand, indicating untapped potential. According to a survey done in Hanoi and Ho Chi Minh City and released in June by market research firm Q&Me, the rate of people who wear makeup daily has increased to 30 percent now from 28 percent in 2016, while those who go completely without makeup fell sharply to 14 percent from 24 percent in 2016. The most popular makeup items were lipstick, foundation and blush. Some 73 percent use skincare products once a week or more often. The most regularly used are facial cleansers, sunscreens and facial masks. Patrick Mui, creative manager and consultant at Centdegrés Vietnam, a French brand intelligence and design firm, said Vietnamese producers could be split into two kinds: old brands like Thorakao and Lana who are well known but have not rejuvenated their brand image, and new, small and dynamic businesses who could capitalize on the potential of the market if they could leverage the online selling environment. "Small and medium-sized cosmetics businesses who want to build a brand can take advantage of online channels." The Q&Me survey said online shopping for cosmetics is increasing constantly. Now 57 percent of cosmetics users shop online for beauty items, 72 percent of them shop on social media. Among online cosmetics shoppers, Shopee is the most popular e-commerce site and Facebook the top social site. Nguyen Manh Tan, marketing director of online marketplace Haravan, said online sales of cosmetics in Vietnam are second only to clothing. "Consumers, especially young buyers in Hanoi and Ho Chi Minh City, are turning to e-commerce not only for retail but also the beauty industry." This year many foreign brands have jumped on the bandwagon by selling on existing online platforms. American skincare company Clinique, which has 11 stores in Vietnam, began listing on Lazada in January, and Canada-based M.A.C did so three months ago. Vietnam’s cosmetics market is estimated to be worth around $2.3 billion, according to U.K. market research firm Mintel.   Source:
Beauty Industry
HCM City to tighten control of cosmetic surgery services
HCM CITY Authorities in HCM City will carry out stronger measures to ensure quality cosmetic surgery activities, deputy director of the city Health Department Tăng Chí Thượng has said. Many beauty clinics have been discovered performing unauthorised surgeries and skin injections. Speaking at a recent seminar on cosmetics surgery held by the city's Health Department, Thượng said the city faced serious challenges controlling violators and asked relevant authorities to step up efforts to control illegal activities. According to Nguyễn Văn Nguyên, head of District 10's Health Division, the city has 65 skin clinics that offer cosmetic surgery and 229 facilities with beauty services such as skincare, spa and micro-blading. The division recently checked four clinics and 19 facilities and detected multiple violations. Fourteen facilities had to pay fines worth more than VNĐ400 million in total. The most common violations are illegal medical examinations and treatment services, including filler injections and eyelid surgery; unauthorised or false advertising and selling of expired cosmetics or ones without clear origin. One of the most challenging tasks is detecting violations as facilities often hide or deny their wrongdoings, according to Nguyên. Authorities find it difficult to identify specific customers and the doctors involved in certain cases, as facilities tend not to disclose this information. “Surgery procedures are fast and take only 15 to 20 minutes per case, not to mention some facilities decide to set up surveillance cameras to watch out for inspection teams,” he said. The city also lacked enough manpower to inspect and control the illegal activities, he added. At the seminar, many experts agreed that authorities need to check whether hospitals, clinics and facilities with cosmetics surgery services are offering legal services; educate locals on pursuing safe surgery practices; strengthen collaboration with quality facilities; and post a list of qualified facilities online.  Meanwhile, Nguyễn Thị Thoa from the HCM City Health Department said that severe medical problems occurred at facilities that did not examine the medical history of their patients. “This explains why these facilities tend to freak out when their patients are in trouble." “No one wants their customers to face negative consequences that affect their lives. That’s why the entire Health Department should identify its drawbacks and come up with new, stronger measures to tackle this problem,” Thượng added. He said that all beauty facilities should be connected through a network within the health market. “Standing alone will make them a target for inspection,” he said. VNS   Source:
Beauty Industry
Thailand Beyond Beauty Asean returns to Impact for 6th edition
Her Royal Highness Princess Chulabhorn Krom Phra Srisavangavadhana graciously appointed Surapit Kirtiputra, Vice President for International Affairs of the Chulabhorn Research Institute, as her representative in presiding over the opening ceremony of "Beyond Beauty Asean-Bangkok 2019", being held at the Impact Exhibition and Convention Centre from September 19 (today) to September 21. The opening ceremony saw the attendance of  Suphan Mongkolsuthree,  chairman of the event;  Kriengkrai Thiennukul, vice chairman; Ketmanee Lertkitcha, deputy secretary-general of The Federation of Thai Industries and president of the Thai Cosmetic Manufacturers Association, and Vichaya Soonthornsaratoon,  vice president and  administrator of Thailand Convention & Exhibition Bureau (TCEB). After five consecutive years of success, the sixth edition of Beyond Beauty Asean Bangkok (BBAB), the number one trade show in the Asean beauty market, has returned to the Impact Exhibition and Convention Centre.  Organised by Informa Markets and Impact, in cooperation with The Federation of Thai Industries, the event provides local and international players in the industry the opportunities for business connections and  market expansion. BBAB 2019  showcases the latest beauty innovations and products from around 600 exhibitors and is expected to attract more than 16,000 visitors. It features two main zones: the BBAB Finished Products zone, presenting a variety of finished beauty and cosmetic products and the BBAB Supply Chain zone, which is designed especially for OEM / ODM businesses and their clients.  In addition , there is "Beauty Made in Thailand", a special zone for Thai beauty and cosmetic brands. “The healthcare and beauty sectors in Thailand have experienced  continuous growth. In 2018, the country’s beauty and personal care market topped US$6.2 billion in value. The industry grew by 7 per cent annually over the last six years, and ranked 1st among the largest export income earners in Asean,” said Suphan Mongkolsuthree, Chairman of the Federation of Thai Industries (FTI). “By representing the industrial sector, FTI is working closely with the government  to promote the development of technologies and innovations that benefit the industry. This is a strategic approach to empower large, medium and small industrial entrepreneurs and enable them to keep pace with changes in the behaviours of health- and beauty-conscious consumers and the entry into an aging society”. “Beyond Beauty Asean Bangkok 2019", he said,  is expected to provide entrepreneurs with access to the latest health and beauty trends, and a venue for exchange of experience and points of view on further business development. The event’s special zone, Beauty Made in Thailand, gathers all locally manufactured products relevant to health and beauty. It helps Thai entrepreneurs to capitalise on technologies and innovations to penetrate new markets and create new opportunities for further expansion in the global business network. It’s also certain that by participating in this event, Thai entrepreneurs will be  equipped with the  ability to address new challenges arising from fiercer competition in the industry. They will be well-prepared to grow in a stable and sustainable way. This is in line with the government’s policy of transforming Thailand into a regional medical hub where all related products and services are smartly integrated.” Vichaya Soonthornsaratoon, vice president and administrator of Thailand Convention & Exhibition Bureau (TCEB), said the agency's sixth commitment to BBAB reflects Thailand's goal of becoming the gateway to Southeast Asian beauty and cosmetics markets as the country is recognised as a centre of international trade fairs in the region. TCEB  recently announced a surge of 206.65 per cent last year from 2017 in the number of  MICE travellers from CLMV market to Thailand. Aside from creating business opportunities for the beauty and health industry in Thailand, TCEB also hopes BBAB 2019 will lead to continuous  growth of the international exhibition industry in Thailand, and to support Thailand as a base for  international businesses seeking to penetrate the markets of  neighbouring countries, and Asean.  This year, TCEB has set a growth target of 30 – 40 per cent in CLMV travellers. TCEB has organised overseas roadshows and campaigns to draw foreign  exhibitors and visitors to international exhibitions in Thailand. Claudia Bonfiglioli,  general manager/Beauty Global of Informa Markets stated: “Beauty markets in Southeast Asia have great potentials and that’s why international brands are quite active here. We hope Beyond Beauty Asean Bangkok can build a bridge between Thailand and other countries to create a marketplace that generate business opportunities". Loy Joon How, general manager, Impact Exhibition Management Co Ltd said “Thai entrepreneurs who are interested in the beauty business or in overseas expansion are given the opportunity to share their visions with both local and international visitors. We are confident that BBAB 2019 will be well received by the beauty and cosmetics community, and as a platform for enabling the exchange of ideas and knowledge, to further strengthen the industry in our region".   Source:
Beauty Industry
Beauty parlour business growing fast sans regulation, monitoring
Beauty parlour services in the country are expanding fast without proper regulations and monitoring by the government agencies, thus risking health hazards, insiders have said. As the services have become popular, many new entrepreneurs are entering the businesses without enough skills. The insiders alleged that the newcomers often use substandard cosmetics and hazardous chemicals. Due to absence of a proper guideline for the growing sector, they further said, both the customers and service providers sometimes face untoward incidents. Keeping this in view, the leading beauticians now feel the need for a guideline to be framed by the government agencies concerned to ensure better transparency in the sector. To this effect, leaders of Beauty Service Owners Association of Bangladesh (BSOAB) recently held a meeting with the officials of Directorate of National Consumer Rights Protection (DNCRP) at the latter's office. The necessity of framing such guideline came up for discussion after some operators in the city were fined by several government agencies, including the DNCRP and Rapid Action Battalion (RAB). Contacted, BSOAB Vice President Geetee Billah said the sector is now facing some crisis following the recent drives as the number of customers fell sharply. "They (DNCRP) conducted the drives all on a sudden. How they can oversee us without a specific set of rules for operating such business?" she raised the question. The sector should be provided with a guideline before monitoring their activities so that the entrepreneurs can correct their mistakes, added Ms Geetee, who is said to be the pioneer of the professional beauty service provider. The customers often raise allegation that many parlours operated by the unskilled people use counterfeit or hazardous ingredients, she said. BSOAB president Kaniz Almas Khan said the watchdog fined some organisations without concrete evidences of irregularities. "We couldn't have reached this position as big brands if we were using harmful cosmetics," said Ms Khan, Managing Director of Persona Hair and Beauty Limited. There were neither fake nor date-expired products, but the magistrates fined some parlours as there was no information about date expiry and import, she said. The ingredients used in parlours are bought in large containers tagged with the information about products details, she explained, adding that the staffs use the cosmetics from smaller pots for the convenience of work. There were no irregularities, but there might have some misunderstandings, she added. Ms Khan also said the parlours under the BSOAB contribute to the national exchequer by paying taxes. The beauty service providers pay Value Added Tax (VAT) at the rate of 16 per cent to the government, sources said. Sources said the beauty parlor business started growing in the country in the early 1980s. Now the service is spreading fast beyond the major cities like Dhaka, Chittagong and Sylhet. The BSOAB Vice-president Farzana Shakil said there has been no formal set of rules for operating a beauty salon in the country and, as a result misunderstandings occur. "We have to depend on the importers and suppliers for procuring a large bulk of cosmetics," she said, adding that it is the suppliers' responsibility to follow the government rules related to consumers' rights. If the sector is provided with a guideline by the government, the stakeholders can follow them to avoid any confusion, she added. During the recent meeting with the DNCRP, the BSOAB leaders submitted a written statement explaining their stance. They urged the government not to term tag-less cosmetics 'fake' without conducting laboratory tests. "We believe, the government policy should be framed in accordance with the category of sector and products," the meeting was told. It was also pointed out at the meeting that said the annual market size of the beauty service business would be around Tk 5.0 billion. Sources said there are nearly 15,000 parlors across the country with over 0.15 million employees. Deputy Director for the Dhaka divisional office of the DNCRP Monjur Mohammad Shahriar said that during the meeting top beauticians discussed about the recent drives, policy gaps, shortcomings in the sector and way forward. Mr Shahriar, a deputy secretary, acknowledged that women entrepreneurs have brought the beauty parlour businesses at present situation after a long struggle. "With the support of all stakeholders, we expect the sector will get a formal shape to ensure consumers' rights," he said.     Source:
Beauty Industry
Thailand“Beauty Buffet” opts for multi-brand format, rolls out first flagship store
Beauty Community Co Ltd (Beauty), a leading make-up and skincare retailer under the concept of "Live A Beautiful Life", teamed up with more than 14 leading cosmetics and healthcare brands - such as Karmart, Snail White, Bokhtoh, Smith and Her Highness to proactively penetrate the beauty & health market while driving the O2O marketing strategy to push sales in Thailand, said Dr Peerapong Kitiveshpokawat, the company's Deputy CEO. The company has started displaying and selling products of its partners at 120 Beauty Buffet branches across the country, at a ratio of 80 per cent Beauty Buffet-owned products and 20 per cent multi-brand products of its partners. The transformation of Beauty Buffet shops to multi-brand format endorses the concept of “The Kitchen Storage” and still reiterates the positioning on “Beauty That All-You-Can-Choose” which emphasises accessibility, variety, affordability and excitement. This reputational overhaul is in line with the evolving consumer lifestyle, leading to improvement in shop appearance, design, utilisation and service. The company also launched its first flagship store at MBK Center on July 4 and plans to renovate three of its branches at Central Ladprao, Central Chonburi and Robinson in Trang.  This transformation is a significant move for Beauty Buffet in penetrating the health and beauty market. The behaviour of consumers and the majority of shoppers demand a shop with diversity in terms of product brands, prices and categories, as well as with independence when shopping. The company is confident that the business transformation will lead to positive feedback, satisfy modern-day shoppers, increase sales opportunity and performance, and maintain its leading market share in the beauty retailing industry. Peerapong added the company is committed to leverage the O2O (Online to Offline synchronisation) marketing strategy, together with the Experience Sharing strategy through Macro Influencers to build mass awareness. The strategies will help convey experiences on the impression of the shop, variety of the products, service of the staff, and promotion of the Beauty Buffet and the multi-brand products. It will also build on the word of mouth of consumers who have actual experience at the offline store, which will then be shared back to the online platforms of both the brands and consumers. These marketing strategies are expected to help stimulate sales. “In general, the health and beauty market has become more competitive amid growing popularity. The trend has influenced market players to adapt and create a unique value positioning that could satisfy consumers in order to increase market share. Thailand’s cosmetics market is valued at Bt180 billion with growth averaging 7.8 - 7.9 per cent a year, while the nutrient market is valued at Bt87 billion,” Peerapong said.   Source: