May 5, 2015
For Immediate Release
GLOBAL BEAUTY SALES LOOK AT “MASSIVE GROWTH,” SAYS FUNG BUSINESS INTELLIGENCE CENTRE REPORT Emergingmarketsand technology will bring opportunity, consolidation
to fragmented industry, notes Executive Director Deborah Weinswig
NEW YORK (May 5, 2015) – Global beauty sales, already a nearly $400 billion market, is on the verge of explosive growth from emerging markets, but will see an industry in flux as consolidation and technology disrupt channels of distribution, says Fung Business Intelligence Centre’s just-released Global Beauty Report.
“As developing and nascent regions increase their average per capita spend, the global market could see a potential 50 percent growth in the next 10 years,” notes Executive Director-Head of Global Retail & Technology Deborah Weinswig. “Expect major consolidation and channel switching in less mature markets.”
The key measurement is spending per capita in the three different types of markets: Mature markets of North America and Western Europe, where spending is high; Developing markets where growth has already started; and Emerging markets such as Africa and much of the Asia-Pacific region.
Spending in the sector rose by 3.6 percent globally in 2014, driven primarily by growth in the Asia-Pacific, Latin America, and Middle East and Africa regions.
“In mature markets, the pressure is on established brands and retailers to build deeper connections with shoppers to strengthen perceptions of value and cultivate loyalty,” the report says. “Social media and a more informative and interactive web experience can be invaluable, as can loyalty programs and an improved in-store experience.
“Beauty tech provides the personalized experience that most women desire when purchasing cosmetics and other beauty products — and that even a beauty advisor in a store may not always deliver,” Weinswig notes.
The utilization of apps such as those that can detect skin tones and recommend appropriate makeup shades or recommend cosmetics based on uploaded photos, as well as the maximizing of available marketing technology will all contribute to building beauty brands’ relationships with customers.
“Modern store formats and strong own-brand lines will be among the principal weapons in the battle to win share in immature markets. Small mom- and-pop retailers will struggle to compete on these elements,” Weinswig writes. “But we think retailers should consider going further, leveraging e-commerce, technology and the in-store experience to win customer loyalty and build market share. Implementing innovative in-store technology will not only help build a competitive advantage, it will help retailers gain first-mover status among smartphone shoppers in Latin America and Asia-Pacific.”
For a full copy of the report, visit
http://www.deborahweinswig.com/wp-content/uploads/2015/05/FBIC-Retail-Tech–Take–on–Global–Beauty–.pdf. The group’s reports and analyses can be found at www.fbicgroup.com and www.deborahweinswig.com.
The Fung Business Intelligence Centre (FBIC) collects and analyses market data on sourcing, supply chains, distribution and retail. It also provides thought leadership on technology and other key issues shaping their future.
Headquartered in Hong Kong, FBIC leverages unique relationships and information networks to track and report on trends and developments in China and other Asian countries. In addition, its New York-based Global Retail &
Technology research team follows broader retail and technology trends, specializing in how they intersect and building collaborative knowledge communities around the revolution occurring worldwide at the retail interface.
Since its establishment in 2000, the FBIC (formerly known as the Li & Fung Research Centre) has served as the knowledge bank and think tank for the Fung Group. Through regular research reports and other publications, it makes its market data, impartial analysis and expertise available to businesses, scholars and governments around the world. It also provides advice and
consultancy services to colleagues and business partners of the Fung Group on issues related to doing business in China, ranging from market entry and company structure, to tax, licensing and other regulatory matters.
CONTACT: Debra Hazel
Debra Hazel Communications