10.25.24
According to a new study by GlobalData, the premium beauty sector in Southeast Asia is experiencing notable growth within physical retail environments through collaboration with omnichannel brand-builders.
Jaya Dandey, Consumer Analyst at GlobalData, commented,
“The premium beauty sector in Asia’s physical retail is thriving, driven by a combination of strong consumer demand, innovative retail strategies, and an increasing emphasis on personalized shopping experiences. The high single-digit growth rates of prestige beauty categories is notable even in the context of broader retail performance, where beauty products are often seen as high-margin categories that outperform other areas such as food sales.”
Luxasia, Southeast Asia’s leading network in beauty and luxury, has enabled market entry and penetration for several brands. It recently captured the Vietnamese market by launching essentials, an omni-retail concept for luxury fragrances, in one of the country’s prestigious malls.
Premium skincare brand SK-II also launched a unique concept store at the Mid Valley Megamall in Kuala Lumpur, Malaysia. Indian beauty e-commerce giant Nykaa is actively expanding its physical retail spaces across the nation.
The study showed that consumers want to try multiple products in person before purchasing a product. This is especially prominent in the premium beauty space where products are higher. Retailers with individual consultation stalls in stores can help promote customer engagement with a wide variety of brands.
Till Hill, Key Accound Director, SE Asia, GlobalData, said,
“The ability to integrate online and offline experiences will be vital for survival in this rapidly changing landscape. Maintaining a robust omnichannel presence allows retailers to connect with consumers across various platforms, including online and physical stores. This strategy not only caters to different shopping preferences but also ensures that brands remain accessible to a wider audience. A hybrid approach allows these companies to leverage their online success while maintaining a physical presence, creating a seamless shopping experience for consumers.”
The rise in brick-and-mortar stores in Southeast Asia is attributed to the large upper middle class, who are more willing to splurge on luxury beauty and international brands, said GlobalData.
The GlobalData 2024 Q2 Consumer Survey reflects this, where “about 25% of respondents deemed low price as good value for money while purchasing beauty and grooming products, and a much higher 34% responded that high-quality ingredients represent more value for money.”
K-Beauty Market Expected to Reach $18.3 Billion by 2030
Jaya Dandey, Consumer Analyst at GlobalData, commented,
“The premium beauty sector in Asia’s physical retail is thriving, driven by a combination of strong consumer demand, innovative retail strategies, and an increasing emphasis on personalized shopping experiences. The high single-digit growth rates of prestige beauty categories is notable even in the context of broader retail performance, where beauty products are often seen as high-margin categories that outperform other areas such as food sales.”
Luxasia, Southeast Asia’s leading network in beauty and luxury, has enabled market entry and penetration for several brands. It recently captured the Vietnamese market by launching essentials, an omni-retail concept for luxury fragrances, in one of the country’s prestigious malls.
Premium skincare brand SK-II also launched a unique concept store at the Mid Valley Megamall in Kuala Lumpur, Malaysia. Indian beauty e-commerce giant Nykaa is actively expanding its physical retail spaces across the nation.
The study showed that consumers want to try multiple products in person before purchasing a product. This is especially prominent in the premium beauty space where products are higher. Retailers with individual consultation stalls in stores can help promote customer engagement with a wide variety of brands.
Till Hill, Key Accound Director, SE Asia, GlobalData, said,
“The ability to integrate online and offline experiences will be vital for survival in this rapidly changing landscape. Maintaining a robust omnichannel presence allows retailers to connect with consumers across various platforms, including online and physical stores. This strategy not only caters to different shopping preferences but also ensures that brands remain accessible to a wider audience. A hybrid approach allows these companies to leverage their online success while maintaining a physical presence, creating a seamless shopping experience for consumers.”
The rise in brick-and-mortar stores in Southeast Asia is attributed to the large upper middle class, who are more willing to splurge on luxury beauty and international brands, said GlobalData.
The GlobalData 2024 Q2 Consumer Survey reflects this, where “about 25% of respondents deemed low price as good value for money while purchasing beauty and grooming products, and a much higher 34% responded that high-quality ingredients represent more value for money.”
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