: BBS : 2019-04-09
|Thailand looking good on the beauty front|
THAILAND is increasingly building up its standing as a manufacturing and export base for beauty products in the Asean region, thanks to an abundance of raw materials, the country’s strategic location, professional expertise and high standards, an industry figure says.
Hyo Choon Yoon, executive vice president of Korea International Exhibition Centre (Kintex), organiser of the K-Beauty Expo, said that Thailand offers not only a large consumer market for beauty products - accounting for a third of the market for Korean cosmetics in Asean - the country is very strong in manufacturing and that has fuelled its export success.
“Thailand is the No 1 original equipment manufacturing (OEM) cosmetics manufacturing country in Asean, due to the advantages it has in the availability of raw materials, alongside its strategic location, expertise and the high quality standards for products,” Yoon said.
The K-Beauty Expo that Kintex presents is one of the fastest-growing beauty trade shows in South Korea. Yoon said that expanding a business into a new market is always challenging, and this is particularly so with beauty products.
In Thailand, just as elsewhere, pricing is the most critical issue to take into consideration. Another issue to be overcome is that consumers’ preferences are constantly changing, Yoon said. These are the two major concerns for companies that want to grow their revenue in the industry.
“For Kintex, we will roll out a strategy relating to prices, product quality and packaging to overcome those challenges,” Yoon said. “Pricing is of the utmost importance as most consumers are sensitive on this point. That’s why we need to come up with competitive prices, yet maintain the high quality of products. Achieving such a balance is crucial for companies to thrive here. And up-to-date packaging styles will capture the consumers’ attention.”
“We marketers, after a thorough study and research into the Thai and Asean markets, have witnessed on-going behavioural changes,” Yoon said. “A few years ago the trend was for common skincare products packed with a variety of benefits. Now, the focus is on beauty products that are organically sourced from nature. A move towards wearing less make-up will be in for sure, as consumers come to value inner beauty. All in all, the consumers of today’s market are seeking high-quality skincare and cosmeceutical products that are beneficial to long-lasting healthy skin.”
Lucksupha Prabhawat, president of the Thai Cosmetics Cluster and a representative of Department of Industrial Promotion, said the value of Thailand’s cosmetics manufacturing industry reached Bt280 billion in total sales in 2017, with the domestic market accounting for Bt168 billion, or 60 per cent. The remaining Bt112 billion, or 40 per cent, came from exports. With an annual growth rate of 10 per cent in the sector, Thailand is ranked 17th among countries that manufacture and export cosmetics.
Kintex, in cooperation with ICVEX, a subsidiary of Index Creative Village, a provider of creative and marketing communications services, yesterday announced that the Bangkok Beauty Show 2018 will be held from July 12-14 at Bitec's Hall 101 in Bangna district, Bangkok.
Dubbed the premier international beauty trade show in Asean, the organisers say the event will see buyers and exhibitors in the cosmetics industry connect for business opportunities. The exhibition will showcase the latest beauty innovations, along with providing business matching sessions and seminars.
In a report, Kantar WorldPanel (Thailand), said its study on Thailand's beauty market found the market was worth Bt57 billion last year, posting a growth rate of 3.8 per cent. The major four beauty categories are hair care, facial care, make-up and body care. According to the study, face care remained the largest category, accounting for 40 per cent, with 33 per cent for hair care, 16 per cent for make-up and 11 per cent for body care. The make-up segment ranked first in terms of growth, registering an increase of 8.7 per cent; face care, body care, and hair care grew by 4.5 per cent, 3.5 per cent, and 0.8 per cent, respectively.
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