Beauty Disruptor Series: Innovation in Asia Pacific

Key Findings

Leading global players are increasingly under threat from fast-growing insurgent and local brands

Recent changes in consumer behaviour have opened up new opportunities for smaller brands, who tend to be more agile and responsive to trends than multinationals. Local brands also have a deeper understanding of what their consumers really want, and shape their offering to meet this, whether that is customisation, natural or sustainable.

Beauty disruptors in Asia Pacific and Australasia must embody value for money

Asia Pacific’s disruptor brands compete on quite simple terms, such as selling model, formulation and price, while Australasian brands utilise local heritage and ingredients. Consumers in both Asia Pacific and Australasia consider value for money as the most desired feature in beauty products and this demand is setting opportunity for disruptors to develop affordable quality products.

Domestic disruptive players are on the rise in Asia Pacific

High penetration of online retailing allows small beauty disruptors to easily join the competition in Asia Pacific. Consumer preference for locally-manufactured brands boosts the growth of emerging disruptor brands in the region, and the growing number of higher disposable incomes and young urban consumers means there is a strong market willing to pay the price for a local flavour.

A-beauty trend could fragment the Australasian market further

Supermarkets hold the strongest presence in Australasia, while online retailing is growing fast. Successful disruptors are tuned into the unique role of supermarkets in the beauty landscape and leverage both these important channels. Disruptors in Australasia holds the most potential in skin care, but expect penetration in other categories including fragrances.