Competing with Giants: The Rise of Local Competition

Introduction

Scope

Key findings

The Rising Challenge of Local Competition

Regional and local brands fuel global industry growth

Competition from local players more significant in mass beauty

Increasing proportion of new growth generated by local/regional brands

Notable diversity in penetration of international vs local brands by region

Asia Pacific, beauty’s future growth engine, accelerates local brands most

Latin America’s prospects increasingly attract internationals attention

International brands face new competitors in Middle East and Africa

Winning Strategies in Home Markets

Local players’ triple-pronged strategies in domestic markets

Staple categories rife with local competition

Local brands benefit from authenticity and accessibility

Pechoin becomes number one skin care brand in China

Young Chinese consumers turn to TCM-inspired products

L’Oréal raises the bar on research and technology in China

Growing awareness of Ayurvedic tradition drives local brands in India

Patanjali focuses to cater for the masses

An explosion of local labels in emerging deodorants category

Unilever shifts strategy to ‘imitated’ local competition in India

Halal credentials also demonstrated better by local players

Fragrance players at an advantage to capitalize on local strength

Advantages of local brands enabling growth beyond their home market

Contending on the International Stage

Multi-pronged international expansion strategies

Dabur India captures Middle East and Africa with halal certified beauty

Halal concepts in Western markets aided by ethical and health credentials

Korean beauty’s international appeal but need to reboot growth in China

Korean brands’ increasing necessity to increase global footprint

AmorePacific’s steady global expansion

International brands tapping into consumers’ interest in Korean beauty

Global beauty players add Korean brands to their stables via acquisitions

Japanese brands accelerate growth in international markets

China remains main battle ground for expanding international brands

Regional players acquire global scale brands: Natura&Co - The Body Shop

Natura remains deeply rooted in Brazil fuelling international expansion

Prospects

Finding opportunities in turbulence

Unpredictability of emerging markets

The metamorphosis of retail

Accelerating shifts of consumer needs

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