International players and heritage brands are increasingly facing competition from local and regional companies, niche labels and alternative business concepts. These challenges serve as an inspiration for innovation with multinationals actively exploring multiples shades of beauty health aligning portfolios, promoting sustainability, developing technology and looking to conquer key growth markets, employing different strategies from bolt-in acquisition to brand incubation.
In both Asia Pacific and the Middle East and Africa, smaller, local and regional players still dominate the competitive landscape, but a contrasting consolidation trend has been unfolding over 2012-2017 in these two regions.
One of the defining challenges in recent years has been the increasing competition international players and heritage brands face from local and regional companies, niche labels and alternative business concepts.
Global beauty giants are increasingly responding to consumer demand for efficacy and health-aligned products by extending their existing portfolios with dermocosmetic brands, or those that have scientific backing, putting efficacy and therapeutic claims at the forefront.
To stay relevant and appeal to ethical consumers, beauty players are increasingly putting ethical considerations at the top of their agendas, with various initiatives including sustainable ingredients sourcing, environmentally-friendly packaging, as well as giving back to society in the form of charity.
Large traditional beauty players are still looking for indie brands for growth and innovation, but they are no longer relying only on acquisitions. However, acquisitions are no longer enough as beauty giants are launching their own incubators, bringing a start-up mindset in replacement of traditional centralised and methodical R&D decision-making.
The launch of voice-based devices Google Home and Amazon Alexa serves as another disruption to the BPC industry, representing an opportunity for brands to connect with consumers in the whole new way. Voice technology isexpected to be exploited further with a purpose to bring personalised experiences to consumers.
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