Top 5 Markets to Prioritise in Skin Care in 2019

Strategy Briefing

About This Report

Aug 2018

Euromonitor International’s Industry Forecast Model is a strategic tool, which allows companies to choose the right markets for growth. Using the Industry Forecast Model, we can determine which countries skin care manufacturers should prioritise in 2019. We can find out: where the risks and opportunities are, what the right focus markets to drive future success is, where the size of the prize is the biggest, and where and how to play to win.

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Top 5 Markets to Prioritise in Skin Care in 2019

Key Findings

From 55 markets to five

By exploring each country’s retail outlook, market potential, and potential uncertainty for skin care, we are able to identify to the top five priority markets for 2019 amongst 55 researched markets, using a consistent set of criteria. These most attractive markets are China, the USA, India, Germany, and Australia.

Who are the competitors?

A growing number of local brands are rapidly gaining market shares at the expense of international labels in China, India, the US and Australia. Native brands are at an advantage to incorporate local heritage with authenticity, credibility and at price points reaching a larger consumer base than global brands. To survive and maintain their leading positions, multinationals will have to adapt, be innovate, and acquire.

Which distribution channel to target?

The market environment, mainly the retail distribution landscape, is an important driver. Understanding where and how consumers in each country buy skin care products is crucial for future growth. In China and India, beauty specialist retailers are reinventing themselves with the emergence of new distribution concepts. In the US, direct-to-consumer channels and social commerce continue to gain huge momentum with brands such as Rodan + Fields moving from direct selling to social selling.

Where to find growth in a saturated market?

Premiumisation, niche innovations and M&A. In a saturated market, companies need to opt for a value-led growth strategy to gain a competitive edge and see some dividends. Those wishing to growth organically will need to think about premium, niche innovations. Cross-comparing income and price elasticities will help to determine which product category is more amenable to premiumisation. This will allow companies to choose the right market to invest in. Another way would be acquiring other companies with an already established footprint.

Introduction

Scope
Key findings

Identifying The Most Attractive Market

What are the top 10 performing skin care markets in the world?
USA and China’s market outlook for skin care have improved the most
Where is the size of the prize the biggest?
How to anticipate future risks
Top 5 most attractive markets: China, USA, India, Australia, Germany

How To Win In Each Market Moving Forward

China: what is driving growth?
China: which distribution channel to target?
China: why are local players winning?
USA: what is driving growth?
USA: which distribution channel to target?
USA: Rodan + Fields’ successful strategy
India: what is driving growth?
India: which distribution channel to target?
India: a closer look at the soft drivers
Germany: what is driving growth?
Germany: how is it safe to invest if there is little room for growth?(1)
Germany: how is it safe to invest if there is little room for growth?(2)
Germany: to win you need to be green
Australia: what is driving growth?
Australia: a growing population with green values
Australia: how to succeed in a saturated market?

About Our Industry Forecast Model

About Euromonitor International’s Industry Forecast Model
Soft drivers and the Industry Forecast Model
Growth decomposition explained
Significance and applications for growth decomposition
Key applications for Industry Forecast Models