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Beauty and the East
Thu, May 03 2007
Such efforts seem to be paying off, as the beauty giant maintains its position as the best-selling group in the region. Urban catches up with Weber and Grunberg for their takes on what sells in the Asian beauty market, the Straits Times reported. Asia-Pacific spells big money for international beauty group Estee Lauder: A whopping C$1.3 billion in sales last year and 15 per cent of total global sales, to be exact. And that’s just for starters. As with any other industry, China is the next big thing in terms of making up sales numbers. China’s growth in the last 10 years parallels that of Japan’s in the 30 years after World War II, says Weber. “The pace at which it is catching up is just staggering.” By 2010, China is set to surpass South Korea as the second biggest market for the region after Japan, with an annual sales growth of 30 to 40 per cent. A spokesman says Estee Lauder Companies is the biggest-selling beauty group in the Asia-Pacific. To maintain its lead, the North American group has introduced two Asian-centric lines: Nutritious, a skincare range made from antioxidant-packed pomegranate with anti-irritants, and Cyber White, a whitening series. It has also set up research and development institutes in Tokyo and Shanghai to develop and manufacture products specifically for Asian skin. Whitening, anti-ageing and anti-acne ranges rank highest on the Asian consumer’s shopping list. In Singapore, Estee Lauder has over 11 brands, with Bobbi Brown and MAC being the bestsellers. “It reflects that Asians are into fashion statements when it comes to make-up and they want to be advised by true experts,” says Weber. Both brands are developed by professional make-up artists. Estee Lauder sold off its third professional brand, Stila, last year to “focus on our two leading make-up artist brands”, says Grunberg. Stila is now distributed here by beauty and fragrance distributor Luxasia. Asians are a pampered bunch, say the Estee Lauder head honchos. Department store beauty halls, says Grunberg, have “evolved so much in terms of product presentation and service in Asia, as compared to North America”. Beauty counters here are more sleek and staff are trained to provide more personalised service, he says. Weber thinks the beauty business in Asia is all about luxury as Asian women view beauty brands as status symbols, much like designer fashion. So it’s no surprise that premium brands like Creme de la Mer are some of Estee Lauder’s top sellers in Asia. While women prefer the luxury department store environment, looking good is now just a mouse-click away. Last year, the company launched its Sean John fragrance, Unforgivable, on a hip-hop website and forum, SoJones.com. Sean John is the fashion brand created by music mogul P.Diddy. “With the Internet, you can communicate with consumers on a minute-by-minute basis,” says Weber. Apart from the Internet, the group also plans to sell its products in lifestyle stores, salons, spas and independent multi-label boutiques. Men’s skincare line Aramis Lab Series, for one, is being sold at new men’s grooming store What Men Want at The Cathay. The notion that only Western men are metrosexuals is a misconception, says Weber. “Asian men are not just into looking good, but also feeling healthy.” They are also concerned about sun damage and specific whitening products. Worldwide, sales of Estee Lauder’s lines for men, such as Lab Series Skincare For Men and Clinique’s Skin Supplies For Men, have grown over 50 per cent in the last few years. Asians, according to Weber, have more sensitive skin, so they prefer lighter beauty products with a smooth texture. Asian skin is also more sensitive to creams that are overly rich or very astringent, so the group’s research and development units focus on creating products that feel good on the skin. Beauty buffs in Asia can look forward to more brands soon. Look out for cult New York hair care label Bumble and Bumble, and eco-friendly beauty chain Aveda, which are part of the Estee Lauder stable. Hair care is also a “giant opportunity”, says Weber, as well as “masstige” labels. The latter are premium products sold in mass-market outlets, such as expert perfume and skincare line Jo Malone. Fragrances by Sean John and Missoni will also hit shelves here by year-end. |