In our ongoing search to identify new markets of opportunity for professional skin care brands, our sights turned once again to Asia. With an already strong knowledge base of China, Japan, and South Korea, we ventured to Southeast Asia this year, specifically Thailand and Indonesia, to investigate the market.
According to Kline’s latest research, the Indonesian market for professional skin care is posting 13% growth in 2013, emerging fast and creating a favorable environment for both foreign, well-known brands, as well as smaller, local ones.
Findings from our soon-to-be released Professional Skin Care Global Series reports on these two markets show that medical care providers is the leading the channel of distribution in Indonesia, recording the strongest growth in 2013. This is not at all surprising as Indonesia’s economy has grown as a result of consumption and consumer willingness to spend more on skin care. Many consumers are accustomed to visiting medical care providers; as a result, most are already purchasing professional skin care products.
Although the market in Indonesia is currently dominated by local brands such as Natasha and Erha, the most known foreign brands in the medical care providers channel are Obagi and NeoStrata.
Following Indonesia closely, the professional skin care market in Thailand is estimated to be growing at just over 10% in 2013. Known especially for tourism, which fuels its spa industry, the spa channel has strong roots in Thailand. Many spas offer foreign brands, such as Dermalogica, Elemis, and Thalgo. These brands have seized the opportunity and opened their own stores in Thailand to be able to better promote their products, and many of these stores also offer services such as facial and body treatments.
Even though the professional skin care market in both Indonesia and Thailand is primarily dominated by local brands, Kline sees the future of these markets as full of potential. Driven by strong economic growth, it is expected that consumers in these countries will gradually demand higher quality professional skin care products and services. The foreign brands that take the time to invest in these markets, especially those positioned in the strongest channels, will have an opportunity to be a successful part of two dynamic, growing markets. Kline’s soon to-be-published Professional Skin Care Global Series: Market Analysis and Opportunities captures all the challenges from these vibrant markets and focuses on market size and growth, key changes in distribution, as well as competitive landscape and new product trends.