News: Kantar at Cosmoprof CBE ASEAN

Beauty consumers' behaviour has entered a new era 

Kantar hosted a sharing session on “Growth Opportunities for Beauty Brands in ASEAN” at Cosmoprof CBE ASEAN 2024 in Bangkok at the Queen Sirikit National Convention Centre (QSNCC) on 13 June 2024. 

The session highlighted that beauty consumers' behaviour has entered a new era permanently, creating numerous opportunities for beauty brands. People's priorities and spending habits are shifting, resulting in new needs and desires. There is significant potential for growth in all categories if brands understand and meet these needs.

People are now going out more, whether to socialise, eat out, return to work, or meet clients. This has altered their spending habits, leading to a change in spending patterns. Chivanon Piyaphitakskul, Senior Marketing Manager for Thailand and Malaysia, Worldpanel Division, Kantar, highlighted, “According to Kantar, Thai consumers have cut back on food and drink for consumption at home, with an 8.5% drop in volume in 2023, as well as on home care products, which suffered a fall of 10.7%. However, at the same time, they are spending more on personal care products. In 2023, spending on personal care increased by 0.2% after a decline of 5.4% the previous year. This means brands and manufacturers need to focus on meeting these needs to support long-term growth.”

Why is looking through the consumer lens important?

The power in the beauty market is shifting from being manufacturer-led to consumer-led. In the past, a few big players dominated and decided what products to produce and where to sell them. Nowadays, consumers are more aware of their individual needs, and they are the ones who pick which brand and product fit their personal needs. This is why we see many new brands disrupting the market. In terms of channels, consumers are no longer relying on traditional channels; many emerging channels are being utilised by consumers. The question for players in the beauty market is: how exactly have consumer lifestyles and behaviours changed, and where do the opportunities lie?

Suchada Manasilapaphan, Beauty Sector Director for Thailand, Worldpanel Division, Kantar, decoded the exciting upcoming trends and consumers' needs using the Beauty Panel by Kantar, the largest consumer research methodology in the beauty industry representing over 19 million females in Thailand. “Talking about consumers' needs, for example in sun protection products, the emphasis is not merely on shielding oneself from the sun but on a more holistic approach to skin health. The prevailing sentiment is, if you're skipping the sunscreen, you might as well throw out your other skincare products. This not only reduces the risk of skin cancer but also enhances the effectiveness of other skincare steps. 

Beauty is extending beyond helping you look better; it also aims to make you feel good and live better. Opportunities lie in stronger connections with health-related and endangered plant ingredients and environmentally friendly packaging, leading to Clean Beauty – beauty beyond just looking better. 

With high inflation and economic downward pressure, small or affordable sizes continue to resonate in the beauty market – not only among young and rural consumers but also among the more mature and urban consumers as they start to explore sachets and mini packs as well. This trend benefits sensible splurging, as affordable sizes continue to resonate.”

Chivanon Piyaphitakskul concluded with three key points for growth in this emerging market: “First, understanding consumer behaviour: knowing what consumers want and how their priorities are changing is crucial. This helps your brand to create products that meet new needs and desires. 

Second, using consumer data: keeping an eye on market trends allows your brand to stay relevant and competitive. Trends like sustainability, natural ingredients, and personalised beauty are currently very important.

Lastly, adopting new strategies: your brand needs to be flexible and innovative. This could mean adopting new technologies, exploring new distribution channels, or developing unique marketing strategies.”