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Home > News > Cosmetics Industry News > The key word of entering ASEAN cosmetics market is localization, small package

The key word of entering ASEAN cosmetics market is localization, small package

ECHEMI 2019-11-25

douglas

In cosmetics, OEM · ODM and small package products will help enterprises to enter the market effectively. In the case of cultural marketing strategy of ASEAN market strategy recently released by KOTRA, it is pointed out that OEM · ODM and small packaging are effective ways to open Myanmar and Philippines markets. In 2018, Myanmar's per capita income was only US $1297 and its purchasing power was relatively low. In 2011, after economic development, the average annual economic growth rate reached 6-8%. According to Nielsen's report, consumer goods account for about half of household expenditure, of which food, drink (33%), household products (8%) and sanitary products (6%) together account for 47%, with an average annual growth of about 15%. There are more cases of opening up the market in the form of exclusive sales after signing a dealer contract with a local partner than in Korea. Feishi shop, Yidi house, Tony charm, nature park, enigma, Holika Holika, Dexian and other brands are already opening stores. The enterprises that import cosmetics and resell them in the way of OEM and ODM are welcomed by Bella cosmetics and Sai cosmetics. Enterprises entering the Myanmar market must register with the food and Drug Safety Administration (FDA) of Myanmar for about 6 months.

The Philippine economy is developing rapidly on the basis of 108 million people. In the cosmetics market, the high-end products are growing significantly. There is a strong interest in Korean cosmetics and a high development possibility. According to statista, the market size of the Philippines will reach 8.85 million US dollars in 2023. Among Korean enterprises, amorepacific, Philippine shop, boniland, Tony charm, etc. have entered the Philippine market and been incorporated into large shopping centers such as SM and Robinson. When exporting cosmetics, it is necessary to abide by the list of prohibited ingredients stipulated by the unified regulations of ASEAN. It is worth noting that with the gradual improvement of family income level in the Philippines, the purchasing power of consumers has increased, but there is still an obvious tendency to pay attention to price. Local consumers think that k-beauty has high price but good quality. According to the local actual situation, reducing product capacity, reducing product price, reducing price barriers of Philippine buyers and guiding consumption may be one of the ways to successfully open the market.

We should make use of the characteristics of local consumers in Laos, and play the symbolic meaning of different colors on the packaging. As a market for testing ethnic diversity, Malaysian ethnic groups have great value in utilization and should conform to the open online consumption trend. In addition, Vietnam has many consumer activities to commemorate women's day on October 20, so we should actively use this activity, while Indonesia, which has more Muslim consumers, needs to consider halal certification. Thailand is a symbol of divination in color, number, constellation, etc. Therefore, we can make a strategy to enter the consumer goods market in combination with luck marketing.

Disclaimer: ECHEMI reserves the right of final explanation and revision for all the information.

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