inspiration from asian consumer intelligence november 2016

C A G R F A R N

N S A A I

Inspiration from Asian Consumer Intelligence

November 2016

E

S N R T E D

L N S E P R O A

N I

A E C R

www.asianconsumerintelligence.com © 2015. All Rights Reserved.

Asian Consumer Intelligence


Real Time Trends


Olfactory Inspiration


Emergent Middle Class in Asia, defined by $5,000 annual per capita

income, is 501 million strong or similar to the size of the U.S. and

Europe combined.

The global fragrance market was estimated to be worth nearly $30

billion in 2013 (Mintel) and India, Indonesia and Vietnam registered

the highest CAGRs over the past five years in Asia.

China recorded a CAGR of 9% over the past five years, India

25%, Indonesia 44%, Vietnam 15% & South Korea 12%

(Mintel) in the fragrance category.

The duty free market in Asia is growing five times larger

than global average. Fragrance and cosmetics registered

7.8% growth globally (TFWA).

Asia Rising

Asia (ex Japan) will equal the U.S in economic size in 2016 and by

2020 will be 17 percent larger.

South Korea, the largest duty free market in the world, is

expected to record CAGR of 9.6% to reach $10.7bn by 2020

(Verdict Retail).


Where it all started…Scented Refuge


P&G’s Lenor Happiness and Downy were game changers, shifting attitudes and consumption behaviour with regards

to fragrance. Its impact has been so powerful, that home care across most countries in Asia now follows Japanese

trends.

Potted History


Functional


The marketing battle in Asia over mass market home care product sales has shifted from price and efficacy to

emotional and sensorial benefits

Emotional


A number of food and health scares, compounded with a growing interest in wellness among

Asian consumers led to the realization that quality is more important than price, particularly

at a mass-market level. One way to convey quality was through the usage of scent and

appealing packaging that takes cues from the fine fragrance industry rather than the typical

semiotics usually seen on laundry products

Scented Refuge


Influencing New Categories


Sanitary napkins infused with scents are becoming increasingly popular with Asian women in a market once largely marketed on efficacy. In Malaysia, Wipro Unza released six scented varieties of its intimate wash brand Sumber Ayu in August, 2016.

Center-in by Sofy Kiyora by Unicharm

Influencing New Categories


Affordable Fragrances

With some of Asia-Pacific’s usually high-growth economies spluttering and consumers thinking twice before making unnecessary beauty purchases, Asian personal care manufacturers are creating tempting yet lower cost scented goods

in a move we call Affordable Fragrances

Korean and Chinese consumers often buy perfume and beauty products as gifts for family and friends when

traveling overseas. Buying perfume has become a symbol for luxury with status brands representing premium

aesthetics with the actual scent secondary in importance to the purchasing act.

Retail beauty brands including Etude House, The FaceShop and Innisfree have

developed their own line of perfumes and fragranced items that range around

KRW 10,000. Most are available in pocket sized formats ensuring consumers will

use them on the go.

In addition to well-known beauty manufacturers vying for consumer spend in the fragrance market, private label brand The Pauline has entered the mass market space with an

approachable marketing strategy.

The Pauline’s line of fragrances are sold in stick formats and prices range from KRW 7,900 to KRW 21,900. Users can simply wear one scent or layer it with other scents to create a

more customizable fragrance.


SEA-targeted

Ginvera is a personal care brand aimed at Southeast Asians. Syahirah is its sub-brand, targeting Muslim women. Its fragrance line Minyak Wangi comes in four scents, Abadi, touted as “Gives you lasting feel”, Naluri, “Brings you instinct”, Pesona, “Makes you attractive” and Purnama, its

tagline is “Makes you feel charming”. It touts its benefits as long-lasting and lingering with energizing floral scents. It’s formulation is enriched with biotin to provide moisture and nutrients to the skin, and the perfume can be used as an aromatherapy oil. This provides a value add, key in

Malaysia’s developing economy

Syahirah’s personal care range focuses on its “pleasant and long lasting fragrance, specially formulated to meet the specific personal care needs of the Malay community for a healthier and more beautiful body.” Syahirah claims its focus is on self-esteem and confidence.


Well-being Air Care

Fragranced candles were once considered a luxury or niche product in Korea. With increased incomes and an interest in well-being, as echoed in Western economies, Korean consumers now see lifestyle benefits. Personal health is a key priority for the country’s ageing population and with this,

products that offer healing attributes are now welcomed

Oh Scent! and Burning Wicks are popular brands. These brands are trying to move air care from a rarified category to a daily essential. One

way is by playing on the inherent love of nature, a love now shared by many people living in polluted and urban environments.


Mood & Formulation

Left: Fragrance wheel,

Middle left: Innisfree handcream fragrance wheel

Middle right: Innisfree handcream

End: Roadshops now focus on air care as well as personal care merging the categories into ‘lifestyle’


Final Inspiration

Left: Hello Kitty Lemongrass & Citrus diffuser (Singapore)

Second left: Japan’s Flair fabric softener marketed in Malaysia with claim “Release More Fragrance with

Sweat & Motion”

Top middle: Korean hair care brand Kerasys markets its shampoo and conditioner with claim “cares for

damaged hair & prolongs scent”

Bottom middle: Thailand’s PYC Union Trading’s Aroma Bird Gift Set

Far right: Singapore’s To Be Calm’s ‘Conference Call’s scent

Bottom right: Thailand’s equivalent to Yankee Candle, ,Botanique


WRAP UP


Growth Opportunities

Gourmand scents (inspired by growth of café culture)

Scents that are effective in air-conditioned environments

Pollution-beating (industrial, haze, traffic)

Natural or perceived natural ingredients

Luxury touches that bring relief to stressful, urbanized lifestyles

Targeting ageing consumers with traditional formats (bark, wood) and

scents (Pandan, bamboo, lemongrass)

Longer lasting for hot and humid conditions


Thank you

[email protected]

inspiration from asian consumer intelligence november 2016

Documents