It wasn’t long ago that all eyes were on Hollywood for the latest and greatest products, techniques and trends from the realm of beauty and cosmetics. However, according to Euromonitor International, all eyes will be peering towards Asia and the United Arab Emirates (UAE) as both regions experience an unprecedented beauty boom.
The rise of UAE beauty
It only takes a quick swipe through one’s Instagram feed to discover that top beauty influencers are emerging from the UAE. And it seems the young and affluent are not only driving trends but also sales in the beauty and cosmetics industry.
“Strong consumer confidence, high literacy rates and high social media exposure are the main drivers of beauty and personal care products,” said Amna Abbas, Research Analyst at Euromonitor International.
The young may be driving cosmetics sales but, according to Abbas, popular items still come from far more established camps.
“The category of fragrances, especially traditional oud and amber-based fragrances, are always very much in trend due to their cultural significance within the region,” she said.
The quest for traditional scents has inspired many an international firm to explore oud-based fragrances.
“The UAE is thus benefiting from the increasing product portfolios of international brands,” Abbas said. “Oud-based fragrances [are] appearing from the likes of Gucci, Armani, Tom Ford, Hugo Boss, Versace and Alaia.”
By doing so, these high-end fashion houses are exporting local tradition, creating a trend and cementing the UAE as a trailblazer in the beauty and cosmetics sector.
While the cosmetics boom in the UAE has somewhat declined, experiencing a growth of eight per cent in 2015 as opposed to nine per cent in 2014, the region’s appetite for all things beauty is not set to wane. It will, however, give rise to the savvy shopper.
“With a rising pressure on the economy in 2016, consumers will increasingly make use of loyalty cards, deals and special offers by retailers to purchase smartly,” Abbas said.
Asia’s beauty aims sky high
On the flip side, the Asian beauty market is experiencing growth due to a rise in disposable incomes and the continuous urbanisation of SEA. Coupled with an increased exposure to social media, the region has the formula for both a growth in sales and beauty literacy.
“Familiarity with international beauty trends and products facilitated by social media, overseas travel and other media has increased consumer demand for more sophisticated products beyond basic offerings,” said Minji Kim, Senior Research Analyst at Euromonitor International.
And it isn’t set to slow anytime soon.
“China’s economic downturn might affect SEA’s economy in other industries such as tourism,” Kim said. “However when it comes to beauty product sales, the impact does not seem to be significant, as Chinese tourists prefer purchasing beauty products in countries like South Korea, Japan and Hong Kong.”
The prosperity of the Asian beauty market has seen new product developers stand to attention.
“The beauty boom in Asia is something that we are trying to analyse closely as it is a market that we are looking to enter,” Nik Mirkovic, Director of HiSmile, said.
Mirkovic believes the Asian beauty market has the potential to continue its prosperity - one that is also stimulated through celebrity ambassadorship.
“Asia’s beauty boom is down to a need to look and feel good, as well as the massive following of Asian and worldwide ‘superstars’ that push and endorse the products,” he said.
Nonetheless, according to Mirkovic the current cult of celebrity could hinder any attempt of new products gaining cut-through.
“We have seen the rise of the major cosmetic companies in Asia that have been pushed through celebrity endorsements which essentially makes the cost of entry much higher,” he said. “The market leaders are so far ahead of the rest in the game that it makes it much more difficult to break through the noise of the beauty industry.”
Nonetheless, as trends in Asia are still dictated by global trends, there is always room for new brands with big potential.
Australia gets a cut, too
While brands are clearing shelves in Asia and the UAE, Asian brands are also big business in the Australian market.
Makeup brand Shu Uemura, which is Japanese in origin and L’Oréal directed, has experienced soaring popularity among locals. Clear winners from the brand’s stable have been the iconic Cleansing Oil, along with innovative products such as the Blanc Chroma Cushion.
“Globalisation and booming international travel in and out of Australia means greater awareness of the global trends in beauty,” said Ali Shoraka, General Manager of Yves Saint Laurent Beauté and Shu Uemura.
It isn’t only Asian brands that are reaping the benefits. The entire Australian beauty market has experienced an estimated growth of 12 per cent in 2015.
“The Australian beauty market was among the fastest growing markets in the world in 2015,” Shoraka said.
While Australia, much like China, is facing an economic downturn due to the decline of its resource boom, Shoraka believes there will always be room for beauty.
“When the economy is tough people might hold back on purchasing a new car or a designer dress,” she said. “However when it comes to luxury beauty, it seems indulging yourself is always an appropriate treat.”
