Southeast Asia's 46 Trillion Won Market: A New Breakthrough for K-Beauty Growth - Necessity of a Genuine Localization Strategy for Sustainable Growth, Demand for Successful Case Analyses
The Southeast Asian cosmetics market is anticipated to reach approximately USD 35 billion (around 46 trillion won) by 2025. For the continued growth of K-Beauty, a thorough localization strategy reflecting each country's market characteristics and consumer needs is required rather than simply expanding exports. This article explores the reality of localization strategies through local and global case studies in Thailand, Indonesia, and Vietnam.
Activation of Strong Local Brands
Thailand has long been established as the trend hub of beauty in Southeast Asia, with strong local brands currently leading the local market.
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Dr.Pong, notably, has established trust through a specialized line developed by a dermatologist, presenting derma-cosmetic products targeting acne and sensitive skin. This brand has a strong following among young consumers in Thailand and is expanding its market to neighboring countries.
Meanwhile, Srichand, which started in 1948 from a small pharmacy, has focused on powder products consistently for 67 years. Through rebranding in 2014, it expanded its image and product line into the skincare field, becoming a representative brand of Thailand. Its powder products, particularly, are subdivided through various formulations, functions, and capacities, thereby solidifying its role as a market leader.
Indonesian and Vietnamese Cases for Localization Success
The Vietnamese brand Cocoon has grown as a vegan cosmetics brand by utilizing local specialty ingredients such as coffee from Dak Lak, Ben Tre coconut oil, and roses from Cao Bang. This case is based on building consumer trust through Vietnam's abundant natural raw materials and traditional treatments.
Another brand, Co mem, targeted the sensitive skin consumer base with natural lip makeup that Vietnamese women can safely use even during pregnancy.
Meanwhile, Indonesia has established itself as a hub for the growth of local indie brands. Leveraging a domestic market of 300 million people and digital marketing, particularly through platforms like Shopee and TikTok, these brands are strategically expanding and actively advancing into neighboring countries. Brands like Skintific, Originote, Somethinc, and Glad2Glow are gaining popularity throughout Southeast Asia.
Their success factors include the following: Firstly, raw material-focused marketing proved effective, as seen in Skintific's '5X Ceramide' or Somethinc's serum line, specializing in specific ingredients. Secondly, digital performance marketing centered around e-commerce, thirdly, product lines tailored to local skin concerns about the hot and humid climate, and lastly, a reasonable pricing strategy considering price accessibility is key.
Success Strategies of Global and Japanese Brands
Global brand L'Oreal has established a successful localization strategy in the Southeast Asian region by offering products suitable for the region's climate and skin types, expanding from luxury to the mass market comprehensively. It applies multidimensional approaches, nurturing local talent through regional R&D centers and conducting marketing based on cultural understanding.
Japanese brand Hadalabo developed lightweight texture products suitable for Malaysia's tropical rainforest climate, increasing consumer accessibility with its official website using both Malay and English. Proposing moisturizing routines based on skin type is also a major strategy enhancing the consumer experience. This provides various implications for K-Beauty.
To effectively implement K-Beauty's localization strategy, contact YURICO5 for inquiries. A reliable partnership is needed for successful entry into the Southeast Asian market.
