Johnson & Johnson, L’oreal and other giants of the beauty industry has relied on advanced cosmetics in Japan and Korea, seeking to gain influence and access to innovation. However, the local cosmetic companies such as Shiseido and Amorepacific, do not intend to take their positions and ready to change these trends.
Cosmetics market in Asia is estimated at 105 billion dollars, which attracts many industry players. For example, in October of this year, J&J acquired the shares in a Japanese company for skin care Ci:z Holdings for $ 2.1 billion, and Unilever has acquired the Carver Korea in 2017.
According Refinitiv, from 2014 to 2018, was signed by 179 cosmetic deals with the Japanese and Korean facilities totaling $ 8.5 billion, more than double the number of acquisitions in the five years before that.
Western cosmetic companies are paying attention to young, growing markets of Asia, especially in terms of anti-aging skin care. Since Korean cosmetics such procedures take place in ten stages, requiring certain products from a moisturizing serum to the mask for the lips. This approach creates many opportunities for additional income.
However, Asian firms can win if you go the other way, attracting new customers, through innovation, in particular, the technology of creation of the personalized creams and cosmetics. Shiseido has already taken some steps. Recent acquisitions of the company include MatchCo, which scans the skin tones of customers using mobile apps to create a custom Foundation makeup and biometric company with patents on the technology synthetic leather. In Shiseido announced that they intend to enter into the five of leaders in Europe in 2020 in the field of personalized care.
Other companies can do more to work abroad, for example, the Korean brand Amorepacific, which owns popular product on the basis of Sulwhasoo ginseng. Tensions between Beijing and Seoul has undermined Korean brands, and the Empire General Director of Amorepacific su Canbe also suffered from declining consumption in the DPRK. Growth outside of the region may counterbalance this situation thanks to premium products and technology development.