cmn & kantarworld panel 13 cosmetics marketing …

CONNECTING THE DOTS FOR BRAND GROWTH 2014

CMN & KANTARWORLD PANEL

13TH COSMETICS MARKETING SEMINAR


AGENDA

1. BRAZIL BEAUTY ‘IN-SIGHT’

2. 2014 CHINA COSMETICS -Identifying Growth Levers a China Slowdown

3. REVEALING THE BEAUTY OF INDONESIA COSMETICS MARKET

4. KOREA HAIR/BODY MARKET LANDSCAPE -Personal Care Trend in HH goods specification

5. KOREA BEAUTY MARKET -From Pragmatic to Perfection


BRAZIL Beauty ‘IN-SIGHT’

MARCY KOU KANTAR WORLDPANEL ASIA CEO


BR

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Soci

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mo

mic

B

rack

gro

un

d

Bra

zilia

n S

pe

nd

ing

w

ith

Be

auty

Bra

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2000’s 170 Million Inhabitants

“BOLSA FAMĺLIA” Greater HH Budget

1990’s 147 Million Inhabitants

“PLANO REAL” Retained Savings

TODAY 192 Million Inhabitants

Smaller Families Women’s Role Brazil = Brand


Real Impact on Income Growth: +70% in 5 Years

647 679 723

877 996

1,102

2006 2007 2008 2009 2010 2011

Avg. HH Income ('000KRW)

AB, 28

C, 45

DE, 27

Contribution to FMCG Market 2011Y

AB

C

DE

% number of HH

25

41

34

2011

23

33

44

2005


White 46%

“Brown” 36%

Mixed 10%

Black 8%

Asian 0.3%

Native 0.1%

Other Races

Black & White

Brazilian Diversity: Many Ethnicity Different Needs & Concerns


80%

69%

66%

59%

37%

33%

32%

31%

31%

30%

72%

60%

66%

59%

37%

33%

32%

31%

31%

30%

Brazilian women consider HAIR as the biggest beauty trait

Hair Loss Moisturizing Hair Hair Straightening Hair Frizz Prevention Covering Grey Hair

Obesity Cellulites Stretch Marks

Appearance of Teeth

Skin Blemishes Wrinkles Saggy Skin

1. Hair 2. Obesity 3. Teeth 4. Skin

Accordingly, Beauty is NOT associated with certain ethnic characteristics such as Skin Complexion, Eye Size, etc.; it is the Natural Aesthetics that come from the head to toe!


45

76

55

24

Hair Care Market Breakdown (Value%)

Shampoo Conditioner

Brazilian Hair Care market is valued at approximately KRW1.8 Trillion

9

Further growing in its level of SOPHISTICATION & leading the

trend of PREMIUM DEVELOPMENT in the Personal

Care market

Salon AT HOME Products

Launch of Hair Hydration AMPOULES


Source: Kantar Worldpanel 2013

DEODORANT

MIGRATION FOR AEROSOL DEODORANT

SKIN CLEANSING

MNIGRATION FROM BASIC TO BENEFIT-FOCUSED BARS

MOUTHWASH

BENEFITS MAKE THE CATEGORY MORE ACTIVE

Spillover Effect: Innovation & Premium Development in Personal Care

SKIN CARE concern being placed relatively lower in

Beauty Care priority, the relevant market presents

much room for growth & development


Basic Hygiene & Hair Care needs translate to purchase from Young Age

SOAP TOOTHPASTE SHAMPOO CONDITIONER

SOAP TOOTHPASTE SHAMPOO CONDITIONER DEODORANT PERFUME FEMININE CARE

SOAP TOOTHPASTE SHAMPOO CONDITIONER DEODORANT PERFUME FEMININE CARE

SOAP TOOTHPASTE SHAMPOO CONDITIONER DEODORANT PERFUME FEMININE CARE CREAM & LOTION

SOAP TOOTHPASTE SHAMPOO DEODORANT

Kids (~11 Yrs)

Teens (~18 Yrs)

Young Adults (~34 Yrs)

Adults (~54 Yrs)

Elderly (55+ Yrs)

BUT Women’s Beauty Care needs EVOLVES IN EVERY STAGE OF LIFE


TREND THAT WILL DOMINATE

Fashion/ Makeup/ Skin Care

ABG MAKEUP Affordable, Beautiful,

and Good

STRAIGHT HAIR

With Ecological Brush

AB C DE

And Beauty Matters to All Social Classes Although the different level of Affluence lead to what needs are met

http://www.google.com.br/url?sa=i&rct=j&q=capas+revista+ana+maria&source=images&cd=&cad=rja&docid=z7wAB05YXT3d3M&tbnid=N_CFPiNWvfktYM:&ved=0CAUQjRw&url=http://dagomir.blogspot.com/2011/07/um-milhao-para-mary.html&ei=GxhnUYi9A4nc8wT_xYHACQ&bvm=bv.45107431,d.eWU&psig=AFQjCNHX91h0WvoZm25ma2pZkg_8r_8MJA&ust=1365797239587602


Going Beyond Hair: Brazilian Beauty in Pursuit of Natural Perfection throughout BEAUTY CARE = PERSONAL CARE

FOODS PERSONAL

CARE HOME CARE BEVERAGES

KRW13.3 Trillion World’s 5th Largest Personal Care Market (2012)

Projected Growth as the world’s Biggest Personal Care Market (2020)

25% 9% 20% 45%


Ranking by Avg Spend CH% (2012 vs. 2009)

1 BEVERAGE CONSUMED AT HOME

2 FOOD CONSUMED AT HOME

3 LAUNDRY

4 CLOTHING

5 PERSONAL CARE

6 PERSONAL SERVICES

Source: HolisticView Kantar Worldpanel 2013

94% +1.4pp

Penetration% 2012

Penetration GAP 2012 vs. 2009

100% +1.1pp

Penetration% 2012


98% +0.9pp

Penetration% 2012


+2.0pp 97%

Penetration% 2012


+0.7pp 100%

Penetration% 2012


+3.3pp 90%

Penetration% 2012


+43% +41% +38%

+50% +47% +45%

And Personal Care & Beauty Care are among the fastest growing and most developed markets in Brazil


D2D WITH MORE PLAYERS EVERY YEAR

1959 1969 1970 1980 1990 2000 2001 2002 2003 2004 2006

73% of D2D Purchase is

Personal Care

2013

http://www.avon.com.br/

http://www.abre.org.br/premio_design_2005/images/vencedores/natura_logo.jpg

http://www.christiangray.com.br/static/index.htm

http://order.tupperware.com/coe/app/home

http://www.amway.com/en/default.aspx

http://www.yves-rocher.fr/shop_app/app_FR/jms.jsp;jsessionid=GL1QhL6N3h9H0QB4xjpFBsh2gTKpmqZz7cJjlmKgk3cKfw8wngR4!-1859972344?_JMS_FLOW_ID_=1&_JMS_FLOW_NAME_=Main_JFLNUM_1&nav=main

http://www.herbalifeww.com/br/index.asp

http://www.saralee.com/

http://www.contem1g.com.br/pt/index.html

http://images.google.com.br/imgres?imgurl=http://www.feiradoempreendedor.pa.sebrae.com.br/expositores/jequiti/logo&imgrefurl=http://www.feiradoempreendedor.pa.sebrae.com.br/expositores/jequiti&usg=__YW3YgaAv8j-T-IK4iD4VuuxSU8c=&h=116&w=139&sz=23&hl=pt-BR&start=2&um=1&tbnid=r-f8CidV8KaFHM:&tbnh=78&tbnw=93&prev=/images?q=logo+jequiti&hl=pt-BR&sa=N&um=1


22 21

2011Y 2012Y

Personal Care Channel Importance

Others

Cash & Carry

Dept St

Hyper

Perfumeria

Drugstore

Super

M&P

D2D

NeighborhoodMini

D2D

67.3

74.3

PERSONAL CARE PENETRATION 2011 2012

44.4

49.1

DRUGSTORE

D2D: NO.2 CHANNEL IN PERSONAL CARE

BRAZILIAN CONSUMERS LIKE HAVING PERSONAL CONTACT TO THE SALES WOMAN


TOP 4 Category Value Importance

D2D

And in D2D, Fragrance is also a very important market,

accounting for 50% of Personal Care in value!

1 2 3 4

50% 23% 9% 6%

Perfume Cream/ Lotion

Deodorant Soap


50.2

39.0 41.5

49.9

59.0 58.1

50.4

1.2 0.8 0.9 0.6

0.1

1.0

4.0

Total Brazil North East Middle West East Rio San Paolo South

HH Internet Penetration e-Commerce Penetration

50% OF BRAZILIAN HH HAVE INTERNET ACCESS!

HOW CAN WE BRIDGE THE GAP BETWEEN INTERNET USE AND ONLINE PURCHASE?

Despite of the highest access and use of

Internet in the Southeast inclusive of the two biggest cities, e-Commerce pickup relatively minimal


6 KEY POINTS

STABLE ECONOMY

With the “Plano Real” success, the Brazilian inflation has been under control during the last years

NEW MIDDLE CLASS

Due to government programs the lower classes have higher wages and access to new and more premium categories

DIVERSITY

Ethnic diversity in Brazil leads to different definition of Beauty, which evolves around a well-rounded care of the whole body

PERSONAL CARE

Brazil is the 5th biggest Personal Care Market expecting to reach the 1st position until 2020

HAIRY OPPORTUNITY

Hair is one of the biggest Beauty Concern, and is leading the premiumization of Personal Care

THE NEW BRAZLIAN REALITY!

RELATIONSHIP

Despite of the modernization of Brazilian HH, personal care consumers still choose buying at D2D


2014 CHINA COSMETICS Identify the growth levers despite a China Slowdown

RACHEL LEE KANTAR WORLDPANEL CHINA


8.1 7.6 7.4

7.9 7.7 7.5 7.8 7.7

14

7

12Q1 12Q2 12Q3 12Q4 13Q1 13Q2 13Q3 13Q4

GDP Growh% FMCG Volume Growth% FMCG Value Growth%

2014 growth forecast to be 8-9%

OVERALL GROWTH AT 7.4%, DOWN BUT STABLE


INNOVATION

PREMIUM-IZATION

EMERGING CHANNELS

KEY DRIVERS OF BRAND GROWTH IN CHINA MARKET


CONSUMER UPGRADES CONTINUED


0

10000

20000

30000

40000

50000

60000

70000

80000

90000

MAT13 vs. YA

RM

B

Consumption Penetration Price

(Millions)

FMCG KPI Contribution to YoY Growth (M. RMB), MAT13 vs YA, NA D+

PRICE IS THE KEY DRIVER FOR FMCG

GROWTH WITH

47%

CONTRIBUTION Price


GOOD, BETTER AND BEST LIFE

HEALTH AWARENESS

REFRESHING INDULGENCE

FUNCTION/ BENEFIT

LIQUID LAUNDRT DETERGENT

CHEWING GUM MINT CANDY CHOCOLATE

BEAUTY DRINK HERBAL COSMETICS HAND MADE SOAP

HYDRATION MASK TOOTHPASTE FOR SENSITIVE TEETH


IMF: Chinese moms want to give the best product to babies

6.7% (2011) to 11.3% (MAT13P6) Super Super Premium IMF (50 USD /Kg+)

Volume Importance

Chinese people are most anxious people in the world：Food safety ; pollution ; health, wealth…

PAY EXTRA FOR BETTER QUALITY PRODUCTS


2013 YNBY Price index 263

11.1 13.2 15.9

YNBY Penetration (%)

8% 9% 10%

Value MS(%)

1902: YNBY Invention Mr. QuHuanZhang

The formula remains top secret in

Ministry of Health till now

Main function is stop bleeding

Go beyond basic and do solve the problems

ADVANCED FUNCTIONS/ FORMATS ARE GETTING POPULAR


Spending Gr(%)

3% 4%

5%

2011 2012 2013

Penetration (%)

38

43 44

2011 2012 2013

Frequency Gr(%)

2% 4%

8%

2011 2012 2013

Create usage occasion and make it emotional

FAICAL SHEET MASK


Powder 38%

Liquid 43%

Soap 20%

Market Share by value

- 2% + 3%

+ 22%

Blue moon become one of leading brands in laundry by start new market

CHINA CONSUMERS ADOPT NEW THINGS QUICKLY


Not only from cheap to expense, there are several approaches to drive Premium-ization

DIFFERENT WAYS OF TRADING UP

2 3 4 TRADE UP TO MORE

ADVANCED FORMATS/ FUNCTION

2

ADD STEPS TO REGIME

3

TRY MORE NEW CATEGORIES

4

1 PAY EXTRA FOR BETTERQUALITY

PRODUCTS

1 BUILD YOUR QUALITY

IMAGE SOLVE PROBLEMS /

CONCERNS NEW USAGE OCCASAIONS

CONNECT EMOTIONS


NPD SUCCESS – NEW THINKING AND SOLID EXCUTION


NPD DELIVERS INCREMENTAL AND REQUIRE CONTINOUS SUPPORT IN YEAR 2 AND YEAR 3

New Product Development

8% 12% 11%

6% 10% 6%

0

50

100

150

200

250

300

350

2011 2012 2013

Contribution%

2013 New launches

2012 New launches

2011 New launches

2010 Base


WHY NPD IS IMPORTANT TO COSMETICS

12.4% In cosmetics, new launches

contributed to over 12% sales while the average number is

around 6% in 2013.


MOST NPD PROVIDED LITTLE INCREMENTAL: YOU NEED TO MAKE SURE YOUR NEW PRODUCTS ARE REALLY GOOD

<30% Overall less than 30% new

launches in FMCG contributed to incremental sales of the

mother brands


NEW THINKING – HYBRID PRODUCT

+

= Conditioner Hair Mask

+15% New Dove Buyers


Cereal HH Penetration

42% Dairy Drink HH Penetration

88%

OLD YOUNG

New thinking – CREATING NEW USAGE OCCASION AND ENTERING NEW SPACE


PRODUCT ADVANTAGE ALWAYS TRANSIENT SOLID EXECUTION CAPABILITY IS CRITICAL

Penetration%

Weiquan Yili

Mengniu

Penetration%

Qiulin Wahaha


ECOMMERCE DRIVING NEW WAVE OF EXPANSION


4 w/e rolling Penetration%

0

0.5

1

1.5

2

2.5

3

3.5

4 w

/e 2

013

/01

/25

4 w

/e 2

013

/02

/22

4 w

/e 2

013

/03

/22

4 w

/e 2

013

/04

/19

4 w

/e 2

013

/05

/17

4 w

/e 2

013

/06

/14

4 w

/e 2

013

/07

/12

4 w

/e 2

013

/08

/09

4 w

/e 2

013

/09

/06

4 w

/e 2

013

/10

/04

4 w

/e 2

013

/11

/01

4 w

/e 2

013

/11

/29

4 w

/e 2

013

/12

/27

Cosmetics Online Shopping

County Level Cities

Prefecture Level Cities

Provincial Capitals

Key Cities

23% 30% 32% 46%

18% 25% 30%

2011 2012 2013

MORE FAMILIES TRYING ECOMMERCE CHANNEL


SOURCE OF ECOMMERCE GROWTH

Switched from other retail channels because

of good price, convenience

38% 62%

On 100% of Ecommerce growth in

2013

Organic growth by offering extra brand choices,

shopping occasions and shopping mood


SINGLES DAY: NOVEMBER 11TH, WORLD’S BIGGEST ONLINE RETAIL EVENT

CHINA´S LOCAL VERSION OF CYBER MONDAY SINCE 2009 11/11: 24H OF MAD SHOPPING, TARGETING SINGLES SELF REWARD AND PAMPERING

￥38B

REAL-TIME SALES SCREENS ADS ON METRO STATIONS


LET’S HIT RECORD TOGETHER : YIHAODIAN PROMOTION IS VERY EMOTIONAL

March 18, let’s make the record together : 50% on 600K boxes

imported milk

April 9, let’s make the record together : 50% on 1million boxes

Facial Masks


Considering Differentiation marketing strategy in online and off-line

SKIN CARE, MORE MATURE IN ECOMMERCE

HYPERMARKETS ECOMMERCE

MASS PRODUCTS / FAIR PRICE / WELL-KNOWN BRANDS / WITHENING / HYDRATION / OIL

NICHE PRODUCT / PREMIUM BRAND / SENSITIVE / ANTI DARK CIRCLE / FIRMING /

PORE


Online shelves can afford more products and promotions than brick and mortar stores do

Use that flexibility to attract more buyers

OPERATING IN EMERGING CHANNEL

9%

36%

Total Skincare Pechoin

PENETRATION GR%

+ 300,000 New Buyers

+ 113 million RMB

X 3 times faster

Example: Through product offering differentiation, Pechoin is doing an excellent job recruiting buyers online, which in return, brings about over 90% sales growth

OFF-LINE MORE SINGLE

ITEMS

ON-LINE MORE GIFTING

BUNDLES

410RMB/SET PRICE RANGE: 10-30 RMB/ITEM

Online Penetration Growth% / MAT13P13


CHINESE BRANDS STANDING OUT


I 国货 I love local products


IS

23

53

2011 VS 2012 2012 VS 2013

BUYER GR%

+2%

TTL COSMETIC

2013 VS 2012


Mild and Health Heritage

HERBAL: POWER OF TRADITION

INOHERB FULL OF PURE AUTHENTIC CHINESE HERB, 100% NATURAL INGRIDENTS EXTRACT

25% In recent 3 years, total value growth maintains around

MODERN HERBAL CARE BRANDS

12% Penetration growth in 2013


laying out small and medium cities, catering to the urbanization process

FIND BLUE OCEAN

77.6 68.3 54.6

75.5 68.7 62.8

78.1 72.2 66.8

A City B City C+D City




June, 2012 ‘Tmall’ LAUNCH

2012, Nov 11th, RMB 7.66M

2013, Jan, RMB 22M

End of 2013, RMB 300M

BRAND SUCCESS STORY


PROVIDE ULTIMATE CUSTOMER EXPERIENCE


Code A：Winning upgrading Chinese consumers: You need strong quality image with emotional touch. Release consumers anxious and bring them better life. Utilize Korea drama stars

Code B: Introducing really good products to meet needs ( Health, Functions, Indulgence, Convenience) and create new usage occasions with solid execution and continuous support

Code C：Rising on the wave of ecommerce: Building real differentiation between offline channel and e-retailers but you need to make sure a good costumers experience ( product, social network, good after service)

Code of Growth - 2014


NADYA ARDIANTI KANTAR WORLDPANEL INDONESIA

REVEALING THE BEAUTY OF INDONESIA COSMETICS MARKET

AGENDA

The Cosmetics Market Growth

The Country Overview and Market Characteristics

The Future Trends


The Country Overview


INDONESIA IN STATISTICS

1. One of G-20 Nations

2. Has Enormous Middle Class Consumer in SEA region

3. Population World’s 4th Largest – 249 million

4. Enormous work force, 70% of population at productive age

5. Facebook user World’s #2, Twitter user World’s #3

6. Comprised of more than 18,000 islands – the distance from end to end of Indonesia is

equal to the distance from Seoul to New Delhi

7. Home to more than 300 different ethnicities & 750 local languages but quite

homogenous in terms of consumer behavior


“If you’re not here in INDONESIA, you have to have a reason…”


MARKET CHARACTERISTICS


“Warung” (small format traditional trade) can be found anywhere in Indonesia. One of the reasons of the very frequent shopping trip of

Indonesian Consumers

Indonesia consumer have bigger exposure for new brands/products available in the market, more access for trial, easier for new players to be noticed and bigger role for in store activation

HIGH SHOPPER FREQUENCY

Indonesia households do 413.6 shopping trip in a year or 35 times a month. More

than one trip per day!


SPENDING PER TRIP (KRW) FY 2013 – TOTAL NATIONAL INDONESIA

Indonesian spend only around 1,089 WON in one shopping trip for FMCG market

Pricing strategy need to carefully implemented, challenge in limited cash layout result in small pack size offering with affordable price 200 WON – 1000 WON; THE MAGIC PRICE POINT

SMALL SPENDING PER TRIP AS RESULT FROM LIMITED CASH LAYOUT

1087

676

1339 1323 1269

FMCG Personal Care Total Cosmetics Makeup Skincare


Almost 50% of Total Shampoo volumes are contributed by sachet pack with price = 30 -500 WON

Fair & Lovely Facial Moisturizer 9 gr – 200 WON

Rexona Deo Lotion 10 gr – 200 WON

Garnier - Multi Action Whitening Cream 8 gr – 400 WON

Small pack size is important in Indonesia market to drive trial and also to address limited cash layout issue – opportunity to utilize samples ready available in South Korea ?

SMALL PACK SIZE RULES


Traditional trade is the most important channel in Indonesia, with around 80% market share – a less developed country in SEA for modern trade expansion

VALUE % BY CHANNEL FY 2013 – TOTAL NATIONAL INDONESIA

Having strong distribution coverage in traditional trade is critical if the objective is to target the mass market

TRADITIONAL TRADE IS THE MOST IMPORTANT CHANNEL

80% 69% 66% 71% 64%


Modern

Traditional


• Top 2 minimarket : INDOMART and ALFAMART are the individual retailers with the biggest value share for FMCG

• Top 2 minimarket supported by wide network with over 15.000 outlets across Indonesia has become manufacture extended distribution arm

• “In between” channel: appealed both for affluent and less affluent consumers

VALUE % OF MINIMARKET TO MODERN CHANNEL FY 2013 – TOTAL NATIONAL INDONESIA

Need for manufacture to have strategy in minimarket and it is not easy because the retailer has stronger position and space for competition is limited

MINIMARKET IS THE MOST IMPORTANCT MODERN CHANNEL

61% 57% 58% 52% 59%



10% of Indonesian urban households claimed that their main source of information to buy FMCG products is thru DIGITAL*

Based on KWP Indonesia Media Project

Facebook user World’s #2, Twitter user World’s #3

Manufacture need to have plan for digital marketing and digital should be exploited as one of key touch point especially social media consider the important of WOM and recommendation from consumer's circle

DIGITAL TREND IS EMERGING IN INDONESIA


Bloggers

Online Partnership Commercial

DIGITAL TREND EXAMPLES


The Cosmetics Growth in Indonesia


FACTS #1 81% Penetration of Total Cosmetic at National Level equal to 40.3 million households but relatively still skewed toward basic categories

Similar with Total Germany household population


10,583 WON Spend per household at National Level in a year for cosmetics – comparatively small. Room to increased spending by encouraging Higher consumption, develop regime and push premium segment

Spending per Buyer Comparison with other personal care categories

FACTS #2

Shampoo

11,585 WON

Bar Soap

9,912 WON

Toothpaste

9,693 WON


HOW BIG IS GROWTH RATE OF COSMETICS MARKET?

19%

National Level

16%

Urban

26%

Rural

Cosmetic category grew at double digit in total national Indonesia. The growth in Rural is even higher in Urban, suggesting that the needs of cosmetic is increasing even among Rural Consumers


URBAN

Facial Cleanser 16%

Facial Moist. 14%

Facial Make Up 13%

Value Growth FY 2012 vs. 2013 RURAL

Facial Cleanser 26%

Facial Cleanser 25%

Facial Make Up 19%

Value Growth FY 2012 vs. 2013

Facial Cleanser was the driver of Total Cosmetic strong growth in 2013 in both Urban and Rural suggest that market is relatively still skewed toward basic products but with strong growth from facial make up

WHAT TOP 3 CATEGORY DRIVES THE GROWTH?


Almost all categories able to increase penetration with significant penetration increased coming from less basic categories i.e. nail polish, mask and eye cosmetics etc

WHICH CATEGORY ABLE TO INCREASE PENETRATION?

Penetration (%) | Total Cosmetic by Segment | Total National Indonesia FY 2013

57.2 55.8 53.0

14.2

6.8 5.9 3.4 1.4 0.5

FACIALMOISTURISER

FACIALCLEANSER

FACIALCOSMETIC

LIP COSMETIC TONER EYE COSMETIC MASK EYE-CREAM /GEL

NAIL POLISHCOSMETIC


All categories able to increase spending per buyer even for basic categories such as facial cleanser and facial cosmetics driven by premium-ization

WHICH CATEGORY ABLE TO INCREASE SPENDING LEVEL?

Spend per Household (WON) | Total Cosmetic by Segment | Total National Indonesia FY 2013

4,781

1,091

1,871

5,570

2,564

3,755

2,797 3,252

1,060

FACIALCLEANSER

TONER MASK FACIALMOISTURISER

EYE-CREAM /GEL

FACIALCOSMETIC

LIP COSMETIC EYE COSMETIC NAIL POLISHCOSMETIC


29% Growth at National Level

24% Growth at Urban Level

35% Growth at Rural Level

Cosmetic Value Growth in Traditional Trade

(2012 vs. 2013)

Traditional trade is leading the cosmetic sales growth

in urban and rural

WHICH CHANNEL DRIVE THE CATEGORY GROWTH?


Indonesia is the biggest Islam country in the world


Thus a lot of women using head scarf like

me, we call those people “JILBABER”


What is JIBABER? JILBABER = JILBAB + ER JILBAB = Head Scarf JILBABER = Someone who uses head scarf


Indonesia is not your typical Muslim country.. the country is quite liberal


Therefore it affect how we wear JILBAB, the trend now in Indonesia is (and it is a growing community) : JILBABER that are “stylish, chic, fashionable”


WARDAH, one of local cosmetics brand capture the opportunity of growing Moslem “jilbaber” who have bigger concern toward style and beauty by offering HALAL products

What is HALAL cosmetics? Halal means "permissible" or "allowed" in Arabic. For cosmetics to be halal, the criteria are Alcohol-free, animal-cruelty free; pork, pork residue or pork fat free


From ZERO to HERO!

12 w/e2012/03/25

12 w/e2012/05/20

12 w/e2012/07/15

12 w/e2012/09/09

12 w/e2012/11/04

12 w/e2012/12/30

12 w/e2013/02/24

12 w/e2013/04/21

12 w/e2013/06/16

12 w/e2013/08/11

12 w/e2013/10/06

12 w/e2013/12/01

WARDAH Base Makeup Value Trend

0.5

1.8

12 w/e2012/03/25

12 w/e2012/05/20

12 w/e2012/07/15

12 w/e2012/09/09

12 w/e2012/11/04

12 w/e2012/12/30

12 w/e2013/02/24

12 w/e2013/04/21

12 w/e2013/06/16

12 w/e2013/08/11

12 w/e2013/10/06

12 w/e2013/12/01

WARDAH Base Makup Penetration%

WARDAH Facial Make Up Penetration & Value Trend National Indonesia | FY 2013

WARDAH brings the “HALAL” concept to the consumers but the “real reason” of the growth is not only because of demand for HALAL product itself but more on trend of JILBABER that are “stylish, chic, fashionable and put concern toward beauty”


WARDAH is very aggressive in

communication also participate in

Islamic Fashion and Beauty event


WARDAH COMMERCIALS

Dewi Sandra Girls Day Out

../../../Wardah TV Commercial_ Exclusive Series - Dewi Sandra in Paris.mp4

../../../Wardah TV Commercial_ Lightening TWC - Girls Day Out.mp4


The Key Future Trends


1 DEMAND FOR HALAL COSMETICS


-

50

100

150

200

250

300

350

400

12 w/e

2012/03/25

12 w/e

2012/05/20

12 w/e

2012/07/15

12 w/e

2012/09/09

12 w/e

2012/11/04

12 w/e

2012/12/30

12 w/e

2013/02/24

12 w/e

2013/04/21

12 w/e

2013/06/16

12 w/e

2013/08/11

12 w/e

2013/10/06

12 w/e

2013/12/01

Total Indonesia Urban + Rural

Total Indonesia Urban

Total Indonesia Rural“WHITENING segment leads the skin care market with highest value share

and it is driven by Rural Area”

Value Trend (in Billion) | Whitening Segment of Skin Care

2 INDONESIAN IS GETTING WHITE!


Ref: Kantar Worldpanel Indonesia, 2013

Facial Cleanser growth significant in Men

5.7 pts.

Male face cleanser buyers increased by 5.7 points this year vs. year ago

2x The spending of Indonesian households on male face cleanser is doubled this year vs.

year ago.

3 MEN SEGMENT IS RISING! Beauty, no longer only for Women


3.6

7

0

5

10

15

20

25

30

35

40

-1

1

3

5

7

9

11

13

15

12 w/e

2012/03/25

12 w/e

2012/06/17

12 w/e

2012/09/09

12 w/e

2012/12/02

12 w/e

2013/02/24

12 w/e

2013/05/19

12 w/e

2013/08/11

12 w/e

2013/11/03

IDR

(B

illio

ns)

FAIR & LOVELY Penetration%

FAIR & LOVELY Market Size

Fair & Lovely Moisturizer | Value & Penetration Trend | Total National Indonesia

fair & lovely is the no. 4 cheapest facial moisturizer in Indonesia

but the business has doubled in last 2 years and the buyers increased significantly

4

Fair & Lovely Facial Moisturizer 9 gr – 200 won

BEAUTY IS NOT ALWAYS EXPENSIVE


FASHION CARS

TECHNOLOGY

5 PREMIUM-IZATION growing demand for luxury and premium products and not limited to FMCG


5 PREMIUM-IZATION


6

67% Value Share

47% Penetration

Indonesia Local Brand

LOCAL WISDOM RULES THE LAND aspirational but embracing local value and culture


THE CLOSING


IMPLICATION

The market is

aspirational but at the same time also

embracing local value and culture

Make up might be working

better as market entry as skin care space owned by UNILEVER

& LOREAL

Small pack size is important in

Indonesia market to drive trial and also to address limited cash layout

issue – opportunity to utilize samples ready available in South

Korea ? HALAL certified products might be open new door of

opportunity

Market is very polarized with extreme upper class consumer demand for premiumization and low class consumer demand for more value

with less money

Distribution in small format modern trade

is key

Exploit the social media


KOREA HAIR/BODY CARE MARKET LANDSCAPE Personal Care Trend in HH goods specification

JIWON KIM,NAMHEE KIM,KIBUEM LEE KANTAR WORLDPANEL KOREA


Dental Hair & Body


Individual usage for Hair Care in its increase while Body Care sustains its level in both individual & family usage

HAIR & BODY CARE – INDIVIDUAL vs. FAMILY USAGE

Y2011 vs. Y2013, Frequency%, Excluding gift & giveaways, HH Panel

Hair Care (SH/Rinse, Treatment, Hair Styling, Hair Coloring), Body Care (Wash & Moisturizing)

Hair Care – Individual Usage Body Care – Individual Usage

58% Y2011

62%

Y2013

52% Y2011

52% Y2013


Body Care Market Landscape Individual & Family Usage Trend


Overall, Body Care market in increase due to buyer & purchase increase in both Body Moisturizer & wash

HH Body Care Market Landscape

Y2011 vs. Y2013, Growth(%), Body Care(Moisturizer & Wash), Excluding gift & giveaways, HH Panel

Volume Value

+34% +21%

Penetration Avg.vol/HH

+5%p +21%

Market in growth due to Buyer inflow & Consumption increase


Individual usage more prominent in Moisturizing category however in decline

Recent growth of individual usage among Wash category

USAGE IMPORTANCE BY CATEGORY – INDIVIDUAL vs. FAMILY

Y2011 vs. Y2013, Bodycare, Excluding gift & giveaway, HH Panel

0

10

20

30

40

50

60

70

80

90

100

'Y11 'Y13 'Y11 'Y13 'Y11 'Y13 'Y11 'Y13 'Y11 'Y13

Family Individual

Body Care – User (%)

Body Care Body

Moist. Hand Moist.

Body Wash Soap


Cetaphil leading the market with Key Communication in Common Body Care – ‘Healthy Skin for My Family’

BODY MOIST. – BRANDS WITHIN FAMILY USAGE MARKET

Y2011 vs. Y2013, Bodycare, Excluding gift & giveaways, HH Panel

Top Brands within Family Usage

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

Cetaphil Johnsons Baby Body Series Green Finger Neutrogena Aveeno Happy Bath Nivea


Lady Panel

Characteristics in Body Care


Body Care Market in growth with polarization of Individual & Family usage

BODY MOISTURIZER & WASH – INDIVIDUAL vs. FAMILY USAGE MARKET PERFORMANCE

Y2011 vs.Y 2013, Bodycare, Value %, Excluding gift & giveaways, Lady Panel

FAMILY

Body Wash +19% +11%

Body Moist. +6% +35%

INDIVIDUAL


Online/Hyper Mass Channel for Family usage Body Care products while variety of channels are being used for Individual usage

BODY CARE – INDIVIDUAL vs. FAMILY USAGE CHANNEL COMPARISON

Y2013, Bodycare, Value %, Excluding gift & giveaways, Lady Panel

Online

Hyper Mass

Family Usage

Online

Hyper Mass

Individual Usage

72% 53%

Dept Brandshop

D2D Drugstore


Physiogel growing in both individual & family while Illi in growth in Individual Baby brands including Cetaphil in increasing mostly in Family

BODY MOISTURIZER – INDIVIDUAL & FAMILY USAGE MARKET STAR PLAYERS

Y2011 vs. Y2013, Bodycare, Excluding gift & giveaways, Lady Panel

Individual Usage

Family Usage

0

2

4

6

8

10

12

14

Cetaphil Physiogel Green Finger Neopharm Johnsons Baby Neutrogena 0 to 7 Aveeno

0

2

4

6

8

10

Cetaphil The Body shop Physiogel Happy Bath Illi Neutrogena Aveeno Johnsons Baby


Various SKU

Scent

Moist.

Trust

Different user range by key benefits

BODY MOISTURIZER – KEY BENEFIT BY KEY BRANDS

Family Individual

Resilience, Shine

Low Sensitivity


POC (point of contact) & target age expansion through channel diversification

GROWING BRANDS’ CHANNEL & TARGET AGE

Y2011 vs.Y 2013, Bodycare, Excluding gift & giveaways, Lady Panel

Cetaphil Physiogel Illi

Main Channel

Online + Drugstore

Online + Hyper Mass

Hyper Mass + Drugstore

Target Age

30s 30s 40s

Hyper Mass + Online

40s

Brandshop + Online

20s

The Body Shop

Happy Bath

Family

Individual


Individual usage in Body Wash market also in growth similar to Body Moisturizer

BODY WASH – INDIVIDUAL & FAMILY USAGE MARKET TREND

Y2011~Y2013, Value(Mil.KRW), Bodycare, Excluding gift & giveaways

Y2011 Y2012 Y2013

Individual Family

HH Panel Lady Panel

Y2011 Y2012 Y2013

Individual Family


Individual usage of ‘On the Body’ in significant growth

due to spokes model ‘Suzy Effect’

BODY WASH – STAR PLAYERS IN INDIVIDUAL & FAMILY USAGE

Individual Usage

Family Usage

0

5

10

15

20

Happy Bath Green Finger On the Body Johnsons Bpby Body Series Aveeno 0 to 7 Cali.Baby

0

5

10

15

20

Happy Bath On the Body Body Shop Body Series Dove Beyond Aveeno Loccitane

Y2011 vs. Y2013, Bodycare, Lady Panel


9.1

7.3

2.2

11

P1

31

2P

01

12

P0

21

2P

03

12

P0

41

2P

05

12

P0

61

2P

07

12

P0

81

2P

09

12

P1

01

2P

11

12

P1

21

2P

13

13

P0

11

3P

02

13

P0

31

3P

04

13

P0

51

3P

06

13

P0

71

3P

08

13

P0

91

3P

10

13

P1

11

3P

12

13

P1

3

Total

Individual

Family

16.1

5.1

11.8

11

P1

31

2P

01

12

P0

21

2P

03

12

P0

41

2P

05

12

P0

61

2P

07

12

P0

81

2P

09

12

P1

01

2P

11

12

P1

21

2P

13

13

P0

11

3P

02

13

P0

31

3P

04

13

P0

51

3P

06

13

P0

71

3P

08

13

P0

91

3P

10

13

P1

11

3P

12

13

P1

3

Total

Individual

Family

Individual users in rapid increase with the communication focused on Scent

‘ON THE BODY’ BODY WASH PENETRATION TREND

Y2011~Y2013, Bodycare, Lady Panel

Commercial with Suzy

HH Panel Lady Panel

Commercial with Suzy


Online &

Drugstore

To the

Point

Family usage – low sensitivity, trust/ Individual usage – scent, resilience Appeal Key Benefits depending on Target

Channel diversification from Hyper mass to Online/Drugstore

Usage of Body products is diversifying through Family & Individual usage Target based on Brand Identity ivergence D


Hair Care Market Landscape Understanding Hair Care Consumption Trend


Spend driven market growth led by demand increase in relatively higher price products

HH HAIR CARE MARKET LANDSCAPE

Y2011 vs. Y2013, Growth(%), Hair Care (SH/Rinse, Treatment, Hair Styling, Hair Coloring), Excluding gift & giveaways, HH Panel

Volume Spend

+7% +10%

Higher price products demand increase

Penetration Avg.

Frequency

0%p +9%

Purchase type increase


Increased consumption in special care products due to generalization of Home Beauty Care

Era of Usage Expansion as “Total Care”.

HAIR CARE PURCHASE DUPLICATION

Y2011 vs. Y2013, SH+Rinse+Treatment, Excluding gift & giveaways, HH Panel

0 10 20 30 40 50 60 70 80 90 100

Y2011

Y2013

SH Only Rinse Only Treatment Only SH + Rinse SH + Treatment Rinse + Treatment SH + Rinse + Treatment

Value (%)


Family usage still higher in SH/Rinse while individual usage dominates Treatment market

CATEGORY USER IMPORTANCE CHANGE

Y2011 vs. Y2013, Hair&Bodycare,

0

10

20

30

40

50

60

70

80

90

100

'Y11 'Y13 'Y11 'Y13 'Y11 'Y13Family Individual

User (%)

Hair Care SH/Rinse Treatment


Lady Panel

Characteristics in Treatment Market


Leave-on Treatment, relatively highly priced, has an impact on Treatment market the most with largest buyer base

TREATMENT TYPE PURCHASE DUPLICATION

Y2013, Haircare – Treatment, Excluding gift & giveaways, Lady Panel

28%

39%

33%

Wash offOnly

Leave onOnly

Duplication

9% 13% 4%

Value (%) Penetration (%)


Buyer inflow polarization according to the age of group, especially prominent in Leave-on type.

TREATMENT MARKET BUYER INFLOW

Y2011 vs. Y2013, Haircare – Treatment, Excluding gift & giveaways, Lady Panel

-3.0

-2.0

-1.0

-

1.0

2.0

3.0

4.0

15-19s 20-24s 25-29s 30-34s 35-39s 40-44s 45-55s

Treatment

-3.0

-2.0

-1.0

-

1.0

2.0

3.0

4.0

15-19s 20-24s 25-29s 30-34s 35-39s 40-44s 45-55s

Wash off Treatment

-3.0

-2.0

-1.0

-

1.0

2.0

3.0

15-19s 20-24s 25-29s 30-34s 35-39s 40-44s 45-55s

Leave on Treatment

Penetration Gap (%p)


Young age group purchase increase in channels with experience while Older age group prefer channels with experts who can communicate product benefits need to consider proper approaches in channel regarding your brand’s target

PURCHASE BEHAVIOR BY AGE GROUP


15-24s 25-34s +35

Main Channel

Drugstore Brandshop

Drugstore Online

Hair Salon Telemarketing

(e.g. TV HSP)

Purchase Preference

Experience Economic Expertise(Value)


Lowering price barrier via ‘Membership Day’ promotion led to Young age group purchase increase with Cosmetics products

ATTRACT BUYERS VIA ‘MEMBERSHIP DAY’ – HIGHER DISCOUNT RATE THAN COSMETICS


25.2 24.3 22.9 22.7

20.4 27.1

21.4 14.6

47.4 42.3

36.5

34.1

7 6.2

19.3 28.5

Y2010 Y2011 Y2012 Y2013

HairCare/Equipment

Domestic/ForeignSC

Makeup

AP/LG

GS Shop Hair Care growth led by Hair/Equipment increase

[Ref]GS SHOP HAIR CARE PRODUCT TYPE

GS Shop, 2014 Cosmetics Channel Landscape Seminar, Feb.5th 2014

Value Importance (%)

Milkshake, Hair Curl Cream

Espresso, Hair Manicure

Babyliss Miracurl, Hair Curl Equipment


Higher Price & Specialty store in increase, which calls for the need to consider expanding POC (point of contact)

TREATMENT MARKET CHANNEL IMPORTANCE


0

5

10

15

20

25

30

35

Hyper Super Online Brandshop Dept.st HairSalon

Drugstore

Telecommunication

Others

Y2011 Y2013

Value (%)

Lower price channel Higher price channel


7%p increase in brands focused on specialty stores, 34% MS

Channel with expertise growing in Treatment market – entering upon a new phase in brand competition

TREATMENT TOP 10 BRANDS PERFORMANCE


Miscensen

Pantene

Elastine

Man w/Flower

Ryoe

Kerasys

K&I

Missha Kerastase

Experell

Y2011

Miscensen

Elastin

Pantene

K&I

Missha

Aveda

Kerastase

Moroccan Oil Styling Curl Essence

Amos Others

Y2013

18%

34%

29%

27%

Mass channel basis Specialty store basis


Dynamic

Older

target

Total

Care Total Care Approach in order to meet diverse/specific needs

Taking account of the 35+, having higher purchasing power

Consideration for flexible accessibility needed due to specialty store growth


KOREAN BEAUTY MARKET - From Pragmatic to Perfection

ASHLEY KANG KANTAR WORLDPANEL KOREA


0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

Y2005 Y2006 Y2007 Y2008 Y2009 Y2010 Y2011 Y2012 Y2013

Cosmetic market contracted by 7% in 2013

18~55 Year Old Females

Total Value Market – M.won

CAGR: +7% (M.Won)

“Recession” -7%


More consumers trying to purchase more often at Lower price

-15.0

-10.0

-5.0

+0.0

+5.0

+10.0

+15.0

24

w/e

20

12

/06

/17

24

w/e

20

12

/07

/15

24

w/e

20

12

/08

/12

24

w/e

20

12

/09

/09

24

w/e

20

12

/10

/07

24

w/e

20

12

/11

/04

24

w/e

20

12

/12

/02

24

w/e

20

12

/12

/30

24

w/e

20

13

/01

/27

24

w/e

20

13

/02

/24

24

w/e

20

13

/03

/24

24

w/e

20

13

/04

/21

24

w/e

20

13

/05

/19

24

w/e

20

13

/06

/16

24

w/e

20

13

/07

/14

24

w/e

20

13

/08

/11

24

w/e

20

13

/09

/08

24

w/e

20

13

/10

/06

24

w/e

20

13

/11

/03

24

w/e

20

13

/12

/01

24

w/e

20

13

/12

/29

Penetration

Frequency

Avg.Price

% Change Trend

More Buyer

More Often

Lower

Price


Indulgence through Make Up

Attributing to Value Erosion but Volume uplift

Value & Volume GR% 13vs.12

-10% +2%

+5% +10%

Skin Care

Value

Make Up

Volume


Korean Ladies with much need to care…

Multi-Function being the top 3rd benefit; Seeking for “Easy way” to pamper themselves

Value% of Benefits in Skin care, 2013

57.2

8.4

7.1

3.9

8.2

5.5 1.4

4.3 2.0 1.2 0.4 0.3

Dry Skin

Dead Cells

Loss of Elasticity

Wrinkle

Skin Tone

Loss of Glow

Age Spots/Freckles

Acne/Pimple

Black Head

Enlarged Pores

Sun Burn

Dark Circles

19%

15%

Moisturizing 32%

Anti-Aging 30%

Multi-Function 11%

Whitening 8%

UV Sun 7%

Others

Skin Concern

Y2012

Anti-Aging

Whitening


Influence of Multi-Function Care & All in one products to save you time & money

CONVERGENCE

Multi-Function Cross Category Convergence

TIME MONEY

Multi- Function

“Two or more claims of Benefit”

Cross Category

“Cross Category Product Innovation”

Cross Regimen

“Cross Regimen Product Innovation”


Change of Regimen with greater focus on Functional Care

35

40

45

50

55

60

65

70

75

Y2008 Y2009 Y2010 Y2011 Y2012 Y2013

Cleanser

Emulsion

Toner

Cream

Mask

Sun Screen

Essence

Penetration (%) Trend TO

NER

EMU

LSION


TIME?

MONEY?

They have limited Time & Money to spare but, growing interest beyond FACE

58 62

Hair Care Individual Usage

43 46

Body Wash Individual Usage

29 33

Bar Soap Individual Usage

Y2011 Y2013

Usage% in 11 vs. 13


BEAUTY CARE

FACE & BEYOND! Skin Care

Make Up

Hair Care

Body Care


What is being done to overcome the Money & Time deprived Consumers?

DIVERGENCE

New Usage Segmented Need

CONVERGENCE

Multi-Function Cross Category Convergence

TIME MONEY


Creating New steps to build the Regimen & develop the Sophistication

Cleanser Toner Lotion Essence Cream Sun

Screen

Base Foundation Powder Point Color

Boosting Finisher

Starter Fixer

Spot Care Eye/Neck/Laugh line

Cooling

Oil Essence Oil Essence


With Growing Interest

Consumers are fond of having Innovation at their fingertip

Singles Magazine April Sample: 25~49 Female 6,232 Study period: 2013.11~2014.02 Online Survey

Will Simple push of Innovation can help to Stretch their regimen & settle for Real?

15

19

17

5

6

Boosting Essence Pen%

Oil Essence Pen%

Danahan Laugh line Cream Pen%

Facial Oil 32% Boosting

Essence 32%

Multi Moisture Balm 22%

CC Cream 20%


CAN What’s the Magic Recipe to Success?

Value% from Base Make up

+ Coverage = NTH

+ Sun =

13 23

Cushion Evolution

Y2012 Y2013

C Convenience

A Added Value N New Occasion

“Nice To Have”

http://cr2.shopping.naver.com/adcrNoti.nhn?x=1CWtNPlBOI6PFB+aP4wftv///w==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&nv_mid=7111085721&cat_id=40010714

http://shopping.naver.com/detail/detail.nhn?cat_id=40005398&nv_mid=6249671034&frm=NVSCMOD&query=%ED%97%A4%EB%9D%BC %EB%AF%B8%EC%8A%A4%ED%8A%B8 %EC%BF%A0%EC%85%98


How about Water Essence?

10

13

17

1st Generation

2nd Generation

3rd Generation

New Occasion

Added Value

Replaceable Convenience


Usage Evolution still in need of Revolution

Day & Night

Kiehls Midnight Recovery Concentrate & Eye “Magic happens over Night”

Innisfree Hanlan Cream (Launched in Jan.14) Enhance the density of Skin. Day Cream with SPF Night Cream Enriched Cream

Day & Night & Weekend

Chanel Le Jour, Le Nuit, Le Weekend Protection Day Cream Revitalize Night Cream Resting Weekend

Clarins Extra Firming Day & Night Cream Anti-Aging Day Cream Anti-Aging Night Cream

Origins Night Cream & Bed Time Cream Night Cream Over Night Mask

Innisfree Soybean Finish Cream Restore Skin Balance over night

Day & Night & Overnight


Understanding their Need of Rushed Day to Relaxing Night

Product Newly Added C: Quick & Easy

A: SPF + What else?

N: Day / Beauty Supplement

Singles Magazine April Sample: 25~49 Female 6,232 Study period: 2013.11~2014.02 Online Survey

Morning Facial Oil 28%

Moisture Mist Boosting Essence

Night Sleeping Mask 27%

Facial Oil Night Cream

C: Intense & Healing

A: Sleeping M + What else?

N: Night / Home Care


Perfection

Pragmatic

Long Lasting

Divergence

Time Saving

Convergence

IT’S ALL IN

ME!

Professional

DIY

Light Texture

Layering Texture


Pragmatic

BEAUTY IN 2020 From Pragmatic to Perfection

Perfection

Pragmatic Regimens

In Home Applicator

Professional Spas

Petite Treatment (14%)

Beauty Supplement

FACE

H B Body Wash Body Soap

Hair Care

Seeking for Convenience innovations

IMPLICATION

Greater functional driven regimen is in demand - Cream, Sun, Essence,

Cleanser

Beauty market widening to total care of Hair, Body and Supplement; Vertically

deepening to Petit Professional treatment to Home care

How to generate New Occasion that will not Reduce the existing is the key!

Understanding Average behavior no longer is valid. You need to inspire the consumers’ either end of extreme

which then will only lead to ACTION

PRAGMATIC

PERFECTION


Global Beauty Trend

Men

Global Skin

Anti-Aging

Home Care

Life Style

Anti-Aging Product user age continue to go down

High expectation of 25-34 on the product

Growing Home Care market

Overall care from how you eat to how you pamper

Growing opportunity with Beauty Supplement

Growing opportunity with Men Grooming

New launch increased by 70% over the last 6 years (07~12)

Understanding the needs of different Ethnicity

Convenience Growing opportunity with Online and Mobile Commerce

Growing need for quick Multi-Function products

Natural Growing needs of Organic products and Natural & Pure


Make Up Halal Certified

Understanding the Big 3 Market

Ethnic Needs Local Ingredients - L’Occitant Cactus

Indonesia

Brazil

China Openness - Pond’s

Local Ingredients

Stage 1 Penetration Stage 2 Expansion

Total Beauty Care

Utilize Samples

Online & Mobile

Embrace Localize Expand


Winning the Heart of Future Women


Jackie Lee [email protected]

FOR MORE INFORMATION

cmn & kantarworld panel 13 cosmetics marketing …

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