Innovation trends and opportunities in South Korea Hair Care Market - Sumit Chopra, Director of Research and Analysis

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Innovation trends and opportunities in South Korea Hair Care Market - Sumit Chopra, Director of Research and Analysis
Innovation trends and opportunities in South Korea
Hair Care Market

Sumit Chopra, Director of Research and Analysis

June, 2019

                                                     1
Innovation trends and opportunities in South Korea Hair Care Market - Sumit Chopra, Director of Research and Analysis
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Innovation trends and opportunities in South Korea Hair Care Market - Sumit Chopra, Director of Research and Analysis
Unique data, expert analysis and innovative solutions..
Leading Haircare market research, consumer research and consulting agency

 1 Market Performance       2 Consumer Research              3 Innovation

  Analysts in 96 markets   540,000 survey responses a year   2.1 million products tracked

                                                                                            3
Innovation trends and opportunities in South Korea Hair Care Market - Sumit Chopra, Director of Research and Analysis
GlobalData Proprietory TrendSights Frameowrk
   The TrendSights trends that are driving growth in haircare category are pinpointed below

                  Innovation trends: GlobalData’s TrendSights framework

                                                                                              4
Innovation trends and opportunities in South Korea Hair Care Market - Sumit Chopra, Director of Research and Analysis
Index

        1   About GlobalData

            2   The South Korea Haircare Landscape

            3    Innovation trends

            4    Drivers

            5   Opportunities for haircare brands

        6   Looking ahead – where next for haircare?

                                                       5
Innovation trends and opportunities in South Korea Hair Care Market - Sumit Chopra, Director of Research and Analysis
Index

        1   About GlobalData

            2   The South Korea Haircare Landscape

            3    Innovation trends

            4    Drivers

            5   Opportunities for haircare brands

        6   Looking ahead – where next for haircare?

                                                       6
Innovation trends and opportunities in South Korea Hair Care Market - Sumit Chopra, Director of Research and Analysis
Global Cosmetics & Toiletries Industry 2018
                  The APAC C&T industry was the largest region in 2018 with a value of US$ 177.7bn

                                                     Western                     Eastern
                                                     Europe                      Europe

                                                 $98.4bn                 $29.7bn
                                                            16.6bn                   9.3bn
                             America

                                                                                                   Asia
                          $162.4bn 41bn                       Middle                              Pacific
                                                              East &
                                                              Africa                         $177.7bn 43.2bn

                                                           $26bn
                                                                      7.5bn

       Value

                   Volume
                                                       $494.2bn
                                                                     117.7bn

                                                                        Global

Source: GlobalData 2018                                                                                        7
Innovation trends and opportunities in South Korea Hair Care Market - Sumit Chopra, Director of Research and Analysis
The global haircare market 2018
                                      Haircare market value ($) and volume(Units) 2018

                                                          Western                    Eastern
                                                          Europe                     Europe

                                                      $14.2bn                 $4.7bn
                                                                 2bn                     1.3bn

                               America                                                                 Asia
                                                                   Middle                             Pacific
                                                                   East &
                            $29.3bn                                Africa                        $29.3bn
                                      6.2bn                                                                6.2bn
                                                                $4.8bn    1.3bn

       Value

                   Volume
                                                            $82.2bn
                                                                         17.1bn

                                                                            Global

Source: GlobalData 2018                                                                                            8
Innovation trends and opportunities in South Korea Hair Care Market - Sumit Chopra, Director of Research and Analysis
South Korean haircare market Landscape 2018-2023
                                             Haircare market value ($)
    CAGR 2017-2022 (%)
                                                         Value M USD
           +2.3%
                                                                                    1,331
                                                                            1,311
                                                                  1,288
                                                   1,261
                                  1,229
                          1,190

                          2018    2019            2020           2021      2022     2023

                                          Haircare market volume (Units)
    CAGR 2017-2022 (%)
                                                    Volume M Units
            +2.2%                                                           38.5
                                                                                     39.2

                                                                 37.7
                                                  36.7
                                  35.7
                          34.8

                          2018    2019            2020           2021      2022     2023

Source: GlobalData 2018                                                                     9
Innovation trends and opportunities in South Korea Hair Care Market - Sumit Chopra, Director of Research and Analysis
About
Top    GlobalData
     three  fastest-growing haircare segments                              10

                          Market value 2018 ($) and CAGR 2018–23 (%)

             $400m        +2.4%        $282m   +1.9%         $225m     +1.8%

                   Shampoo               Conditioner         Hair colorants

Source: GlobalData 2018                                                         10
Innovation trends
    The impact on health and wellbeing has the strongest influence on beauty and grooming purchases.
               Haircare products, is the most influential on consumer purchasing decisions.

                                                                                                     Targeting the silver
      Natural Wave                    Being Unique                     Making it simple
                                                                                                          segment

    Wellbeing; Natural & Pure;   Novel & Experiment; Sensory Fusion;    Time Scarcity; Efficient &    Aging population; Image
   Personalized Guided Health;      Experimentation; Experience         Effective; Out-of-Home;           Consciousness;
        Experimentation                Economy; Customization             Simplicity; On-the-Go            Customization

Source: GlobalData 2018                                                                                                         11
Index

        1   About GlobalData

            2   The South Korea Haircare Landscape

            3    Innovation trends

            4    Drivers

            5   Opportunities for haircare brands

        6   Looking ahead – where next for haircare?

                                                       12
Trend 1: Natural wave
                      Consumers are seeking for natural and organic products that are expected to
                                                  rise in prominence

                                     What                      Why                        How
                                     • Consumers in South      • Haircare products that   • Manufacturers are
                                       Korea are seeking         go beyond their basic      therefore capitalizing
                                       new, indulgent and        beautifying function       on this trend and
                                       unusual products with     to add “improvised         offering products with
                                       exotic ingredients        care,“ such as             special formulations
                                       which gives them a        products which go          and exclusive
                                       sense of luxury and       past moisturizing and      ingredients.
     Natural Wave                      relaxing experience.      therefore provides
                                                                 natural humectant
                                                                 properties, are
                                                                 growing in popularity.

Source: GlobalData 2018                                                                                              13
Trend 1: Natural wave
                              Examples we like: using ingredients associated with natural image

                                     Holika Holika Hair Rinsing Vinegar,
                                     Face Shop, South Korea

                                     Marketed under the Face Shop
                                     brand name, a new Natural scalp
                                     healer with Apple cider vinegar
                                     helps in reducing the hair’s acidity    Tonymoly Hair Mayo Nutrition
                                     level. With a pH level of 3, it seals   Pack, South Korea
                                     the cuticle and reduces the
                                                                              Tonymoly’s Haeyo Zayo Hair
                                     alkalinity of the hair. As
                                                                             Sleeping Pack is fortified with
                                     consumers       are       becoming
                                                                             nutrition enriched oils giving a
                                     ingredient-aware,       boycotting
                                                                             lustrous shine and moisture to the
                                     chemicals such as paraben and
                                                                             hair after usage. It’s a combination of
                                     surfactant. Thus replacing these
                                                                             Mayo, Shea Butter, Macadamia Seed
                                     with vinegar is a good idea for
                                                                             Oil with a smell of sweet blend of
                                     natural seeking consumers, as
                                                                             vanilla and macadamia nuts. Helps in
                                     well as curious ones. This cost
                                                                             defeating the fizziness of the hair by
                                     effective solution, used after
                                                                             supplying s ultimate hydration.
                                     conditioning repairs hair damaged
                                     by salon products.

Source: GlobalData’s Product Launch Analytics
                                                                                                                       14
Trend 2: Being unique
                             Consumers are likely to prefer a premium brand product occasionally in their
                                                            haircare routine

                                                What                       Why                       How
                                                • Experiential South       • The rising disposable   • The manufacturers
                                                  Korean women are on        incomes of South          have increasingly
                                                  the lookout for novel      Korean consumers is       focused on launching
                                                  solutions specifically     empowering them to        novel and innovative
                                                  in haircare, such as       indulge more in           products, such as a
        Being Unique                              new textures and           premium products          hair masks which
                                                  color combinations,        with specific             comes in single-use
                                                  and those offering         formulations.             pouches which
                                                  experimental looks.                                  facilitates
                                                                                                       premiumization.

Source: GlobalData’s Product Launch Analytics
                                                                                                                              15
Trend 2: Being unique
                                   Examples we like: tailoring products based on consumer’s needs

                                                Kocostar - Capsule Mask - Luster
                                                Hair, South Korea

                                                In South Korea, and the USA,
                                                Firstmarket Co., Ltd. has launched
                                                its Luster Hair Capsule Mask
                                                under the Kocostar banner that is
                                                claimed to contain essential oils
                                                                                              Yves Rocher - Rinsing Vinegar –
                                                that help to restore the "natural
                                                                                              Raspberry, South Korea
                                                shine and silkiness" to the hair.
                                                Presented as a count of seven           CJ Olive Young Co Ltd has introduced a
                                                capsules within a resealable            new Raspberry option of Rinsing Vinegar
                                                plastic bag. Offering a hair mask       marketed under the Yves Rocher brand
                                                that also comes in a capsule            name in South Korea, does not contain
                                                format full of essential oils to help   praben or silicone. This rinse-off hair
                                                revive the hair is different to         treatment is to be used after shampoo
                                                standard products in the category       and conditioner, and is traditional hair
                                                in these countries.                     care method in France. It helps repair
                                                                                        and seal the hair cuticles, leaving hair
                                                                                        soft, smooth and radiant. It also helps to
                                                                                        reduce mineral build up. As the Korean
                                                                                        market has strategic value to global
                                                                                        luxury brands, it is widely viewed as the
                                                                                        fashion leader in the region.

Source: GlobalData’s Product Launch Analytics
                                                                                                                                     16
Trend 3: Make it simple
                                  Time-scarce consumers demand quick to use, convenient, and simplified
                                                           haircare products

                                                What                      Why                      How
                                                • Rising urbanization     • Multi-functional       • This “more than one
                                                  levels are inspiring      products can be used     benefit” approach has
                                                  busy South Korean         to treat a number of     motivated
                                                  consumers to look for     adverse issues in        manufacturers to
                                                  simpler, time-saving      haircare with less       expand and innovate
                                                  beauty regimens. This     attention, time and      in the segment and
                                                  has led to an             regular demands.         introduce plethora of
        Making it simple                          increased demand for                               haircare products
                                                  multi-functional                                   with multiple
                                                  products.                                          benefits.

Source: GlobalData’s Product Launch Analytics
                                                                                                                             17
Trend 3: Make it simple
                                                Examples we like: simplifying the haircare routine

                                       Moltobene Clay Esthe EX Scalp
                                       Essence, South Korea

                                       Moltobene Clay Esthe EX Scalp
                                       Essence is a lightweight essence or
                                                                                Skinfood Peppermint Fresh Scalp
                                       leave in fluid which helps dry as well
                                                                                Relaxing Tonic, South Korea
                                       as oily hair by providing hydration as
                                       well as cleaning the scalp oil
                                                                                Skinfood Peppermint Fresh Scalp
                                       respectively, allowing easy-to-use
                                                                                Relaxing Tonic, a scalp tonic helps in
                                       and mess-free haircare even on-the-
                                                                                cooling down the scalp and removes
                                       go. Most of the consumers think that
                                                                                the buildup from the oily scalp. Scalp
                                       “on-the-go" products helps in being
                                                                                spray such as these, are already
                                       a time savior in the busy world of
                                                                                popular in Eastern Asian countries
                                       millenials, thus this offering may
                                                                                such as Japan, but often targeted for
                                       resonate well with those consumers
                                                                                men. Following this trend, but
                                       giving more attention to the
                                                                                choosing women as a target audience
                                       formulation of the beauty items they
                                                                                is likely to attract many curious
                                       are using as well as being time
                                                                                beauty-attentive consumers who are
                                       effective.
                                                                                after new method of keeping up their
                                                                                appearances without putting much
                                                                                effort. Amore Pacific is the distributor

Source: GlobalData’s Product Launch Analytics
                                                                                                                           18
Trend 4: Targeting the silver segment

                                              South Korean still look to prevent the aging natural process

                                                         What                      Why                          How
                                                         • Scepticism about the    • Pro-aging products         • Haircare brands
                                                           effectiveness of          that highlight or            should therefore seek
                                                           antiaging products        strengthen white or          to engage consumers
                                                           have driven silver        grey hair will resonate      through offerings
                                                           consumers’ demand         well with South              which target specific
                                                           for haircare products     Korean consumers             hair issues such as
                                                           to manage the natural     where it is also crucial     thinning hair, dull hair,
                                                           aging process.            for brands to                and lack of hair
      Targeting the silver                                                           persuade consumers           volume which are
           segment                                                                   about the                    often related to aging.
                                                                                     effectiveness of anti-
                                                                                     aging items

Source: [1] GlobalData 2017 Q1 global consumer survey;
                                                                                                                                              19
Trend 4: Targeting the silver segment
                                            Examples we like: embracing the aging natural process

                                        SanDaWha Revitalizing Liposome            Sulwhasoo      Capsulized Ginseng
                                        Lotion , South Korea                      Fortifying Serum, South korea

                                        A light emulsion of 40 nature-derived     This serum helps in giving a a
                                        extracts and oils designed for aged       noticeable boost in firmness and
                                        skin, this lotion is a part of a beauty   density of the skin helping in skin’s
                                        regimen, promising to defeat the          overall resilience. The final result
                                        wrinkles and firming up the elasticity,   gives a natural and diva like look
                                        leaving a shining final effect.           highlighting and improving the skin
                                                                                  by properly concealing it completely.

                                             Erborian Pate au Ginseng Black       Missha Time Revolution First
                                             Concentrated Mask, South Korea       Treatment Essence, South Korea

                                           This little pot of black gold packed   The "youth prolonging essence" is
                                           with ginseng, one of Korean skin       claimed to be a highly concentrated
                                           care’s beloved ingredients for its     blend of fermented ingredients
                                           brightening helps in tackling anti-    proven to fight the ten signs of aging
                                           aging-related skin problem. The        skin: like dulling, firmness, dryness,
                                           product will entice those Asian        elasticity, porosity, skin irritation and
                                           consumers seeking out a daily          coarse texture. This watery type
                                           solution to treat aging skin.          product helps in hydrating the skin
                                                                                  giving a smooth and brighten skin
                                                                                  tone.

Source: GlobalData’s Product Launch Analytics [1] Independent, 2016
                                                                                                                              20
Index

        1   About GlobalData

            2   The South Korea Haircare Landscape

            3    Innovation trends

            4    Drivers

            5   Opportunities for haircare brands

        6   Looking ahead – where next for haircare?

                                                       21
What is driving the change in consumer behavior?
        A more proactive consumers’ attitude and behavior impact the dynamics of Haircare Industry.
                ‘Brands keeping pace to improve the social interaction with final consumers’

                                        Pressure of social media

                                                                             Holistic approach to
         Image consciousness
                                                                                    beauty

Source: GlobalData 2018                                                                               22
Selfie era driving change in beauty regimen
     Consumers are taking a more holistic     Social media is putting pressure on
      approach to beauty and wellbeing                 hair appearance

     A significant % of consumers
        say they are concerned              Consumers often claim social
      about the impact of diet on           media has made them more
     their health and appearance               self-conscious about
                                                 their appearance
Source: GlobalData 2018                                                             23
Shift from traditional haircare regime towards more
  sophisticated haircare regime
                          Shampoo
                                                                        Pre
                                                                     Shampoo

                                                                               Shampoo
                                                       After Style
                                   Condition

                                               Style                               Condition

                           Style

                                                   Pre style                    Serum

                                                                      Mask

Source: GlobalData 2018                                                                    24
Index

        1   About GlobalData

            2   The South Korea Haircare Landscape

            3    Innovation trends

            4    Drivers

            5   Opportunities for haircare brands

        6   Looking ahead – where next for haircare?

                                                       25
Four key opportunities to explore within this space

                            K-haircare        Customization

                          "Make it smart"   Waterless solutions
Source: GlobalData 2018                                           26
K-haircare is gaining prominence globally
 K-beauty skincare is driving multi-step haircare -- Migrating from the skincare space, the South
   Korean trend is very likely to gain ground among millennials, gen X, and female consumers

                                                                                                    27
K-Haircare Everyone Buzzing About
    K-Beauty haircare is officially a thing - the South Korean trend is very likely to gain ground among
                                  millennials, gen X, and female consumers

                                                                                                Biotin Damage Care Oil Mist

Etude House Silk
Scarf Hair
Treatment

                        Coco-Nuts Hot Oil Hair Mask         Ryoe Korean Herbal Anti Hair Loss Damage Care Hair Treatment

                                                                                                                              28
Consumers like being in control of products they use
  Co-creating and DIY haircare solution is pushing the concept of customization a step further

                                                                                                 29
One size does NOT fit all in haircare
          Co-creating and DIY haircare solution is pushing the concept of customization a step further

                                                                          In South Korea, a new Night Aesthe
                          Pantene Pro-v Daytime Repair Essence is
                                                                         Serum has recently been launched by
                           newly launched in Korea market. It is a
                                                                         Korea P&G Co.,Ltd under the Pantene
                           kind of portable hair treatment that is
                                                                          Pro-V Hair Spa banner. Stated as to
                            easy to take out. It is said that it can
                                                                            "recover the damaged hair while
                          prevent hair snapping, supports enough
                                                                        sleeping“. Nihon Kolmar Co., Ltd. is the
                                  water and protects hair.
                                                                                     manufacturer.

Source: GlobalData 2018                                                                                            30
Tech advances create new innovation opportunities
  In a hyper-connected, technology-enabled society, consumers seamlessly integrate the use of multiple
  technologies into their lives and buying behavior.

Source: GlobalData 2018                                                                              31
Using high-tech to provide tailored haircare solutions
Partnering smartphones with beauty tools            Using high-tech for tailored haircare solutions

   Kérastase, Withings and South Korea’s               Scalp & Hai Polarizing TMS System-TN, South
Samsung electronics group present innovative                               Korea
          technology for hair care
                                                      Hair expert diagnosis and management system
 Provides information on hair quality and            Precisely & Scientifically inspects the various scalp
  brushing patterns                                    and hair related conditions like alopecia
 Measures the force applied to the hair when         Provides hyper-personalized haircare solution
  brushing
 Data sent by Wi-Fi or Bluetooth to users phone
 Offers personalized tips, and Kérastase product
  recommendations

                                                                                                           32
Benefiting from instant results anywhere
       Targeting new “on-the-go” function, companies offer portable packaging and waterless haircare
               formulation to consumers heavily relying on time-saving products and services.

Source: GlobalData 2018                                                                                33
Benefiting from instant results anywhere
                          Targeting time-poor consumers with "waterless" solutions

      The Face Shop Jewel Therapy Cherry Blossom Clear        Kochul Dun Namja - Style Fix Hair Wax - Airy
                           Hair Mist                          Wave; Natural Hard; Perfect Hold; Ultra Hard;
          A dry shampoo with a combination of cherry                          Volume up
       blossoms with five different gemstones helping in
         removing the oily scalp smell. As dry shampoo       Somang Cosmetics Co., Ltd. has recently launched a
       became a global success , many manufacturers are       new Style Fix Hair Wax which is offered in five types:
      competing against each other to differentiate their     Airy Wave, Volume up, Ultra Hard, Perfect Hold, and
                   products from each others.                 Natural Hard

Source: GlobalData 2018                                                                                                34
Index

        1   About GlobalData

            2   The South Korea Haircare Landscape

            3    Innovation trends

            4    Drivers

            5   Opportunities for haircare brands

        6   Looking ahead – where next for haircare?

                                                       35
Looking ahead: where next for haircare?

                                   Tech advancement
    DNA-based haircare                                         Athleisure hair
                                       in haircare

      Individualistic consumers    Offering innovation and   Developing hair products
          seeking haircare         advancement for more         to suit consumers
      products tailored to their      effective results.     leading active lifestyles.
             DNA sample.

Source: GlobalData 2018                                                                   36
Sumit Chopra
          sumit.chopra@globaldata.com

To find out more about GlobalData and other related
            content we offer please contact:
     clientservices.consumer@globaldata.com or
                 +44 (0) 207 936 2700
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