Sixth Continent Fund’s Post

Have you ever considered how skincare transcends its primary function and becomes a cultural ambassador? 🌏🧴 Take the phenomenal rise of K-beauty, which not only changed skincare routines but also brought South Korea into the global spotlight. This phenomenon goes beyond products; it’s about how a country’s skincare philosophy can influence global trends and cultural perceptions. The care, innovation, and heritage behind each product tell a story - a story of a nation’s values, traditions, and advancements in beauty science. Brands collaborating with cultural institutions, partaking in international events, or even engaging in educational initiatives that don't just market products but also share the rich heritage and science behind them, are furthering this phenomenon. What are your thoughts on the potential of skincare as a soft power tool in the global arena? Share your insights below! 💬 📸 : K-beauty brand Sulwhasoo #beautytrends #beautynews #beautyindustry 

The oldest cosmetic brand wasn't even founded to become one. From starting as a pharmacy to serving as a pioneer, this one teaches how to be a legacy brand! Founded in 1872 as a Western-style pharmacy (Wikipedia, the Free Encyclopedia) Shiseido from Japan is the first cosmetic brand that continues to pioneer the cosmetic world. Here's their journey: 1. Innovation: • First to bring modern science and medicine to Japanese beauty • Merged traditional Eastern aesthetics with Western advancements 2. Keys to success: a) Consistency and commitment to quality b) Revolutionary skincare product development c) Leadership in cosmetic research d) Dedication to high-quality ingredients and effective formulations 3. Best-selling product example: Ultimune Power Infusing Concentrate • Launched in 2014 • One bottle sold every 13 seconds worldwide (shiseido) • Unique formula strengthens skin's defense mechanisms • Demonstrates Shiseido's ability to meet modern skincare needs 4. Global expansion strategy: a) Adapting to diverse markets while maintaining core values b) Blending Japanese heritage with international trends c) Creating products appealing to a broad audience d) Strategic expansions and acquisitions to grow global footprint 5. Shiseido's legacy: • Perfect blend of tradition and innovation • Proof that staying true to roots can lead to global success • Ability to adapt while maintaining quality and heritage Shiseido's story sets them apart in the competitive beauty industry. Their journey from a pharmacy to a global cosmetic powerhouse demonstrates the power of consistent innovation and quality. What other brands have you seen transform over time while staying true to their origins? #Beauty #Industry #Japan #Transformation #Innovation

Established in 1872 as a Western-style pharmacy in Japan, Shiseido is one of the oldest cosmetic brand and continues to lead the way in the beauty world. The oldest cosmetic brand didn't start with cosmetics in mind. Originally founded as a pharmacy, this brand has become a pioneer in the industry and offers a prime example of how to build a lasting legacy. Here’s a look at their remarkable journey: #Innovation: Introduced modern science and medicine to Japanese beauty practices. Combined traditional Eastern aesthetics with Western advancements. #KeysToSuccess: a) Unwavering commitment to quality. b) Groundbreaking developments in skincare products. c) Leadership in cosmetic research. d) Focus on high-quality ingredients and effective formulations. #NotableProduct: Ultimune Power Infusing Concentrate Its unique formula boosts the skin’s defense mechanisms. Highlights Shiseido’s ability to address contemporary skincare needs. #GlobalExpansionStrategy: a) Adapting to various markets while upholding core values. b) Merging Japanese heritage with global trends. c) Developing products that appeal to a wide audience. d) Strategic growth through expansions and acquisitions. #Shiseido’sLegacy: A perfect mix of tradition and innovation. Demonstrates that staying true to one's origins can lead to worldwide success. Adapts to change while preserving quality and heritage. Shiseido’s evolution from a simple pharmacy to a global beauty leader underscores the impact of consistent innovation and dedication to quality in achieving lasting success. Piyali Roy Oberoi

🔘 International beauty news Look at the trend | POLA parent company will enter Southeast Asia in the next three years 1. Hig Capital fund has begun selling 62.5% of Acqua & Sapone, Italy's largest personal hygiene, perfume and household cleaning products chain. 2. According to data from beauty trend tracking company Spate, Typology and MCoBeauty are currently the cosmetics brands with the fastest growing search volume in the United States. 3.U.S. beauty brand Bath & Body Works’ fourth-quarter fiscal 2023 earnings exceeded Wall Street expectations, with net sales of $2.9 billion, a year-on-year increase of 0.8%, and net profit of $579 million. 4. Chantecaile, owned by German personal care giant Beiersdorf, plans to launch in China in the third quarter of this year as it seeks to resume growth after a difficult 2023. Chantecaille is a French luxury beauty brand founded in 1997 by Sylvie Chantecaile. 5. Japanese beauty company Pola Orbis Holdings will expand into Southeast Asia within the next three years to tap its booming prospects. It outlined plans to establish a "new strategic region" in Southeast Asia, highlighting it as a "promising market", especially with the luxury beauty sector poised to gain momentum.

Both L'Oréal Group and Estée Lauder Companies have invested in local Chinese fragrance brands, namely To Summer, Documents and Melt Season recently. Why is that?   📈 Attractive growth opportunities: the Chinese fragrance market is forecasted to see compound annual growth of 13.4% between 2023 and 2027.   💢 International giants value learning local insights from these nimble Chinese brands, as they can capture nuances in local consumer tastes and behaviour much better and quicker. 💮 Niche high-end Chinese fragrance brands are extremely innovative and have taken a different approach from traditional fragrances. They found a creative route to success, offering perfumes like Triple Tea, Cedarwood, ink, wood and incense. Cleverly incorporate ingredients catering more to Chinese culture. 🏆 Beauty groups apply the local market insights learned from these niche brands to their strategies to enhance their portfolios in China, it is a priceless long-term benefit from the deals! 🎯 These modern Chinese M&A targets also have the potential to expand into international markets eventually. We won't be surprised to see more and more Chinese brands going international after TikTok and SHEIN, and I am happy to see quality Chinese brands taking the stage! #china #chinabusiness #brand #lorealgroupe #esteelauder #luxury #internationalbusiness #businessoffashion #acquisition

Will Shiseido repeat the mistakes of Amore Pacific? Japan Beauty Group Shiseido Co.Ltd. Shiseido released a plan to encourage early retirement of Japanese employees on Thursday, involving 1,500 people, accounting for about 3.7% of global employees. Although this is not surprising in the context of the general slowdown in growth of the cosmetics industry, the market is more worried about the company's prospects due to the higher proportion of China's sales and the recent nuclear wastewater incident. In 2017, Korean makeup was getting better and better in China. The Korean makeup giant Amore Pacific grew wildly, but the THAAD incident affected a large number of South Korean companies. The high-end trend of the Sino-US trade and beauty industry that followed further hit the group's business in China. In addition, it failed to follow the live broadcast trend. More and more, it has not recovered its vitality so far. Shiseido's current situation in the Chinese market is quite similar to that of Amore Pacific, but the epidemic is in the front, and the nuclear wastewater and consumer markets are sluggish. The comparable sales of Japanese companies in the Chinese market plummeted by 21% in the fourth quarter, which dragged down the overall sales decline of 5% for the whole year, but benefited from reduced costs and recorded an operating profit of 7 billion yen for the whole year. A loss of 3.9 billion yen in 2022. Shiseido expects the Chinese market to resume 5% growth in 2024, but it continues to bottom out in the first quarter. However, compared with Airlie Pacific, Shiseido has better product portfolio positioning and regional market balance, especially the group's high-end brands and European and American brands, which will offset macroeconomic and regional risks to a certain extent. The Chinese market accounted for 25% of the group last year. Coupled with the contribution of Chinese consumers to tourism channels, it is more dependent on the Chinese market. In the past few years, the group has invested heavily in the Chinese market in order to compete with competitors for Chinese market share, resulting in low profitability in the Chinese market, and even a large number of quarterly loss performance. Last year's sales decline and profit growth also showed the brand's strategic changes in the Chinese market. In the future, the company will continue to face the choice of weighing the growth and profitability of the Chinese market. In addition, the gap with competing competitors is widening. In addition, local brands are also rising, which is huge for Shiseido.

In 2023, global beauty giants faced tough challenges in China. But in 2024, some international brands revamped their strategies to keep up with market changes. Past Success: For 20 years, global brands chased opportunities in China driven by market growth," said Jacques Roizen, Managing Director at Digital Luxury Group. "Historically, understanding China wasn't necessary. It was like a cash machine." Transformation: Just visiting China a few times a year isn't enough. Brands must adapt strategies, focusing on existing market share and empowering China-based teams for quick decisions. Success Stories of 2023: Proya saw a 32% revenue growth and topped Tmall's Singles' Day sales. L'Oréal achieved 5.4% sales growth by leveraging local supply chains and innovative marketing. Countermeasures: Keep innovating to address consumer needs. L'Oréal collaborates with relevant celebrities to upgrade products based on Chinese consumer needs. Successful cases of 2023: Proya tapped into social media trends, sparking the "Morning C, Evening A" craze. L'Oréal's Age Perfect Collagene Royal Cream became Tmall's bestseller with "recombinant collagen" trending. So, what's your taking ? Do you have confidence in Chinese beauty market in 2024 ? #chinesemarket #consulting #beautyindustry #branding #marketing #strategicbranding #skincare #china

Mid-Priced Cosmetics on the Rise in Japan: A Unique Opportunity for Global Brands 💄 As rising prices and a weakened yen continue to affect Japan's economy, new data reveals that Japanese consumers are shifting towards mid-priced cosmetics. While high-end beauty brands are facing increased competition, mid-priced products are gaining popularity, with 60.6% of consumers recognizing their ideal balance between price and quality. For international sellers, this shift presents an exciting opportunity. With more Japanese consumers looking for affordable yet high-quality beauty products, now is the time for global brands to enter the market or expand their offerings in the mid-price segment. Japan’s demand for skincare and beauty products remains strong, despite the economic challenges. By offering products that align with consumer preferences for both quality and affordability, international brands can tap into this evolving trend and make a significant impact. 🌐 Opportunities for International Sellers: ・　Expand into the Japanese market with mid-priced, high-quality products. ・　Meet the growing demand for affordable cosmetics with functionality. ・　Stand out by offering value-driven beauty solutions that cater to both budget-conscious and discerning consumers. At COVUE, we specialize in helping international brands navigate Japan’s unique market trends. Let’s connect to explore how your brand can succeed in this dynamic environment. #JapanMarketEntry #CosmeticsIndustry #BeautyTrends #MidRangeCosmetics #InternationalSellers #GlobalExpansion #COVUE #Ecommerce

CHINESE BEAUTY MARKET: LESS LUXURY, MORE FUNCTIONALITY The beauty market in China is known for being dynamic and ever-changing. Major groups like L'Oréal and Procter & Gamble are shifting their focus from luxury to functional products in response to these trends. 🛍️ Faced with increasingly practical consumers who prioritize quality and functionality over brands, the response can only be to emphasize the concrete benefits that products provide. Conclussions from China Daily's: "Beauty giants adapting to Chinese preferences." This trend toward consumer sophistication, which we have observed over the past few years, presents an opportunity for repositioning products and messages—a strategy that is already being implemented by major groups. In L'Oréal's case, despite the challenges of the Chinese market in 2024, the company is seeing relatively better results with its more functional brands, SkinCeuticals and CeraVe. Having a differentiated brand portfolio and segmentation of messages and audiences allows these large groups to naturally pivot as the market shifts. As we have pointed out, the Chinese market is highly dynamic. 📈 Procter & Gamble, on the other hand, is experiencing a 9% decline in China in 2024, driven by the poor performance of SK-II, but is seeing an increase in its baby care line. For these large groups, diversification allows them to better manage the ups and downs of the Chinese market. However, these shifts also present opportunities for smaller, niche brands. Currently, the use of unique and natural ingredients is being rewarded in the market, along with a specialized positioning based on product utility. A market that is less brand-centric in luxury could actually be good news. 🌱 But less focus on branding doesn't mean less emphasis on marketing, as marketing will remain key and will once again benefit those with more resources and distribution channels. In the end, it’s more about a change in messaging rather than a reduction in the amount of messaging. If you are looking to position your beauty brand in China, we are here to help. Contact us and discover how we can drive your success in this highly competitive market. #ChinaMarket #ChinaBusiness #EcommerceChina #ChinaGrowth #ChineseConsumers

As an all-encompassing discussion of the industry present and future, the #FUTURE50 panel lineup wouldn't be complete without an expert-driven talk on the second-largest beauty market: China. Home to some of the most innovative brands and retail concepts, the region remains an intriguing landscape, but with slowing growth and struggles for international brands, growth doesn’t come easy. John Cafarelli, President of BeautyMatter, spoke to GABBY YJ C., President of Global Expansion, Florasis; Xiaofeng Gu, Head of Jing Intelligence, Jing Daily; and Charles Denton, Chairman of ERNO LASZLO, about the realities of entering and prospering in an increasingly competitive market, which is set to hit $96 billion by 2027, according to McKinsey & Company. Discover the key takeaways: https://lnkd.in/eXMT5PUu #BeautyMatter #beautyindustry #beautybusiness #china