17 Apr, 2020 Staying beautiful and healthy could turn into a new niche industry in APAC amid Covid-19 concerns, says GlobalDataPosted in Consumer
While it is unclear when the impact of coronavirus (Covid-19) will cease, the fear over personal hygiene and the possibility of another pandemic will continue to resonate. Hence, Asia-Pacific (APAC) brands have every opportunity to innovate new marketing and product designs for the beauty and grooming products.
Shagun Sachdeva, Consumer Insights Analyst at GlobalData, a leading data and analytics company, highlights the key trends and developing insights impacting the beauty landscape that are going to impact the production, marketing and sales of consumer packaged goods in the APAC amid Covid-19.
Covid-19 will further drive clean beauty
Covid-19 is impacting cosmetic & toiletries products and therefore, consumers’ approach with regards to efficacy, safety, cleanliness and shelf life. With greater concern surrounding shelf-stability and sanitation across consumer packaged goods categories, the demand for protective personal care products has gone up and consumers are willing to accept brands that provide evidence of efficacy and safety, both from a health and environmental perspective.
According to GlobalData Covid-19 Week 3 Survey, 43% Australians, 74% Chinese and 82% Indians expect brands to provide tips on personal health and wellbeing, while 51% Australians, 64% Chinese and 48% Indians prefer beauty products in the middle to premium price range. The survey highlights that consumers in APAC are more hygiene-focused now and are looking to mitigate the risks involved in the exposure to health challenges.
Covid-19 affects skincare products demand
Covid-19 is a catalyst towards this functionality innovation, with brands facing more pressure to convey safety, longevity and product efficacy. At the start of the outbreak of Covid-19, consumers were applying ‘protect and prevent’ approach in the personal care sector. Antibacterial functionality is majorly shaping innovation in the sector as consumers have become more concerned about the spread of virus. GlobalData Covid-19 data highlights that in week-3, 17% Australians, 47% Chinese and 47% Indians are stockpiling personal hygiene products.
Preventative categories such as soap, hand sanitizers and wet wipes are benefitting from the WHO hand hygiene guidelines. As a knock-on effect, skincare products such as hand creams and moisturizers will also be affected with frequent hand washing seeing a greater demand for hand care products. Therefore, manufacturers have the opportunity to design products that can suit various consumer needs such as antibacterial moisturizer or immunity-boosting lipstick or sprays.
Beauty from Home
The sudden closure of non-essential businesses has caused a disruption to beauty routines as consumers are turning to online beauty home treatments. The APAC brands can capitalize to use this opportunity to revitalize their online offerings, provide e-consultation services and invest in right technology such as chatbots and augmented/virtual reality technology as more consumers seek beauty advice from the comfort of their home.
GlobalData’s Covid-19 Survey Data shows that 66% Chinese, and 56% Indians spend more time browsing social media since the outbreak and more than half of Chinese and Indian consumers are of the same view that they are spending more time reading online product reviews and trends.
Touchless Format Packaging
With escalating obsession with hygiene, cleanliness and immunity among consumers in the APAC and their anxiety, the prevention of germs and other contaminants is driving the demand for safer products with higher integrity. Beauty products that are packaged in ways that mitigate risks of contamination and offer extended shelf life to consumers have been more in demand. Brands can serve to increase consumers’ confidence by utilizing touchless formats such as stick and spray formats and guide them with tips and tricks to cleanse cosmetic products.