Julia Ji Xinyan, Executive Committee member of the Cosmetic, Toiletry and Fragrance Association Singapore (CTFAS), Former Regulatory Consultant/Deputy Director of Health Sciences Authority (HSA) Singapore (left), Zhaoyang Cai, Founding partner of Chaileedo (right)
Customs data shows that in the first three quarters of 2023, China’s exports of cosmetics and personal care products amounted to 34.861 billion yuan, marking a cumulative year-on-year growth of 26.6%. China’s cosmetics exports are thriving.
At the same time, how Chinese cosmetics brands evolve from quantity to quality, and their positioning on the international stage, has become a new topic of this era. During the 2023 FORUM ON BEAUTY ECONOMY AND SUSTAINABILITY, ONE OF ZGC FORUM SERIES OF ACTIVITIES, the “Trends Discussion” column, with a keen eye, interviewed representatives from ASEAN member countries such as Myanmar, Thailand, Malaysia, as well as leaders of cosmetics industry associations from France, Europe, and other places. They dissected global trends in the beauty market and key regulations, aiming to support companies in their international expansion. During the forum, Julia Ji Xinyan, Executive Committee member of the Cosmetic, Toiletry and Fragrance Association Singapore (CTFAS), Former Regulatory Consultant/Deputy Director of Health Sciences Authority (HSA) Singapore, granted an interview to CHAILEEDO.
CHAILEEDO: Singapore is a bustling free port with extensive trade activities. Could you give us a brief introduction to Singapore’s cosmetics market in terms of market size and other aspects?
Julia Ji Xinyan: Singapore itself has a relatively small population, with about 6 million people this year. Despite the smaller population, it possesses strong purchasing power. Singapore serves as a shopping hub in Southeast Asia, attracting not only its residents but also consumers from surrounding countries in the region who come to purchase cosmetics.
The cosmetics market in Singapore is estimated to reach USD 1.2 billion in 2023, with 50% of it attributed to personal care products. My understanding is that personal care excludes makeup and refers more to skincare, hair care, and similar items. Singapore holds a significant share in personal care. Products in this category, such as whitening and sun protection, often carry higher prices. Singaporeans prioritize brands and quality, leading to high sales despite the market not being extensive. According to statistics from the Health Sciences Authority at the end of March this year, there are over 170,000 registered cosmetics in Singapore.
CHAILEEDO: What are the characteristics of Singapore’s cosmetics market?
Julia Ji Xinyan: Firstly, Singapore constitutes an international market. As a regional hub for international companies entering Asia, global brands are widespread, and Singaporean consumers highly prioritize brand value and quality.
Secondly, the local cosmetics in Singapore are characterized by a focus on research and science. Unlike mass-market cosmetics, Singaporean brands specialize in specific areas, such as acne or oily skin, dedicating research to acne treatment and oil control. There’s also an emphasis on natural ingredients. In terms of distribution, local Singaporean brands primarily sell through hospitals, clinics, and medical aesthetic centers, positioning themselves in the higher mid-range to premium category due to their high technological content.
Another feature is that foreign products in Singapore mainly originate from Europe, the United States, Japan, and South Korea. Japanese and Korean products sell well in Singapore, particularly in the personal care category, as they suit the skin tones and textures of Singaporean consumers. European and American products predominantly focus on makeup.
CHAILEEDO: The duty-free shops at Singapore’s Changi Airport are renowned worldwide. However, this year, global travel retail has faced some challenges. What are your thoughts on the cosmetics travel retail?
Julia Ji Xinyan: The impact on global travel retail has been inevitable and Singapore is no exception. However, with the gradual easing of the pandemic’s effects, the expansion project at Changi Airport continues to progress, and there’s now the establishment of a beauty and cosmetics experiential center. I believe that travel retail will recover to pre-pandemic levels, perhaps even surpassing them.
CHAILEEDO: In recent years, with the development of e-commerce and the impact of the pandemic, what effects have been observed on the local consumers’ attitudes toward cosmetics consumption? What notable shifts have occurred?
Julia Ji Xinyan: The main trends manifest in three aspects. Firstly, the proportion of e-commerce channels is continuously growing. According to Statista’s data, it’s projected that by 2023, e-commerce in Singapore will account for 22.7% of the overall market sales volume.
Secondly, consumers are becoming more rational and emphasizing value for money. Previously, they might have disregarded prices and bought high-priced branded products. However, post-pandemic, consumers are expected to be more rational, focusing on practicality and value.
The third characteristic is the growth in home care. Before the pandemic, consumers would purchase products for treatments at beauty centers. During the pandemic, they shifted to buying numerous care products online for home use, leading to the gradual formation of a home care consumption habit. Simultaneously, Singaporean consumers are placing greater emphasis on health.
CHAILEEDO: From your observations, what are the strengths of Chinese cosmetic brands in Singapore? What recommendations do you have for Chinese companies expanding into the Singaporean market?
Julia Ji Xinyan: Chinese cosmetics hold advantages in Singapore from three perspectives. Firstly, there’s a price advantage. China has well-developed upstream raw materials, and many foreign products also source their materials from China. Additionally, due to China’s large-scale production, the production costs for Chinese cosmetics are relatively low, rendering them more competitively priced.
Secondly, there’s a higher acceptance of Chinese products. With over 70% of Singapore’s population being of Chinese descent, Chinese products are more readily accepted and easily promoted among Singaporean consumers.
The third characteristic is the dominance of online channels. While Chinese brands are less visible in physical stores, they are prominently featured online. Chinese makeup brands perform well in online sales, such as brands like Florasis and Perfect Diary.
Regarding Chinese enterprises’ global expansion, there are two main aspects to consider.
Firstly, in product development, China’s strengths lie in traditional Chinese medicinal herbs and natural ingredients. Cosmetics can align with traditional Chinese medicine theories, integrating both internal and external applications. This is becoming a trend, recognizing that while topical effects of cosmetics are limited, true transformation comes from health—beauty stems from health. Post-pandemic, the trend of combining internal and external applications is emerging.
For example, there’s a brand in Singapore that uses natural ingredients. It offers only three products: one for internal use, one for external application, and another for whitening and sun protection (which are combined). This brand performs well in Singapore, primarily selling through medical aesthetic channels. Therefore, I believe there’s a significant advantage in leveraging traditional Chinese medicinal herbs, which other countries might not possess in such abundance.
The second aspect is the brand establishment. China has numerous brands, but they are rarely visible offline in Singapore and other ASEAN countries. Chinese brands entering Singapore or the ASEAN market haven’t achieved the level of household recognition. Hence, building brand recognition might require substantial effort for enterprises aiming to expand globally.
