Thant Zaw Ko, Vice President of the Myanmar Cosmetics Association (middle), 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, Thant Zaw Ko, Vice President of the Myanmar Cosmetics Association, granted an interview to CHAILEEDO.
CHAILEEDO: The total value of cosmetics exported from China to RCEP member countries in 2022 significantly increased to $1.51 billion from $980 million in 2021, marking a notable 53.8% year-on-year growth. RCEP member nations are gradually becoming the primary destinations for Chinese cosmetics exports. As one of the member countries, Myanmar, could you provide an overview of the cosmetics market in Myanmar, such as market size, major brands, and other essential aspects?
Thant Zaw Ko: In ASEAN country we are eleven countries. So those 11 countries’ populations have 600 million of population, so according to last year’s Euromonitor, the total cosmetics market size in ASEAN is 33 billion dollars.
So that is all around the ASEAN country, eleven countries at 33 billion dollars by market size. So, according to the Euromonitor. We have about 1 billion USD market size in Myanmar.
Over 70% of cosmetic products are imported into our nation, whereas over 20% are local (77% vs.23% in 2021). Every year, the amount of imported cosmetics increases by almost 11%.
Myanmar has been importing a lot of cosmetics from China, Korea, and Thailand. Teenagers adore using Korean and Thai products that are influenced by Korean and Thai celebrities and films. Currently, the two countries that export the most cosmetics to Myanmar are Thailand and Korea. So just as I mentioned to you Myanmar has the 1 billion USD market size. Unilever and P&G are the major international brands in Myanmar.
As for the local brand, in Myanmar, it is a little bit different from other countries. As for the local brand in Myanmar, we call it the traditional herb cosmetic called Thanakha. Thanakha takes a lot of market share for local people. They are using the local Thanakha.
Thanakha is a paste made from ground bark. It is a distinctive feature of the culture of Myanmar, seen commonly applied to the face and sometimes the arms of women and girls, and is used to a lesser extent by men and boys.
CHAILEEDO: And the next question, the theme of this conference is the regulatory aspects of the cosmetic industry. If an international brand intends to enter the Myanmar market, could you please outline the legal regulations that need to be considered?
Thant Zaw Ko: Okay, I will tell you just now, I already explained to you all ASEAN countries followed by what we call the ACD, the ASEAN Cosmetic Directive. Like Myanmar, we are following the ACD and the CSR, country-specific requirements. So, when it comes to the product, anywhere their beauty products to Myanmar, they must follow the ACD guideline and local regulation guideline, CSR.
So there is a regulatory body with three things they are doing. One thing is prior market control and post-market control, community awareness. When you submit a thing like a notification for your product in Myanmar, you must follow the ACD guidelines to Myanmar and CSR guidelines.
The ASEAN Cosmetic Directive (ACD) is a Regulatory framework that governs the manufacturing, importation, and selling of cosmetics in the Association of Southeast Asian Nations (ASEAN) region. The member countries of ASEAN include Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. The Directive was first implemented in 2008 to harmonize cosmetic regulations across the ASEAN member countries and ensure the safety of cosmetic products available in the market.
CHAILEEDO: In recent years, how has the development of the internet and the impact of the pandemic influenced local consumer attitudes towards cosmetics? What notable changes or shifts have occurred?
Thant Zaw Ko: Before and after the pandemic, different for their lifetime. Before the pandemic, many people go to the shop and buy cosmetics and other things. But in the pandemic time, most people cannot go to the shopping center, and they can buy from the Internet.
After the pandemic, online sales grew more than 200 hundred percent. They were not the Alibaba group, they called their Lazada and JD.
Now we are used to their online meeting or online shopping or used to be compared with the last time. Last time we were not used to online shopping and now used to be. That means after the current situation many people are using online.
Digitalization has achieved a lot. So one important thing changed by the e-commerce. Secondly, they change their lives. They were advertising social media. We call social media marketing that is very huge and a lot. Especially what they are doing in TikTok. Most people have TikTok accounts, the number is about 25 million. Even more now, that means digitalization is working after the pandemic.
CHAILEEDO: So we also have another question, is what are the features of the Myanmar or ASEAN cosmetic industry? Like in China, we have a significant growth in skin care and more than the makeup. So what are the features of Myanmar or ASEAN?
Thant Zaw Ko: We are going to be more natural. There has been a change in the past, not only in Myanmar but around ASEAN countries. We’re changing a lot. We have seen 600 million people, right? Half of the people are Muslim. That means that if your product not satisfying my Halal you cannot set the product in those countries that hold a specific requirement.
And Cosmetics will be more natural. Consumers in Myanmar are also drawn to natural substances because they think they will be kinder to their skin and hair than other chemicals. A lot of cosmetic companies have started utilizing more natural ingredients, such as Myanmar’s Thanakha, and conventional herbs, some of which are also utilized in conventional medicine.
CHAILEEDO: Any advice you want to give to Chinese brands if they want to go to the ASEAN or Myanmar?
Thant Zaw Ko: Myanmar any opportunities you see for every China is due 1.5 billion in last year. They have room to go in so that they see each other. One thing is that they must understand that.
There are guidelines for cosmetics detection, so we are not familiar with the Chinese regulations that we are already in the book for one country, not one country. If you make the guidelines of the ad so our country will require only the common, we welcome to come in the country, our market is very huge, so you can come in.
