International consultancy firm Kearney and Luxasia, a major player in omnichannel brand building in Asia-Pacific, recently published a report on opportunities, challenges and solutions for luxury beauty brands in the Asian region. Southeast Asia (SEA) and India are positioned as their next lands of opportunity.
Southeast Asia (SEA) and India are emerging as the most promising growth markets in the Asia Pacific luxury beauty industry. This is the key finding of a joint report by international consultancy firm Kearney, and Luxasia, a key player in luxury beauty distribution in the region.
“Southeast Asia and India should be on the agenda of all global luxury beauty CEOs, as these markets are poised to lead the next stage of luxury beauty growth,” said Siddharth Pathak, Senior Partner and Head of Consumer Industries and Retail for Asia Pacific at Kearney.
Entitled “Unlocking Hypergrowth in Asia’s Luxury Beauty Sector”, the report, highlights opportunities, challenges and solutions for luxury brands in this fast-growing region.
The figures speak for themselves: the luxury beauty market in ASEAN and India could reach $7.6 billion by 2026, with an estimated compound annual growth rate (CAGR) of 11% between 2021 and 2031. This meteoric growth is underpinned by an almost threefold increase in market size over the past decade. This puts these markets on the cusp of a decade of double-digit growth for luxury beauty.
“To come out on top in a competitive environment, brands must have a coherent strategy to make their voice heard and harness the power of digitization, data analytics and ecosystem support to improve their offerings and overall resilience,” says Siddharth Pathak.
Unique growth opportunities
Unlike already saturated markets such as China, Japan, Singapore and South Korea, ESA and India remain relatively unexplored by international luxury beauty brands and competitive local brands.
“This golden opportunity to seize accelerated growth cannot be missed. New brands must act urgently to secure the platform for growth,” stresses Wolfgang Baier, CEO of Luxasia Group. “Existing commercial brands need to reinvigorate their omnichannel presence, incorporating more operational agility, to better navigate through market evolutions. With its experience, extensive omnichannel network and brand-building expertise, Luxasia is ready to partner with all luxury beauty brands for long-term growth and success in Southeast Asia and India.”
Furthermore, as these economies mature, the number of upper and middle classes is expected to exceed one billion by 2026. More and more consumers are shifting from mass consumption to luxury goods.
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Featured photo : ©Nars
