Sell out Southeast Asia’s domestic beauty products has opened up a path to the sea, Lazada’s shared operation

Lazada's shared operation sells domestic beauty products in Southeast Asia, creating a path to the sea

Based on the local geographic, climatic, cultural, and demographic factors in Southeast Asia, beauty-seeking Southeast Asian women have more diverse pursuits for healthy skin and delicate makeup. From ingredient efficacy, style and color, to price and logistics, all must be carefully considered. Specifically, from the perspective of overall aesthetic concepts, different countries in Southeast Asia have different customs, habits, and cultures, and diverse aesthetic pursuits require brands to work on product localization. In addition, ingredient efficacy properties and demand for setting products have become significant trends. Meanwhile, Southeast Asian consumers are mostly “fashion leaders followers” and “cost-effectiveness pursuers.”

1. Diverse aesthetic pursuits Although Southeast Asian countries are often lumped together, due to differences in economic development levels, religious and cultural differences, different countries’ consumption habits and preferences show their own characteristics. Filipino consumers pursue “fair skin is beautiful” and are the highest users of skin whitening products in Asia. They also prefer European and American styles in makeup, and are keen on using products such as eyeliner, eyebrow pencils, and contouring. Vietnamese people, with generally fairer skin tones, are deeply influenced by Japanese and Korean cultures, and prefer refreshing and translucent makeup bases, natural color eyeshadows, and bright lip makeup. They also focus on sun protection and choose natural ingredients for skin care. The “Thai makeup” emphasizes a creamy skin-like makeup base, along with striking thick eyebrows and European-style long eyelashes. In Malaysia, influenced by religious and cultural factors, local consumers tend to use cosmetics that do not contain alcohol or animal ingredients. Singaporeans are more willing to pay for products with interesting stories and novelty. Therefore, before entering Southeast Asian countries, brands need to conduct thorough market research. Based on their brand positioning and product characteristics, they should offer different products for different markets.

2. Preference for ingredient efficacy and setting products In recent years, influenced by the COVID-19 pandemic and the concept of sustainability and environmental protection, more and more Southeast Asian consumers have gradually become “ingredient party” who pay attention to functional efficacy. In the Malaysian market, as more and more consumers realize that long-term use of chemical substances can damage the skin, the demand for natural and organic skincare products has significantly increased. Secondly, Southeast Asian countries are located in tropical areas near the Asian equator, with most areas having summer-like temperatures and high humidity throughout the year. For example, the average temperature in Thailand is consistently high all year round.

At around 27 degrees Celsius, the highest temperature can reach over 40 degrees Celsius. For people living in tropical climates, their skin is always wet and sweaty, and their strong demand for beauty products is long-lasting makeup. Therefore, various waterproof and sweat-proof products such as waterproof mascara, long-lasting cushions, non-smudging eyeliner, and setting sprays are popular on Lazada.

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3. Grass planting marketing conquers “fashion leader followers” Southeast Asia is still a young land. The average age of Southeast Asia’s 660 million population is only 28.8 years old, and consumers under the age of 19 account for more than 30%, while the 20-54 age group accounts for nearly half of the total population. The popular culture that young people are passionate about also affects their choices of beauty and skin care products. The endorsement and recommendation of popular artists, popular film and television actors, Korean K-POP stars, and KOLs (Key Opinion Leaders) on social media can bring new aesthetic inspiration to young people in Southeast Asia. The endorsements and recommendations of “fashion leaders” can quickly make a product or brand popular, and their commercial appeal should not be underestimated. This characteristic determines that many domestic brands focus on social media “grass planting” when entering Southeast Asia.

4. “Cost-effective pursuers” who love free shipping. Price is the most important information for them. When choosing beauty products, discounts, promotions, and prices are also key considerations. Compared with European and American brands, Chinese brands are often more affordable, and compared with popular products in Southeast Asia, Chinese brands have a slight advantage in safety, diversity, and efficacy. “Cost-effectiveness is king” may also be a breakthrough for Chinese cross-border beauty and skin care to enter the Southeast Asian market and find brand differentiation. In addition, “free shipping” is very important. Lazada’s Southeast Asian e-commerce research report shows that 84% of consumers have used Lazada’s free shipping coupons, and 75% of them are satisfied with the coupons. In addition, Lazada’s data shows that during the recent Double 11 promotion, cross-border merchants participating in the free shipping project brought GMV (Gross Merchandise Volume) through free shipping coupons during the D11 promotion period, which was more than 9 times higher than usual. Joining Lazada’s free shipping plan can greatly improve traffic and conversion rates, which is particularly important for beauty merchants. Lazada’s brand day activities create exclusive display space and various promotional activities for consumers, effectively increasing the number of new users and brand awareness. “Lazada Super Brand Day” can attract up to 160% new users compared to non-promotional days for merchants and bring a 25-fold increase in GMV. As early as 2019, Lazada’s live broadcast platform “LazLive” has been launched, and more and more Southeast Asian consumers are gradually familiar with and accepting live broadcast e-commerce. The Southeast Asian beauty and skin care market is still a “blue ocean”, and the strong and diverse demands of consumers are waiting to be met. It is expected that the scale of the Southeast Asian beauty and cosmetics market will reach 304.8 billion yuan by 2025, with a compound annual growth rate of 9.3%. New consumer trends are constantly emerging. While domestic brands are entering the Southeast Asian market step by step, they can take advantage of China’s strong supply chain to achieve rapid replenishment. For example, nail stickers costing 1-2 US dollars, nail glue and mascara costing 1-3 US dollars, and eyebrow pencils costing 1-5 US dollars are all market gaps that need to be filled urgently. Whoever gets the user gets the market. We hope that our merchants will be able to conquer hundreds of millions of Southeast Asian consumers with more beauty and skin care products.

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