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Luxury beauty brands shift focus back to brick-and-mortar retail in SEA

Consumers today prefer trying multiple products in person, an expert said.

Southeast Asia is witnessing a significant resurgence in physical retail, particularly in the luxury beauty sector, as brands collaborate with omnichannel retailers to enhance their market presence.

Jaya Dandey, consumer analyst at GlobalData, highlighted that the premium beauty market in Asia is thriving due to robust consumer demand, innovative retail strategies, and a growing focus on personalised shopping experiences.

“The high single-digit growth rates of prestige beauty categories is notable even in the context of broader retail performance, where beauty products are often seen as high-margin categories that outperform other areas such as food sales,” she said.

Tim Hill, key account director for Southeast Asia at GlobalData, also emphasised the changing expectations of consumers. “Consumers are becoming more discerning, not only regarding product quality, but also in terms of the shopping experience,” he said. “They like to try multiple products in person before making an informed choice, especially in the premium domain where prices can run high.”

Hill also pointed out that many brands face infrastructure challenges but can overcome them by partnering with omnichannel retailers.

Integrating online and offline shopping experiences is essential for success, according to Hill. 

He said that Southeast Asia's upper middle class is increasingly willing to spend on luxury beauty products, driven by greater awareness of international brands and higher disposable incomes. 

A GlobalData survey indicated that whilst 25% of consumers value low prices, a significant 34% prioritise high-quality ingredients.

“By returning to the essentials of the beauty industry—where sensorial experiences are paramount—brands can cultivate customer loyalty in a competitive market,” Dandey said.

“As the premium beauty sector evolves, embracing omnichannel strategies and personalising experiences will not only ensure success but also foster enduring relationships with discerning consumers, shaping a vibrant future for beauty retail,” she added.

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