Asia deemed tough market for beauty subscription boxes
Beauty box subscription businesses in Asia face logistical challenges including a lack of postal infrastructure and widely spaced geographical locations
The beauty box market may struggle to gain market share in certain parts of Asia, according to researcher SGE Insights. In its report, Unwrapping the beauty box industry in Asia Pacific, it says that beauty boxes are becoming popular in Asia but the area also faces logistical issues, including the lack of postal infrastructure in some countries and widely spaced geographical locations. The top beauty box companies in Asia are generating healthy revenue and still growing, taking advantage of a $45.7bn cosmetics market in Asia Pacific (excluding China and India), said the company.
Despite this, the market has faced upheaval. Australia once had at least five competitors fighting for market share but Rocket Internet left the country in March this year, while another competitor, ilovethisbox, has shut down, according to SGE.
However, if logistical problems can be sorted out, SGE believes there is significant growth potential in the Asia Pacific region, partly because providers are starting from such a low base.