The beauty industry was on tenterhooks at the start of Cosmoprof Asia (11-13 November 2009) but any fears were allayed as the event showed once again why it is the premier event for the beauty industry in Asia. Emma Reinhold reports
Even in the direst moments of an economic downturn it is always possible to find an exception to the rule, and while the rest of the global beauty industry continues to struggle under financial hardship the market is Asia looks to be riding high. The extent of the region’s resilience to the recession and its potential for C&T growth was put to the test at the recent Cosmoprof Asia show, which despite the challenging economic conditions was hailed as an ‘incredible success’ by organiser SoGeCos.
“Not since the 1930s have we seen such economic problems but Asia is holding up very well,” said Cosmoprof Asia director, Michael Duck speaking at the opening of the show. “Currently Asia is the place where people want to spend their money and interest has remained very high for the cosmetics market in Asia.”
Set in the newly extended Hong Kong Exhibition Centre and against the backdrop of Asia’s financial hub the show welcomed 41,000 visitors from across the Asian region and beyond. The figure represents a 4% increase on the previous year, and a record 8% increase in international visitors, most notably from Europe, the Middle East, North America and Asia Pacific. Pre-registration figures were also up on 2008, according to Duck.
The event this year featured an expanded show floor, spread out over 52,000sqm and providing an extra 2% of exhibition space, as well as enabling organisers to create more clearly defined show areas that were easier to navigate for visitors.
And despite fears of a drop in exhibitor numbers, the figures actually jumped 4% to 1,412 companies. Laura Zaccagnini, SoGeCos international strategy manager, explained that the financial downturn prompted many exhibitors to delay their confirmation for the show until later in the year.
“Many companies were unsure about participation in 2009, only confirming their presence later in the year, but companies are now in a better position to make medium term plans than they were 12 months ago,” she said. “Companies see Asia as a priority right now and they want to be here. In the current economic circumstances Asia is more resilient than the rest of the global beauty market.”
Cosmoprof Asia prides itself on covering all aspects of the health and beauty industry, from raw materials and packaging to spa and hairdressing equipment, and despite the varied mix on offer exhibitors and visitors were united in their theme of creating and maintaining business relationships. To this end show organisers SoGeCos offered a number of services to optimise these trade opportunities.
New for 2009, the Buy OS programme was created to enhance links between exhibitors and potential buyers. Exhibitors were encouraged to invite prospective buyers to the show as well as finding out which of their prospective buyers had pre-registered so meetings could be arranged. Duck said that 200 exhibitors were participating and had nominated over 400 buyers.
The support of trade commissions and other government bodies has taken on enhanced importance in the current economic climate and the number of buyers participating with help from these bodies was as high as ever. Australia had a particularly strong presence, as in previous years, with the Queensland trade commission bringing 25 delegates while Austrade brought 225 buyers from Asia Pacific countries, according to Duck.
The number of countries taking exhibitor space for small and medium sized companies also grew. The show saw 18 national and group pavilions, including the inaugural Polish pavilion.
Other highlights of the show included the International Buyer programme, which this year focused on the Indian, Russian and Chinese markets; the annual spa conference, which discussed among other things how spas can survive in a challenging economic climate; the Babyliss Pro Asian Tour grande finale; along with the official press launch of OPI’s new spring/summer nail collection, Hong Kong. The event, said OPI ceo George Shaffer, was the first time the brand has held a collection premiere outside the US.
COMPETITIVE ADVANTAGE
The relocated Pack area, housed in the new extension of the exhibition centre, featured packaging suppliers and contract manufacturers from across the globe. The extra space enabled the organisers to divide the show into two halls, one featuring the larger premium and international packaging companies, with the other dedicated to smaller exhibitors, mainly focusing on contract manufacturing.
“There is a presence at the show of more suppliers of contract manufacturing from Asia because so many more companies are outsourcing here right now,” explained Zaccagnini.
As with other recent trade shows, there were a number of high profile absences from the exhibitor list but those companies who chose not to take stands were seen walking the floor.
The new layout was largely met with great enthusiasm. “We are having a really good show – the new layout is easy for visitors to walk around and we are seeing all our customers coming back to the show,” said Trista Lin, from Tonnie Cosmetics’ sales department. “There are a lot of international visitors here mainly from the US, Europe and Africa, particularly west and South Africa.”
The contract manufacturer was promoting several new full service lines including a new range for teenage consumers, comprising products for eyes, lips and face.
The sentiment was echoed by Molly Fang, public relations officer MWV (Shanghai). “The show is very international and we are seeing a real mix of visitors.”
On the show floor, packaging exhibitors noted a definite shift away from the green eco theme which has dominated previous shows towards greater focus on innovation and value for money.
“People have not been mentioning green, it’s been more about innovation and quick fixes to get to market fast,” said Jackie Mantle, md, HCP Packaging UK. “Customers have been coming to us asking what we’ve got. There is certainly more reliance on the supplier to provide the innovation and in 2009 we have had to work harder for less products, but that said we have been extremely busy at the show.”
HCP introduced several new products to the Asian market including a Push Pull lipstick, featuring two lipstick products in one compact, as well as promoting its latest partnerships in the region, including opportunities for innovation in tube technology thanks to a new partnership with Wanhui Plastic Company.
Innovation was also a priority at FS Korea, which showcased some unusual colour cosmetics packaging solutions, including an eyeshadow compact shaped like a Rubik’s Cube. Other innovations included a loose powder compact housed in a ring, which can be applied to the skin without any spillage.
“Korea is in-between Japan and China so not only do we have competition on product innovation, we have the issue of price,” explained sales manager Brandy Baik. “This is a very difficult situation for us as we can’t compete on price. The solution is to innovate. Buyers are always asking us for new concepts and we are delivering with innovation rather than focusing on price. This is a different direction from most of our competitors but by concentrating on innovative products we hope to win new business this year.”
Baralan’s Marco Predan agreed: “Price is still very much an issue in Asia. People are looking for low price, high quality and fast service,” he told SPC Asia. “The onus is definitely on the supplier at the moment. Very few people are coming to us with an actual idea – it’s much more conceptual. Interestingly China is also changing its strategies – they are ready to think for themselves now so there is no need to copy Europe. Europe needs to realise this. We have lost the war on price so we cannot lose our advantage with quality and innovation.”
GREEN LOOKING GOOD
While demand for green and eco-friendly products may have dropped off in the packaging sector, in the retail and distribution area, the trend was as strong as ever.
“Natural and organic is still the most requested thing at the show,” explained Celestine Hade, director of Australian spa and toiletries company, Botany. “It’s a popular proposition for both spa and retail beauty, and a natural positioning is globally popular.”
Hade said the company’s focus for the show was to increase brand awareness and look for large distributors on China.
“This is a market we are keen to get into and I’ve had some interesting meetings at the show. This has become a really international show and I’ve also seen a lot of Europeans here,” she said.
US nail specialist Essie also had an Asian focus, whilst promoting its latest launch, Naturally Clean, a five sku line of nail care products containing natural ingredients. Products include a hand sanitiser containing antiseptic eucalyptus oil and a hydrating nail polish remover.
“Although we are already an international brand we decided we need to focus more on Asia,” said director of sales, Altabianca Lombardo. “This is our first time at the show and I’m pleased with the contacts – they are better than I thought, although I am surprised there are not many Koreans or Japanese here.”
Japanese skin care specialist Aska also tapped into the continuing popularity for natural products, promoting its new organic line, Organic Mission. The range includes a facial wash, hydrating lotion and moisturising cream and is targeted at women aged 30-40.
“Even though the economic crisis is ongoing, women are prepared to pay more for a product they believe in and feedback on the product has been very good,” said Kensuke Watanabe, Tokyo branch office president, Aska.
Alongside the natural trend, cosmeceuticals were also a popular product offering. Korean company NeoPharm, whose product portfolio includes Atopalm, a line of care products for atopic skin, and Dr MLE, a technology driven skin care line, was present at the show to expand its distribution into Europe.
“The atopy market is expanding and we want to take advantage of this,” said Daniel Lee, assistant manager, overseas marketing. “I am really impressed with the number of people enquiring about us at the show. This is no longer a show just about Asian distribution, you come here to do international business.”
Similarly, fellow Korean derma company Have & Be found the show to be very useful and the activity around its stand was continuously buzzing. The company promoted its Dr Jart+ cosmeceutical range and was said to have interest from Asia and the US. “The show has been so busy and we have not stopped for the whole three days,” said assistant manager, international business, Serah. “We have given away all our samples and people are still coming to the stand asking for more.”
Despite a slower take up rate by exhibitors, the general opinion was that the 2009 edition of Cosmoprof Asia was a success. Zaccagnini is confident that the momentum can be taken forward into 2010.
“The good news is that we are seeing lots of companies enquiring about exhibiting at the next show, particularly from Europe,” she said. “The feeling for 2010 is much more positive and we hope this will continue right through until the show in November.”