The cosmetics business, which encompasses items for male grooming, skincare, personal care, scents, and beauty, is healthy and growing. As customers demand inventiveness in their cosmetic and personal care goods, the beauty industry and the brands that support it are becoming more inventive.
Many cosmetic businesses begin to expand their presence abroad as native regions become more difficult to govern.
Global cross-border payments revenue was anticipated by McKinsey to be 0 billion in 2018, up 4% from 2017.
Similar to this, Forrester predicts that between 2017 and 2022, cross-border transactions would grow at a compound pace of 17%, outpacing domestic transactions.
Simply said, more cosmetic and personal care companies are expanding internationally and will do so in the future.
Additionally, cosmetic firms are well-positioned to expand internationally due to their very compact, lightweight goods.
Jurlique, an Australian skincare company, revealed plans for a production facility in 2018 to support their international development, primarily in the Asian beauty sector.
Glossier finally crossed the water in late 2019 and began selling in the UK and France after years of pleading from fans.
It adds to the exclusivity when other brands, like Rhianna’s Fenty, only sell in a select few retail locations when they first launch in the UK.
Therefore, it is statistically shown that cosmetic businesses expand into international countries in order to increase the size of their client base.
The danger is substantial for a brand of nearly any size, though.
You may help reduce the risk and expenditure for growing your cosmetics business globally by using industry data and the experiences of firms that have gone before you.
Here are some crucial factors to take into account:
Know your objectives while marketing for beauty.
Without a clear strategy for how to grow beauty businesses globally, you’ll waste money and end up moving in the wrong direction.
It’s crucial to maintain your long-term goals in mind as you work toward your short-term objectives since success won’t happen quickly.
Direct-to-consumer firms won’t be putting their goods on store shelves, but rather encouraging consumers to speak about and connect with their brand, discuss important societal issues like body acceptance, and make purchase decisions.
Your objectives will also alter if you’re selling to merchants.
You may break down your growth into smaller, more manageable goals by using numbers like “in 1500 retail outlets by Christmas” or “500 social media mentions by the end of June,” which will make the bigger aim simpler to reach.
Consider obtaining 500 social media mentions as an example.
Local influencer marketing may be used to do this, like Glossier did when entering France and the United Kingdom.
By bringing active members of the UK community out to lunch and getting them to fall in love (and subsequently support) the brand, the Glossier team gained first momentum in the country.
This increased discussion about Glossier on social media, the brand’s most successful acquisition channel, and helped it develop a community.
Glossier was able to reduce risk during its worldwide debut because to these well-defined goals, which also made achieving them simpler.
Know your markets as well.
Knowing the market you’re entering and the regional patterns is the first step in risk mitigation for your global growth.
Asia
China is the world’s largest market for skincare products and the second-largest market overall for cosmetics. Within the Gen Z market for beauty goods, there is unequaled interest and engagement.
Asiatic beauty promotion
The Asian/Pacific beauty and personal care market was valued around USD 141 billion in 2016.
- Skin lightening products are among the most widely used cosmetics (South East Asia)
- non-fragranced goods (Hong Kong)
- mellow makeup hues (Japan)
- Supplements for cosmetics.
The Americas
In 2019, the North American cosmetics industry had a value of slightly about $50 billion. A territory this size is undoubtedly quite dynamic, with patterns shifting often.
The need for natural, eco-friendly, and organic cosmetics in equally eco-friendly packaging is a constant among consumers of beauty products.
Popular cosmetics include:
- Products with certifications, particularly those with eco, organic, and ethical labels
- items with a focus on health
- Tattooed skin, damaged skin: niche items
- Limited edition, exclusive goods
Europe
The UK, Germany and France make up the majority of the European cosmetics demand, with their ecommerce industries ranking 3rd, 5th and 6th largest in the world respectively.
Popular products are similar to the US, but the sales channels are different.
Popular beauty products include:
- Protective products ‘Spa’ and treatment products
- modern technology and innovation
South America
Men’s skincare is growing in popularity globally, but in Latin America can’t be stopped.
Men and women in Brazil both show a preference for premium European cosmetics.
Men’s skincare and grooming products are some of the most well-known cosmetics.
Latin America
Haircare in Latin America, for a wide range of hair types.
goods created especially for their area.
Supplements for cosmetics.
Arab World
The Middle East shouldn’t be disregarded because it accounts for 6% of the global cosmetics market and has the highest per-capita expenditure in the world.
Popular cosmetics include:
- scents that may be customized
- a range of colors to satisfy both natives and foreigners
- Products for men’s grooming and beard care
- But keep in mind that understanding a place involves more than merely being aware of what’s popular.
Increase your output
The expense of your worldwide growth will much depend on where you produce your items and how you manage to make them the preferred choice of your global clientele.
If your items are manufactured domestically, you will have to overcome the challenge of international delivery.
You’ll need to find solutions for issues like customs fees, import levies, and the high cost of foreign transportation.
However, producing your goods in a foreign market also brings up a number of completely distinct issues.
It might be difficult to transport raw materials to a storage or manufacturing plant abroad.
The issue of quality control is always there when producing overseas.
Even if production in other countries may be less expensive, it doesn’t work well if you’re attempting to market a high-end product. Many customers link “the importance of quality” to the country of origin, primarily another country.
Making the optimum choice for production, whether locally or abroad, is essential to maintaining control over operating expenses.
The local culture should inform your brand approach
It’s critical to comprehend consumer behavior, societal standards, and other cultural annoyances in order to raise brand recognition.
Despite being the largest in the world, Asian markets continue to expect only the best items.
Both for retail and online goods, average transaction values are still rising.
China already favors foreign enterprises over indigenous ones, so foreign brands have an edge there.
In China, G&M Cosmetics is regarded as one of the most reliable brands. On the other hand, Sephora failed to establish a presence in Hong Kong.
More “eco” and “natural” items are in demand in North America.
Certifications will help a foreign business establish itself, but North American customers are also more aware of dishonest marketing and greenwashing.
A social media presence is essential, as is having a solid reputation in the community that aligns with customer preferences, such as sustainability and a dislike of greenwashing. This increases the pressure on companies to adopt ideas like eco-friendly packaging and make sustainability one of their key principles.
The D2C business model and subscription boxes are also popular, benefiting both the business and the customer.
Not everything is simple in Europe.
The purchase patterns and linguistic obstacles that arise from having various nations are several issues.
The French like to sample their items before making a purchase, but the UK and the US have no issues with internet shopping and cosmetic purchases.
New businesses that overly rely on the internet as a tool for marketing are often viewed with suspicion in Germany.
However, shoppers like purchasing a variety of goods and then returning the ones they don’t like throughout Europe.
Because the retail industry predominates, the demography for cosmetics in the Middle East is a little different. Customers want to sample products in-person before making a purchase.
Change the visuals for your beauty brand
There are regional differences in what is significant to individuals, both from a cultural and a buying perspective.
To achieve that product-market fit, it is essential to customize your digital marketing campaign’s messaging to the intended audience.
Custom cosmetic packaging, for instance, that is eye-catching and loud may appeal to North America’s younger demographic.
The significance of quality cannot be overstated in Asia, yet a stepped-back, minimalist style could be more appealing to shoppers there.
The product is unquestionably the most crucial element in this situation.
A line of sportswear with Pacific Island design was introduced by Nike in 2013.
The pattern on the women’s one-piece was in the shape of a Pe’a, a tattoo style reserved solely for males, which was an issue.
This was not well welcomed by the Pacific Islanders who were the target market for the product, and Nike soon withdrew it.
Prior to opting to launch overseas, learn as much as you can about your target market to improve your marketing and the overall acceptance and success of your product.
Spend some time learning about the area and getting to know the people there. You should also consider how your possible rivals are portraying themselves to local audiences.