Concept stores are entry route-of-choice to Asia market for natural & organic cosmetics

New research by Organic Monitor shows the number of concept stores for natural & organic personal care products has grown massively in the last year, with over 25 new concept stores opening in Asia.

Concept stores are a form of retail trading where the shop is tailored towards a particular lifestyle, and it is the large natural & organic brands in Asia that are taking advantage, although some small firms are also taking this 'preferred entry route' into the market.

Biggest stumbling block​

Distribution remains the biggest stumbling block for many Western brands targeting the Asian market, as in Europe and home markets, mainstream retailers comprise most cosmetic & toiletry sales and they have little experience in marketing natural & organic products.

According to the market analyst, poor knowledge of green formulations, low availability of natural / organic ingredients and high certification costs also prevent many Asian companies developing such products.

However, Organic Monitor figures show that the Asian market for natural & organic personal care products is growing by over 15 per cent a year.

“Consumers are turning to natural and organic products partly because of the spate of health scares, such as SARS, Avian flu, and scandals involving tainted food products,”​ it claims.

Growing consumer demand​

As consumer demand for natural & organic products continues to rise in Asia, Organic Monitor expects this development to continue.

“The direct route gives many benefits; in the natural personal care industry, a major advantage is that it enables brand owners to educate consumers on natural and organic beauty products,” ​it says.

“Consumer education is vital in a market where greenwashing is common as many brands make natural and organic claims.”​

Distribution will be a focal theme of the 2nd Asia-Pacific edition of the Sustainable Cosmetics Summit, taking place in Hong Kong on 12-13th November. For more information click here​.

Market entry in Asia-Pacific will also be a hot topic covered by Cosmetics Design’s new website, focusing on the region.

CosmeticsDesign-Asia.com will be launched on September 4, 2012, and will cover key areas in the region such as market entry, skin whitening, beauty from within, and regulation.