Australian G&M Cosmetics continues SEA expansion with Malaysia move

By Amanda Lim

- Last updated on GMT

Australian G&M Cosmetics continues SEA expansion with Malaysia move
Australian cosmetic manufacturer G&M Cosmetics is expanding into Malaysia with its Australian Creams MKII range following strong demand in the region.

To access the Malaysia market, G&M has partnered with beauty retailer Sasa to stock its premium range products, which are free of both parabens and mineral oil.

SEA expansion

In recent years, the Australian company has increased its presence in Asia by exporting its products to Hong Kong, China, Taiwan, Thailand, Singapore, Vietnam and Cambodia.

Nearly 60% of the company’s business exports are to Asia, and the company shares they are planning to further expansion by entering Indonesia and the Philippines.

The demand for the firm’s products has always been high in South East Asia, Peter Bosevski, Global Marketing & Sales Manager, told Cosmetics Design Asia

“The consumers in Asia, although very diverse, they do share a common trait. [Asian consumers] are looking for products that are safe, clean and green with the highest quality ingredients. With many concerns of fake, inferior products from within local Asian manufactured goods, consumers from Asia view our Australian standards in manufacturing as the highest in the world and most trusted,”

Bosevski also shared that Asian students studying in Australia have played a significant role in introducing Australian-made products back to Asia.

“Because of the years of thousands of Asian students studying in Australia that have recognized the quality of the Australian Made products, they have carried this back to their country of origin in Asia. This link has been very critical in educating the Asia consumers over many years.”

Potential in Malaysia market

As one of the fastest growing economies in Asia, Malaysia was a natural next step for the company. According to the company’s research, Malaysia is one of the fastest growing Asian nations with 45% of the population considered as middle-class.

Between 2009 and 2014, average household income increased by 54%, making Malaysia the third largest country in the region in terms of purchasing power.

“The Malaysian market is a very sophisticated market where discretionary spending on imported skincare, and especially Australian-made skincare, is growing,” ​said Bosevski. “Now is the right time to enter the Malaysian market. With a population of over 30 million and a growing middle and upper class, this makes Malaysia an ideal export market.”

Challenges are expected

However, Bosevski expects the company to face challenges along the way as the continue making inroads in Malaysia.

“There is a fierce competition for mass market consumer skincare products with a very low price. Something that we will not do is cheapen the products to take critical mass market like many international FMCG brands.”

Bosevski added that as a relatively new brand, it will take some time for consumers to understand and recognise them. As such, they are planning to highlight that their skin care range is both high quality and affordable.

This strategy seems to have worked well for G&M in the past. Earlier this year, G&M was awarded as the most trusted and recognised Australian brand in China. The brand beat out some of the biggest names down under, including national airline carrier Qantas.

Their products are currently stocked in 20,000 retail locations across China in retail chains such as Watsons, Carrefour supermarket and Walmart China.

G&M Cosmetics is based in Sydney and has been manufacturing and supplying the Australian market with high quality Australian ingredients and skin care for the last 22 years.

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