Digital Dive: Top stories on digital developments making waves in the APAC beauty industry

By Amanda Lim contact

- Last updated on GMT

[GettyImages]
[GettyImages]

Related tags: e-commerce, digital

This round-up of the top five stories on the digital developments and beauty tech in the cosmetics industry features the latest from L’Oréal, Kao, ELEMIS and more.

1 – Brand loyalty: L’Oréal says Shopee brand membership programme spurs members to spend more

Beauty giant L’Oréal has observed that consumers that join its brand loyalty programme on e-commerce platform Shopee have spent 2.4 times more than non-members.

The Shopee Mall Brand Memberships programme was officially launched in conjunction with the 7.7 Great Shopee Sale to help merchants drive more conversion and repeat purchases for brands on the platform.

Like conventional loyalty programmes, Shopee’s allows its merchants to customise their own membership programmes. This includes customising the welcome gift, number of membership tiers, and brand loyalty points awarded for each purchase.

A month before the launch, L’Oréal launched IT Cosmetics on Shopee Premium along with the membership programme.

2 – Virtual value: Kao expands digital tester offerings for KATE under competitiveness push

Japanese multinational Kao Corporation has been expanding its digital tester capabilities as part of its K25 goals to enhance the competitiveness of its cosmetics business​ with digital offerings.

The company behind brands such as Kanebo, Sensai and KATE has experienced a significant decline in light of the COVID-19 pandemic.

Kao was hit especially hard in its cosmetics business division because of the decline of colour cosmetics, which accounts for a larger ratio of its business, approximately 10% higher than the market.

As part of its K25 medium-term plan, Kao said it would accelerate its digital transformation efforts by 2025.

3 – Drive for success’: British luxury brand ELEMIS bets on omnichannel strategy to secure bright future in APAC

UK luxury brand ELEMIS is making another ‘digital-first’ debut into Singapore and Malaysia​ as it builds up its omnichannel retail strategy to pursue its goal of becoming the top British premium skin care brand in the world.

Founded in 1990, ELEMIS is a prestige skin care brand often found in luxury spas and hotels across the world. In January 2019, the high-end brand was acquired by French beauty manufacturer and retailer L'Occitane Group for $900m.

The brand has been expanding its global footprint, aiming to tap into the new beauty concerns growing from the changing lifestyles and stresses today.

“We have always believed that wellness is a huge component of one’s lifestyle and other brands are finally catching on to this idea. We have been championing the idea of skin wellness before it became a hashtag through our use of natural ingredients, luxurious textures and layering rituals,” ​said Marc Gallagher, chief brand and digital officer.

4 – Pressing ahead: Struggling Sa Sa finds respite in e-commerce progress as it endures sales dive

Beauty retail group Sa Sa International’s pivot towards e-commerce​ appears to be paying off as it recorded a year-on-year sales increase of 108.8% during the April to June quarter.

The pandemic and its repercussions on an already declining brick-and-mortar market has driven the firm to focus more investments in its online channels.

In 2019, for instance, it announced that decision to shut all 22 of its retail stores in Singapore as performance in the market had been unsatisfactory over the past few years. The company re-launched in Singapore a few months later via the e-commerce marketplace, Shopee.

The group’s online business has been improving steadily, with sales increasing 108.8% year-on-year in the first quarter. Compared to the FY2018/19 period, sales grew by a respectable 64%.

5 – Streaming for success: Men’s K-beauty brand Tieso betting on live commerce to help penetrate tough Singapore market

South Korean male beauty brand Tieso is turning to live commerce​ to help it make headway into the difficult Singapore market as the retail environment remains uncertain in the face of COVID-19.

The brand offers a range of skin care, hair care, shaving and hygiene products that range from around S$35 to S$70.

Some of its top products include a deodorising foot spray and a spray-type sunscreen that claims to have a non-sticky finish that will not leave a white cast.

Its products feature ingredients such as maca root extract, which has anti-bacterial properties, making them unique within the category, especially now that hygiene top-of-mind because of the COVID-19 pandemic.

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