The Chinese market’s extraordinary gain is partly attributed to the aggressive growth of market leader Nu Skin, which, fueled by the expansion of the number of its representatives in 2012, registered gains of more than 100% for its Galvanic Spa device. Similarly, the entry of Procter & Gamble’s Olay Pro-X and SKG in China further stokes market growth.
Even more encouraging, the Chinese at-home beauty devices market is still in its infancy and generally falls into two basic, but disparate price groups with price points ranging from$20 to$300, with the latter reflecting the country’s increasing affluence. Beyond China, with its anti-aging device Galvanic Spa, Nu Skin dominates one-third of the South Korean market.
“The Asian market in particular is still essentially nascent, and many multinational companies are only now entering the market,” noted Karen Doskow, Kline’s Consumer Products practice industry manager. “Yet Asian OEMs are already serving the global market through parts manufacturing or producing private label products for other companies. South Korea’s Lotts manufactures devices for the Schick Medical’s German SQOOM device.”
Although many major international brands operate pan regionally, overall brand success differs from region to region. While Nu Skin leads the market in China and South Korea, seven of the top ten brands in China are local in nature. In South Korea, second place is held by local Lotts with over 13% of domestic market share. Japanese brands Ke-Non, Ya-Man and ReFa are claiming just about one-third of the market share in Japan.
“Convenience and a certain economic rationalism are motivating consumers to bring home the beauty experience traditionally provided by estheticians or physicians,” continued Doskow. “It’s a large and growing phenomenon, with at-home beauty devices offering multiple benefits a notable driving force. Presently, there are few truly multifunctional devices on the market, but as is already the case in Asian markets, these will become the norm rather than the exception.”
More info: www.KlineGroup.com