Thailand's beauty market is expected to maintain its growth momentum this year, thanks to the proliferation of social media, higher purchasing power (particularly among ageing people) and the cultural premium put on attractiveness.
Nathalie Gerschtein Keraudy, managing director of the French beauty maker L'Oreal Thailand Ltd, said Thailand's overall beauty market is expected to grow by 7-8%, helped by growing demand for skincare and make-up products.
Thailand's beauty market is one of the largest in Asean. Euromonitor reported that the market grew 7.8% year-on-year in 2017 to 168 billion baht.
Skincare remained the biggest beauty category, but make-up was a growth contributor for the industry.
Of the total, skincare accounted for 47%, haircare 18%, hygiene 16%, make-up 14% and fragrance 5%.
"Thailand's beauty industry has grown by 7.2-7.9% annually over the last six years, I don't see any reason why the beauty industry would slow down," Mrs Keraudy said.
She said sales of L'Oreal in 2017 outperformed the market's growth for the sixth straight year, and the company remains the leading player in the facial skincare segment in Thailand.
2017 was notable for the accentuation of the digital edge, as digital channels became omnipresent and helped provide impeccable customer service, she said.
Mrs Keraudy said the company's sales are predicted to grow at twice the clip of the overall industry pace.
She said L'Oreal will keep growing this year as the company continues to push key development points, including product innovation and digital acceleration.
The company will launch two new additions to its brand portfolio, Giorgio Armani Beauty and CeraVe, the latter of which is being promoted for its affordability.
CeraVe's product line includes cleansers and moisturisers to hydrate, restore and replenish skin.
Digital acceleration will be another key strategy for L'Oreal Thailand to propel growth in a digitally connected market.
In 2017, L'Oreal employed various communication channels and approaches by venturing into new e-tailers with Konvy and Orami, as well as social commerce channels Line@ and Craze.
The company has also launched its own e-boutiques: Lancome, YSL Beaute and Biotherm.
"E-commerce is a very fast-growing channel and we are committed to taking a large part of it," Mrs Keraudy said. "We have been growing our e-commerce business in multiple ways to ensure that we are a step ahead of market trends."
Digital sales of L'Oreal worldwide grew by 33.6% to €2 billion (77 billion baht) last year, accounting for 8% of total global sales. In Thailand, sales via digital channels grew 97% because of the small base, though Mrs Keraudy declined to disclose raw figures.
