Beauty Device Market In Asia Outpacing Europe, U.S. – Kline
This article was originally published in The Rose Sheet
Executive Summary
At-home beauty devices grew 30% in Asia to reach nearly $400 million in 2012, according to Kline & Company. Japan accounts for the largest slice, but the Chinese market is booming, with sales up more than 100% year-over-year.
Asia is a booming market for home-use beauty devices, with a mix of domestic and international brands feeding consumer demand, according to a report from market intelligence firm Kline & Company.
The market for at-home beauty devices in Asia grew 30% to reach nearly $400 million in 2012, with Japan accounting for the largest slice of sales, followed by South Korea and the fast-growing Chinese market.
The growth seen in Asia exceeds both the U.S. and Europe, noted Zachary Ferrara, senior consultant for Kline China, who presented a July 31 webinar to promote the research firm's report titled “Beauty Devices: Global Market Analysis and Opportunities.”
Factors contributing to the boom in Asia include new product offerings, a “fashionable” angle to devices and high economic growth in China, Ferrara said.
Kline has identified numerous brands emerging with devices for treating a variety of skin-care needs. Anti-aging systems are the most popular in Asia, followed by hair removal and cleansing, according to Ferrara. Devices that whiten skin are also big in Asian countries, he said.
“Different brands of beauty devices are selling in these respective beauty categories,” Ferrara pointed out. In cleansing, L'Oreal's Clarisonic unit is one of the big players, while in the anti-acne category, Israeli firm [Home Skinovations Ltd.]'s Silk'n Clear is popular.
Among anti-aging devices, U.S.-based Nu Skin's Galvanic Spa, Japanese firm Ya-Man's Facercise and Silk'n Face FX have strong sales. In whitening, Ultrasonic's Ultrasonic Therapy is a leading choice among Asian consumers.
Overall, Nu Skin is the market leader in sales of at-home devices in Asia. In an Aug. 1 report, the Provo, Utah firm reported that its revenues in Greater China soared 35% to $269.1 million, boosting net revenue 15% in the quarter (see related story). Nu Skin is trailed in at-home devices in Asia by MTG and Ya-Man, both operating out of Japan.
Breaking down the retail channels where devices are most commonly sold in Asia, Kline found that the direct-sales channel accounts for more than 50% of the device market. After direct sales, the most popular channels are the mass market, prestige and professional sectors, respectively.
In a July 11 release announcing the webinar, Kline Consumer Products Practice Industry Manager Karen Doskow suggests device marketers may only have struck upon the tip of the iceberg in Asia.
“The Asian market in particular is still essentially nascent, and many multinational companies are only now entering the market,” she said.
Over the next five years, the opportunity for home-use skin-care devices in Asia stands to grow in the double digits, Kline projects.
Companies that do well will be those with diverse product portfolios and firms that offer multi-functional devices, he said.
China Device Sales Up 100%
In Japan, where the overall beauty market is flat, at-home beauty devices grew by 20% in 2012, Ferrara reported.
Devices that can be used by consumers at home to remove hair had the highest sales in the country, followed by anti-aging and cleansing devices, said the exec.
MTG is the leader in at-home devices in Japan, followed by Ya-man and Nu Skin. Together, Japanese companies Ke-Non, Ya-Man and Refa account for about one-third of the market, Kline notes in its release.
In South Korea, sales of at-home beauty devices grew by 25% in 2012, with a mix of domestic and international brands driving gains. Market leaders include U.S. firms NuSkin and Tria Beauty, the market researcher says.
Devices that address skin aging – such as the Tria Skin Rejuvenating Laser ($495), which “stimulates your natural cell-renewal cycle to generate collagen and visibly improve your skin,” according to Tria’s website – are the most popular in South Korea, followed by cleansing.
China saw the most remarkable growth for devices in 2012, with sales up 100% over the prior year, Kline says, attributing the explosion to aggressive moves from market leader NuSkin, whose Galvanic Spa product and expansion of its representative base helped to accelerate business.
Along with NuSkin, French firm Talika has a strong foothold in China’s at-home beauty-device market, according to Kline.
The entry of Procter & Gamble's Olay Professional Pro-X cleansing system in the country also fueled growth, the firm notes in its release.
Still, China’s at-home beauty devices market is in its infancy, according to Kline, which notes that the market generally consists of two widely spaced tiers – devices priced around $20 and devices that cost around $300. The success of the latter price group reflects the country's “increasing affluence,” the firm says.
Kline began promoting its devices report in late June, reporting that the market for home-use aesthetic devices advanced 22% globally in 2012.
The firm cites a “wealth of unrealized potential” for marketers of devices that can reach consumers through new channels and at more economical price points (Also see "Skin Devices Poised To Tap “Wealth Of Unrealized Potential” – Kline" - HBW Insight, 8 Jul, 2013.).