As the cosmetics market in Asia continues to develop in a dynamic way, Polish exporters are faced with many opportunities and expectations as consumers look to getting beauty products that are a combination of sustainability and skincare traditions with modern technology.
Supported by the rapid growth of e-commerce, Asia has become a hotbed of new technology and new cosmetic trends. This includes the Southeast Asian market which is expected to exceed $34 billion by 2025, thanks to the growth of e-commerce on online platforms such as Shopee and Lazada.
Southeast Asia currently represents a population of almost 695 million and this is a very large group of young, digitally active consumers who are open to discovering new products and brands.
Sharing her insights, Maja Justyna, Business Development Manager of ZBH PAIH in Singapore, said that: “In recent years, we have observed a growing interest of Polish cosmetic companies in the Asian market, which is due to a shrinking European market, strong competition from local brands and the geopolitical situation.”
“As such, companies are looking for new, non-European markets for their products, and taking advantage of various support programmes and European projects. Asia comes as an attractive expansion destination, thanks to its growing population (currently over 4.8 billion people!), rising incomes, growing middle class and increasing interest in premium products.”
A key to building relationships with Asian distributors is physical presence on the market through participation in trade missions, trade fairs and B2B meetings. The specific nature of the market requires direct contact with Asian partners and thoughtful building of long-term relationships that are first of interpersonal nature, in the form of trust, loyalty and communication, and then of the business nature.
Simply put: ‘Let us get to know each other, trust each other and then move to discussing business.’
Over the past few years, several Polish cosmetic brands have already entered the Southeast Asian market despite strong competition from local cosmetics suppliers. This is because Polish cosmetics are distinguished by their high quality, wide range of products and attractive prices that can respond to diverse customer tastes.
Some of the Polish products currently available on the Asian market include facial and hair care cosmetics, perfumes or make-up products, among others, and can be purchased both in physical stores and online.
So how does one successfully enter the Asian market?
Maja Justyna shared that the key is to find a niche market, and to match the product to the needs of the market, the customers and current market trends.
“What is equally important is to find a distributor and work with them to build a long-term strategy for entering the market and develop the brand. And finally, an equally important aspect is to adequately invest in marketing, including social media and live streaming,” she said.
Asia is very diverse in terms of income, customer needs, cultures, and in Singapore, it is no different. This is why products, pricing and packaging needs to be properly matched to the market.
Polish companies are able to take advantage of this fact because Asians are interested in beauty products made in the EU, which they consider as a representation of both quality and safety.
Therefore, when it comes to new brands that are unfamiliar to customers, Polish brands can consider selling their products through online channels, which involves lower operating costs and the ability to explore the market more quickly. It is also important for these brands to be patient too, as entering distant markets takes time and a long-term expansion strategy.
Who Supports Poland’s Cosmetic Manufacturers Abroad?
International promotion is coordinated by the Polish Investment and Trade Agency (PAIH) under the banner ‘Poland. Business Forward.’ It is part of the Industry Program relative to the ‘SME Internationalization – Brand HUB’ project, carried out in co-operation with the Ministry of Economic Development and Technology within the framework of ‘European Funds for a Modern Economy 2021–2027’. For details, please contact: brandhub@paih.gov.pl.
