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Unlocking Southeast Asia with a Sephora-First Strategy

Published December 3, 2023
Published December 3, 2023
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There has been a lot of discussion about the opportunity for beauty in Southeast Asia. Coming off the back of Cosmoprof Asia, I can reassure you that the excitement is real. But Southeast Asia is so often lumped together, and many brands enter with a “Sephora-first” mentality. While this can be a great strategy, it is not guaranteed. There are many ways to enter the market, and even with a Sephora-first approach, there are certain key considerations that need to be reviewed and acted upon.Beauty OpportunityThere is much excitement around the opportunity for beauty in Southeast Asia and India as new frontiers offering fresh opportunities for brands. Japan and Korea have matured, China is facing challenges. So many brands feel this is the moment to enter Southeast Asia, with lower costs and untapped consumer potential. Luxury beauty is projected to grow by a healthy +11% CAGR until 2031.However, the complexity of these multiple markets can be a headache for brand executives overseas.Status QuoMany popular International brands have had a straightforward approach to Southeast Asia expansion over the years—Sephora. If brands are with Sephora in other markets globally, they may choose Sephora as their first entry point into Asia. This can be a great stepping stone, but it is important that is what it is seen as—and not as the only answer to international expansion in this part of the world.There are many brands who do not fit with Sephora’s portfolio; this discussion is for another piece.

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