상품DB/태국 주름 방지, 보습 및 헤어케어 제품 시장동향(2013.5)

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태국 주름 방지, 보습 및 헤어케어 제품 시장동향(2013.5)

게시일

2015-11-18

국가

태국

작성자

오새봄(방콕무역관)

품목

기타

품목코드

210690

작성일자: 2013.5.10

작성자: 방콕 무역관 Ms.Sasithorn

1. Demand Trend

□ Skin Care Products (Anti Wrinkle & Moisture)

 ○ The cosmetics market in Thailand is highly competitive. Most international manufacturers and suppliers of cosmetic products are represented in Thailand. All of them invest heavily on promotional campaigns as a way to retain their share of the market and to stimulate the industry. The structure of the market is comprised of four highly competitive sectors: hair care, make-up, skin care and perfume. Cosmetic products from the US lead the import market with 22%. Perfume products from France dominate import market with 52% share. Channels of distribution for cosmetic products includes direct sales, counter sales at department stores and hanging sales at specialty stores. The importation and marketing of cosmetic products is controlled by the Food and Drug Administration Office of the Ministry of Public Health. Approval by this office is required prior to the importation of all cosmetic products.

 ○ Brand image plays an important role in this market. High quality, international branded cosmetic products are expected to do better than medium to low quality cosmetic products and may achieve an overall growth rate of 15 to 20% due mainly to positive brand image, brand loyalty and high quality recognition. Brand retention and identification are normally used as advertising strategies in this market. Distributors of high quality cosmetic products tend not to resort to price-cutting. Premiums are widely used in promotional campaigns.

 ○ The market base for cosmetics in Thailand is expanding but is also highly competitive with both locally-manufactured and imported products. The competition among the cosmetic suppliers and distributors is always fierce and strong. The prevailing economic slowdown makes the competition more severe, especially among medium to low quality body care, skin care and hair care products. The suppliers of these products always introduce new strategies not only to retain their existing customers but also to capture greater share and enlarge their customer base.

 ○ The customers have bargaining power to cosmetic market especially middle-level market and low-level market because they are highly flexible to the price and they have less brand royalty. For premium-level market, in this slowdown economic circumstance, the customers will change to purchase middle-level cosmetic produced locally instead of imported brands. They may purchase with smaller amount per time or less frequent purchasing because this group of people is high brand royalty.

 ○ In general, brand image is a very important marketing factor when marketing cosmetic products in Thailand. Imported products and internationally well known brands are regarded as having high quality and a high price. Brand loyalty is very strong in this segment of the market and price competition is very rare. Locally produced cosmetic products are mainly geared toward the medium and low-income markets. Most of the products in this segment are marketed through mass marketing where price competition is always high. Brand retention and identification are normally used as advertising strategies in this market. Sampling and premiums are widely used in promotional campaigns.

 ○ Problem-solving product lines such as anti-wrinkle cream, anti-aging facial cream, anti-dandruff hair care, and whitening facial and body lotion have strong growth potential. Anti-aging cosmetic products in both the higher and lower ends of the quality spectrum continue to have a strong presence in the cosmetics industry in Thailand. Anti-aging products have become the norm among cosmetic users-both male and female. This trend is expected to continue for many years to come. Females seem to be more receptive to the anti-aging concept than males. Most anti-aging products involve skin care, especially facial care. Anti-aging facial care cream and lotion products do very well with high-end customers with whom price is not usually an issue.

 ○ Skincare products with whitening properties do very well in the Thai market. The popularity of whitening products may be related to the dark complexions of most Thai people and their desire to become lighter skinned. The most popular skincare products containing the whitening agent are facial creams and lotions especially those of medium to low quality. There are not many high-end facial care products that contain a whitening agent. Deodorant products that contain whitening agents also do very well in the Thai market. Many roll on deodorant suppliers appear to compete more on the basis of their product’s whitening property than the basic quality of deodorant.

 ○ BB Cream(Blemish Balm cream) was also considered the new hottest item among Thai cosmetic consumers. Nevertheless, in 2012, snail cream product is considered as new popular skincare product in Thai market. Demand of BB cream and Snail cream in Thailand was led by its popularity in South Korea. BB cream which contains whitening and anti-wrinkle formula is also demand in Thai market.

 ○ As far as we can survey, we found that BB cream and Snail cream of Korea is the hottest items in cosmetic market for all generations. Even though, there are other foreign brands tried to develop BB cream products but its product could not be competed with Korean brands due to the fact that Thai people are more believe in BB cream and Snail cream which come from Korea.

 ○ An increasing number of skin care products designed for men are entering the Thai market. Several cosmetic product suppliers are attempting to bring public attention to this new segment as a means to increase the market.

 ○ In conclusion, anti-wrinkle products and moisture products mostly for end-users are adults over the age of 30. Anti ageing products and moisture products are still occupied by hi-end brands such as Guerlain, Shieido, Lancome, SKII, Estee Lauder, Lamer, Clarins, Clinique and L’oreal etc. Generally, customers understand and accept the quality of anti-aging products and the price where high quality usually correlates to high price.

Strong competitors of skin care products in Thai market

Brand	Brand logo
Korean brands
Skin Food
Etude House
Tony Moly
Baviphat
Foreign brands (High Market)
Shiseido
Lamer
SK II
Clinique
Estee Lauder
Chanel
Foreign brands (Medium market)
Loreal
Olay
Local brands (Low market)
Mistine
Pond’s
Oriental Princess

Source: Information from the Positioning Magazine

             (Leading Local business magazine in Thailand)

□ Hair Care products

 ○ Among all hair care products, the shampoo market is accounting as a major market as a share of 60 % and can be classified into main 5 groups; cosmetic beauty shampoo, anti - dandruff shampoo, conditioning shampoo, hair loss treatment shampoo and baby shampoo. The leading players are mainly as multinational companies such as Unilever Thailand, Procter & Gamble(P&G), Kao Commercial (Thailand) and L'Oreal.

 ○ In 2012, every leading company tries to develop its brands into premium level regarding to increasing in women’s taking care of their hair. Market level of shampoo can be divided into 3 groups; premium price shampoo is dominated by Pantene, Dove, L’ Oreal, Head & Shoulder and Schwarzkopf; Medium cosmetic shampoo is occupied by Sunsilk, Clinic and Rejoice and Low price shampoo is dominated by Feather.

 ○ In real circumstance in the market, Thai people mainly purchase hair loss treatment products from local producer. Local hair loss treatment products are mostly made from herbal or natural ingredients. The demand of hair loss treatment and hair fall control is still increasingamong hair care products.

Strong competitors of Hair care products in Thai market

Brand	Brand logo
High Market
L’Oreal
Schwarzkopf
Dove
Head and Shoulder
Wella
Pantene
Medium market
Rejoice
Sunsilk
Clinic Clear
Local brands (Low market)
Feather

Source: Information from the Positioning Magazine

              (Leading Local business magazine in Thailand)

 ○ According to the recent survey, the Korean brands such as Kerasys and Olive Organia have been entered into Thai market and distributed through leading department stores. From the Thai buyers’ viewpoint, Korean hair care products tend to get acceptance as professional hair care in the Asian level but still so expensive.

Korean hair care products brands Available in Thai market

           

 ○ The survey found that Korean hair care product is lacking of a good creation for brand reputation, brand awareness and brand loyalty. Thus, Korean hair care products brand position is very low. Thais view Korean hair care as a medium to low-end product which is inexpensive one.

 ○ According to the information revealed by beauty salon shops, customers who have limited budget and prefer to use Korean hair care product, has never mentioned about specific Korean brand name. They just use the word ‘Korean Product’ instead. This is because brand awareness of Korean hair care product in Thailand is still low.

 ○ In addition, the new hair care formulas, attractive packaging, reasonable price and popular advertising presenter are regarded as important factors of the new brand penetration.

2. Import Customs

Import Duty

HS Code	Descriptions	Duty Rate (%)
3303	Perfume	30
3304	Make Up Products & Lotion	30
3305	Hair Care Products	20
3307	Shaving Products and Deodorant	20

Note: If Korean producer can provide Thai importer with ‘Form AK’ (Asean-Korea),

         the import duty of above product will be exempted.

         (According to ASEAN-Korea free trade agreement(AKFTA))

Product	Hair care products
HS Code	3305
Description	Preparations for use on the hair
Duty Rate	- 20% (Normal Rate) - Exempted (if use the privilege by providing of ‘Form AK’(Asean-Korea))
VAT Rate	7%

Source: http://ww.customs.go.th and the interview with a customs officer

3. Price Information

- In term of price, anti wrinkle & moisture products market is fragmented and difficult to mention. There is a big different between the maximum and minimum price in this market. However, most of distributors of high quality anti wrinkle & moisture products tend to not resort the price cutting strategy. The price of European and Japanese cosmetic products is quite higher than the Korean and Thai ones. In addition, the overall prices of Korean anti wrinkle & moisture products in Thailand are gradually decreasing due to Free Trade Agreement(FTA) between Thailand and South Korea.

- According to buyer’s interview, when compare between locally-made cosmetic products and international products, international products are selected from customers even though the price is higher than the local ones.

□ Sample Retail Price of Anti-wrinkle & Moisture products in Thai market

Item: Essential Power

Brand	Product Description	Retail Price
Lancome	Hydrazen Neurocalm	2,800
Estee Lauder	Resilience Lift Firming/ Sculpting Face and Neck crème/ Lotion SPF15	3,600
Guerlain	Guerlain Abeille Royale Nourishing Day Cream	6,200
Olay	Olay Regenerist Wrinkle Relaxing Cream	1,200
SK II	Essential Power	5,200
Clinique	Moisture Surge Intense	1,800
Tony Moly	Fresh Aqua Tear Drop Cream Anti-Wrinkle & Whitening	640
La Mer	La Mer Creme de la Mer	7,700
Clarins	Vital Light Day Illuminating Anti Aging Cream	3,600
L’Oreal	L'Oreal Revitalift Dermalift Day	549
Lanopearl	Dr Dermax Cream Ultra Lift Relax Wrinkle	1,200

Note: Exchange rate US$ 1 = 29 Baht (As of may 2013)

Source: Leading department stores in Thailand

□ Sample Retail Price of Hair care products

 ○ For hair care products, there are many price difference depends on the level of market. However, the average price is around 100~150 baht per bottle (240 grams)

Brand	Product Description	Retail Price
L’Oreal	Total repair shampoo	110
Pantene	Hair fall control shampoo	130
Sunsilk	Shampoo Co creations Wheather Defense Blue 240 grams	119
Tresemme	Smooth shine shampoo	130
Bergamot	Hair tonic reduces hair loss	320
Bergamot	Bergamot detoxify shampoo	120
Kerasys (Korean brand)	Repairing Rinse	340
Olive (Korean brand)	Hair shampoo	350

Note: Exchange rate US$ 1 = 29 Baht (As of May 2013)

Source: Leading supermarkets and hypermarkets in Thailand

4. Distribution Channel

  Skincare and hair products, in general, competes heavily in every market segment. Characteristics of the competition vary according to the channel of distribution and the target group of end-users. The channel of distribution reflects the category of the product and the buyer. Typically, the department store or counter sales channel belongs to high-end cosmetic and skin care products. The direct sales channel belongs to the medium and lower-end quality skin care products. The discount store channel belongs to lower-end products.

□ Local-made products channel

 ○ The local producers use this distribution channel to get access to end user.

□ Imported products channel

 ○ Most of international manufacturers and suppliers of skincare & hair care products are represented in Thailand. Also, the channel of distribution for imported cosmetic products include counter sales at department store, stand alone shop at lifestyle shopping center, hanging sales at specialty store, online business, social network and hand carry method.

□ In Thailand, cosmetic products are mainly marketed through the following channels;

 ○ Direct sale

  - Direct sale have a market share of 40~50% of cosmetic market. Products marketed in this way are locally manufactured foreign brand names or indigenous brand names. Prices are reasonable and correspond with market expansion. The target market used to be the low to middle income customer but at present the target expand to the high income person because the quality of product change to higher than the past.

 ○ Cosmetics shops and department stores (counter sales)

  - There are retailing shops and cosmetics sections situated in major department stores including Central, Robinson, Siam Paragon, The Emporium, The Mall, Tesco-Lotus, Big C and Makro. The target group is high – medium high end.

 ○ Hypermarkets, pharmacies, health and beauty stores

  - Hypermarkets and most modern pharmacies have a cosmetics corner in the store and both imported and locally-made products are available. Watson’s and Boots are two health and beauty stores that have many branches in Thailand. The target group is low - medium end. The leading brands are Ponds, Oil of Olay, Nivea and Citra.

 ○ Stand Alone shop

  - This kind of retail shop is mostly located at department store, lifestyle shopping center such as La Villa, J-Avenue and The Circle. The major of cosmetic products brands are international for medium to high-end target group. The target group is medium – high end who like to hang out with family and friends.

 ○ Online business

  - The selling cosmetic products via internet and social network such as Facebook and Twitter are very popular method in recent time. Most of products are brought by hand-carry method. It is quite convenient and lower products price than the normal sales. Also, the customers can review the product detail and compare it together before making a decision to purchase.

□ All leading cosmetic companies invest heavily in promotional campaigns to keep their market share and to stimulate the market.

 ○ High-end international brand cosmetic products use women’s magazines as their major advertising means to reach their potential buyers. Premiums and point-of-sale promotional campaigns are also used regularly to stimulate sales. Counter sales at major department stores are their main sales channel. The counter sales account for approximately 30 percent of the total cosmetic sales in Thailand.

 ○ For low to medium quality cosmetic products, TV is the main venue used for advertising campaigns. Sampling and giveaway are the two leading promotional strategies utilized to introduce new products and to stimulate the sales of existing products. For example, Uniliver and Procter & Gamble are the leading advertising spenders in Thailand. Direct selling, discount stores, drug stores and convenience stores are the major channels of distribution for medium and low quality cosmetic products.

5. Authentication System

   One of the requirements by the Thai FDA in registering a cosmetic product is a local contact address. This requirement limits international suppliers to two choices: either set up an office in Thailand or appoint local market representation. The use of distributors or agents to import and market cosmetic products is common business practice. A distributor or agent in Thailand facilitates market entry and fulfils the Thai FDA’s requirement of a local contact address before an applicant may register a cosmetic product. Generally, the distributor or agent will consider product registration as part of their job when representing international manufacturers

   Local distributors or agents not only provide an established relationship with buyers and end-users, they also provide assistance and service to international manufacturers. Said assistance normally includes product registration with the Thai FDA, customs clearing at port of entry, warehousing and product logistics, and marketing promotions. The distributor/agent in Thailand prefers an exclusive rights arrangement. There are several reasons for this preference. The leading reason is to avoid the price cutting practice that always takes place given the presence of multiple representatives. The other reason is the increased investment of efforts and promotional activities by the distributor in marketing the products. With the presence of multiple representations each distributor will more than likely hesitate to invest in any form of promotion. It makes more sense to work with a distributor or agent, under realistic distributorship terms and conditions, in order to build up the business in Thailand.

   Currently, the cosmetic control in Thailand has been implemented by the Cosmetic Act B.E. 2535 (1992). The cosmetic regulation consists of various activities in two major areas: pre-marketing and post-marketing activities. Any products having pharmaceutical characteristics such as those affecting or altering the functions or structure of human body or presenting as pharmaceutical products will be outside the scope of cosmetic regulation.

   According to the Cosmetic Act of B.E. 2535 (1992), the focus of regulation has been recently shifted from pre-marketing activities to post-marketing activities. This effort originated on the notion that the utilization of technical requirements and the practice of good manufacturing guidelines can ensure the quality of cosmetic products manufactured.

□ Laws and Regulations

 ○ The cosmetic committee

  - By the section 10 of Cosmetic Act B.E. 2535 (1992), the Cosmetic Committee is responsible for providing the suggestions or recommendations to the Minister of Public Health on matters pertaining to cosmetics. The Committee is also responsible for providing advice or opinions on registration and revocation of registration of specially controlled cosmetics as well as all other issues concerning cosmetic regulations.

 ○ The listing of cosmetic ingredient

  - Ingredients are the key to cosmetic safety control. Hence, ingredients are revised, studied and considered before being approved by the Cosmetic Committee. The maximum allowable concentration of each ingredient is designated and issued as a Ministerial Notification. There are five listings of cosmetic ingredients designated, namely prohibited substances, special controlled substances, controlled substances, colorants and preservatives.

  - Prohibited substances are the ingredients that must not form as part of cosmetic products except under the conditions laid down. Any products found to contain prohibited substances will be banned and confiscated. Consequently, the person responsible for placing such products on the market will be charged with distribution of hazardous products.

  - Special controlled substances are the ingredients that may cause a seriously harmful effect to human health if the used concentrations exceed the maximum allowable levels and the products are used carelessly or inappropriately other than indicated.

  - Controlled substances are the ingredients that may cause harmful effects if the used concentrations exceed the maximum allowable levels.

  - The instructions for use of specially controlled ingredients or controlled ingredients will indicate the type of pre-marketing approvals for which the products are applied as described in pre-marketing activities.

□ Pre-marketing control

 ○ Technical requirement of cosmetic

  - The technical requirements cover the positive and negative listings of ingredients, labeling and claims, pre-marketing requirements, and Good Manufacturing Practices(GMP). These technical requirements serve as the guidelines for quality and safety control.

  - Under the current cosmetic regulation, cosmetics will be classified into two categories: controlled cosmetics and specially controlled cosmetics according to the ingredients used. The use of specially controlled ingredients as part of cosmetic products will have to be registered, whereas the use of controlled ingredients as part of cosmetic products will require the notification of the products to FDA prior to being marketed in Thailand. However, the products containing no specially controlled or controlled ingredients do not fall into these two categories and, thus, are classified as general cosmetics for the time being.

 ○ Pre-marketing requirement

  - The pre-marketing requirements need two types of documents according to the pre-marketing activities. The first document will be applicable to the notification of controlled cosmetic products, whereas the second document will be applicable to the registration of specially controlled cosmetic products. The manufacturers or importers are not required to apply for a license to operate.

 ○ Notification

  - This is applicable to the controlled cosmetics classified in the ministerial notification. Either type of products or ingredients used classify the controlled cosmetics. For instance, products such as talcum powder and liquid talcum are classified as controlled cosmetics as well as those products containing ingredients such as zinc pyrithione or oxybenzone, etc.

  - Persons who are responsible for the marketing of cosmetic products need to submit a notification to FDA prior to the marketing of their products. The notification process is normally concluded within one working day.

 ○ The Requirements for Notification of Controlled Cosmetics

  -  Application form and attachments

  - Master formula certified by authorized person

  - Certificate of free sale (for importation of products) duly notarized by the Thai Embassy

  - Corporate registration issued by the Ministry of Commerce of Thailand

  -  Labeling information

 ○ Registration

  - Nonetheless, concerns over the danger from use of the chemicals with higher risk of causing adverse reactions in certain products, if the indications and warnings are labeled improperly, have prompted FDA to continue the registration of cosmetic products using particular ingredients classified as specially controlled ingredients.

  - This second form of pre-marketing process is called ‘registration’. Yet, it shares no similarity with the registration of pharmaceutical products. As part of the notion supporting the enactment of the Cosmetic Act of B.E.2535 (1992), its purpose is to strengthen the standard of manufacture; and the registration of cosmetic products clearly reflects this through the registration requirements. The registration procedure focuses mainly on the manufacturing processes such as production and quality control.

  - However, the permission for manufacturing or importing sample of products for registration is required before the registration process begins. The manufacturer or importer shall submit an application with attachments to FDA for review. This step is normally concluded within one working day.

  - After received the permission for manufacturing or importing the sample, a reasonable quantity of samples could be manufactured or imported; and then such samples shall be submitted as an attachment of the registration application. The required documents for registration are shown in Table 3 below. Basically, the registration of specially controlled is normally concluded within 30 working days.

 ○ The requirements for the registration of specially controlled cosmetics

  - Application form and attachment

  - Master formula certified by authorized person

  - Certificate of free sale (for importation of products) duly notarized by the Thai Embassy

  - Corporation registration issued by the Ministry of Commerce of Thailand

  - Labeling information

  - Analysis method approved by the Medical Sciences Department of the Thai Ministry of Public Health

  - Storage direction

  - Photocopy of sample permit

  - Batch process

  - Sample products

  - Photocopy of draft label

  - Documents indicating evidence for supporting claims

 ○ Labeling Requirement

  - The labeling requirements endorsed by the Cosmetic Committee stipulate that all cosmetics must be labeled in Thai language covering all aspects of information in compliance with the requirements as shown in Table 3.

  - The general information of any cosmetic product must be imprinted on the label and/or document attached to the package. This is to ensure that consumers have clear and appropriate information including indications and warning for safe use of the product.

□ Post-marketing control

 ○ There are five areas of post-marketing activity, inspection, market surveillance, advertisement inspection, adverse product reaction surveillance, development and strenghtening of manufacturing process.

 ○ Inspection

  - Inspections are performed periodically throughout the year. The activities, including routine inspection and product sampling, are carried out in accordance with the annual plan and in response to complaints or reports of adverse reactions or the results of surveillance. Identified products are tested for fraudulent characteristics. Any product found to be harmful to human health is recalled or confiscated under the authority of the FDA, and will eventually be destroyed in order to ensure that it will not be re-marketed.

 ○ Surveillance and Advertisement Inspection

  - Post – Marketing surveillance is performed all year round and includes the inspection of product labeling and the sampling on of marketed product at the locations under inspection. All printed claims on the labels of cosmetic products must have the supporting evidence readily available.

  - Advertisements for cosmetics must indicate the product's benefits relating to cosmetic capacity and purposes. Claims that the products have any pharmaceutical characteristics or capability to affect or alter body functions or structure are not permitted; otherwise such products are regarded as drugs to which the Drug Act applies instead of Cosmetic Act. Additionally, no advertisement must claim or suggest that the products have any capability which, in fact, does not exist or that may lead to misunderstanding of their quality.

  - Cosmetic products with fraudulent claims in labeling or advertising are recalled, investigated, and will be subjected to legal action.

  - Official contacts for import authorization and registration of cosmetic products are:

Cosmetic Control Division

Food and Drug Administration

Ministry of Public Health

Tivanon Road

Muang, Nonthaburi 11000

Thailand

Tel: 662-590-7169, 662-590-7441

Fax: 662-591-8468

E mail: cosmetic@fda.moph.go.th