The Philippines is poised to be a growth pillar in the Asia Pacific region in terms of global beauty sales, according to Singapore-based global distribution company Luxasia.
Luxasia chief executive officer Wolfgang Baier said the country’s luxury beauty market grew by 40 percent between 2013 and 2018.
“The increase of the middle class and the channel shift in consumer preferences from mass to premium are driving growth,” said Baier in a roundtable briefing with select journalists Tuesday capping his two-day official visit in the country.
“The Philippines is a super exciting market for us. It is ripe for both luxury brands and new, edgy brands,” he added.
The Philippines is currently the strongest market for fragrances of Luxasia, known as the “Beauty Omni Leader” in Asia Pacific with over 140 brands in 15 countries in the region.
The Asia Pacific region, which accounts for 51 percent of global beauty sales, has been growing at 6 percent annually since 2014 and is projected to outpace the rest of the world.
“The Philippines is also a young market, with digital natives accounting for a significant portion of our e-commerce sales,” said Luxasia country head Tina Sabarre.
The Luxasia Group has been in operation for 30 years and has been instrumental in shaping the luxury retail segment with brands like Bvlgari, Calvin Klein, and Dolce & Gabbana, as well as skin care brands such as PeterThomasRoth and Shiseido.
In the Philippines, Luxasia, with 80 distribution points and 30 boutiques, has cornered 60 percent of the fragrances segment, and about 10 percent of the color cosmetic and skin care segments.
To support its exponential growth in the country in the past three years, Luxasia has already brought brands onto official stores of online marketplaces such as Lazada, Shopee, and BeautyMNL.
Baier said the company is seriously considering opening brick-and-mortar stores in Cebu, Davao, and Pampanga as well as increasing the 45 brands under its Philippine portfolio.
“Luxasia no longer simply makes brands and products available: we shape the market through novel consumer engagements in physical and digital spaces. We are constantly pursuing and persuading brands to enter the Philippines together with us,” he added.