Facial-skincare Industry Report 2008

June 2008

Thailand’s Skincare market is a principal market for manufacturers. All customers are somewhat highly sensitive to price. The expansion of the market depended on the overall economic situation, expanding when times were good, contracting when the economy soured. In the highly competitive market, most manufacturers not only tried to improve product quality and develop a variety of product types, but also sought to use pricing as their principle tool for competition.

Markets for Skincare are divided into Facial-skincare 70% and Body-skincare 30% with a total market value of 15 billion baht. The total market value is expected to increase by 10 percent per year. Consequently, entering this industry appears to be a very attractive option for a number of new investors, both local and international alike.

For the most part, Thai manufacturers have focused more on natural products, while international manufacturers have their own brand name. Sampling tests have been used to spur demand in the market, especially to increase consumption among teenagers and male consumers. Key players in Facial-skincare category in Thailand are Pond’s – the flagship brand of Unilever, Oil of Olay – the flagship brand of Procter & Gamble (P&G), L’Oreal – the international beauty brand, and Smooth E – the local leading brand.

Media expenditure from 2002 to 2008 Q1

Among 100 billion baht of total annual advertising media expenditure in Thailand, Skincare category is the top media spending of 6 billion baht and this media spending is dominated by Facial–skincare at 70% or 4.2 billion baht and it continues growing at more than 10% every year from 2002 to 2007. In 2007 Facial-skincare media spending was 4.3 billion baht, and when compares 2007 Q1 to 2008 Q1, Facial-skincare category increases 10.8%.


When consider by category in Facial-skincare from 2002 to 2008 Q1, the top 3 spenders that cover 80% of spending are Facial-skincare Whitening / UV, Facial-skincare Anti-Aging, and Facial Cleanser. In 2007 Whitening / UV media spending was 1,579 million baht, Anti-Aging media spending was 1,166 million baht, and Cleanser was 776 million baht. And when compare 2007 Q1 to 2008 Q1; Whitening / UV increases 50% while Anti-Aging and Cleanser decrease 32%.



In term of spending by medium from 2002 t0 2008 Q1, TV is always the most popular medium followed by Magazines and Radio. In 2007 TV spending was 2,151 million baht, Magazines spending was 142.4 million baht and Radio spending was 45 million baht. And when compare 2007 Q1 to 2008 Q1; Only TV spending increases 25% while other mediums maintain or decrease.



Media expenditure from 2002 to 2008 Q1 by Major Brand

Major brands in term of media spending from 2002 t0 2008 Q1 are Pond’s, Oil of Olay, L’Oreal, Garnier and Smooth E. While Biore dropped out from the major brands in 2006. In 2007 Pond’s media spending was 1,019 million baht, Oil of Olay media spending was 605 million baht, L’Oreal media spending was 358 million baht, Garnier media spending was 316 million baht, and Smooth E was 243 million baht. And when compare 2007 Q1 to 2008 Q1; Only Garnier increases double while other major brands maintain or decrease.




Major brands in Whitening/UV segment from 2002 to 2008 Q1 are Pond’s followed by Oil of Olay and Garnier. In 2007 Pond’s media spending was 445 million baht, Oil of Olay media spending was 283 million baht, and Garnier media spending was 242 million baht. And when compare 2007 Q1 to 2008 Q1; all 3 major brands increase their spending; Pond’s increases 55%, Oil of Olay increases 47% and Garnier 73%. This may indicates that white facial skin is still in great demand among Thai.



Major brands in Anti-Aging segment from 2002 to 2008 Q1 are also Pond’s followed by Oil of Olay and L’Oreal. In 2007 Pond’s media spending was 396 million baht, Oil of Olay media spending was 322 million baht, and L’Oreal media spending was 207 million baht. And when compare 2007 Q1 to 2008 Q1; all 3 major brands decrease their spending; Pond’s decreases 28%, Oil of Olay decreases 59% and L’Oreal 35%. This may indicate that anti-aging facial-skincare is now less popular.



Major brands in Facial cleanser segment from 2002 to 2008 Q1 are also Pond’s followed by Neutrogena and Smooth E while Biore was slowdown and dropped out from major brand in term of media spending since 2007. In 2007 Pond’s media spending was 168 million baht, Neutrogena media spending was 156 million baht, Smooth E media spending was 130 million baht, while both Biore and Johnson’s Clear & Clean spent 70 million baht. And when compare 2007 Q1 to 2008 Q1; Only Smooth E increases slightly while other major brands decrease. This also indicates less popular of cleanser.



In conclusion, Facial-skincare category is a very potential market and has a stable growth in term of media spending. Facial skincare whitening/UV is the biggest segment then followed by facial skincare anti-aging and facial cleanser. Pond’s is the top spending brand in every segment followed by Oil of Olay.

The Big Move in Facial-skincare in 2008

Pond’s elevates its worldwide brand image using unrivaled technologies to meet all facial - skincare needs regardless of age or purchasing power


In the first half of this year, Pond’s will shake the Thai market with the launch of three product groups that better meet the needs of Thai women. The innovative products include: 1) New Pond’s Age Miracle, 2) New Pond’s White Beauty and 3) New Pond’s Foam.

In the first half of this year, Pond’s will shake the Thai market with the launch of three product groups that better meet the facial care needs of Thai women. The innovative products include: 1) New Pond’s Age Miracle, 2) New Pond’s White Beauty and 3) New Pond’s Foam.
Pond’s by Unilever Thai Trading Limited has announced a worldwide total brand re-launch by strategically setting up a new platform to attract affluent customers to its masstige (mass + prestige) product lines as well as encouraging non-skincare product users to try mass market brands. The total brand re-launch is believed to enable Pond’s to beat its rivals and retain its leadership in the 9.9 billion baht-in-value facial-skincare market which Pond’s is a strong market leader.

This total brand re-launch marks a major change in Pond’s worldwide brand. Thailand is the first market in Asia to implement these important changes that will delight consumers with a prestige beautifying experience. The change includes:
State-of-the-art technology for facial - skincare - Exclusively researched and developed by the Pond’s Institute, the unique beauty technology provides proven results for facial care and nourishment

New and modern packaging – New Pond’s comes in new proprietary packages and is also available in vacuum tubes that completely ensure product efficacy
Prestige In-Store Experience – With remodeled shelf designs at every Pond’s booth nationwide and professional consultation by Pond’s Beauty Advisors, trained by Strafford and Chan Private Ltd who is the training consultant for Singapore Airlines, the shopping experience will be more special than ever.

With the major total brand re-launch, Pond’s will be the only brand in the Thai mass facial - skincare segment to deliver a comprehensive range of products covering all steps in skin cleansing and nourishment. These include moisturizers, lightening and anti-aging products for all skin types and levels of consumer affluence.

“Though Pond’s new platform will categorize products into mass and masstige groups; there will be no cannibalization or confusion as to each group’s roles. The mass category includes New Pond’s White Beauty, Pond’s Perfect Result and Pond’s Lighten and Re-new and is designed to draw non-facial-care users into the market, creating more product penetration across the category; while the Pond’s Flawless White and Pond’s Age Miracle are intended to encourage regular facial - skincare users to upgrade to masstige product lines offering increased efficacy at premium pricing. The market segmentation by New Pond’s will drive growth in the overall facial skin care segment,” said Market Development Director, Unilever Thai Trading Ltd and added that “More than 700 million baht will be injected into the campaign with 360-degree marketing communications designed to communicate Pond’s advanced skincare technologies and money back guarantee as well as encourage consumer product trials. Also, Pond’s has given a major face-lift for its merchandising displays nationwide, as studies have indicated that over 70% of shoppers look for beautiful shelf displays, point of purchase trials and professional consultation and services in their shopping experience.”

Pond’s is the leading skin care expert including a deep understanding of women’s emotional needs. Pond’s also believes that beautiful skin will not only make them feel complete and more confident in their appearance but will help them to find love and romance in life. This is reflected in the new communications campaign by Pond’s that beautifully integrates the “Romance Realized” in all brand elements as it evolves through different stages in life. 1) Romance Awakening for teens whose beautiful skin will open doors to wonderful dating experiences 2) Finding True Romance for women in their early 20’s who are in search for committed and true love and 3) Romance Revival for married women who long for renewed romance throughout their marriage. The touch of romance in all Pond’s communications will strategically show a deep understanding and true connection between Pond’s and women around the world. Romance will be integrated as a brand attribute, helping us stand out and be more appealing to consumers,” said Market Development Director.

OLAY will answer all skin-lover’s needs with "Love your Skin, Say Olay"


P&G Thailand jump-starts its 2008 business agenda with the latest campaign launch dubbed “Love your Skin, Say Olay” that offers an appealing all-in-one package deal of two product lines: Olay Total Effects and Olay White Radiance to consumers.

P&G Thailand jump-starts its 2008 business agenda with the latest campaign launch dubbed “Love your Skin, Say Olay” that offers an appealing all-in-one package deal of two product lines: Olay Total Effects and Olay White Radiance to consumers. Marketing Communications Manager for Procter & Gamble Trading (Thailand) Ltd., says “The campaign ‘Love your Skin, Say Olay’ is Olay’s marketing strategy to tap into the facial - skincare segment. This is the first time ever that Olay has brought together 2 skincare product lines including Olay Total Effects from the anti-ageing product range and Olay Total White Radiance from the whitening product range. The consumers can see the diversity of Olay products that cater to their needs and to everyone who look for the ideally perfect skin. It is the experience of a fair, radiant with natural and young looking complexion that makes them feel like being pampered every day in their home and fall in deeper love with Olay. This year, the 2 Olay product ranges sets to launch a new product of distinct quality which offers the latest facial - skincare technology innovation that will enhance the product performance and also will accommodate the ever-changing demand and lifestyle of consumers”, says Marcom manager.

In the beginning of this year, Olay Total Effects launch its latest product that fits present busy lifestyle of the consumers who has very little time to take care of their skin but yet need very special care. Olay Total Effects Anti-Ageing Facial Stretch Mask helps reduce the fine lines with the latest innovation of Stretch Technology, uniquely developed for Olay. Certified by dermatology experts from APCSA (Asia-Pacific Center for Skin Ageing), the product envelops facial contours to deliver 7 anti-ageing treatment benefits deep into the surface layers of the skin, leaving the skin radiant and young-looking. APCSA has conducted research on the ingredients that contribute to the anti-ageing treatment and found that ‘Niacinamide’ in Olay Total Effects has the very skincare benefit in helping reduce fine lines.

To increase market share in the whitening segment, Olay sends 2 more new products to the battlefield namely Olay White Radiance UV Blocker and Olay White Radiance Eye Brightening Serum. The 2 products help fight 5 sign of skin darkening problems such as blotches, uneven skin tone, damage from sun exposure and blemishes thanks to the concentration of vitamins for skin whitening 10 times higher. 10 beautiful women from 5 countries in Asia are brought together for the campaign ASIA’S PERFECT 10 to represent the bright skin experience. Three captivating women of refined skin from Thailand namely Natalie - Nuttinee Jirawanond, June - Sawitri Rochanapruk and Amp - Suttikan Wangjareontaweekul are chosen to represent Olay as the Masstige Brand, the quality that is recognized by women throughout Asia.

The newly-launched products of each range were developed especially for Asian women’s skin emphasizes the essence of Olay to address every specific need of the perfect skin experience ideal to women around the world. With the 360 degree marketing integration that combines above-the-line and below-the-line activities side-by-side with marketing events and PR promotional campaigns as well as the utilization of mass media i.e. TV, newspapers and other new media sources, Olay aims to create the brand experience or the ‘product trial experience’ through consumer events, allowing them to put Olay to test and develop a sense of brand loyalty in the long run. Such strategy will help P&G sustain its leadership in the facial-skincare market.