Market for Cosmetics

MALAYSIA
Market for Cosmetics
QUICK FACTS
9.956 km
QUICK FACTS
Size:
Government:
Capital:
330,290 km2 (Italy: 301,340 km2)
Federal Parliamentary Constitutional
Monarchy
Kuala Lumpur(1.67 mln population 2014)
Source: Department of Statistics, Malaysia
QUICK FACTS
Population:
Ethnic Groups:
Religions:
Language:
29.95 mln (2013 estimate)
Malay (50.4%), Chinese (23.7%),
Indigenous (11.0%) , Indian (7.1%),
Others (7.8%)
Islam, Buddhism, Christian, Hinduism
Malay (Official)
English (Business)
Source: Department of Statistics, Malaysia
QUICK FACTS
Currency:
Exchange rate:
GDP (current price):
GDP Growth:
Import:
Ringgit (RM / MYR)
EUR 1 = RM 4.2
EUR 223.74 mln (2013)
4.7% (2013)
EUR 147.5 mln (2013)
electrical & electronics
(27.6%), petroleum & related
products (14.4%), F&B (6.7%)
Export:
EUR 163.6 mln (2013)
electrical & electronics
(32.9%), gas, petroleum &
other mineral fuels (22.2%),
vegetable oil (5.9%)
Source: Department of Statistics, Malaysia
Malaysia: Import of Cosmetic Products
Categories
• Essential Oils, Resinoids etc (HS 3301)
• Perfumes & Toilet Waters (HS3303)
• Beauty & Make up Preparations (HS 3304)
• Hair products (HS 3305)
• Oral & Dental Hygiene Products (HS 3306)
• Shaving Preparation, Deodorants etc (HS 3307)
Malaysia: Import of Cosmetic Products
2011
Total Import (EUR mln)
2012
2013
533.1
534.9
523.2
14.9%
0.9%
-2.4%
Thailand
20.8%
19.7%
19.7%
China
10.7%
11.7%
13.6%
France
10.4%
10.1%
9.1%
United States
8.5%
9.3%
8.6%
Japan
7.5%
7.7%
5.7%
Indonesia
4.4%
5.3%
5.6%
Italy
2.2%
2.0%
2.1%
Variation
Market Share
Source: ICE elaboration on GTI – Global Trade Information
Malaysia: Import of Cosmetic Products
2013: Composition of Imports
Beauty & make-up
preparations
42%
Hair products
17%
Total: EUR 523.2 m
Perfumes & toilet
waters
13%
Essential oils,
resinoids etc
2%
Source: ICE elaboration on GTI – Global Trade Information
Oral & dental hygeine
products
11%
Shaving preparation,
deodorants etc
15%
Malaysia: Import of Cosmetic Products
2013: Essential oils, resinoids etc (HS 3301)
United Kingdom
12%
China
16%
Spain
9%
India
7%
Italy
1%
United States
20%
Total: EUR 11.9 m
(2% Total import)
Others
35%
Source: ICE elaboration on GTI – Global Trade Information
Malaysia: Import of Cosmetic Products
2013: Perfumes & Toilet Waters (HS3303)
United Kingdom
12%
United States
10%
France
29%
Philippines
7%
Indonesia
6%
Others
31%
Source: ICE elaboration on GTI – Global Trade Information
Italy
5%
Total: EUR 68.8 m
(13% Total Import)
Malaysia: Import of Cosmetic Products
2013: Beauty & Make up Preparations (HS 3304)
Japan
11%
France
10%
Thailand
10%
United States
13%
South Korea
8%
Italy
2%
Others
46%
Source: ICE elaboration on GTI – Global Trade Information
Total: EUR 213.9 m
(42% Total Import)
Malaysia: Import of Cosmetic Products
2013: Hair products (HS 3305)
China
11%
Indonesia
7%
Thailand
52%
Japan
5%
United States
4%
Italy
2%
Others
19%
Source: ICE elaboration on GTI – Global Trade Information
Total: EUR 89.2 m
(17% Total Import)
Malaysia: Import of Cosmetic Products
2013: Oral & Dental Hygiene Products (HS 3306)
Total: EUR 59.8 m
(11% Total Import)
Thailand
36%
Indonesia
5%
China
44%
Hong Kong
3%
Others
10%
Source: ICE elaboration on GTI – Global Trade Information
United Kingdom
2%
Italy
0%
Malaysia: Import of Cosmetic Products
2013: Shaving Preparation, Deodorants etc (HS 3307)
Thailand
17%
Vietnam
8%
United States
6%
France
6%
Italy
2%
China
21%
Others
40%
Source: ICE elaboration on GTI – Global Trade Information
Total: EUR 79.6 m
(15% Total Import)
Malaysia: Categories & Channels
MASS
MARKET
PRESTIGE
General retail
shelves
L’Oreal, Maybeline, Revlon,
Kao, Eversoft, Cover Girl…
Direct selling
Amway, Avon, Mode Circle,
Cosway…
Department
stores
Pharmacies
Estee Lauder, Chanel,
Christian Dior, Clinique, SK
II, Shiseido, Shu Uemura…
Own outlets /
Franchise
Body Shop, Sasa, Red Earth,
Origins, Crabtree & Evelyn…
Beauty centres /
saloon
Leonard Drake, Dermalogica,
Thalgo Cosmetics, Tigi,
Redken, Alfaparf, Revlon …
OTHERS
Malaysia: Factors to Consider
1.
2.
3.
4.
5.
6.
Local Climate
Local Fashion Taste
Value for Money
Cosmetic and Toiletries for Men
Natural Ingredients
Halal Certificates
1. Local Climate
a. Tropical all year round
- Day: ± 30°C year-round
- Night: ± 20°C
b. Outdoor & Indoor contrast
- hot, humid, pollution
- Indoor (air-condition): dry,
cold
2. Local Fashion Taste
Skin
Hair
Skin and facial
whitening
Highlights, Bright
hair (blonde,
grey) among
younger
consumers
Teeth
Toothwhitening
3. Value for Money
Multifunctional products, e.g. comestics
containing ceramides, vitamins, UV protection
4. Cosmetic and Toiletries for Men
-
-
More men pay
attention to their
appearance
Metrosexual
5. Natural Ingredients
-
Perception: Natural ingredients = healthier
Willing to pay higher price
6. Halal Certificates
-
Halal - permissible by Islamic law – food, non-food, and
all matters of life
Muslim population – majority
Increasing number of tourists from Middle-east
More and more concerned on Halal status of products
Import Duty
HS CODE
Before 2010
After 2010
Import Duty
Sales Tax
Import Duty
Sales Tax
3301
Nil
Nil
Nil
Nil
3303
Nil
Nil
Nil
Nil
3304
0-20%
0-10%
Nil
0-10%
3305
10-20%
10%
Nil
10%
3306
Nil
0-10%
Nil
0-10%
3307
0-20%
0-10%
Nil
0-10%
Starting 1 April 2015, Malaysia will implement Good &
Service Tax (GST), which will be set at 6%
Import Regulations
1. In Accordance to ASEAN Cosmetic
Directive
2. Local authorities and references:
-
Control of Drugs and Cosmetics Regulations
Drug Control Authority [DCA]
National Pharmaceutical Control Bureau
(NPCB)
•
Guidelines for Control of Cosmetic Products in Malaysia
Import Regulations
A. Product Registration
B. Labeling
C. Good Manufacturing Practice (GMP)
D. Halal Certificates
Import Regulations
A. Product Registration
a) a company/ person placing a cosmetic
product in local market must notify the
Director of Pharmaceutical Services (DPS)
through National Pharmaceutical Control
Bureau (NPCB)
-
prior to product manufacture or importation.
Import Regulations
A. Product Registration
b) Documents required
- Letter of Authorization (including the list of
products) from the product owner
- For Skin-whitening products: original
Certificate of Analysis
Æ Language - must be in Malay or English
Import Regulations
A. Product Registration
c) Notification validity period
- 2 years
- Renewal should be done no later than
1 month prior to expiry
Import Regulations
A. Product Registration
d) Import of samples
Import of un-notified products are allowed,
subject to DPS approval, for:
- Test Market Sampling or Aesthetic Studies (to
a selected group only)
- In-House Evaluation
Import Regulations
B. Labeling
a. Name of cosmetic product and its
function
b. Instructions on use
c. Full ingredient listing
d. Country of manufacture
e. Name & address of company/person
placing the product in local market
Import Regulations
B. Labeling
f.
Content weight or volume (metric and/or
imperial system)
g. Manufacturer’s batch number
h. Manufacturing and/or expiry date
i. Special precautions
i) Animal origin?
ii) If bovine or porcine, must specify the
exact animal
Import Regulations
C. Good Manufacturing Practice (GMP)
All cosmetic products must be manufactured in
accordance to
- Cosmetic GMP Guidelines, or
- Equivalent Guidelines recognized by ASEAN
•
•
•
•
•
WHO for pharmaceuticals
PIC/S Australia for pharmaceuticals
ISO D/S 22716
COLIPA draft 1994
US CTFA draft April 28, 2005
Import Regulations
D. Halal Certificates
a. Voluntary, not obligatory
b. Only Halal certificates & logos from issuing
bodies recognized by Department
of Islamic Development Malaysia
(JAKIM)
c. In Italy, only ONE issuing body is
recognized: HALAL ITALY (HIA)
Local Trade Shows / Exhibitions
BEAUTY PROFESSIONAL
Frequency: annual
Period: March
Organizer : GLOW Exhibition
Management Sdn Bhd
URL: www.beautyprofessional.com.my
Location: Kuala Lumpur
IBE (International Beauty Expo)
Frequency: annual
Period: May
Organizer : Elite Expo Sdn Bhd
URL: www.elite.com.my
Location: Kuala Lumpur
Local Trade Shows / Exhibitions
COSMOBEAUTE ASIA
Frequency: annual
Period: July
Organizer : ECMI Services Sdn Bhd
URL: www.cosmobeauteasia.com
Location: Kuala Lumpur
BEAUTY EXPO
Frequency: annual
Period: October
Organizer : Interexpo (M) Sdn Bhd
URL: www.beautyexpo.com.my
Location: Kuala Lumpur
Thank you
Ufficio ICE di Kuala Lumpur
Italian Trade Commission
Trade Promotion Section of the Italian Embassy
Office Suite, Unit 19-14-1 & 3A , Level 14, UOA Centre
No.19, Jalan Pinang
50450 Kuala Lumpur, Malaysia
Tel : +60 3 21649931
Fax: +60 3 21649989
E-Mail: [email protected]
www.italtrade.com/malaysia/ www.ice.it/estero2/kuala_lumpur/