Wednesday, September 22, 2021

business

Subregion seen as new frontier for cosmetics


With a burgeoning population and a growing middle class, the CLMV market – comprising Cambodia, Laos, Malaysia and Vietnam – is viewed as the new frontier for Thai entrepreneurs in the beauty and cosmetics industry.

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The CMLV countries and Thailand have a combined population of over 240 million and a GDP growth of 5.6 per cent per annum, making the four counties a promising market for businesses looking to expand into neighbouring markets. Thailand’s trade volume with CLMV countries amounts to more than US$35 billion, representing 10.6 per cent of the total exports, and beauty and cosmetic products are a major part of that.
Thailand’s cosmetics industry is growing at more than 7 per cent per year, making it the perfect host for one of the industry’s leading shows. The sixth edition of Beyond Beauty Asean Bangkok (BBAB) will return to the Impact Exhibition and Convention Centre, from September 19-21. BBAB 2019 is expected to host around 700 exhibitors from 25 countries and welcome more than 15,000 visitors.

Subregion seen as new frontier for cosmetics


The show is being promoted as the ideal platform for international brands to enter the Asean market, especially Thailand and its neighbouring countries, as well as an invaluable sourcing platform for distributors and retailers.
“This region is one of the key markets in the world today” said Peerayaphan Pongsanam, assistant senior project manager for Impat Exhibition Management Co., Ltd. “Thailand has been one of the key players in the industry for many years and CLMV displays great potential for the future.”
In Vietnam, for instance, demand for beauty products has increased by more than 300 per cent in the last five years while cosmetic imports into the country are increasing every year. An estimate of more than 90 per cent of cosmetics in Myanmar are imported, while Cambodia’s younger generations are driving cosmetic sales at unprecedented levels.
All the signs point to sales growth and that is supported by another major factor connecting Thailand - tourism. Thailand is a major tourism hub in the region, with over 30 million visitors, many from the CLMV countries. This interaction assists in creating and deepening stronger recognition and trust in Thai brands.
“Thailand is known for high quality products and is a strong hub for organic brands. Consumers are becoming more familiar with different Thai brands, creating a strong foundation for businesses to expand their marketing and sales,” added Pongsanam.

Published : July 17, 2019

By : THE NATION