Asia’s beauty giants will apply a western gloss

Amorepacific

21/12/2018 01:31

(The author is a Reuters Breakingviews columnist. The opinions
expressed are her own.)
    By Sharon Lam
    HONG KONG, Dec 21 (Reuters Breakingviews) - J&J, Unilever
and others have splashed out on cutting-edge cosmetics in Japan
and South Korea. They want innovation, plus clout in China. Yet
locals like Shiseido and snail mask supremo Amorepacific have
cash and room to grow outside the region. They can reverse the
M&A trend.
    Full view will be published shortly.
    On Twitter https://twitter.com/sharonlamhk
    
    - This is a Breakingviews prediction for 2019. To see more
of our predictions, click https://reut.rs/2R6H5pG
        
    CONTEXT NEWS
    - U.S. pharmaceutical giant Johnson & Johnson agreed on Oct.
23 to buy all outstanding shares of Japanese skincare firm Ci:z
Holdings that it did not already own for $2.1 billion. It cited
a boost to its international innovation pipeline as one reason
for the deal.
    - The skincare market in the Asia Pacific region was worth
$63.1 billion in 2017, according to Euromonitor International.
The colour cosmetics market was $18.9 billion, and the haircare
market totalled $23.4 billion in 2017. The three segments are
forecasted to grow at a compound annual growth rate of 3.9
percent, 5.9 percent and 2.1 percent respectively, over 2017 to
2022, according to the data provider.  
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 (Editing by Clara Ferreira Marques and Katrina Hamlin)
 ((sharon.lam@thomsonreuters.com; Reuters Messaging:
sharon.lam.thomsonreuters.com@reuters.net))