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R R E E P P O O R R T T

such as microblading, threading, castor oil treatments or simply Legislation and Distribution: The Keys to Success
using brow products continue to thrive with consumers looking Whilst this market has huge potential for growth, the legislation
to achieve the perfect arch. is rigid and requires a person on the ground to be able to bring
products to the Malaysian market. Only a local company with
Multi-Step Skincare Routines an import license (importer/ distributor or subsidiary) may
Inspired by eastern beauty practices, Malaysians have undertake the procedure for placing a cosmetic product on
embraced multi-step skincare routines that prioritise hydration the market.
and nourishment. From double cleansing to layering serums This procedure must be carried out by a company, or a legal entity
and essences, this trend emphasises self-care and achieving incorporated in the field of cosmetics, with a permanent address
healthy, glowing skin. and registered with the Companies Commission of Malaysia.
While an emerging number of multi-brand stores carrying a
E-commerce: threat or opportunity? wide range of beauty and personal care products have entered
While retail e-commerce saw slower growth in 2023 as a result of the distribution landscape, it is expected that standalone stores
consumers returning to shopping in stores, the online channel and beauty specialists will see rapid expansion in future. One
nonetheless continued to win share in many areas of beauty and brand leading the way in this approach is Estée Lauder, whose
personal care. Local brands and stores have the challenge of the sleek and modern new flagship store in Mid Valley Megamall
ever growing e-commerce channel with the younger population KL opened in 2022 with a distinctive design that has attracted
starting to educate themselves via social media channels and consumers to come through their doors.
following the guidance of influencers such as Daisey Gorgeous
and Zee5 on Tiktok, showing followers skincare and make up
routines and collaborating with brands. This has meant that
more traditional stores such as Watsons have therefore begun
to adopt an omnichannel approach in order to compete.

While high-end cosmetic products are still mainly distributed
in multi-brand outlets, many companies have successfully
developed their own store channels (L’Occitane, Khiel’s, The
Face Shop, Mac, Bobbi Brown, Melvita, Aesop, etc.).
It’s crucial that brands fully understand the market and partner
with someone who is experienced in the Malaysian beauty market
and can help successfully navigate the entry to ensure success.

Strong Export Performance
Malaysia’s export is very strong and as a result, boasts of great
development of personal care products which in turn is supported
by the robust growth in demand. Euromonitor International
reported that sales of beauty and personal care in Malaysia
is expected to reach USD 3.6 billion by 2025 at a CAGR of 7.4%
during 2020-2025. Thus far, Malaysia’s exports have exceeded
USD 300 million, mainly to the USA, Japan, Australia, Hong Kong,
Taiwan, Singapore, the Philippines, Thailand and Indonesia.
Considering this potential growth, global chain retailers and
hypermarkets are quickly expanding their private label offerings
to include shampoos, depilatories, facial care and styling agents.

For more information on how IL Brand Consultancy can help you expand your brand,
please contact us on info@ilbc.co.uk or visit our website at www.ilbc.co.uk