Page 13 - EM - Export Magazine Perfumery Edition

R E P O R T

consumption is also changing rapidly. The traditional platforms as Picture Organic and Adidas have made great strides in
like Lazada and Alibaba are being replaced by more dynamic incorporating sustainable practices into their manufacturing
concepts like TikTok, where the consumer becomes an actor, processes. While consumers may not be demanding sustainable
influencer, and consumer. Lets call it Shoptertainment! This is products, there is significant pressure from regulators and
an evolution that large companies must follow, as seen in the environmental organizations for brands to become more eco-
case of Clarins. Another trend is the rise of virtual influencers friendly. As a result, we are seeing a movement towards green
launching influence platforms. However, there is a slightly practices at the company level, but this is not necessarily driven
shady side to influencers, as seen with Kanye West in the US. by consumer demand. It remains to be seen how consumers will
In China, the trend is moving towards virtual influencers, and react to sustainability as awareness increases and more brands
the metaverse is approaching at a fast pace. TikTok is leading begin to prioritize environmentally friendly practices.
the way in virtual staging, where everything is dematerialised.
We are moving towards a staging of the virtual, and companies EM: How can French companies develop in ASEAN?
must adapt to stay relevant. MB: French companies looking to develop in ASEAN should
consider the importance of e-commerce alongside brick-
EM: With that in mind, what is your take on the evolution and-mortar stores. This approach may clash with traditional
of physical retail? models of consumption and development, but it is crucial
MB: The evolution of physical retail is still very relevant, for companies to adapt to the changing market. Developing
especially for higher-end brands like Hermes and Louis Vuitton hybrid brands that allow for online orders in-store has not
who place a great importance on the shopping experience. been very successful, so companies should consider alternative
While COVID-19 has led to reduced sales areas in Singapore and options, such as brick and mortar stores functioning primarily
Hong Kong, major brands are still allowing themselves larger as showrooms with most orders placed online. Additionally,
and more luxurious points of sale. In the intermediate category, companies should prioritise sustainable operations, as the
Decathlon still benefits from physical sales points which boost trend towards “green” is happening anyway. Finally, French
their online sales by allowing customers to surf online and then companies need to get used to new payment methods, such
try out the product in-store. However, for the lower category as mobile payments, which are becoming increasingly popular
of shoppers, online retail remains the preferred option. The in China and may soon replace traditional banking altogether
evolution of physical retail will continue to be shaped by the with the introduction of the e-yuan. The payment landscape is
needs and preferences of different categories of shoppers. evolving rapidly, and companies need to keep up to succeed in
the ASEAN market.
EM: Any insights on additional trends?
MB: In addition to the previous trends discussed, there are two EM: What is your take on the conflicting trends between
other emerging trends in the market. The first one is related emergence of ASEAN brands and dominance of Chinese
to cosmetic and paramedical manufacturing, where there is a influence on the region?
growing interest in homemade products. Companies are starting MB: The emergence of ASEAN brands and the dominance of
to manufacture and sell ingredients that the customer can use Chinese influence on the region present conflicting trends. While
to make their own products at home. This trend is driven by the e-commerce is important as brick-and-mortar stores, price
desire for more natural and personalised products, as well as sensitivity is a factor in certain sectors where ASEAN brands are
the need for sustainability. The second trend is the acceleration important. However, for high luxury brands like Hermes and
of the second-hand market. This trend is driven by the growing Louis Vuitton, customers are not price sensitive, and counterfeit
awareness of the environmental impact of fast fashion and the products are not much of a problem. Japan and Korea feature
desire for more sustainable consumption habits. As a result, a different group of consumers because of aging and richer
companies are starting to offer second-hand products, and population. In ASEAN the influence of Chinese diaspora on
platforms are emerging that facilitate the buying and selling consumption trends is predominant, thus influencing the
of used items. These two trends demonstrate the growing creativity of local brands. The integration of Chinese people in
importance of sustainability and personalization in the market. Thailand, for instance, has been successful, but this may not
be the case in other countries. It is important to consider the
EM: What is your take on sustainability and the expectations Chinese diaspora as influencers. Overall, ASEAN brands need
of ASEAN consumers? to find ways to compete with Chinese brands, but the price
MB: It appears that except for Gen Z, consumers are not yet sensitivity of the market and the strong influence of Chinese
fully aware of sustainability. However, some companies such culture cannot be ignored.
Claudia Stagno
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