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Unwrapping the Beauty Box Industry in Asia-Pacific

Analyst: Terence LEE
Edited by: Gwendolyn Regina TAN

Why Read This Report

The next clone rush is here. While the daily deals fever has died down, beauty boxes are becoming popular in Asia. The business model is proven: In the United States alone, Birchbox has at least 0.1 million paying subscribers, while Rocket Internet's Glossybox has 0.25 million members worldwide.

Meanwhile, the top beauty box companies in Asia are generating healthy revenue and still growing, taking advantage of a USD 45.7 billion cosmetics market in Asia-Pacific (excluding China and India). Two of the top beauty box companies in the region have already delivered 0.125 million boxes in just over a year.

The idea is simple, perhaps deceptively so. Subscribers pay a monthly fee to get a box of beauty samples on a regular basis, at their convenience. Cosmetics brands, on the other hand, get to market their products to a fragmented Asian market more efficiently. The business, however, is difficult to execute, and many who have tried it has shut down.

Nonetheless, investors and retailers should seriously think about investing in or collaborating with Asia's beauty box companies. They are set to continue growing and their potential to disrupt not just the beauty industry but also marketing and e-commerce cannot be ignored.

Updated as of 14 Feb 2013.

What's inside?

1. Executive Summary

2. Introduction
2.1 What is a beauty box service?
2.2 Why should investors care?
2.3 Origin, expansion, and spread of beauty box companies
2.4 Asia-Pacific receives its own beauty boxes
2.5 Historical antecedents
2.6 Cosmetics and toiletries: The market opportunity
Figure 1: Market Size of Cosmetics and Toiletries Market in APAC

3. The Business Model
3.1 Online subscription sampling
3.2 Logistics
3.3 Beauty consultancy
3.4 E-Commerce
3.5 Distribution, marketing, and market research

4. Key beauty box companies in Asia-Pacific
Figure 2: Geographical footprint of the key players
Table 1: Summary of key players
Figure 3: VanityTrove has most "talking about this"
4.1 Glossybox
4.2 Glamastar
4.3 LustHaveIt!
4.4 Bellabox
4.5 VanityTrove
4.6 Memebox
4.7 Other beauty box companies

5. Challenges and Threats
5.1 Managing the expectations of fickle customers
5.2 The fad may die off
5.3 Fragmented and less sophisticated market in Asia
5.4 Lack of intellectual property results in more competition
5.5 Spinning many plates
5.6 Low switching costs

6. Opportunities
6.1 Beauty box companies are generating healthy revenue and traction
6.2 Huge growth potential for e-commerce and cosmetics industry in Asia
6.3 Beauty box companies bring strong value proposition and net efficiency to consumers and businesses
6.4 Leading beauty box companies in Asia are likely to survive intense competition
6.5 Many untapped verticals that beauty box companies can enter
6.6 Shortfall of samples can be managed to minimize their impact on the business

7. Conclusion

In this report, we are only covering companies that have a presence in these places: Australia, Hong Kong, Indonesia, Japan, Malaysia, Philippines, Singapore, South Korea, Taiwan, Thailand, New Zealand, and Vietnam.

10,467 words. 33 pages.

Price

USD 599*
(*USD 623, inclusive of PayPal fees, limited time launch price)
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