Beyond China: Unlocking Asia Pacific’s True Beauty Potential

LYC Partners & Cosmoprof Asia Executive Webinar Debrief

July 2025

Introduction

In July 2025, LYC Partners, in close strategic partnership with Cosmoprof Asia—the region’s preeminent beauty industry platform—co-organized a high-level executive webinar focused on unlocking new growth pathways for beauty brands across Asia Pacific. Cosmoprof Asia’s role as the industry’s most influential convening body was essential: its unparalleled network and market intelligence provided the foundation for a candid, data-driven discussion among leaders shaping the future of beauty in the region. Special thanks are due to Francesca Donati, Head of International Marketing for Asia at BolognaFiere Cosmoprof, whose moderation ensured the conversation remained focused, actionable, and relevant for decision-makers seeking to navigate APAC’s complexity.

The following report distills the most critical insights, direct quotes, and strategic imperatives from the event—offering a pragmatic roadmap for brands determined to move beyond China and capture the region’s next wave of growth.

Executive Summary

Asia Pacific (APAC) is the world’s second most dynamic beauty market, but the formula for growth is fundamentally changing. While China remains a powerhouse, the real story is the emergence of Southeast Asia, South Korea, Japan, and Australia as high-growth, innovation-driven alternatives. The July 2025 Cosmoprof Asia x LYC Partners webinar brought together leading voices from analytics, retail, and brand strategy to provide a clear-eyed assessment of both the risks and rewards of APAC expansion. This report summarizes the key data, panelist perspectives, and actionable recommendations that emerged.

Macro Trends and Quantitative Insights

The APAC beauty market is evolving rapidly with several distinct characteristics:

• Digital dominance: In China, e-commerce represents 40-50% of prestige beauty sales, with major shopping festivals driving up to 40% of annual online transactions

• Youth-driven growth: Southeast Asia's market features over 50% of population under 30, fueling a digital-first approach and the rise of indie brands

• Platform diversification: Social commerce channels like TikTok Shop are becoming increasingly influential, particularly for reaching younger consumers

While consumer sophistication and digital adoption are advancing across the region, the diversity of regulatory environments, cultural expectations, and distribution infrastructure makes a standardized approach ineffective. Success requires combining thorough market assessment with locally-empowered, agile execution strategies.

Panelist Insights

KinShen Chan (Mintel): Data-Driven Consumer Trends

KinShen Chan, Principal Beauty and Personal Care Analyst at Mintel Singapore, opened the discussion with a stark assessment of ingredient and functionality trends:

“APAC consumers are very much functional. Ingredient trends are driving purchases, and there is a convergence between skincare and aesthetics—think micro-needling devices and nano-resurfacers. Health and longevity are dominant themes, but brands need to offer stronger in vivo validation to stand out.”

He continued, “A really emerging one in the recent 6-18 months is the convergence of what is typically known as skin care with aesthetics,” highlighting the need for brands to back longevity claims with credible, real-world evidence.

Chan also emphasized the importance of understanding regional differences:

“While Chinese consumers have matured through their premiumization journey, Southeast Asian consumers remain in discovery mode. The youth demographic is significant—over 50% under 30 years old—making digital education and influencer marketing essential.”

He warned that brands too often underestimate the need for local adaptation in formula, messaging, and go-to-market strategy, especially as regulatory requirements (e.g., Indonesia’s 2026 Halal certification) become more stringent.

Key Data Points:

• China: ~45–50% of prestige beauty sales are online; 6.18/11.11 festivals account for up to 40% of annual e-commerce sales.

• Southeast Asia: Over 50% of the population is under 30; digital-first, mobile-native consumers are driving the indie brand surge.

  
  

Stéphane Courqueux (Human8): Southeast Asia’s Diversity and Market Entry Complexity

Stéphane Courqueux, Global Client Partner at Human8, provided a nuanced view of Southeast Asia’s market diversity:

“Southeast Asia is not a single market—it’s a mosaic of cultures, religions, and consumer maturity. In Vietnam, trust and brand reassurance are paramount, while Thai consumers are innovation-seeking and exploratory. Over 50% of the region’s population is under 30, making digital education and influencer marketing essential.”

He elaborated on the challenges of market entry:

“Too often, brands partner with distributors before understanding what the market actually wants. Formula and emotional relevance must be tested locally.”

He noted, “The role of beauty can be different: in India, it’s spiritual; in Vietnam, it’s rational and price-justifying. Brands must select markets based on functional relevance and adapt their formulas to local needs.”

Courqueux’s insights were clear: localization is not optional, and the cost of misreading local preferences is high. He highlighted the pitfalls of over-reliance on global playbooks and the necessity of building in-market intelligence and feedback loops.

Guilhem Souche (Coty): China’s Maturity and the Case for SEA Diversification

Guilhem Souche, Senior Vice President, Global Travel Retail at Coty, drew sharp contrasts between China and Southeast Asia:

“China has trained us to raise the bar across the board. Brand positioning is not optional—you must tell your story and create iconic hero products. In China, e-commerce is king, and every major platform requires a dedicated team and P&L. You cannot drive China from Europe; teams need autonomy to respond to fast shifts.”

He warned, “Over-focusing on China means missing double-digit growth in Southeast Asia. SEA customers are more confident and digital-savvy, and the prestige segment is still open to foreign brands.” On execution, he stressed, “Each platform—Tmall, JD, Douyin—has its own P&L. This is a heavy cost, so you must be ready for that.”

Souche’s message was unambiguous: the opportunity cost of ignoring Southeast Asia is rising, and brands must be prepared for the operational complexity and investment required to compete across multiple platforms and markets.

Ling Meng (ex-Sephora): Operational Realities and P&L Management in China

Ling Meng, ex-Vice President of Omni Merchandising at Sephora China, offered practical insights on China's competitive beauty landscape:

"The beauty industry faces intense competition from local C-beauty brands that have not only innovated rapidly but set new standards for digital engagement. Brands must adapt quickly to shifting consumer preferences, particularly the growing demand for sustainable and health-oriented products."

On investment strategy, she emphasized, "Branding investment must take priority, especially in year one. Given that Lancôme, Lauder, and Shiseido dominate China's market, new entrants need a smart approach to digital and content creation, with investments carefully phased throughout the year from a P&L perspective."

She stressed that success requires understanding all cost drivers: "Beyond media spend, brands must consider sampling, stock management, and registration requirements—all these factors significantly impact the overall P&L."

Meng's advice was clear: brands need a multi-year investment strategy with front-loaded branding costs and granular understanding of the entire value chain. Recent industry consolidation has made talent retention and training essential for teams navigating market shifts.

Ibaham Math-Ly Roun (ex-Clarins): Market Nuances Across APAC

Ibaham Math-Ly Roun, most recently Vice President of Retail Asia-Pacific at Clarins, offered valuable insights on the diverse beauty landscape across the region:

"What

seeing is a fundamental shift in consumer expectations. In China, the market has matured dramatically—consumers are highly educated about ingredients, efficacy, and brand value. This contrasts sharply with many Southeast Asian markets where discovery and education remain primary drivers of purchasing decisions."

He emphasized the importance of understanding local context: "In Vietnam, trust and reassurance are paramount, while Thai consumers prioritize innovation and new experiences. Indonesia presents unique challenges with its upcoming Halal certification requirements. These aren't just cultural differences—they translate directly to product development, marketing strategy, and channel priorities."

On execution strategy, Math-Ly Roun was precise: "Local teams need genuine decision-making authority. The days of 'copy-paste' regional strategies are over. Each market requires tailored approaches to content creation, influencer partnerships, and retail experiences. Brands that invest in market-specific digital ecosystems see significantly higher conversion rates and customer retention."

His conclusion aligned with other panelists: brands must balance regional scale with local relevance, investing strategically in market-specific approaches while maintaining consistent brand positioning across the complex APAC landscape.

What Sets Winning Brands Apart

The convergence of insights from our expert panelists reveals a clear picture: brands that thrive in APAC are those that combine rigorous market assessment with phased, multi-year investment strategies, empowered local teams, and a relentless focus on consumer and regulatory fit.

• Successful brands understand local market nuances and avoid the mistake of applying a "China playbook" to Southeast Asia, Japan, or Korea

• Building local intelligence and continuous feedback loops is essential for adapting formulas, messaging, and go-to-market strategies

• The investment required for market entry is significant, but the opportunity cost of inaction or poor execution is even higher

The operational bar has been raised across the region: from content creation and CRM in China, to influencer management and micro-localization in Indonesia, to regulatory navigation in Japan and Korea.

Accelerate Your APAC Growth with LYC Partners

The insights from the Cosmoprof Asia x LYC Partners executive webinar make one thing clear: APAC growth is not about following a template, but about building a tailored, evidence-based strategy that matches the pace and complexity of the region. Brands that succeed are those that invest in market intelligence, empower local teams, and continually validate their assumptions with robust diagnostics and operational feedback loops.

How LYC Partners Guides Your Strategic Growth in APAC

For beauty and FMCG companies looking to make bold moves in APAC, LYC Partners provides more than insights—we become your strategic ally. Our advisory journey begins with a tailored roadmap, ensuring every step is grounded in expertise and executional clarity. Here’s how we partner with you:

• Unlocking Asia Pacific’s Full Potential – Leverage our proprietary methodology to assess market entry and operational readiness with precision.

• Four-Week Strategic Diagnostic – Fast-track decision-making with actionable insights, pinpointing high-impact opportunities and risks.

• End-to-End Execution Partnership – From strategy to rollout, our advisors stand beside you, ensuring alignment with local dynamics and global ambitions.

• Deep Regional Expertise – Benefit from advisors with decades of beauty, FMCG, and cross-border leadership experience across APAC.

Start Your Advisory Journey with LYC

Whether you’re entering APAC or optimizing your current footprint, our strategic assessment delivers the clarity and confidence to act decisively. Let’s define your next move—together.

For case studies, diagnostic tools, and partnership opportunities, connect with us directly or explore our resources online.

Raul Mora

FMCG Advisor (GEA), LYC Partners