MALAYSIA. Market for Cosmetics
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1 MALAYSIA Market for Cosmetics
2 QUICK FACTS km
3 QUICK FACTS Size: 330,290 km 2 (Italy: 301,340 km 2 ) Government: Federal Parliamentary Constitutional Monarchy Capital: Kuala Lumpur(1.67 mln population ) Source: Department of Statistics, Malaysia
4 QUICK FACTS Population: mln (2013 estimate) Ethnic Groups: Malay (50.4%), Chinese (23.7%), Indigenous (11.0%), Indian (7.1%), Others (7.8%) Religions: Islam, Buddhism, Christian, Hinduism Language: Malay (Official) English (Business) Source: Department of Statistics, Malaysia
5 QUICK FACTS Currency: Ringgit (RM / MYR) Exchange rate: EUR 1 = RM 4.2 GDP (current price): EUR mln (2013) GDP Growth: 4.7% (2013) Import: EUR mln (2013) electrical & electronics (27.6%), petroleum & related products (14.4%), F&B (6.7%) Export: EUR mln (2013) electrical & electronics (32.9%), gas, petroleum & other mineral fuels (22.2%), vegetable oil (5.9%) Source: Department of Statistics, Malaysia
6 Malaysia: Import of Cosmetic Products Categories Essential Oils, Resinoids etc (HS 3301) Perfumes & Toilet Waters (HS3303) Beauty & Make up Preparations (HS 3304) Hair products (HS 3305) Oral & Dental Hygiene Products (HS 3306) Shaving Preparation, Deodorants etc (HS 3307)
7 Malaysia: Import of Cosmetic Products Total Import (EUR mln) Variation 14.9% 0.9% -2.4% Market Share Thailand 20.8% 19.7% 19.7% China 10.7% 11.7% 13.6% France 10.4% 10.1% 9.1% United States 8.5% 9.3% 8.6% Japan 7.5% 7.7% 5.7% Indonesia 4.4% 5.3% 5.6% Italy 2.2% 2.0% 2.1% Source: ICE elaboration on GTI Global Trade Information
8 Malaysia: Import of Cosmetic Products 2013: Composition of Imports Beauty & make-up preparations 42% Hair products 17% Total: EUR m Perfumes & toilet waters 13% Essential oils, resinoids etc 2% Oral & dental hygeine products 11% Shaving preparation, deodorants etc 15% Source: ICE elaboration on GTI Global Trade Information
9 Malaysia: Import of Cosmetic Products 2013: Essential oils, resinoids etc (HS 3301) China 16% United Kingdom 12% Spain 9% India 7% United States 20% Italy 1% Total: EUR 11.9 m (2% Total import) Others 35% Source: ICE elaboration on GTI Global Trade Information
10 Malaysia: Import of Cosmetic Products 2013: Perfumes & Toilet Waters (HS3303) United Kingdom 12% France 29% United States 10% Philippines 7% Indonesia 6% Others 31% Source: ICE elaboration on GTI Global Trade Information Italy 5% Total: EUR 68.8 m (13% Total Import)
11 Malaysia: Import of Cosmetic Products 2013: Beauty & Make up Preparations (HS 3304) Japan 11% France 10% Thailand 10% United States 13% South Korea 8% Italy 2% Others 46% Source: ICE elaboration on GTI Global Trade Information Total: EUR m (42% Total Import)
12 Malaysia: Import of Cosmetic Products 2013: Hair products (HS 3305) China 11% Thailand 52% Indonesia 7% Source: ICE elaboration on GTI Global Trade Information Others 19% United States 4% Italy 2% Japan 5% Total: EUR 89.2 m (17% Total Import)
13 Malaysia: Import of Cosmetic Products 2013: Oral & Dental Hygiene Products (HS 3306) Total: EUR 59.8 m (11% Total Import) Thailand 36% China 44% Indonesia 5% Hong Kong 3% Others 10% United Kingdom 2% Italy 0% Source: ICE elaboration on GTI Global Trade Information
14 Malaysia: Import of Cosmetic Products 2013: Shaving Preparation, Deodorants etc (HS 3307) Thailand 17% Vietnam 8% United States 6% France 6% China 21% Italy 2% Source: ICE elaboration on GTI Global Trade Information Others 40% Total: EUR 79.6 m (15% Total Import)
15 Malaysia: Categories & Channels MASS MARKET PRESTIGE General retail shelves Direct selling Department stores Pharmacies L Oreal, Maybeline, Revlon, Kao, Eversoft, Cover Girl Amway, Avon, Mode Circle, Cosway Estee Lauder, Chanel, Christian Dior, Clinique, SK II, Shiseido, Shu Uemura OTHERS Own outlets / Franchise Beauty centres / saloon Body Shop, Sasa, Red Earth, Origins, Crabtree & Evelyn Leonard Drake, Dermalogica, Thalgo Cosmetics, Tigi, Redken, Alfaparf, Revlon
16 Malaysia: Factors to Consider 1. Local Climate 2. Local Fashion Taste 3. Value for Money 4. Cosmetic and Toiletries for Men 5. Natural Ingredients 6. Halal Certificates
17 1. Local Climate a. Tropical all year round - Day: ± 30 C year-round - Night: ± 20 C b. Outdoor & Indoor contrast - hot, humid, pollution - Indoor (air-condition): dry, cold
18 2. Local Fashion Taste Skin Skin and facial whitening Hair Highlights, Bright hair (blonde, grey) among younger consumers Teeth Toothwhitening
19 3. Value for Money Multifunctional products, e.g. comestics containing ceramides, vitamins, UV protection
20 4. Cosmetic and Toiletries for Men - More men pay attention to their appearance - Metrosexual
21 5. Natural Ingredients - Perception: Natural ingredients = healthier - Willing to pay higher price
22 6. Halal Certificates - Halal - permissible by Islamic law food, non-food, and all matters of life - Muslim population majority - Increasing number of tourists from Middle-east - More and more concerned on Halal status of products
23 Import Duty HS CODE Before 2010 After 2010 Import Duty Sales Tax Import Duty Sales Tax 3301 Nil Nil Nil Nil 3303 Nil Nil Nil Nil % 0-10% Nil 0-10% % 10% Nil 10% 3306 Nil 0-10% Nil 0-10% % 0-10% Nil 0-10% Starting 1 April 2015, Malaysia will implement Good & Service Tax (GST), which will be set at 6%
24 Import Regulations 1. In Accordance to ASEAN Cosmetic Directive 2. Local authorities and references: - Control of Drugs and Cosmetics Regulations - Drug Control Authority [DCA] - National Pharmaceutical Control Bureau (NPCB) Guidelines for Control of Cosmetic Products in Malaysia
25 Import Regulations A. Product Registration B. Labeling C. Good Manufacturing Practice (GMP) D. Halal Certificates
26 Import Regulations A. Product Registration a) a company/ person placing a cosmetic product in local market must notify the Director of Pharmaceutical Services (DPS) through National Pharmaceutical Control Bureau (NPCB) - prior to product manufacture or importation.
27 Import Regulations A. Product Registration b) Documents required - Letter of Authorization (including the list of products) from the product owner - For Skin-whitening products: original Certificate of Analysis Language - must be in Malay or English
28 Import Regulations A. Product Registration c) Notification validity period - 2 years - Renewal should be done no later than 1 month prior to expiry
29 Import Regulations A. Product Registration d) Import of samples Import of un-notified products are allowed, subject to DPS approval, for: - Test Market Sampling or Aesthetic Studies (to a selected group only) - In-House Evaluation
30 Import Regulations B. Labeling a. Name of cosmetic product and its function b. Instructions on use c. Full ingredient listing d. Country of manufacture e. Name & address of company/person placing the product in local market
31 Import Regulations B. Labeling f. Content weight or volume (metric and/or imperial system) g. Manufacturer s batch number h. Manufacturing and/or expiry date i. Special precautions i) Animal origin? ii) If bovine or porcine, must specify the exact animal
32 Import Regulations C. Good Manufacturing Practice (GMP) All cosmetic products must be manufactured in accordance to - Cosmetic GMP Guidelines, or - Equivalent Guidelines recognized by ASEAN WHO for pharmaceuticals PIC/S Australia for pharmaceuticals ISO D/S COLIPA draft 1994 US CTFA draft April 28, 2005
33 Import Regulations D. Halal Certificates a. Voluntary, not obligatory b. Only Halal certificates & logos from issuing bodies recognized by Department of Islamic Development Malaysia (JAKIM) c. In Italy, only ONE issuing body is recognized: HALAL ITALY (HIA)
34 Local Trade Shows / Exhibitions BEAUTY PROFESSIONAL Frequency: annual Period: March Organizer : GLOW Exhibition Management Sdn Bhd URL: Location: Kuala Lumpur IBE (International Beauty Expo) Frequency: annual Period: May Organizer : Elite Expo Sdn Bhd URL: Location: Kuala Lumpur
35 Local Trade Shows / Exhibitions COSMOBEAUTE ASIA Frequency: annual Period: July Organizer : ECMI Services Sdn Bhd URL: Location: Kuala Lumpur BEAUTY EXPO Frequency: annual Period: October Organizer : Interexpo (M) Sdn Bhd URL: Location: Kuala Lumpur
36 Thank you Ufficio ICE di Kuala Lumpur Italian Trade Commission Trade Promotion Section of the Italian Embassy Office Suite, Unit & 3A, Level 14, UOA Centre No.19, Jalan Pinang Kuala Lumpur, Malaysia Tel : Fax: kualalumpur@ice.it
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