Asia-Pacific indie labels propelled by heritage storytelling around brand identity

12 Sep 2023 --- The success of independent beauty labels in Asia-Pacific (APAC) is gaining traction “like never before,” according to organizers of the industry trade fair In-Cosmetics Asia. Exhibiting companies are stressing the importance of storytelling for establishing a purposeful brand identity that resonates with regional consumers, while sharing their learnings on selecting the right suppliers to streamline overhead costs.

These insights are outlined in a new report released by In-Cosmetics Asia, ahead of the return of the event on November 7 to 9 in Bangkok, Thailand.

The In-Cosmetics organizers underscore that consumers are hungry for products that not only cater to their skin care and cosmetic needs but also “speak” to them from a purposeful, ethical and sustainable standpoint.

“The APAC market is experiencing a slow but steady recovery from the situation two years ago, and we have seen a notable increase in the presence of independent brands,” says Ivan Marcos, sales manager for the APAC region at cosmetic actives specialist Lipotrue.

“These companies can be faster in project development compared to traditional brands as they often have a strong online presence using e-commerce, implementing risky marketing campaigns and collaborating with digital influencers.”

Asia-Pacific consumers are exhibiting a strong demand for beauty products that speak to them with provenance storytelling and an ethical identity.Eyes on provenance
When multiple indie brands began to take a foothold in the market, around four or five years ago, consumers were inspired not only by their founder stories but also the identity and community of those brands, the report spotlights. 

With heritage and individuality being strong selling points in skincare and cosmetics in Asia, many indie brands continue “going behind the scenes,” showing local farmers harvesting ingredients, or featuring the community behind formulation ideas, to differentiate themselves from bigger and established players.

Florasis is highlighted in the report as a C-beauty brand that “entered strong” with its “strong national identity expressed in its artisanal and exceptional design.” The brand’s packaging and concept storytelling are largely inspired by Chinese heritage. For instance, some of the packaging took inspiration from jewelry from the Miao, an ethnic minority group in Southwestern China.

Regarding formulation, Florasis advocates bridging natural ingredients and modern R&D technologies with ancient traditional recipes. This addition of “modern touches to ancient roots” resonates well with young consumers.

Overall, a focus on sourcing locally within Asia is a growing industry theme. “Using local, Asian ingredients will be a great help for new brands. This not only avoids long-distance transportation, custom costs, long lead times and high minimum order quantities (MOQs) but can help local economies to thrive and lower costs,” says Debbie Phillips, cosmetic chemist and representative of Asia Oceania at Misceo Cosmetics.

Growing together with your suppliers 
Two Dudes is an indie brand offering natural hair, skin and body care products for men, and was founded by Michael McRae and Tom Tappin after finding the existing offer “difficult, confusing and embarrassing to shop.”

Prior to launch, the two conducted in-depth research, including surveys with friends, consumer trends, competitor analysis and legal requirements, and contracted a cosmetic chemist who was already buying high-quality ingredients in bulk at more favorable prices.

McRae stresses that the secret of his and Tappin’s success is working with suppliers whose vision aligned with theirs. “We worked with them to negotiate our payment terms; in one instance, a packaging supplier produced the MOQ for our packaging and we paid for it on consignment.”

The founders of the skin and body care brand Two Dudes stress that MOQs “can really kill an early-stage brand in the cosmetics industry.”“This was a huge risk for him that paid off. We still use them to this day. Find suppliers who believe in what you’re doing and want to help you to grow,” he suggests.

“Suppliers have plenty of indie brands that approach them, and the reality is having lots of indie brands is more complex for them than having a handful of big clients,” he shares. “You need to put forward a compelling case as to how they can grow with you, as the reality is, you won’t provide a return on their time for the first few years.”

“One of our suppliers said to me at the beginning, ‘for every ten people that contact me because they’re launching a brand, about three make it to the start line and usually only one comes back.’” 

McRae stresses that MOQs “can really kill an early-stage brand in the cosmetics industry.” “When you’re starting a cosmetics business, you would rather focus your limited money on advertising, PR and partnerships to grow the business.”

“But then you need a physical product to sell and you often have to commit that significant capital upfront for packaging and ingredients (particularly when you’re new and don’t have the trust of your suppliers yet),” he concedes. 

“Do the work upfront to find the right suppliers who believe in you and your brand and understand the avenues available around MOQs for them to help you grow.” 

Speciality ingredients taken forward
Overall, suppliers have observed an uptick in demand for ingredients from independent brands over the past five years, largely due to a boom in independent brands originating from China, comments Florence Hong, product manager at cosmetics supplier Sethic Innovation Labo.

Candace Lin, general manager at Hermosa Naturals also sees a growing demand for unique ingredients among indie brands: “Being special is a very common goal for most independent brands. They need to create unique products to stand out in the market and to compete with other brands. Therefore, instead of selecting ingredients from suppliers’ catalogs, they prefer to create their own.”

“This is what Hermosa Naturals is devoted to now,” she continues. “We have an independent R&D lab working with different research organizations to develop new, oriental ingredients for independent brands and design solutions for their products and branding.” 

The demand for ingredients from independent beauty brands has seen a boom in the last five years, due to growth among indie brands in China.Some of the more common ingredients have witnessed soaring demand. Damien Madier, sales director EMEA-Asia for Down Under Enterprises, a specialist in traceable and sustainable Australian essential oils and botanicals, says there’s been an explosion in demand for natural ingredients.

“For example, orders for certified, pure Australian Tea Tree oil increased by 460% in Asia in 2020. This oil was mainly used for its natural, anti-microbial and anti-bacterial functions in hand sanitizers,” he details.

Stephanie Kwong, assistant sales manager at Berg+Schmidt Functional Lipids, adds that when it comes to formulating with active ingredients, confusion is often the result of brand innovators coming from a commercial, rather than a technical, background.

“Some of the brand owners also have the misconception that actives are more effective when you use the higher content in the formulation, but some of the actives are effective even at lower levels when coupled with the right technology and delivery system,” she says. 

The terms “natural” and even “sustainable” can also cause confusion. Down Under Enterprises’ Madier explains that some brand owners believe if an ingredient is obtained via distillation from a plant or a tree, it is natural, but says: “To define a natural product, you must understand the supply chain and the flow chart of the production, including farming methods.”

In a recent Special Report, Personal Care Insights explored the latest advancements in natural wellness-boosting botanical extracts, alternatives to artificial polymers and “eco-luxury” vegan collagen.

By Benjamin Ferrer