China promising market for Azelis’ personal care business amid rising demand for “harmonious skincare”
11 Oct 2021 --- Azelis is identifying growth potential within the Chinese personal care market, after expanding its reach in the region with the acquisition of Ingredients Plus China. The company’s market segment director for personal care, Azelis Asia Pacific, Jacqueline Hoe, speaks to PersonalCareInsights about the growing demand for “harmonious, natural skincare” and adjusting to the country’s specific market needs.
The demand for beauty products containing natural ingredients that perform their function while also providing a sense of well-being is on-trend in the area, Hoe supports.
“The personal care and in particular the skincare market in China remains robust, even during the COVID-19 pandemic.”
“Across the board trends such as eco-friendly packaging, sustainable ingredients and a focus on holistic wellness have influenced personal care products in both Western and Eastern markets, but we note in China an emphasis on ‘harmonious’ natural skincare that brings out the beauty from within,” explains Hoe.
There has also been revived interest in incorporating traditional Chinese elements into personal care products, from traditional Chinese medicine herbal face masks to the use of jade rollers for skincare, she adds.
“All this combined represents an innovative and harmonic approach to skincare that combines tradition, purpose and health.”
Traditional Chinese elements are being incorporated into personal care product launches in China.
Understanding the Chinese market
When choosing which products to launch in a particular region, Azelis screens the market to understand the latest trends and consumer needs, explains Hoe.
“We also take the time to understand the latest launches that are happening in the industry, to build a portfolio of ingredients that allow us to create impactful formulations that are also natural and sustainable.”
Azelis advises customers on what products to use. It also helps improve the production process to ensure the final quality meets customer requirements, from the benefits the product provides to the desired sensory profile, details Hoe.
“Azelis’ personal care application labs, of which three are in China, focus on developing formulations – from concept to launch – that will inspire customers and cover all market segment applications, from skincare to haircare and beyond.”
Sustainability and ingestible beauty
As sustainability holds strong as a top consumer demand in the beauty space, Azelis notes that this demand is a top “strategic pillar” for the company.
“Sustainability is one of our key strategic pillars. We try to use formulations that are sustainable and respectful to the environment, both in terms of process, choice of ingredients and usage of products,” adds Hoe.
The COVID-19 pandemic has put holistic health at the forefront of consumers’ minds, as they are now more conscious about what they use and what they eat, details Hoe.
Sustainability holds strong as a top consumer demand in the beauty space.
“Considering the impact of stress and disrupted sleep on beauty and skin health, consumers are most willing to have not just topicals that work on the surface, but also oral – of natural origin – applications that promote beauty from within.”
Topical products traditionally demonstrate benefits over a shorter period, while oral products are used more for long-term effects. Leveraging the synergy between the two promotes a more holistic approach to beauty, Hoe explains.
“We are seeing companies launching a topical product together with an oral product in recent years, mainly for the market segments of anti-aging and brightening claims, with the concept resonating well with consumers.”
Azelis’ acquisitions in China
To support Azelis’ growth goal, the company looks to develop its portfolio through organic growth via sales excellence and inorganic growth through strategic acquisitions in target geographics and industries, details Hoe.
“This approach allows us to offer wider coverage for our suppliers and enhance the portfolio offered to our customers. What is essential in the acquisition process is not only a commercial strategic fit but also finding a company that shares our values and ambitions.”
Azelis previously strengthened its product portfolio and presence in China’s care industry by acquiring Ingredients Plus China.
“Ingredients Plus China, and our previous acquisitions in China, which were CosBond and Bronson & Jacobs all offer technical expertise and expand our product range. The acquisitions strengthen our portfolio and market presence in China, allowing us to better serve our customers in the personal care space,” details Hoe.
Azelis now owns 100% of the shares of Ingredients Plus Hong Kong and its wholly-owned subsidiaries in Shanghai and Guangzhou. Ingredients Plus China’s product portfolio further enhances Azelis’ lateral value chain and solidifies its reputation as an active player in the Chinese personal care industry.
The transaction is consistent with Azelis’ corporate strategy of complementing organic growth with strategic acquisitions.
In its global endeavors, Azelis previously opened a personal care lab in Egypt to enhance research.
By Nicole Kerr
