malaysia market for cosmetics. quick facts 9.956 km
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MALAYSIA
Market for Cosmetics
QUICK FACTS
9.956 km
QUICK FACTS
Size: 330,290 km2 (Italy: 301,340 km2)Government: Federal Parliamentary Constitutional
MonarchyCapital: Kuala Lumpur(1.67 mln population -
2014)
Source: Department of Statistics, Malaysia
Population: 29.95 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)
QUICK FACTS
Source: Department of Statistics, Malaysia
Currency: Ringgit (RM / MYR)
Exchange rate: EUR 1 = RM 4.2
GDP (current price): EUR 223.74 mln (2013)
GDP Growth: 4.7% (2013)
Import: EUR 147.5 mln (2013)electrical & electronics (27.6%), petroleum & related products (14.4%), F&B (6.7%)
Export: EUR 163.6 mln (2013)electrical & electronics (32.9%), gas, petroleum & other mineral fuels (22.2%), vegetable oil (5.9%)
QUICK FACTS
Source: Department of Statistics, Malaysia
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)
Malaysia: Import of Cosmetic Products
2011 2012 2013
Total Import (EUR mln) 533.1 534.9 523.2
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
Shaving preparation, deodorants etc
15%
Oral & dental hygeine products
11%
Hair products17%
Beauty & make-up preparations
42%
Essential oils, resinoids etc
2%
Perfumes & toilet waters13%
Malaysia: Import of Cosmetic Products
Source: ICE elaboration on GTI – Global Trade Information
Total: EUR 523.2 m
2013: Composition of Imports
China16%
United Kingdom12%
Spain9%
United States20%
Others35%
Italy1%
India7%
Malaysia: Import of Cosmetic Products
Source: ICE elaboration on GTI – Global Trade Information
Total: EUR 11.9 m (2% Total import)
2013: Essential oils, resinoids etc (HS 3301)
Others31%
Italy5%
Indonesia6%
Philippines7%
United States10%
United Kingdom12%
France29%
Malaysia: Import of Cosmetic Products
Source: ICE elaboration on GTI – Global Trade Information
Total: EUR 68.8 m (13% Total Import)
2013: Perfumes & Toilet Waters (HS3303)
Japan11%
France10%
Thailand10%
South Korea8%
Italy2%
Others46%
United States13%
Malaysia: Import of Cosmetic Products
Source: ICE elaboration on GTI – Global Trade Information
Total: EUR 213.9 m (42% Total Import)
2013: Beauty & Make up Preparations (HS 3304)
Others19%
Italy2%
United States4%
Japan5%
Indonesia7%
China11%
Thailand52%
Malaysia: Import of Cosmetic Products
Source: ICE elaboration on GTI – Global Trade Information
Total: EUR 89.2 m (17% Total Import)
2013: Hair products (HS 3305)
Others10%
Italy0%
United Kingdom2%
Hong Kong3%
Indonesia5%
Thailand36%
China44%
Malaysia: Import of Cosmetic Products
Source: ICE elaboration on GTI – Global Trade Information
Total: EUR 59.8 m (11% Total Import)
2013: Oral & Dental Hygiene Products (HS 3306)
United States6%
France6%
Italy2%
China21%
Thailand17%
Vietnam8%
Others40%
Malaysia: Import of Cosmetic Products
Source: ICE elaboration on GTI – Global Trade Information
Total: EUR 79.6 m (15% Total Import)
2013: Shaving Preparation, Deodorants etc (HS 3307)
Malaysia: Categories & Channels
MASS MARKET
General retail shelves
Direct selling
L’Oreal, Maybeline, Revlon, Kao, Eversoft, Cover Girl…
Amway, Avon, Mode Circle, Cosway…
PRESTIGE
Department stores
Pharmacies
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 …
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
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
2. Local Fashion Taste
TeethTooth-whitening
HairHighlights, Bright hair (blonde, grey) among younger consumers
Skin Skin and facial whitening
3. Value for Money
Multifunctional products, e.g. comestics containing ceramides, vitamins, UV protection
4. Cosmetic and Toiletries for Men
- More men pay attention to their appearance
- Metrosexual
5. Natural Ingredients
- Perception: Natural ingredients = healthier - Willing to pay higher price
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
Import Duty
HS CODE Before 2010 After 2010Import Duty Sales Tax Import Duty Sales Tax
3301 Nil Nil Nil Nil
3303 Nil Nil Nil Nil
3304 0-20% 0-10% Nil 0-10%
3305 10-20% 10% Nil 10%
3306 Nil 0-10% Nil 0-10%
3307 0-20% 0-10% Nil 0-10%
Starting 1 April 2015, Malaysia will implement Good &
Service Tax (GST), which will be set at 6%
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
Import Regulations
A. Product Registration
B. Labeling
C.Good Manufacturing Practice (GMP)
D.Halal Certificates
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.
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
Import Regulations
A. Product Registration
c) Notification validity period- 2 years- Renewal should be done no later than
1 month prior to expiry
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
Import Regulations
A. Product Registration
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
Import Regulations
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
B. Labeling
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 22716 • COLIPA draft 1994 • US CTFA draft April 28, 2005
Import Regulations
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)
D.Halal Certificates
Import Regulations
Local Trade Shows / Exhibitions
IBE (International Beauty Expo)Frequency: annual
Period: May
Organizer : Elite Expo Sdn Bhd
URL: www.elite.com.my
Location: Kuala Lumpur
BEAUTY PROFESSIONAL Frequency: annualPeriod: MarchOrganizer : GLOW Exhibition
Management Sdn BhdURL: www.beautyprofessional.com.my Location: Kuala Lumpur
Local Trade Shows / Exhibitions
BEAUTY EXPO Frequency: annual
Period: October
Organizer : Interexpo (M) Sdn Bhd
URL: www.beautyexpo.com.my
Location: Kuala Lumpur
COSMOBEAUTE ASIAFrequency: annual
Period: July
Organizer : ECMI Services Sdn Bhd
URL: www.cosmobeauteasia.com
Location: Kuala Lumpur
Thank you
Ufficio ICE di Kuala LumpurItalian Trade CommissionTrade Promotion Section of the Italian EmbassyOffice Suite, Unit 19-14-1 & 3A , Level 14, UOA CentreNo.19, Jalan Pinang50450 Kuala Lumpur, MalaysiaTel : +60 3 21649931Fax: +60 3 21649989E-Mail: [email protected] www.italtrade.com/malaysia/ www.ice.it/estero2/kuala_lumpur/