MALAYSIA Market for Cosmetics. QUICK FACTS 9.956 km.

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: kualalumpur@ice.it www.italtrade.com/malaysia/  www.ice.it/estero2/kuala_lumpur/