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- Millennial, age 20-35
- Female
- Minimalist but full lifestyle

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- Catch the correct ingredients for different bybi products
- Candy crush style game - match strawberries/other ingredients
-' Cooking' style game - learn and make a bybi product by mixing the ingredients together

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- Hong kong market
- Beauty/skincare market

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Bybi Beauty Hong Kong

Link:
https://www.youtube.com/channel/UCybOxduk9y21Ho7Cw0Hr3CQ?view_as=subscriber

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After a 10-year absence, the store opening of Sephora this September in the International Finance Centre (IFC) located in Central Hong Kong caused quite a commotion amongst all skincare, beauty and cosmetics fanatics. Although already successful for a number of years in mainland China and in Singapore, the French distributor had to rethink its strategy in the city due to some market specifics that they had failed to take into account when they first launched in Mong Kok, Kowloon in 2008.

The beauty industry in Hong Kong (which encompasses cosmetics, skincare and dermatology) reached 39.9 billion HKD in total retail sales value in 2018 and is predicted to grow to 56.3 billion HKD by 2023 (Source: HKExnews; Frost & Sullivan). The biggest spenders in the skincare category are women aged 35-44 (spending around 5,000HKD/year) followed by the 25-34 segment (around 4,700 HKD/year). Skincare penetration in Hong Kong is higher (93%) than that of cosmetics (81%) (Source: Nielsen, 2017).

Hong Kong SAR is a market that needs to be approached differently than that of mainland China when it comes to sales and marketing strategies in the skincare category.

This is in part due Hong Kong's unique status characterized by but not limited to:

Financial APAC Hub

Large expatriate community

High population density

Usage of Western and Chinese social networks

Small living spaces

Multi-lingual environment

Essentially, three key factors need to be kept in mind for brands seeking to enter this market: (1) foreign skincare brands are users' favourites, (2) the dominance of offline shopping, and (3) the path to brand discovery is paved by trust.
(1) The reign of foreign skincare brands
To be fair, the region itself has a small share of "made in Hong Kong" beauty brands. Brands such as organic JaneClare blend messages about traditional Chinese values (tea leaves, history about emperors, brand messages based on alphabetical symbolism) and of Western backed science for its product line (Canadian and American experts in pharmaceuticals), promoting star products that mainly revolve around anti-aging. A more modern take on skincare made in Hong Kong is The Preface which offers online and offline points of sales and emphasize sustainability, local employment, quality raw materials, and targeting specific skin problems (acne, eczema) as selling points.

This being said, skincare in Hong Kong is overwhelmingly dominated by foreign brands and not just the run of-the-mill kind. For both men and women, Japan, followed by Korea and Europe, are the top three places from which they buy skincare products (Source: Rakuten Insight, 2019). The reasons for the ongoing success of J-Beauty and K-Beauty (made in Japan; made in Korea) in Hong Kong is easily understandable. The products of pioneering brands such as Japanese names SK-II and Shiseido and of Korean InnisFree are known for being high quality with proven formulations reflecting the Asian ideals of a white, flawless, unified skin. European brands (essentially French and UK brands such as Bioderma for example) benefit from historical and scientific status and appeal to the ever-present cultural ideal of the refined Western woman. Hence, there is space for less known foreign or niche brands (such as the Spanish brand Bimaio) to enter the market, as long as their penetration strategy is honed.
(2) E-commerce what?
Hong Kong is one of the most densely populated cities in the world. Even middle class citizens still live in small living spaces and most live in an average space of 160 square foot (15m2). Because of its density and its connected transportation hub, people spend the majority of their time outside their homes, whether it be for work or leisure purposes. Thus, e-commerce in Hong Kong has not become a craze yet, although trends in consumption of goods online have been increasing. In 2018 e-commerce accounted for around 5% of overall retail sales (versus 20% in the United Kingdom). Aside from expensive living quarters, several other reasons contribute to this relatively small percentage of online sales (Source: KPMG, 2017):

Not trusting the quality of the product (37%)

Travel distance to the shop is very short (36%)

Not wanting to pay for shipping costs (36%)

Despite these concerns, e-commerce in Hong Kong is set to steadily increase its share of total retail sales, and predictions are that they will double from 2016 to 2021. Skincare brands that are able to combine omnichannel strategies with seamless online and offline services will be ahead of the market. Since shopping for skincare online is not a given, the experience needs to be made as easy and as immersive as possible. Digital flagships should be adapted to mobile formats (m-commerce) and third-party e-commerce platforms chosen for their integrated omnichannel services.

Drugstores Manning's and Watson's have been at the forefront of online shopping for skincare. Both offer a large panel of choice in foreign skincare products with bundle offers, availability by order or in store, order online & collect in store, home deliveries, next day delivery, returns, payment by card or digital wallets (such as the popular Alipay HK). Shopping in physical stores remains the norm for consumers. Beauty specialist retailers make up the largest sales portion of beauty products in the city and in the APAC region. The biggest players are SaSa, Colourmix and Bonjour, with an aggressive canvassing strategy that each have around 200 points of sales all around Hong Kong.
(3) The path to brand discovery and loyalty is paved by trust
Social listening tools reveal that elements relative to the environment of Hong Kong, namely pollution, humidity, heat and stress, drive the search for certain skincare products and ingredients (SPF protection, anti-oxidants, Vitamin C, and Aloe Vera).

Consumers are more than ever concerned by the product authenticity and quality. Companies not abiding by these rules pay a high price. Beauty retailer Colourmix was heavily fined in 2017 when it was found that 8 of its stores had been selling counterfeit Bioderma make-up removers.

Following this incident, the French pharmaceutical brands put in place a QR code to reassure customers on the provenance of its bottles. This trend of verification by WeChat QR codes, scannable by customers to verify provenance, ingredient list and how to use, is on the rise.

Brand discovery and loyalty is acquired through experimentation. Free make-up consultations with an "expert", pop-ups with limited special offers or special first-time discounts are essential to attract the attention and curiosity of new customers. On the other hand, word of mouth from satisfied users, the value of "educating" customers on the importance of skincare routine (with blogs and trained staff on the floor) and scientifically backed claims on results are the elements that will drive repeat purchases and loyalty to the brand.

There are plenty of opportunities for skincare brands to enter the Hong Kong market if they abide by those 3 principles. Find out how we can help assess your brand's capabilities to penetrate the Hong Kong and China market by getting in touch with us.

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How skincare brands can reach and engage Hong Kong consumers | IMS

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After a 10-year absence, the store opening of Sephora this September in the International Finance Centre (IFC) located in Central Hong Kong caused quite a commotion amongst all skincare, beauty and cosmetics fanatics.

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Hong Kong has a small cosmetics and toiletries manufacturing sector, with a number of companies producing mid-priced toiletries and perfumes under their own brands. Choi Fung Hong's cosmetics and toiletries brands, such as Joseristine, are made in Hong Kong. Recently, a number of Hong Kong skincare brands have emphasised that their products are 'made in Hong Kong', such as JaneClare and The Preface. Overall, international brands play the dominant role in Hong Kong's mid- to high-end market.
Industry Features
With the influx of mainland travellers under the Individual Visit Scheme and the related surge in Hong Kong's cosmetics sales, many businesses are now eyeing the lucrative local cosmetics market. Hong Kong, a showcase for foreign brands wishing to target mainland customers, has continued to draw new brands to establish a presence in the city.

While whitening and anti-ageing products remain popular among Asian female consumers, demand for men's grooming products and skincare has increased substantially in recent years. A number of international brands, notably Sulwhasoo, Kiehl's and L'Occitane, have tailored their skincare products to the male market.

Note: Industry statistics cover activities in Hong Kong only.

The cosmetics and toiletries manufacturing sector in Hong Kong is small, with most manufacturers concentrating on the production of mid-priced toiletries and perfumes, particularly for markets such as mainland China, Southeast Asia and the United States. These are usually produced under their own brands.
Export Performance[1]
Most companies in the industry are traders, acting as agents to sell to mainland China, the US, Macao, Japan, Southeast Asia and the EU. Several Hong Kong spa and beauty salons also act as agents for cosmetics and skincare products looking to sell into Asia.

A number of traders have good connections, serving as useful links for selling professional product lines to beauty salons on the mainland. Hong Kong traders make good partners for foreign brands, given their market knowledge, skills, connections and integrity. They are also useful when it comes to handling entry procedures for goods being imported, with these tending to require the disclosure of confidential information, such as product formula.

Source: Hong Kong Trade Statistics, Census and Statistics Department
Sales Channels
Source: Hong Kong Trade Statistics, Census and Statistics Department

Source: Hong Kong Trade Statistics, Census and Statistics Department

Most companies in the industry are traders who act as agents for international cosmetics brands looking to sell to mainland China, Macao and Southeast Asian markets. Hong Kong is home to a large number of experienced distributors, many of whom are well versed in regional market conditions and regulations. They are capable of acting as distributors for popular brands, targeting the general public and devising comprehensive marketing initiatives. Hong Kong's cosmetics and toiletries manufacturers, such as Choi Fung Hong, tend to highlight the Hong Kong origin of their products, which are targeted at the retail markets in mainland China and Southeast Asia.

Large numbers of mid- and high-end foreign brands have established sales counters in local department stores and opened outlets in shopping malls. Their experience stores at shopping malls provide customers a learning platform for using their products. Many international cosmetics and toiletries brands have also set up offices in Hong Kong to assist in market development.
Industry Trends
Specialty cosmetics chains are well developed in Hong Kong, with Sasa, Bonjour, Aster, Colourmix and Angel Beauty Bar taking the lead. These companies mainly sell international brands with deep discounts, offering private label products as well, and they are very popular among consumers. Health and personal care chains, such as Watson's and Mannings, have shifted their focus more towards cosmetics and skincare products in recent years, selling mainly international brands.

Social media has become an important feature of modern living in recent years. Many cosmetics and skincare brands have begun to promote their products through social media, such as Instagram and YouTube. Some brands have even invited internet celebrities or key opinion leaders (KOLs) to review their products for marketing purpose.

The world cosmetics market, especially the upper-end segment, has long been dominated by a number of global giants such as P&G, Unilever, Shiseido, L'Oreal and Estee Lauder. Armed with technology and cost advantages and supported by global production plants, they occupy the top tier of the market. Yet, in recent years, cosmetics from other regions, notably South Korea, have been gradually gaining popularity among Asian consumers. These brands' products mostly come in a diverse mix at a price lower than those of international brands. They are, therefore, highly appealing to the young generation, who usually have lower income but a stronger appetite for novelty and a notable preference for product personalisation.

OEM production is not widespread in the cosmetics sector. This is largely due to the strict requirements on quality control and secrecy with regard to product formulas. Many manufacturers have set up their own R&D departments to develop unique formulas for their products. As mainland China has gradually grown into a major market, a substantial number of international brands have set up R&D bases on the mainland to develop specific products for mainland consumers and those in other Asian regions.
CEPA Provisions
Several international suppliers have reached licensing agreements with supermodels and fashion brands with regard to developing fragrances and cosmetics products. Some have also collaborated with top fashion brands to offer more personalised choices to consumers under their private labels, notably Anna Sui, Chanel, Christian Dior and Armani.

The growing importance of online sales and digital marketing has drawn widespread concern from the sector regarding the impact of new retail formats on sales performance. In the meantime, the ease of online access to product information has posed a challenge to cosmetics brands in maintaining consumer brand loyalty. They are therefore keen to publicise the unique values and ideas of their products so as to gain the approval of consumers and retain their customer base in the long run.

Following the implementation of the third phase of the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA III) in January 2006, all products of Hong Kong origin can be imported into the mainland at zero tariffs.
General Trade Measures Affecting Cosmetics and Toiletries Exports
In December 2018, mainland China and Hong Kong entered into the Agreement on Trade in Goods under the CEPA framework to enhance the arrangements for CEPA Rules of Origin. With effect from 1 January 2019, all goods of Hong Kong origin enjoy zero-tariff preference when imported into the mainland. The new Agreement on Trade in Goods allows products currently not covered by the CEPA Rules of Origin to enjoy tariff-free treatment provided they comply with the general rule of origin requirement calculated on the basis of Hong Kong's value-added content.

The Agreement also allows companies the flexibility to choose between the original CEPA build-up method or the newly introduced build-down method in calculating the value-added content in Hong Kong. For details about the rules of origin requirements, please refer to the Trade and Industry Department's CEPA webpage.

Since 1 July 2018, China has cut import tariffs on a range of consumer products. The average import duty on toiletries, cosmetics (including skincare and hair products) and certain medical/health products has been reduced from 8.4% to 2.9%. In order to meet administrative licensing needs for new cosmetics materials, the former China Food and Drug Administration (now reorganised into State Administration for Market Regulation) issued a circular regarding the application and assessment guide for new raw materials of cosmetics. The Guide came into force on 1 July 2011.

Product safety and environmental issues are major trade concerns in many overseas markets. In the US, the Centre for Food Safety and Applied Nutrition of the US's Food and Drug Administration (FDA) is the official body monitoring the safety of all imported cosmetics. Cosmetics exported to the US must comply with the provisions of the Federal Food, Drug and Cosmetic (FD&C) Act and the Fair Packaging and Labeling (FP&L) Act, as well as regulations published under the authority of these laws. In December 2015, the US Congress passed the Microbead-Free Waters Act, and a new provision was added to the FD&C Act to prohibit the use of plastic microbeads in rinse-off cosmetics (including toothpastes). Full implementation of the new provision took effect on 1 July 2019.

The EU Regulation 1223/2009 (Cosmetics Regulation) came into force on 11 July 2013. This strengthens the safety of cosmetics products and streamlines the regulatory framework for all operators in the sector. A number of significant changes were introduced under the Cosmetics Regulation. These include the need for manufacturers to follow specific requirements in the preparation of a product safety report prior to placing a product on the market, as well as stipulation that only cosmetics products for which a legal or natural person has been designated within the EU as the "responsible person" can be placed on the market.
Product Trends
The new Cosmetics Regulation allows for the precise identification of the responsible entity and clearly outlines their obligations. There are also additional requirements on the chemical contents of cosmetics products such as colouring and preservatives.

In Japan, the revised Pharmaceutical Affairs Law, applicable to all cosmetics, quasi-drugs, drugs and medical devices entering the Japanese market, came into effect in June 2009. Under the terms of the revised Law, cosmetics importers assume all quality assurance and product liability for their products. The importer must also obtain a primary distributor's licence for its primary cosmetics distribution business, including the sale, rental or lending of manufactured or imported cosmetics. Any primary distributor that engages in the final packaging, labelling in the Japanese language, or storage of imported products, is required to obtain a cosmetics manufacturer's licence.

Cosmetics tends to have a shorter life cycle than many other types of consumer goods. In advanced markets, the average product life of cosmetics items could be as short as one month. Colours and shades play an important role, and these elements are heavily influenced by fashion trends, popular tastes and seasonal moods. These trends usually originate in large-scale trade fairs in Europe, spread to the US, then Japan and other Asian regions, through trendsetter magazines. Giant cosmetics companies always have a huge influence on those magazines. It is important for manufacturers to offer a wide selection of trendy colours and shades for each season.

The ageing population is driving the recent surge in 'cosmeceutical' products that combine cosmetics with vitamins, herbal extracts and sometimes pharmaceuticals, such as vitamin-C lotions, tea tree oil-infused cleansers and collagen masks (collagen is formally used in the treatment of burns). Many medicinal beauty products tend to highlight their anti-ageing skincare functions.

Dermatology is incorporated into product development, and products catering for different skin types are available. Active ingredients are being added to cosmetics, and plant extracts and traditional Chinese herbs are also very common, especially among Chinese, Japanese and Korean-made cosmetics.

Organic and natural cosmetics made from mineral pigments and organic plant extracts, which provide natural sunscreen or long-lasting colour, and deliver a healthy-looking radiant glow, are also gaining popularity. Unlike conventional cosmetics, none of these products contain artificial fragrances or oil by-products, making them ideal for those with sensitive skin.

An increasing number of professional products with specific functions have emerged in recent years, in line with consumers' increasing knowledge on product application. Such consumers pay more attention to the ingredients and functions of products, and can manage more steps and more specific applications.

Many products are also moving towards beauty salon standards and claiming to deliver salon quality results. A number of at-home body-firming products, such as Estee Lauder Perfectionist, Fancl Shape Design and L'Oreal Perfect Slim, for instance, all represent attempts to compete with salon products. This trend may continue in the long term as the persistence of the slimming trend is still driving consumer demand for firming products. Men's skincare products are also expected to become more specialised as the market matures.

[1] Since offshore trade is not captured by ordinary trade figures, these numbers do not necessarily reflect all the export business managed by Hong Kong companies.

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Cosmetics and Toiletries Industry in Hong Kong | Hong Kong Means Business

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Cosmetics and Toiletries Industry in Hong Kong - Hong Kong has a small cosmetics and toiletries manufacturing sector, with a number of companies producing mid-priced toiletries and perfumes under their own brands. Choi Fung Hong's cosmetics and toiletries brands, such as Joseristine, are made in Hong Kong.

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- Beauty & skincare
- Sustainability
- Social media (Instagram, Tik Tok)
- Fashion & the latest trends - follows lots of brands and influencers on her favourite SM platforms
- Technology to make her life easier/simpler
- Not a big gamer but plays a few mobile games and Sims 4 on her laptop

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- Wants affordable, lower priced products
- Values self-care, particularly during society's current crisis
- Has a small disposable income to spend on products/items that help her cope with isolation

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- Women, Millennial, Age 20-35, Middle class

- Hardworking and career driven

- Interested in sustainable shopping habits

- Prioritises and understands the importance of skincare

- Likes to explore new trends and products

- Social media lover, particularly Instagram

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- Beauty market, specifically skincare category
-The beauty industry in the UK is worth around £28.4 bn and equates to 1.3% of the UK's total GDP.
- £10.4 bn of this share was generated from care and maintainence products (Spencer-Jolliffe, 2018).

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- According to Statista Market Forecast, the market is expected to grow annually with a CAGR of 2.5% between 2020-2023.

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The UKbeauty market can be broken down into the following:
- Geographic
- Demographic
- Psychographic
- Behavioural

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- England

- Wales

- Scotland

- Ireland

- Built up, developed cities

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- Women

- 16-60

- Disposable income to spend

- All ranges of Education/Social status

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- Interested in latest trends

- Express themselves through makeup/ beauty care

- Mask or enhance personal concerns

- Share beauty finds/tips with friends & family

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- Wants to find products that work for their needs

- Buys products according to what is popular

- Uses beauty products daily

- Those with lower income will seek cheaper alternatives

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Google related searches - semantic keywords

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Google related searches - semantic keywords

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- Customer routines
- Routines for specific skintypes e.g acne prone or dry skin
- Science behind the products and the use of certain ingredients
- Facts about skincare
- How to get glowy skin

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How To With Bybi: Glass Skin - 3 mins

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5 Facts You Didn't Know About Your Skin - 2 min 15s

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Meet the Brightening Bundle - 45 secs

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S- points every-time you purchase a product from bybi, leads you to recieve a voucher
A- newsletter containing information about upcomming product releases or discounts
P- polls/questions posted on Instagram stories to find out about customers e.g favourite products, what they want to see next
S- bundle deals of certain  products

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- Socially active - adhere to a posting schedule
- Encourage feedback/ideas using SM polls
- Customer service - engage with customer comments/queries on SM
- Reward customer loyalty - giveaways, reward points

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- Game Mechanics
- Points
- Leaderboard
- Challenge
- Quest
- Progression

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- Fun
- Fame (/fortune)
- Feedback
- Free

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Youtube Policies to consider for channel management:

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Youtube Policies to consider for channel management:

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- Copyright issues
- Spams, scams and misleading metadata

https://www.youtube.com/about/policies/#community-guidelines

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"...statistics from StatCounter Global Stats show that Google represents 86.77% of the market shares in Hong Kong in 2019. 13.23% of the searchers are using other search engines and 11.15% are either using Bing or Yahoo." (Get Clicks, 2020)

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- Instagram
- Youtube
- Twitter
- WeChat

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important that Bybi has a multi-lingual website to directly target their new audience

https://www.kwintessential.co.uk/resources/multilingual-website

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https://www.imanagesystems.com/featured/how-skincare-brands-can-reach-engage-hong-kong-consumers/

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https://sproutsocial.com/insights/youtube-stats/

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https://getclicks.com.hk/how-to-do-seo-in-hong-kong
3 biggest SE in Hong Kong:
- Google
- Yahoo
- Bing

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- Important for growing a brand, especially in a new, unfamiliar market
https://www.bmmagazine.co.uk/in-business/advice/why-reputation-management-is-so-important-in-a-business/

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https://breakingblueresearch.com/ourthinking/the-importance-of-diversity-and-inclusion-in-your-marketing-campaigns/