Health and Beauty Specialist Retailers in Singapore

HEALTH AND BEAUTY
SPECIALIST RETAILERS IN
SINGAPORE
Euromonitor International
January 2016
HEALTH AND BEAUTY SPECIALIST RETAILERS I N SINGAPORE Passport I
LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1
Trends .......................................................................................................................................... 1
Competitive Landscape ................................................................................................................ 2
Prospects ..................................................................................................................................... 2
Channel Formats .......................................................................................................................... 3
Chart 1 Health and beauty specialist retailers: Unity, chemist/pharmacy in
Singapore ..................................................................................................... 3
Channel Data ............................................................................................................................... 4
Table 1 Health and Beauty Specialist Retailers: Value Sales, Outlets and
Selling Space 2010-2015 ............................................................................. 4
Table 2 Sales in Health and Beauty Specialist Retailers by Channel: Value
2010-2015 .................................................................................................... 4
Table 3 Health and Beauty Specialist Retailers: Value Sales, Outlets and
Selling Space: % Growth 2010-2015 ........................................................... 4
Table 4 Sales in Health and Beauty Specialist Retailers by Channel: % Value
Growth 2010-2015 ....................................................................................... 4
Table 5 Health and Beauty Specialist Retailers GBO Company Shares: %
Value 2011-2015 .......................................................................................... 5
Table 6 Health and Beauty Specialist Retailers GBN Brand Shares: % Value
2012-2015 .................................................................................................... 5
Table 7 Health and Beauty Specialist Retailers LBN Brand Shares: Outlets
2012-2015 .................................................................................................... 6
Table 8 Health and Beauty Specialist Retailers LBN Brand Shares: Selling
Space 2012-2015 ......................................................................................... 7
Table 9 Health and Beauty Specialist Retailers Forecasts: Value Sales,
Outlets and Selling Space 2015-2020 .......................................................... 8
Table 10 Forecast Sales in Health and Beauty Specialist Retailers by Channel:
Value 2015-2020 .......................................................................................... 8
Table 11 Health and Beauty Specialist Retailers Forecasts: Value Sales,
Outlets and Selling Space: % Growth 2015-2020 ........................................ 8
Table 12 Forecast Sales in Health and Beauty Specialist Retailers by Channel:
% Value Growth 2015-2020 ......................................................................... 9
HEALTH AND BEAUTY SPECIALIST RETAILERS I N SINGAPORE Passport 1
HEALTH AND BEAUTY SPECIALIST

RETAILERS IN SINGAPORE
HEADLINES
Health and beauty specialist retailers sees value growth of 3% to reach S$2.0 billion in 2015
Korean beauty trend continues to grow in Singapore
Watsons Personal Care Stores Pte Ltd continues to lead with a 20% value share
Health and beauty specialist retailers is expected to see a CAGR of 3% at constant 2015
prices to reach S$2.2 billion in 2020
TRENDS
Beauty specialist retailers was the main contributor towards the strong value sales growth of
health and beauty specialist retailers in 2015. Stemming from strong consumer demand for
Korean beauty products, 2015 saw the rapid expansion of retail outlets by Korean beauty
specialist retailers. Several major Korean brands such as Innisfree, Etude House, VDL, and
Sulwhasoo introduced new standalone stores in the popular shopping districts of Orchard
Road and VivoCity. Multi-brand retailer Sa Sa also launched the Selectiv concept store that
focuses on Korean and Japanese labels.
Health and beauty specialist retailers saw slower growth than the review period CAGR. This
was largely due to weaker performance of optical goods stores and
drugstores/parapharmacies. Optical goods stores saw a consumer shift towards low cost
optical goods, which led to its slower value growth. Drugstores/parapharmacies were active in
diverting consumer attention to their online channels, causing store-based value sales to
decline.
Beauty specialist retailers saw value growth of 16% in 2015 due to the immense popularity of
Korean beauty products. Korean products are favoured by consumers in Singapore as they
match Asian skin well. In addition, Korean players issue new product launches more
frequently than international players, which helps to keep consumer interest high. Korean
beauty specialist retailers also leveraged the success of celebrity endorsements as Korean
pop-stars are well-loved by consumers in Singapore.
Optical good stores saw a value decline of -2% in 2015. The arrival of Owndays in 2013
changed the landscape in Singapore as it introduced cheap prescription glasses that can be
ready for delivery within 20 minutes. This raised the performance level for other retailers and,
over the review period, many engaged in price wars to attract consumers to their stores. In
addition, the perceived value of luxury eyewear was declining among consumers, leading to
its low demand. Thus, optical goods stores performed poorly in 2015.
Other healthcare specialist retailers saw value growth of 3% in 2015. Due to the stressful
demands of work, there was a growing trend of adults experiencing health conditions such as
obesity, chronic fatigue, or sleep disorders. These consumers began purchasing products
such as nutritionals, medical and orthopaedic goods from Other healthcare specialist retailers
in order to manage their health.
Consumers are increasingly focused on the in-store experience when they shop at physical
stores. Physical stores are still preferred by consumers when they want a more personalised
service or the opportunity to try products. Players are quick to recognise this fact as many
chose to expand with standalone stores that give them the opportunity to provide an
enhanced in-store experience. Origins opened its first standalone store in Singapore featuring
an open-sell concept where shoppers are allowed try products freely at display stands. The
same concept was also applied by Nanyang Optical to its new store The Optique of
Tomorrow. On the other hand, Kiehls opened its first store in Singapore with a retail outlet
that features a customisable gifting zone, baby tower, and waiting area for men.
Drugstores/parapharmacies was the most active in digital retailing. Over the review period,
major retailers such as Watsons, Guardian, and Eu Yang Sang opened online shopfronts and
actively promoted their usage. Beauty specialist retailers, optical goods stores, and
chemists/pharmacies were slower in taking to digital retailing. One main challenge was that
they typically retail products that require testing such as eyewear and beauty products. For
chemists/pharmacies, consumers usually require consultation from the pharmacy before
purchasing the relevant products and this is difficult to achieve with internet retailing.
COMPETITIVE LANDSCAPE
Watsons was the leading retail brand in 2015 with a 20% value share. It benefitted from a
strong product portfolio that ranges from consumer health, beauty and personal care, home
care and tissues, to food and drinks. Moreover, Watsons frequently launched closed door
sales and exclusive deals under its membership programme, which managed to attract repeat
visits from customers. Watsons was also able to maintain strong consumer interest in its
products as it brings in at least 15 new labels every year.
Sephora saw the biggest increase in value sales in 2015. It leveraged the exclusivity of its
labels by carrying brands that could not be found at other retailers. Examples include
BareMinerals, First Aid Beauty, Too Faced, Josie Maran, Soap & Glory, Stila, Tarte, and so
on. Sephoras strength also lies in being highly sensitive to consumer trends. It was quick to
respond to the Korean beauty wave and introduced several Korean labels over the review
period such as 3CE, Reskin, PureHeals, and Laneige.
Competition between chemists/pharmacies and drugstores/parapharmacies intensified over
the review period. Chemists/pharmacies aggressively expanded its product offerings within
beauty and personal care as this is a highly lucrative segment. This led to direct competition
with drugstores/pharmacies that mainly focus on beauty and personal care products.
Hypermarkets are increasingly posing a threat to health and beauty specialist retailers as both
tend to overlap on the product mix. For example, while health and beauty specialist retailers
tend to focus on consumer health and beauty and personal care products, hypermarkets such
as FairPrice Xtra also stock them and are rapidly expanding the range of brands offered.
In 2015, Etude House launched a 2,300 square feet flagship store in Singapore. The store is
advertised as the largest outlet it owns globally. Etude House will debut its latest products and
stock exclusive products at the flagship store. Etude Houses decision to launch a flagship
store is a testament to the growing business of Korean beauty in Singapore.
Sephoras parent company, LVMH, bought the Singapore e-commerce start-up, Luxola, in
2015 for an estimated eight-figure sum. With Luxola, Sephora is in a better position to
penetrate the online market and grow its business in Southeast Asia.
PROSPECTS
Health and beauty specialist retailers is expected to have a CAGR of 3% at constant 2015
prices over the forecast period. Over the short to medium term, growth is likely to come from
beauty and specialist retailers as they continue to benefit from the strong Korean beauty
trend. In the long term, it is likely to be boosted by chemists/pharmacies and other healthcare
retailers. More demand for healthcare products is expected as Singapore faces the impact of
an ageing population.
Chemists/pharmacies is likely to have the best performance over the forecast period with a
value CAGR of 5% at constant 2015 prices. While the ageing population will see more
demand for health supplements from the elderly, demand is also expected from working
adults. Due to the stress of work, many individuals are developing stress-related illness and
are likely to purchase health products from chemists/pharmacies to manage their health.
More health and beauty specialist retailers are expected to enter internet retailing over the
forecast period. Many of them were slow to adopt internet retailing in the review period as
their physical storefronts were performing well. However, sentiments are likely to change
when omni-channel retailing becomes more prevalent. There are many benefits of having an
additional consumer entrance point. An obvious reason is that retailers have a better
opportunity to complete the sales should they have inventory visibility in the customers
channel of choice.
While beauty specialist retailers benefited from the strong popularity of Korean beauty, it also
resulted in intense competition within beauty specialist retailers. The review period saw the
entrance of many new major Korean retailers and resulted in a wide range of choice for
consumers. However, this means that only the best can survive. Retailers that fail to project a
strong personality are likely to be eliminated.
CHANNEL FORMATS
Chart 1 Health and beauty specialist retailers: Unity, chemist/pharmacy in Singapore
Source: Euromonitor International
CHANNEL DATA
Table 1 Health and Beauty Specialist Retailers: Value Sales, Outlets and Selling
Space 2010-2015
2010 2011 2012 2013 2014 2015
Value sales SGD million 1,423.6 1,561.8 1,685.3 1,793.3 1,892.8 1,946.1
Outlets 1,547.0 1,624.0 1,645.0 1,682.0 1,685.0 1,713.0
Selling Space '000 sq m 121.3 128.2 131.2 135.6 137.6 135.4
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources
Table 2 Sales in Health and Beauty Specialist Retailers by Channel: Value 2010-2015
SGD million
2010 2011 2012 2013 2014 2015
Beauty Specialist 265.1 295.6 328.1 368.7 413.7 479.6

Retailers
Chemists/Pharmacies 101.5 103.9 112.4 121.1 127.9 137.8
Optical Goods Stores 279.9 314.6 328.7 340.2 350.5 341.9
Drugstores/Parapharmacies 677.5 742.3 805.4 848.0 883.7 865.7
Other Healthcare 99.5 105.5 110.8 115.2 117.1 121.1
Specialist Retailers
Health and Beauty 1,423.6 1,561.8 1,685.3 1,793.3 1,892.8 1,946.1
Table 3 Health and Beauty Specialist Retailers: Value Sales, Outlets and Selling
Space: % Growth 2010-2015
% growth
2014/15 2010-15 CAGR 2010/15 TOTAL
Value sales SGD million 2.8 6.5 36.7

Outlets 1.7 2.1 10.7
Selling Space '000 sq m -1.6 2.2 11.7
Table 4 Sales in Health and Beauty Specialist Retailers by Channel: % Value Growth
2010-2015
% current value growth, retail value rsp excl sales tax
2014/15 2010-15 CAGR 2010/15 Total
Beauty Specialist Retailers 15.9 12.6 80.9

Chemists/Pharmacies 7.8 6.3 35.7
Optical Goods Stores -2.4 4.1 22.1
Drugstores/Parapharmacies -2.0 5.0 27.8
Other Healthcare Specialist Retailers 3.4 4.0 21.6

Health and Beauty Specialist Retailers 2.8 6.5 36.7
Table 5 Health and Beauty Specialist Retailers GBO Company Shares: % Value
2011-2015
% retail value rsp excl sales tax

Company 2011 2012 2013 2014 2015
Hutchison Whampoa Ltd 19.1 18.6 19.1 18.9 19.5

Dairy Farm 16.5 17.8 17.3 16.6 15.2
International Holdings
Ltd
NTUC Healthcare Co- 4.7 4.7 4.8 5.0 5.5
operative Ltd
LVMH Mot Hennessy 2.2 2.8 4.2 4.4 5.3
Louis Vuitton SA
General Nutrition 4.2 4.3 4.2 4.0 4.0
Centers Inc
L'Oral Groupe 2.7 2.8 2.9 2.9 3.1
Eu Yan Sang 3.5 3.6 3.5 3.6 2.9
International Ltd
Sa Sa International 2.3 2.4 2.2 2.2 2.0
Holdings Ltd
Spectacle Hut Pte Ltd 1.7 1.7 1.7 1.7 1.7
Stelux Holdings 1.8 1.9 1.8 1.5 1.3
International Ltd
Capitol Optical Co Pte 1.5 1.6 1.5 1.3 1.2
Ltd
LG Household & Health 1.2 1.2 1.1 1.0 1.0
Care Ltd
Nanyang Optical Co Pte 1.1 1.0 0.9 0.9 1.0
Ltd
AmorePacific Corp 0.4 0.5 0.6 0.6 0.6
Viking Offshore & 0.8 0.6 0.6 0.5 0.5
Marine Ltd
Fancl Corp 1.2 1.3 1.3 - -
I Nuovi Group 0.1 0.0 0.0 - -
Novena Holdings Ltd - - - - -
Faceshop Co Ltd, The - - - - -
Others 34.9 33.3 32.2 34.9 35.3
Total 100.0 100.0 100.0 100.0 100.0
Table 6 Health and Beauty Specialist Retailers GBN Brand Shares: % Value 2012-
2015
% retail value rsp excl sales tax

Brand Company (GBO) 2012 2013 2014 2015
Watson's Hutchison Whampoa Ltd 18.6 19.1 18.9 19.5

Guardian Dairy Farm 17.8 17.3 16.6 15.2
International Holdings Ltd
Unity NTUC Healthcare Co- 4.7 4.8 5.0 5.5
operative Ltd
Sephora LVMH Mot Hennessy 2.8 4.2 4.4 5.3
Louis Vuitton SA
GNC General Nutrition 4.3 4.2 4.0 4.0
Centers Inc
The Body Shop L'Oral Groupe 2.8 2.9 2.9 3.1
Eu Yan Sang Eu Yan Sang 3.6 3.5 3.6 2.9
International Ltd
Sa Sa Sa Sa International 2.4 2.2 2.2 2.0
Holdings Ltd
Spectacle Hut Spectacle Hut Pte Ltd 1.7 1.7 1.7 1.7
Optical 88 Stelux Holdings 1.9 1.8 1.5 1.3
International Ltd
Capitol Optical Capitol Optical Co Pte Ltd 1.6 1.5 1.3 1.2
The Face Shop LG Household & Health 1.2 1.1 1.0 1.0
Care Ltd
Nanyang Optical Nanyang Optical Co Pte Ltd 0.8 0.8 0.8 0.8
Etude House AmorePacific Corp 0.5 0.6 0.6 0.6
Beaut Spring Viking Offshore & 0.6 0.6 0.5 0.5
Marine Ltd
Alexis Eyewear Nanyang Optical Co Pte 0.2 0.2 0.2 0.2
Boutique Ltd
Fancl Fancl Corp 1.3 1.3 - -
I Nuovi Professional I Nuovi Group 0.0 0.0 - -
The Face Shop Faceshop Co Ltd, The - - - -
Beaut Spring Novena Holdings Ltd - - - -
Others 33.3 32.2 34.9 35.3
Total 100.0 100.0 100.0 100.0
Table 7 Health and Beauty Specialist Retailers LBN Brand Shares: Outlets 2012-2015
sites/outlets
Brand (GBO) Company (NBO) 2012 2013 2014 2015
Guardian Dairy Farm 151 154 145 135

Watson's (Hutchison Watson's Personal Care 110 116 112 112
Whampoa Ltd) Stores Pte Ltd
GNC (General OSIM International Ltd 60 61 61 63
Nutrition Centers
Inc)
Unity NTUC Healthcare Co- 50 56 55 60
operative Ltd
The Body Shop Body Shop (S) Pte Ltd, 40 42 43 45
(L'Oral Groupe) The
Eu Yan Sang (Eu Yan Eu Yan Sang (S) Pte Ltd 51 46 49 41
Sang International
Ltd)
Spectacle Hut Spectacle Hut Pte Ltd 31 33 34 33
Capitol Optical Capitol Optical Co Pte Ltd 26 28 26 25
The Face Shop (LG TFS Singapore Pte Ltd 20 23 23 23
Household & Health
Care Ltd)
Sa Sa (Sa Sa Sa Sa Cosmetic Co (S) 21 22 22 21
International Pte Ltd
Holdings Ltd)
Optical 88 (Stelux Optical 88 (S) Pte Ltd 24 23 18 16
Holdings
International Ltd)
Etude House AmorePacific Singapore 11 15 15 15
(AmorePacific Corp) Pte Ltd
Nanyang Optical Nanyang Optical Co Pte Ltd 9 11 11 11
Sephora (LVMH Mot Sephora Singapore Pte Ltd 7 9 9 11
Hennessy Louis
Vuitton SA)
Beaut Spring Shine @ Spring Pte Ltd 6 9 6 6
(Viking Offshore &
Marine Ltd)
Alexis Eyewear Nanyang Optical Co Pte 2 2 2 2
Boutique Ltd
Fancl (Fancl Corp) Fancl Asia Pte Ltd 13 13 - -
I Nuovi Professional I Nuovi Group 1 1 - -
Beaut Spring Beaut Spring Pte Ltd - - - -
(Novena Holdings Ltd)
Beaut Spring Shine @ Spring Pte Ltd - - - -
Others Others 1,012 1,018 1,054 1,094
Total Total 1,645 1,682 1,685 1,713
Table 8 Health and Beauty Specialist Retailers LBN Brand Shares: Selling Space
2012-2015
selling space '000 sq m

Brand (GBO) Company (NBO) 2012 2013 2014 2015
Watson's (Hutchison Watson's Personal Care 13.3 13.9 13.6 13.6

Whampoa Ltd) Stores Pte Ltd
Guardian Dairy Farm 12.6 12.9 12.1 11.5
Unity NTUC Healthcare Co- 4.2 4.7 4.6 5.0
operative Ltd
GNC (General OSIM International Ltd 4.5 4.6 4.6 4.7
Nutrition Centers
Inc)
Sephora (LVMH Mot Sephora Singapore Pte Ltd 3.0 3.5 3.5 4.3
Hennessy Louis
Vuitton SA)
The Body Shop Body Shop (S) Pte Ltd, 3.6 3.8 3.9 4.1
(L'Oral Groupe) The
Spectacle Hut Spectacle Hut Pte Ltd 2.5 2.7 2.8 2.8
Capitol Optical Capitol Optical Co Pte Ltd 2.6 2.8 2.6 2.5
Sa Sa (Sa Sa Sa Sa Cosmetic Co (S) 2.4 2.5 2.5 2.4
International Pte Ltd
Holdings Ltd)
The Face Shop (LG TFS Singapore Pte Ltd 1.8 2.1 2.1 2.1
Household & Health
Care Ltd)
Eu Yan Sang (Eu Yan Eu Yan Sang (S) Pte Ltd 2.5 2.3 2.5 2.0
Sang International
Ltd)
Etude House AmorePacific Singapore 0.9 1.3 1.3 1.5
(AmorePacific Corp) Pte Ltd
Optical 88 (Stelux Optical 88 (S) Pte Ltd 1.8 1.7 1.4 1.2
Holdings
International Ltd)
Nanyang Optical Nanyang Optical Co Pte Ltd 0.9 1.1 1.1 1.1
Beaut Spring Shine @ Spring Pte Ltd 0.5 0.7 0.5 0.5
(Viking Offshore &
Marine Ltd)
Alexis Eyewear Nanyang Optical Co Pte 0.1 0.1 0.1 0.1
Boutique Ltd
Fancl (Fancl Corp) Fancl Asia Pte Ltd 1.3 1.4 - -
I Nuovi Professional I Nuovi Group 0.0 0.0 - -
Beaut Spring Beaut Spring Pte Ltd - - - -
Beaut Spring Shine @ Spring Pte Ltd - - - -
Others Others 72.6 73.5 78.6 76.1
Total Total 131.2 135.6 137.6 135.4
Table 9 Health and Beauty Specialist Retailers Forecasts: Value Sales, Outlets and
Selling Space 2015-2020
2015 2016 2017 2018 2019 2020
Value sales SGD million 1,946.1 1,999.3 2,055.0 2,112.4 2,171.0 2,230.4
Outlets 1,713.0 1,731.0 1,750.0 1,766.0 1,780.0 1,793.0
Selling Space '000 sq m 135.4 135.0 135.2 135.8 136.7 137.9
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Note: Forecast value data in constant terms.
Table 10 Forecast Sales in Health and Beauty Specialist Retailers by Channel: Value
2015-2020
SGD million
2015 2016 2017 2018 2019 2020
Beauty Specialist 479.6 513.2 543.9 571.1 594.0 611.8

Retailers
Chemists/Pharmacies 137.8 144.7 152.2 160.5 169.4 179.1
Optical Goods Stores 341.9 343.6 346.0 349.1 353.0 357.6
Drugstores/Parapharmacies 865.7 874.4 886.6 902.6 922.4 946.4
Other Healthcare 121.1 123.5 126.2 129.1 132.2 135.5
Health and Beauty 1,946.1 1,999.3 2,055.0 2,112.4 2,171.0 2,230.4
trade sources
Table 11 Health and Beauty Specialist Retailers Forecasts: Value Sales, Outlets and
Selling Space: % Growth 2015-2020
% growth
2015/16 2015-20 CAGR 2015/20 TOTAL
Value sales SGD million 2.7 2.8 14.6

Outlets 1.1 0.9 4.7
Selling Space '000 sq m -0.3 0.4 1.8
trade sources
Table 12 Forecast Sales in Health and Beauty Specialist Retailers by Channel: %

Value Growth 2015-2020
% constant value growth, retail value rsp excl sales tax
2015/2016 2015-20 CAGR 2015/20 TOTAL
Beauty Specialist Retailers 7.0 5.0 27.6

Chemists/Pharmacies 5.0 5.4 30.0
Optical Goods Stores 0.5 0.9 4.6
Drugstores/Parapharmacies 1.0 1.8 9.3
Other Healthcare Specialist Retailers 2.0 2.3 11.9
Health and Beauty Specialist Retailers 2.7 2.8 14.6
trade sources

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HEALTH AND BEAUTY

LIST OF CONTENTS AND TABLES

HEALTH AND BEAUTY SPECIALIST

Source: Euromonitor International

2010 2011 2012 2013 2014 2015

Beauty Specialist 265.1 295.6 328.1 368.7 413.7 479.6

Value sales SGD million 2.8 6.5 36.7

% current value growth, retail value rsp excl sales tax

2014/15 2010-15 CAGR 2010/15 Total

Beauty Specialist Retailers 15.9 12.6 80.9

Other Healthcare Specialist Retailers 3.4 4.0 21.6

% retail value rsp excl sales tax

Hutchison Whampoa Ltd 19.1 18.6 19.1 18.9 19.5

% retail value rsp excl sales tax

Watson's Hutchison Whampoa Ltd 18.6 19.1 18.9 19.5

Guardian Dairy Farm 151 154 145 135

selling space '000 sq m

Watson's (Hutchison Watson's Personal Care 13.3 13.9 13.6 13.6

2015 2016 2017 2018 2019 2020

Beauty Specialist 479.6 513.2 543.9 571.1 594.0 611.8

Value sales SGD million 2.7 2.8 14.6

Table 12 Forecast Sales in Health and Beauty Specialist Retailers by Channel: %

% constant value growth, retail value rsp excl sales tax

2015/2016 2015-20 CAGR 2015/20 TOTAL

Beauty Specialist Retailers 7.0 5.0 27.6

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