In recent years, the Southeast Asian market has become an important destination for brands going global, with the beauty brand Skintific being one of the best examples of overseas expansion in the region, as shown in our free Skincare and Makeup (Southeast Asia Outlook July 2024)This free PDF takes a look at Southeast Asia's Skincare and Makeup market: market segments, price ranges, popular brands, and much more.Southeast Asia Skincare and Makeup Outlook report.

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In just two years, Skintific's cumulative sales in the Southeast Asian market exceeded RMB 800 million (approximately US $114M), becoming the sales champion on multiple online marketplaces such as Shopee and Lazada, as well as the recognition of becoming TikTok Shop's "Sales Champion" in Indonesia and Malaysia, as well as TikTok Shop's 2022 Global Sales Champion.

Although Skintific is a local Indonesian brand on the surface, the company behind it is Guangzhou Feimei Network Technology Co., Ltd.—created specifically for the Indonesian market, and an expansion idea that has proved a great success in Southeast Asia. Let’s take a look at what Skintific did right and what insights beauty brands seeking to go global can derive from its story.

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1. The rapid Rise of Skintific in Southeast Asia's eCommerce

Skintific's rapid rise is closely related to its deep understanding and rollout into the Southeast Asian eCommerce market. Despite appearing to be locally from Indonesia, the company behind the brand is a Chinese corporation, that defined the idea of ​​international expansion from the very inception of the brand, establishing branches at home and abroad, and hiring professional social media services for the localized management of its overseas social media accounts.

At the same time, Skintific has also established a localized Warehousing and Logistics system in Southeast Asia to ensure that it can quickly respond to market demand.

According to TMO Data team's analysis, Skintific ranks third for the best-selling brands in skincare sales on Southeast Asian eCommerce platforms Shopee and Lazada, second only to Japan's SENKA and L'Oréal Paris (Skincare (Southeast Asia Outlook April 2024)This free PDF takes a look at Southeast Asia's skincare market: market segments, price ranges, popular brands, and much more.Southeast Asia Skincare Outlook April 2024). This is a remarkable achievement for a brand that is only two years old, and it indicates that Skintific has established a firm foothold in the Southeast Asian skincare market.

2. Smart Positioning for Product R&D and Go-to-market Strategy

An important factor in Skintific's success lies in its precise product positioning and innovative R&D strategy. Indonesia is located in the tropics, with hot and humid weather, strong sunshine, and a fatty diet.

These factors have led to common skin problems for local women, especially acne and oil secretion. Skintific keenly observed this pain point and launched a "Refreshing Acne Removal" product line to meet the needs of Indonesian consumers. This series of products has the main selling points of fast acne treatment, mild and non-irritating, and high cost-effectiveness, quickly winning the favor of Indonesian consumers.

In addition, Skintific emphasizes localized innovation in Product Research and Development, and all products are adjusted according to the special needs of the local market. For example, in the selection of product ingredients, Skintific uses natural plant ingredients suitable for tropical climates, which ensures the skin care effect while reducing the occurrence of adverse reactions such as skin allergies, making Skintific's products stand out from many similar products.

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3. Marketing Strategy: Social Media and Word-of-mouth

Skintific's success in Southeast Asia is not only due to its high-quality products but also to its carefully planned marketing strategy that understands that Southeast Asia is a highly active market for social media, especially among young consumers.

Social media platforms such as TikTok and Instagram have become important channels for influencing consumer decisions. Skintific seized this trend and invested heavily in content marketing on social media. By cooperating with well-known local beauty bloggers and celebrities to conduct product trials and recommendations, it quickly accumulated a large number of loyal followers.

Skintific's content marketing does not only stop at advertising on social media, but also focuses on enhancing the brand's influence through celebrity endorsements and other means. For example, Skintific officially announced the young actor Nicholas Saputra as the spokesperson for its star product "5X Barrier Repair Cream" in Indonesia. This move greatly increased the brand's popularity and boosted the sales of the product. At the same time, through a large number of organic videos and live broadcasts on the TikTok platform, Skintific quickly attracted the attention of young consumers in Southeast Asia.

4. Pricing Strategy: No "price war" to win the market

In terms of product pricing, the unit price of Skintific products is mostly in the RMB 40-60 range (US $6-8.5). Although Skintific's product prices are relatively high compared to other local brands, this price range is still acceptable to consumers.

Skintific emphasizes the naturalness, safety and efficiency of its products, and successfully shapes the brand image of "healthy skincare", which distinguishes the large number of low-priced white-label products in the Southeast Asian market . This strategy has helped Skintific establish a good brand reputation and attracted more and more loyal customers willing to pay the premium.

5. Overseas Expansion: Lessons from the success of global brands

Skintific's success is not accidental and is an excellent example of a global overseas expansion through a carefully planned localization approach. Unlike the traditional brand path of "first do a good job in the domestic market and then go global", Skintific has set its sights on the international market from the beginning, especially the fast-growing e-commerce market in Southeast Asia. Through deep insight into local consumer needs, differentiated product development and precise social media marketing strategies, Skintific has achieved great success in just two years.

Skintific's success provides valuable experience and inspiration for other brands that want to enter the Southeast Asian market: Going overseas is not just a simple product export, but also requires in-depth research on the target market and differentiated market strategies.

According to data from Statista, the revenue of the Southeast Asian beauty and personal care market will reach US $30.04 billion in 2023. This shows that the demand for beauty and personal care products in the Southeast Asian market remains strong. In the future, as the Southeast Asian eCommerce market matures further, we have reason to believe that Skintific and other overseas brands will have broad development space in this market!

As part of our comprehensive long-term data monitoring and collection services, TMO Group helps clients dive deeper into Southeast Asia’s eCommerce market with our thorough research and analysis, as well as customized reports for various industries, providing a deep understanding of your niche, including market structure, size, and emerging trends.

If you are looking for an eCommerce agency to assist you in your Southeast Asia business expansion, or want to explore other alternatives to grow in the region, reach out to us to learn more about our Consultancy & Strategy Services, from market entry to Social Commerce and other Cross-border eCommerce Solutions.