Competition within the Thai beauty market is getting intense with local players stepping up to be innovation leaders, especially within the skincare and colour cosmetics categories. However, the fragrance segment is a relatively new space that local beauty brands are tapping into.
According to Mintel estimates, despite fragrances having a small share in the Thai beauty market because of their premium positioning, retail market value comes close to that of colour cosmetics. Tapping into this opportunity, Thai indie players are expanding into white spaces with new offerings.
Thai brands are driving change within the category by highlighting the emotional elements of fragrance to overcome the barrier brought about by the COVID-19 pandemic, utilising storytelling via online mediums and nostalgia, as well as making products available at affordable price points.
Highlighting nostalgia around iconic Thai moments
Mintel 2030 Beauty Trend ‘Identity Traders’ highlights how consumers are nostalgic and looking for products to help them reconnect. Brands have an opportunity to leverage scents to shine the spotlight on experiences, locations and stories that reconnect consumers with their roots.
Mintel research highlights that over half of Thai female consumers use fragrances at home in the morning, whereas over a third of consumers say that heritage is an important part of their identity. Few local brands are also offering fragrances that allow consumers to reconnect with the nostalgic moments of Thai history.
Butterfly Thai Perfume
Source: butterflythaiperfume.com
Butterfly Thai Perfume collection contains fragrances that bring local nostalgia such as the smell of a rice paddy field and mango sticky rice.
Opportunity to use storytelling to enhance experience
The COVID-19 pandemic has impacted the way consumers use fragrances. Because of social distancing, fragrances have become less of a necessity. Fragrances will need to appeal emotionally to consumers; hence, using stories and art to convey the message of the scents will help to elevate the user experience. Aesthetics will add another angle that will dial up the emotional involvement.
Thai brands have created new techniques to increase fragrance appeal by using the scent to let consumers enjoy experiences, stories and to reminisce about the past. This emotional connectivity gives fragrances a new role beyond smelling nice for others and provides emotional value.
This new communication of storytelling and highlighting moments and emotions enable consumers to embark on emotional journeys provided by fragrances, surpassing barriers put in place by the pandemic such as isolation and physical store visits.
SIAM 1928
Source: SIAM 1928
SIAM, a newly established Thai brand, has composed a poem for each scent. The poetry added an artistic element to product consumption through its aesthetics and design which created a more wholesome product image.
