Childcare centres springing up at Chinese workplaces

• Amendments in government policies drive market growth
• Key vendors include Golden Apple Education, Noah Education, Oriental Baby, and Montessori School of Shanghai

Technavio predicts the global preschool or childcare market in China will grow at a CAGR of over 6% between 2016 and 2020. Much of this market’s growth prospects is augmented by recent amendments to government policies. In 2015, the government amended the one-child policy by allowing couples in the country to have up to two children in an attempt to balance out the population development. The population growth along with the increase in disposable income in middle-class families in China is resulting in an increase in preschool enrolments.

“China is currently witnessing a rise in the implementation of childcare services at workplaces. Many organisations in the country are providing daycare centres with personal babysitters at the workplace. Companies collaborate with major leading vendors of childcare centres by implementing their curricula and training methods. Such services by companies are most likely to be adopted by employees as parents can get to meet their children at regular intervals and also reduce their commute time between childcare centres and workplaces,” says Jhansi Mary, Lead Analyst, Education, Technavio Research.

There is increasing emphasis on collaborative learning among childcare service providers due to increasing competition among the players in the market. Many kindergartens and schools are trying to enhance children's skills by relying on interactive and individualized learning experiences driven by new technologies. Many institutions such as Oriental Baby, the Montessori School of Shanghai, and Etonkids Educational Group are also focusing on counseling parents by providing essential and useful information. Furthermore, they also provide necessary equipment such as educational games and teaching materials to be incorporated into a home's infrastructure so that the parents do not have to send their children to kindergartens or preschools.

The key vendors in the preschool or childcare market in China include Golden Apple Education, Noah Education, Oriental Baby, and Montessori School of Shanghai. The market is characterised by the presence of diversified international and regional players, and as all players are competing to gain a greater share of the industry, the market appears highly competitive. International preschool and child care service providers are gradually increasing their footprint in the market and regional vendors find it increasingly difficult to compete with them especially in terms of quality, ambience, and product pricing.

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Technavio outlines India fashion e-retail market

• Men’s clothing segment is the dominant shareholder in the market
• Key vendors—Amazon, Flipkart, Snapdeal, Jabong, and Yepme

The availability of a wide array of payment options and products, broader reach, and lower costs are encouraging online shopping for consumers in India, says Technavio’s analysts, who predict that the online fashion retail market in India will grow at a CAGR of almost 17% between 2016 and 2020.

Online shopping sites offer customers the opportunity to choose between a number of payment methods such as debit cards, credit cards, cash on delivery (COD), electronic wallets, smart cards, Internet banking, and demand drafts. Favourable demographic factors, better return policies, and increasing adoption of digital and push marketing by vendors are some of the other factors that will contribute to the growth in the online fashion retail market in India during the forecast period.

“The distribution of users between mobile applications and websites is an ongoing trend in the market. Mobile apps have a tremendous impact on the growth of the online fashion retail market in India as they offer a faster alternative to mobile web browsing for consumers to shop on the go. Key players in the market are coming up with more sophisticated fashion apps designed to leverage each functionality on specific operating systems such as Windows, Android, and iOS. Online retailers are emphasising on finding a balance between mobile applications and websites to cater to the masses who prefer shopping online,” says Brijesh Kumar Choubey, Lead Analyst, Consumer & Retail, Technavio Research.

In 2015, men's clothing online accounted for around 53% of the market share to dominate the online fashion retail market. However, more women in the country are likely to be employed and empowered financially in the coming years, thereby boosting growth in the women’s clothing online segment. Furthermore, hectic lifestyles and time crunch are encouraging women to transition towards online shopping rather than visit brick-and-mortar stores. The availability of premium women’s clothing is also projected to increase purchases and add more revenue by 2020.

The key players in the online fashion retail market in India include Amazon, Flipkart, Snapdeal, Jabong, and Yepme. Intense competition prevails in this market with most players selling broadly similar products. However, the global players like Amazon and eBay are offering an impressive range of fashion products, which has posed a tough challenge for regional players like Flipkart and Snapdeal. According to Technavio, the purchase decision of consumers is price-dependent so vendors need to focus on pricing strategies and the provision of innovative services. Most users prefer COD and conduct a price comparison before making a purchase, the research firm added.

Botox accounts for more than half of the global facial aesthetics market

Rising beauty consciousness among consumers and a shift in preference from invasive to minimally or non-invasive procedures are driving the demand for facial aesthetic procedures, according to the Global Facial Aesthetics Market 2016-2020 report by Technavio. 

Botox dominates the facial aesthetics market and accounts for approximately 52% of the total market share, says research firm Technavio, fuelled by a shift in cultural thinking, high spending capacity, and increased brand popularity. With an increasing number of women considering minimally invasive procedures as a viable option, demand for botox will continue through to 2020, Technavio says. Dermal fillers are the second-common non-invasive rejuvenation procedure.

“The facial aesthetics market is undergoing various technological advancements in terms of products and the materials used. Therefore, vendors have come up with advanced collagen-based materials such as bovine collagen and bioengineered human collagen, which reduces the risk of bruising. They are also launching products that can be used on the face, hands, and other parts of the body. For instance, Radiesse has recently received FDA approval for hand augmentation to correct volume loss in the dorsum of the hands. The increase in beauty consciousness among consumers has resulted in the surged adoption of facial aesthetic products, which in turn will accelerate the growth of this market during the forecast period,” says Brijesh Kumar Choubey, Lead Analyst, Consumer & Retail, Technavio Research.

Technavio further noted that India, Vietnam, Indonesia, and Malaysia offer particularly lucrative market opportunities. 

Bath and shower products go organic

Consumers are looking for organic ingredients and convenience when it comes to bath and shower products, says research firm Technavio. The rise in living standards and income are also leading consumers to opt for more expensive and aesthetically appealing bath and shower products with different fragrances and effective ingredients, the company said in a report on the global bath and shower products market that forecasts a market worth at least US$15 billion by 2019, a CAGR of around 4% between 2015 and 2019. 

“The market is witnessing increase in demand for organic products like organic shampoos, conditioners, and soaps due to the rising issues of hair- and scalp-related problems. Manufacturers have recently developed organic dry shampoos such as Estée Lauder’s Ojon and Pierre Fabre's Klorane, which absorb dirt and oil on the hair and scalp. These shampoos retain the natural hair oils and saves time and effort on the part of consumers as there are convenient to use,” says Brijesh Kumar Chaubey, Lead Analyst, Consumer & Retail, Technavio Research.

Shower products - shower gels, shower creams, exfoliates, body shampoos, mousses, loofahs, bath brushes, body polishers, and foot scrubs - lead the market, accounting for 70% of overall market share. The report predicts this segment to retain its leadership until the end of 2019, growing at a rate of around 4%. 

Key vendors dominating the global bath and shower products market include Johnson & Johnson, L'Oreal, P&G, Unilever and Colgate-Palmolive. According to Technavio competition in the market is expected to intensify during the forecast period, with an increase in product/service extensions, innovations in technology, and mergers. 

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Technavio names luxury handbag brands to watch

The Coach store at Raffles City mall, Singapore.

The most successful handbag brands in the Asia Pacific market, at least to 2019, will be Burberry, Chanel, Coach, Hermès, Kate Spade, LVMH (Louis Vuitton), Michael Kors, Mulberry and Prada, says research firm Technavio, while the popular ones today include Coach, Michael Kors, LVMH, Chanel, D&G, Prada, Gucci, and Christian Dior.

Easy accessibility through specialist retail stores, increasing disposable income, and e-commerce are driving demand for handbags market in the region, Technavio says. The company also says that accessory brands will be focusing more on social media as it is popular in the region, especially in China and India. 

“The rising use of the Internet, coupled with the rising number of mobile phone users, is driving the sale of handbags,” says Faisal Ghaus, Vice President of Technavio Research. “The growing trend toward e-commerce and awareness of brands available online at steep discounts are attracting consumers."

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View research on the handbags market in the APAC 2015-2019. The handbags market in APAC is expected to grow at a CAGR of 6.5%, while sale volumes are expected to reach a CAGR of 6.2%, from 2014 to 2019.

Read the WorkSmart Asia blog post on Technavio's thoughts about handbags in India and China.

More non-drug trreatments used to address depression

While depression is on the rise, the global drug market is seeing a decline as sufferers turn to alternative treatments, says research firm Technavio.

Its report on the global depression drugs market forecasts a CAGR of -6.64% from 2015 to 2019. "The prevalence of depression has become very high because of factors like genetic vulnerability, lack of proper diagnosis and treatment and a high degree of association with other disorders like diabetes, stroke and cardiovascular diseases,” says Faisal Ghaus, Vice President of Technavio. 

"Many patients are opting for complementary and alternative medicines, in combination with conventional treatments. These therapies can include relaxation techniques, massage, meditation, counseling, and art therapy. Homeopathic and naturopathic medicines have also been found to be helpful in treating depression. These effective alternatives are expected to erode the market share of drugs currently being used for the treatment of depression over the projected period.” 

Instant coffees gain traction

The reputation of instant coffee has improved among consumers, especially youth, as it is less expensive and easy to prepare, boosting the outlook for instant coffee globally, says research firm Technavio. The company has published a new report on the global instant coffee market.

The number of coffee drinkers has increased, as has the acceptance of café culture globally, prompting coffee producers to introduce new varieties in the market, Technavio adds. Price fluctuations for green coffee beans add an element of volatility however.

“The growing trend of having coffee during casual social conversations, particularly in developing economies where the young population is high, is bolstering the market for coffee vendors globally,” says Faisal Ghaus, Vice President of Technavio.

“With the rise in coffee drinkers spurred by the increase in number of visitors to coffee shops and cafés, the potential customer base for instant coffee has expanded.”

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Home treatments for teeth whitening grow in popularity

Technavio, a tech-focused research firm, has observed that self-applied teeth whitening products have revolutionised global oral care, with consumers preferring home instead of professional treatments. Oral care products like dental strips, whitening pens, and trays have replaced professional whitening treatments because of their cost and ease of use, the research firm said.

In a new report on the global teeth whitening products, the company said the market is expected to grow at a CAGR of almost 4% from 2015 to 2019. "Thanks to advances in teeth whitening, vendors are introducing new sustainable products with better offerings into the market. These products are considered highly cost effective and have witnessed impressive growth in countries like the US and India,” says Faisal Ghaus, Vice President of Technavio. 

“Though over the counter teeth whitening products are less effective than professional treatments, these products are popular as they are not time consuming. Vendors are expected to introduce more whitening products as value-added offerings and contribute to the growth of this market during the forecast period.”

We're all washing our hair more often

A rapid increase in hair-related problems and pollution have prompted people to start shampooing their hair on alternate days or daily, increasing the overall frequency of shampoo usage and boosting the shampoo industry. This observation, from Technavio;'s report on the global hair shampoo market 2015-2019 global hair care market, explains why shampoos accounted for more than 40% share of the global hair care market in 2014, the research firm said. 

Source: Technavio.

The global shampoo market is expected to grow at a CAGR of 4.69% during the forecast period of 2014 to 2019, driven not only by an increase in the frequency of shampoo usage but also more customised products, higher demand for anti-dandruff shampoo, and more interest from developing countries. 

“Companies have now begun to develop safer and more effective products made from natural ingredients. For instance, Unilever has a natural professional hair shampoo product line under the brand name Suave,” says Faisal Ghaus, Vice President of Technavio.

“Clairol Herbal Essences has also launched the Naked Line range that uses no heavy residues, parabens or dyes.”

Trends to watch for over the forecast period include rising demand for organic shampoos, dry shampoo and professional shampoo as popular categories, and also more men taking an interest in shampoo.

Key vendors mentioned in the report include Henkel, Kao, L'Oréal, P&G and Unilever.

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Handbags to take centre stage in India, China

Technavio has published a new report on the handbags market in the BRIC countries - Brazil, Russia, India and China, in which it forecasts a CAGR of over 7.41% by revenues, and 7.02% by volume, over 2014 to 2019. 

According to the research firm, consumers are associating handbags with social status. The introduction of ergonomic designs, trendy colours, finishing and textures are boosting their popularity, Technavio said.

Source: Technavio.

The economy of the BRIC countries has been improving, despite the high rates of inflation. It has recovered from the 2008-2009 recession and the Eurozone crisis, with increasing per capita GDP and GDP based on purchasing power parity. This is a major driver in the market, which is expected to stimulate the market growth.

“An increase in the number of working women is resulting in increased demand for handbags. Most women use their handbags for multiple purposes, such as carrying laptops or tablets, wallets and food,” says Faisal Ghaus, Vice President of Technavio Research.

“Handbags are also seen as status symbols and representative of individual identity, which is expected to fuel the growth of the market in the coming years.”

Key vendors for BRIC, Technavio said, include Chanel, Christian Dior, Coach, D&G, Hermès International, LVMH, Michael Kors, Mulberry, Prada and Tory Burch.

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More details about the Handbags Market in BRIC 2015-2019.