The digital landscape has seen a seismic shift with the advent of TikTok, a platform that has redefined social media engagement and e-commerce. Among the notable success stories is Skinmade, a Malaysian skincare brand that has leveraged TikTok to achieve remarkable growth. This article explores the intricacies of TikTok Shop brands and the dynamics of trending products, using Skinmade's journey as a case study. We delve into the Southeast Asian beauty market, the strategic product localization, and the effective use of TikTok marketing to understand the key factors behind Skinmade's success and offer insights for new consumer brands entering this vibrant market.

The Southeast Asian Beauty Market

Market Overview

Southeast Asia's beauty market is in a phase of rapid expansion, characterized by its dynamic growth and burgeoning consumer base. As of 2024, the market was valued at approximately $28.7 billion, with Malaysia accounting for 28% of this figure. The region's growth is projected to continue at a rate exceeding 10% annually, driven by a young, tech-savvy population and increasing disposable incomes.

Demographic Insights

Malaysia's population of 33 million comprises primarily Malays (70%), followed by Chinese Malaysians (22.7%), and smaller percentages of Indians and other ethnic groups. With a per capita GDP surpassing $10,000, Malaysian consumers exhibit purchasing behaviors akin to those in more developed markets, making it a prime target for new brands.

Digital Penetration and Consumer Habits

In 2023, Malaysia's online penetration rate for skincare products stood at 14%, reflecting an early-stage but fast-growing e-commerce landscape. This trend mirrors China's market trajectory from 2014, where online sales have since surged to represent 31% of the market. Malaysian consumers' habitual use of TikTok during daily commutes and idle moments has made the platform a crucial channel for discovering and purchasing new brands.

Product Demand

Given the tropical climate of Southeast Asia, sunscreen products are particularly popular, especially during the hotter months. In Malaysia, sunscreen ranks just below serums and moisturizers in terms of sales, indicating a strong market demand that savvy brands can tap into.

Skinmade: Meeting Local Needs with Tailored Products

The Launch and Success on TikTok

Skinmade made its debut on TikTok Malaysia in February 2023, and the brand's success was immediate and profound. According to Shoplus, Skinmade's TikTok store sold approximately 240,000 units, generating MYR 10.75 million (approximately USD 1.66 million) in total revenue.

Understanding Local Preferences

One of Skinmade's standout products is its tinted sunscreen, designed specifically for the Malaysian market. Traditional sunscreens often left a whitish residue on the darker and yellower skin tones typical of Malaysians, creating an unnatural "white cast." Skinmade's tinted sunscreen blends seamlessly with the local skin tones, doubling as a light foundation and addressing the market's preference for comprehensive coverage and whitening effects.

Catering to Beauty Preferences

Malaysian beauty trends favor heavier makeup with pronounced whitening and coverage effects, contrasting with the subtle, natural look popular in East Asia. Skinmade's tinted sunscreen meets these preferences, offering a product that protects from UV rays while serving as a foundation, thus catering to the local demand for intense whitening and coverage.

Leveraging TikTok for Explosive Growth

Strategic Marketing on TikTok

TikTok has proven to be an indispensable platform for Skinmade's marketing strategy. The brand's TikTok account, @skinmade.official, has amassed 114,000 followers and 1.5 million likes, with content focused on product demonstrations, application tutorials, and highlighting the benefits of their localized products.

Influencer Collaborations

Collaborating with over 1,300 influencers, Skinmade has produced 5,300 promotional videos. The blue-light tinted sunscreen alone featured in over 1,300 videos and 1,500 live streams. Notable among these influencers is @lemira_k1m, a micro-influencer with 43,000 followers. Her skincare routine video, featuring Skinmade products, garnered 250,000 views and an estimated 6,000 sales, resulting in a GMV of MYR 306,800 (USD 68,800).

Future Prospects for New Brands

Opportunities in Major Sales Events

To sustain growth, brands must leverage significant sales events such as Southeast Asia’s Summer Festival and the "66 Mega Sale." These events offer excellent opportunities to implement localized marketing strategies and maximize reach and conversion on platforms like TikTok.

Continued Innovation and Adaptation

Brands must continually innovate and adapt to the evolving market dynamics. Skinmade’s ability to identify and cater to specific consumer needs has been key to its success. By maintaining a focus on localization and leveraging digital marketing channels effectively, new brands can establish a strong presence in the burgeoning Southeast Asian beauty market.

Utilizing Shoplus for Enhanced Insights

To gain a deeper understanding of TikTok brand performances like Skinmade, leveraging analytics tools such as Shoplus can be invaluable. Shoplus stands out as the best TikTok analytics tool, offering comprehensive insights into product data including views, likes, comments, shares, and sales. Shoplus allows users to view category trends across TikTok’s major sales countries, providing visibility into market dynamics over different time periods. This enables brands to objectively gauge user preferences and demands, tailoring their marketing strategies accordingly.

Conclusion

Skinmade’s journey in Malaysia exemplifies the power of understanding local markets and leveraging digital platforms like TikTok for rapid growth. For new consumer brands venturing into Southeast Asia, mastering TikTok trending products is essential for visibility and engagement. Skinmade’s approach offers a blueprint for success, emphasizing localization, cultural relevance, and strategic use of social media. These elements enable brands to navigate the complexities of this dynamic region and establish a strong foothold for sustained growth and impact.