More information:
1. Overview
According to the figure of Nielsen in 2013, the annual turnover of the Vietnamese cosmetics market is around 15 trillion VND (US$704.2 million). The average per-capita spending was only $4 per person per year, compared with an average of $20 per person in Thailand. This indicates a huge potential for growth of this sector in Vietnam.
According to a report from The Society of Cosmetics of Ho Chi Minh City, Vietnam has more than 400 cosmetics businesses, with 90% of the market share taken by foreign brands. Most of the popular domestic brands, such as Saigon Cosmetic, Thorakao and Lan Hao only achieved low sale volume and mainly export to neighbouring Asian markets.
2. Consumer behavior
Vietnamese consumers are familiar with Korean brand cosmetics compared with cosmetics from other countries. The market share for cosmetics products by foreign countries is as follows: Korea – 30%, EU – 23%, Japan – 17%, Thailand – 13%, US – 10%, and others – 7%. The Korean cosmetic products are often associated with “brand of youth”, “affordable price”, and “being fashionable”. Vietnamese women often consider American products as “expensive”, “good quality” and “brands for adult” whereas Japanese products as “good quality” and “good value for money”.
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