A beauty corner at WinMart Thang Long, Hanoi. (Photo; VNA) According to data and business intelligence platform Statista, foreign beautybrands are popular.
Brands from the Republic of Korea have established themselves as the leadingplayers in Vietnam’s cosmetics market. Statistics showed the Republic of Koreawas Vietnam’s largest export partner for cosmetics with export value reachingaround 330 million USD in 2022.
Apart from RoK brands, Vietnamese consumers also enjoy using Japanese andEuropean brands.
Despite the fierce competition and the high consumer preference forinternational brands, local businesses have been gradually asserting theirposition. Brands such as Cocoon, M.O.I Cosmetics, Lemonade, and more have alsobeen, step by step, gaining popularity among consumers by offering affordableyet high-quality products.
Still, local brands hold a modest share, estimated at around 10%, of a 2.3billion USD market.
Vietnam’s cosmetics market is thriving, thanks to young consumersentering the market and a rising middle class.
Statista pointed out that Vietnam is among the countries with the highestaverage salary growth rate in the Asia – Pacific region. “As people have moredisposable income, the demand for various consumer goods has been increasing inthe country, especially for cosmetics and personal care items”.
With the post-COVID-19 economic recovery underway, international trade hasregained momentum. Together with the rise of e-commerce, spending on cosmeticproducts is increasing, with a surge in revenue for the beauty and personalcare market in Vietnam expected in the coming years, Statista wrote.
The revenue in the beauty and personal care market in Vietnam is projected toreach 2.66 billion USD by 2024 with an annual growth rate of 2.97% in 2024-28.
The per-person revenue in Vietnam is projected to be at 26.77 USD in 2024.
A report by Nielsen showed Vietnam’s average per-person spending in cosmeticsis still modest but increasing year-on-year, estimated at aroundVNĐ500,000-700,000 per month.
According to Statista, thanks to Vietnam’s digital-savvy population, the use ofe-commerce has been expanding rapidly in recent years.
Cosmetics has consistently been among the leading online shopping categories inthe country, especially among urban consumers.
“With more and more people comfortable shopping for these items online, brandshave been tailoring their customer journey to meet the new demand for onlineservices.”
For instance, virtual try-on services have recently become popular among beautybrands in Việt Nam, providing consumers with an interactive productdemonstration using augmented reality technologies.
“New digital innovations employed within the cosmetics market are expected tocontinuously improve the consumer journey with online shopping, helpinge-commerce to overtake physical retail stores as the go-to destination forbeauty and personal care products in the near future.”
In addition, social media has played a crucial role in shaping beauty trends inVietnam.
Statista estimated that online sales would contribute 20.2% of total revenue inthe beauty and personal care market by 2024.
A report by e-commerce data platform Metric showed that revenue of beauty andpersonal care products on e-commerce platforms reached 22.2 trillion VND in thefirst 10 months of 2023, rising by 74% over 2022.
Tin Le, founder cum CEO of Adtek, said that as cosmetics brands are allpromoting sales via e-commerce platform, local brands should focus on ensuringproduct quality to attract and keep customers.
In addition, focus should also be on catching beauty trends as Vietnameseconsumers are increasingly embracing natural and organic beauty products,together with designing, branding and marketing strategies./.
VNA
