Customers shop for cosmetics at a supermarket in HCM City (Source: VNA) HCM City (VNS/VNA) - The personal care sectorhas enjoyed strong growth of 7 percent a year on average, higher than the fastmoving consumers goods (FMCG) market, thanks to the skincare and make-upsegment, according to a study by global data and consulting company KantarWorldpanel.
Rapid economic growth and higher living standards are shapingchanges in Vietnamese lifestyles and needs.
Urbanites now spend on not only basic products but also aspirationaldemands.
Besides being able to afford advanced beauty products,Vietnamese women are not hesitant about paying more for premium products thatare capable of bringing about significant skin improvements.
The cosmetic market has been offering a wide range of beautyproducts, welcoming new brands, new variants, and new formats every day, whicheffectively stimulates consumer spending.
Also, the current digital world has opened a new door for newplayers entering the market.
Health and beauty stores, including cosmetic stores andpharmacies, continue growing in importance thanks to the entry of new playerslike Pharmacity, Watsons and Hello Beauty.
This channel remains the key for beauty categories sinceshoppers can look for physical testing, professional advice and recommendationsin real time.
Additionally, with digital transformation, these stores offera "phygital" experience which brings together the best from onlineand brick-and-mortar stores.
Easy access to the internet, especially via mobile phones,enables Vietnamese consumers to keep abreast of beauty trends faster, researchproduct information more easily and shop conveniently online.
Noticeably, 80 percent of incremental spending on beautyproducts comes from online shopping, according to the latest Omnichannel report.
The phenomenal growth in popularity of Korean culture isclear across multiple aspects of Vietnamese life from TV dramas, movies, music,and reality TV shows to cuisine, travel and beauty.
In cosmetics, the Republic of Korea ranked first amongcountries exporting to Vietnam in 2018 with nearly a third of the market.Korean brands are consistently expanding as the fastest growing brands in termsof shopper base, predominantly in the make-up and mask segments.
According to experts, there is enormous room for growth inmany beauty categories, which are still underdeveloped.
The Kantar report said two out of five Vietnamese householdshave never bought beauty products. But following the global beauty trend,Vietnamese are more willing to stretch their budget for advanced beautysolutions such as skincare devices and beauty supplements.
Tran Quang Thang, director of the HCM City Institute ofEconomics and Management, said, “The middle class, who spend a lot oncosmetics, is set to grow to 33 million by 2020.”
This again points to huge potential for growth.
Nguyen Van Minh, deputy chairman of the Vietnam Associationof Essential Oils, Aromatherapy and Cosmetics, said many famous foreigncosmetic brands had entered by opening representative offices, companies andfactories and through agents and distributors, including high-end brands likeEsteé Lauder, Lancome, Shiseido, Fendi, Clairins, and L'Oreal.
Some local cosmetics brands such as Thorakao, SaigonCosmetic, Lana, Biona, and Sao Thai Duong had also achieved a certain positionin the market though they still held a small share./.
VNA
