according to the figure of Nielsen in 2013, the annual turnover of the Vietnamese cosmetics market is round 15 trillion VND (US$704.2 million). The average per-capita spending was only $four per individual per yr, in contrast with a mean of $20 per person in Thailand. This signifies an enormous potential for progress of the cosmetic sector in Vietnam.
According to a report from The Society of Cosmetics of Ho Chi Minh City, Vietnam has greater than 400 cosmetics businesses, with ninety% of the market share taken by overseas brands. Most of the popular domestic manufacturers, similar to Saigon Cosmetic, Thorakao and Lan Hao only achieved low sales volume and mainly export to neighboring Asian markets.
Research about consumer demand
Vietnamese consumers are familiar with Korean model cosmetics in contrast with cosmetics from different international locations. The market share for cosmetics products by international countries is as follows: Korea – 30%, EU – 23%, Japan – 17%, Thailand – thirteen%, US – 10%, and others – 7%. The Korean beauty merchandise are often related to “model of youth”, “affordable value”, and “being modern”. Vietnamese ladies typically contemplate American products as “expensive”, “good high quality” and “brands for adults” whereas Japanese merchandise as “good high quality” and “good worth for cash”.
The analysis of Q&Me reveals that there is 44% of Vietnamese girls often carrying makeup during which 24% women wear make-up every single day, 44% women put on makeup as soon as every week. Thus, it underlines that carrying make-up every day isn't well-liked for Vietnamese women.
Domestic beauty enterprises in Vietnam
Since there's a fierce competitors of international beauty brands, Vietnamese enterprises in the cosmetic business are seeking to export or hyperlink with different worldwide companies for new objects. However, there have not been plenty of profitable companies which may include Cosmetics Manufacturing Company Limited Lan Hao (Thorakao), JSC Saigon Cosmetics, JSC Sao Thai Street…
Many free commerce agreements between Vietnam and other international locations have been signed which put tariffs on exported items to zero% together with cosmetics, thus this business has a longer attraction for domestic enterprises to put money into manufacturing or production chains.
Majority Vietnamese beauty enterprises are nonetheless comparatively younger, thus solely capable of produce shampoo, bathe gel … Most beauty merchandise utilized in spa are imported. Therefore, it is an opportunity for prime-finish international owned cosmetics manufacturers to compete in the Vietnam market. Specifically, beauty merchandise which curse/reduce zits and treatment for shiny skin, rejuvenate the skin, whiten pores and skin and deal with hair are the most effective seller merchandise.
The development of utilizing natural products with a hundred% natural (natural) ingredients turns into the top choice of spa. So if any home manufacturers catch up cosmetically, they'll succeed in discovering a new course for the cosmetic enterprises to compete on this business in Vietnam.
Even if domestic enterprises are able to meet up with the current development, Vietnamese enterprises nonetheless need to be taught, replace expertise as well as information and expertise from the big firms with turnover of billions dollars similar to Korean business and hundred billions of baht similar to Thailand’s enterprises.
Make your individual beauty model and be the next successful enterprise
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