in accordance with the determine 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 particular person per yr, compared with an average of $20 per person in Thailand. This signifies a huge potential for progress of the beauty sector in Vietnam.
According to a report from The Society of Cosmetics of Ho Chi Minh City, Vietnam has greater than four hundred cosmetics companies, with 90% of the market share taken by foreign manufacturers. Most of the popular home manufacturers, corresponding to Saigon Cosmetic, Thorakao and Lan Hao only achieved low sales quantity and mainly export to neighboring Asian markets.
Research about client demand
Vietnamese consumers are conversant in Korean model cosmetics in contrast with cosmetics from other international locations. The market share for cosmetics merchandise by overseas nations is as follows: Korea – 30%, EU – 23%, Japan – 17%, Thailand – 13%, US – 10%, and others – 7%. The Korean beauty merchandise are often associated with “model of youth”, “affordable price”, and “being fashionable”. Vietnamese women often think about American products as “costly”, “good high quality” and “manufacturers for adults” whereas Japanese merchandise as “good high quality” and “good worth for money”.
The research of Q&Me reveals that there's 44% of Vietnamese girls often sporting make-up during which 24% girls put on make-up daily, 44% ladies wear makeup as soon as a week. Thus, it underlines that carrying makeup daily isn't well-liked for Vietnamese girls.
Domestic beauty enterprises in Vietnam
Since there's a fierce competitors of worldwide cosmetic brands, Vietnamese enterprises in the cosmetic industry are looking for to export or hyperlink with different worldwide firms for brand spanking new objects. However, there haven't been a lot of profitable companies which may embody Cosmetics Manufacturing Company Limited Lan Hao (Thorakao), JSC Saigon Cosmetics, JSC Sao Thai Street…
Many free trade agreements between Vietnam and other international locations have been signed which put tariffs on exported goods to zero% including cosmetics, thus this business has a longer attraction for home enterprises to invest in manufacturing or manufacturing chains.
Majority Vietnamese cosmetic enterprises are still comparatively younger, thus only able to produce shampoo, shower gel … Most beauty merchandise used in spa are imported. Therefore, it is a chance for top-end overseas owned cosmetics manufacturers to compete within the Vietnam market. Specifically, beauty products which curse/cut back acne and therapy for shiny skin, rejuvenate the pores and skin, whiten pores and skin and deal with hair are one of the best seller merchandise.
The trend of using pure products with 100% natural (organic) elements turns into the best choice of spa. So if any home brands catch up cosmetically, they'll succeed in finding a brand new path for the beauty enterprises to compete on this industry in Vietnam.
Even if domestic enterprises are capable of catch up with the present development, Vietnamese enterprises still need to learn, replace know-how in addition to knowledge and experience from the large companies with turnover of billions dollars such as Korean enterprise and hundred billions of baht corresponding to Thailand’s enterprises.
Make your own beauty brand and be the following successful enterprise
The opportunity to turn into the following beauty model in Vietnam is large and it is rising. Taking this advantage and the research report will help you to arrange and develop your personal cosmetic business. During beginning of any business like cosmetics you must have out there merchandise to promote and not only one product can convey you success in your corporation as a substitute you can start promoting a number of merchandise. This will happen if you outsource your product from a reliable producer and sure, a lot of the at present trending corporations additionally follow the same concept and as a substitute of creating their own product they are concentrating on sales and if you follow the same strategy you can develop your individual model easily.
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