Visitors at the Mekong Beauty Show held in HCM City from June 15 to 17. (Photo: VNA) HCM City (VNA) - With double-digit growth annually, Vietnamhas a promising cosmetics industry for foreign firms seeking to expandoverseas, experts have said.
Vietnam’s cosmetics industry, where imports make up 90 percent ofsales, saw revenues estimated at 1.2 billion USD last year, said Nguyen VanMinh, Vice Chairman of the Vietnam Essential Oils, Aromatherapy and CosmeticsAssociation.
Fourteen domestic cosmetics firms are confined to the low-endsegment and mainly export to neighbouring Asian markets, Minh said.
Around 90 percent of cosmetics firms are distribution agents forforeign cosmetic brands, he said.
Most foreign cosmetic brands operate out of modern malls acrossthe country.
The Sai Gon Cosmetic Corporation, one of the most popular domesticbrands, sold around 500,000 perfume bottles of 50ml at traditional markets andrural areas, he said.
More than 40 percent of the company’s revenues comes from exportsto Cambodia, Laos and Thailand.
Its perfumes and beauty products are yet to find their way intomalls in Vietnam.
Lan Hao Cosmetics Co Ltd has been achieving annual growth of 30 percentin the domestic market. Exports still account for a major portion of itsrevenues.
The cosmetics sector is made up primarily of small- andmedium-sized firms that match large corporations in terms of finance andtechnology.
In the high-end segment, foreign brands account for a lion’s shareof the market as domestic firms remain weak also in terms of innovation,packaging, marketing and promotion.
The demand for beauty products in Vietnam is still modest, withper capita spending being 6 USD a year on cosmetics compared with 20 USD inThailand, Minh said, citing figures from market research firm Nielsen.
But with increasing disposable incomes, rising living standardsand a young population, demand is rising, he said.
Vietnam’s beauty industry is even more attractive because thecountry has signed a series of free trade agreements under which import dutieson beauty care goods would fall to 0-5 percent, he said.
Vietnam is an emerging opportunity for the beauty industry drivenby development of modern trade, rising demand for premium products and brands,and shoppers looking for health and quality and ready to pay for it, RobertoButragueno head of retailer vertical at Nielsen Vietnam, said.
The consistent emerging trend of modern trade continues withdouble digit growth in 2017, he said.
Millennials who make up 30 percent of Vietnam’s population are a demandinggeneration and include 1.6 times more college and university graduates thanaverage, he said.
The country’s middle class is forecast to reach 33 million by2020, he said.
As the new middle-class urbanises, it seeks to experience premiumbrands.
Vietnam imported cosmetics worth 1.1 billion USD last year, morethan double the 500 million USD in 2011, according to reports from Trade Map ofthe International Trade Centre.
Many cosmetics brands from the Republic of Korea and Japan areseeking a foothold and expansion opportunities in Vietnam.
“Over the years, the Vietnamese market trend has been expanding toconsumption goods, especially cosmetics-related industries,” Dominic OH,director of KINTEX, a leading K-beauty show organiser from the Republic of Korea,said.
With GDP growth of more than 6 percent for many years and peopleaged less than 35 accounting for 60 percent of its population, Vietnam isranked number one in the region by Korean cosmetics companies, he said.
The four emerging Mekong countries - Vietnam, Cambodia, Laos, andMyanmar - are expected to have a combined GDP of 441 billion USD by 2020, hesaid.
“There are more than 2,000 small and medium Korean companies whoare competitive enough to expand to overseas markets.”
Nearly 300 Korean brands were showcased at the Mekong Beauty Showfrom June 15 to 17 where they also looked for importers and distributors, hesaid.
Last year 10 Japanese cosmetic brands came to Vietnam looking foragents and official partners. They included Kose and Menard, which are wellknown among local consumers.-VNA
Vietnam’s cosmetics industry, where imports make up 90 percent ofsales, saw revenues estimated at 1.2 billion USD last year, said Nguyen VanMinh, Vice Chairman of the Vietnam Essential Oils, Aromatherapy and CosmeticsAssociation.
Fourteen domestic cosmetics firms are confined to the low-endsegment and mainly export to neighbouring Asian markets, Minh said.
Around 90 percent of cosmetics firms are distribution agents forforeign cosmetic brands, he said.
Most foreign cosmetic brands operate out of modern malls acrossthe country.
The Sai Gon Cosmetic Corporation, one of the most popular domesticbrands, sold around 500,000 perfume bottles of 50ml at traditional markets andrural areas, he said.
More than 40 percent of the company’s revenues comes from exportsto Cambodia, Laos and Thailand.
Its perfumes and beauty products are yet to find their way intomalls in Vietnam.
Lan Hao Cosmetics Co Ltd has been achieving annual growth of 30 percentin the domestic market. Exports still account for a major portion of itsrevenues.
The cosmetics sector is made up primarily of small- andmedium-sized firms that match large corporations in terms of finance andtechnology.
In the high-end segment, foreign brands account for a lion’s shareof the market as domestic firms remain weak also in terms of innovation,packaging, marketing and promotion.
The demand for beauty products in Vietnam is still modest, withper capita spending being 6 USD a year on cosmetics compared with 20 USD inThailand, Minh said, citing figures from market research firm Nielsen.
But with increasing disposable incomes, rising living standardsand a young population, demand is rising, he said.
Vietnam’s beauty industry is even more attractive because thecountry has signed a series of free trade agreements under which import dutieson beauty care goods would fall to 0-5 percent, he said.
Vietnam is an emerging opportunity for the beauty industry drivenby development of modern trade, rising demand for premium products and brands,and shoppers looking for health and quality and ready to pay for it, RobertoButragueno head of retailer vertical at Nielsen Vietnam, said.
The consistent emerging trend of modern trade continues withdouble digit growth in 2017, he said.
Millennials who make up 30 percent of Vietnam’s population are a demandinggeneration and include 1.6 times more college and university graduates thanaverage, he said.
The country’s middle class is forecast to reach 33 million by2020, he said.
As the new middle-class urbanises, it seeks to experience premiumbrands.
Vietnam imported cosmetics worth 1.1 billion USD last year, morethan double the 500 million USD in 2011, according to reports from Trade Map ofthe International Trade Centre.
Many cosmetics brands from the Republic of Korea and Japan areseeking a foothold and expansion opportunities in Vietnam.
“Over the years, the Vietnamese market trend has been expanding toconsumption goods, especially cosmetics-related industries,” Dominic OH,director of KINTEX, a leading K-beauty show organiser from the Republic of Korea,said.
With GDP growth of more than 6 percent for many years and peopleaged less than 35 accounting for 60 percent of its population, Vietnam isranked number one in the region by Korean cosmetics companies, he said.
The four emerging Mekong countries - Vietnam, Cambodia, Laos, andMyanmar - are expected to have a combined GDP of 441 billion USD by 2020, hesaid.
“There are more than 2,000 small and medium Korean companies whoare competitive enough to expand to overseas markets.”
Nearly 300 Korean brands were showcased at the Mekong Beauty Showfrom June 15 to 17 where they also looked for importers and distributors, hesaid.
Last year 10 Japanese cosmetic brands came to Vietnam looking foragents and official partners. They included Kose and Menard, which are wellknown among local consumers.-VNA
VNA
