As an important emerging economy Vietnam is now being recognized as a destination offering great potential for investment. For the cosmetics industry one of the most enticing aspects of Vietnam’s market is the significant growth in teenage and young adult demographics.
Although Vietnam’s younger generation has demonstrated an increased propensity to purchase consumer goods especially cosmetics and personal care products, loyalty and preference to specific brands hasn’t been cultivated.
Data from Mintel, a global market research & market insight group, indicates retail of cosmetic and personal care segment was 1.7billion in 2016, and is estimated to reach 2.35 billion dollars in 2017. Statistics from International Trade Center and World Bank shows that from 2011 to 2016, the value of imported cosmetics rose from 500 million dollars to 1.1 billion dollars. The value is estimated to double in 2020. In this article, the advantages of exporting cosmetics to Vietnam will be analyzed and the current promotion methods adopted by overseas enterprises will be introduced.
Status Quo of Vietnam Cosmetic Market
1. Regional differences