Page 55 - EM - EXPORT MAGAZINE PERFUMERY EDITION

R R E E P P O O R R T T

Consumers are aware of their appearance and are becoming looks for themselves. As a result, US$174m worth of cosmetics
highly educated, especially where ingredients are concerned were imported from South Korea in just the first seven months of
with safety and good ingredients being the most dominant 2022, revealing just how popular K-beauty is with the Vietnamese.
factors considered by the Vietnamese consumer when Although this monopoly of foreign brands leaves a lot of
purchasing a product. Innisfree, MAC, 3CE, Olay and Pond’s lead potential in the beauty industry for the domestic market,
the way in terms of favorite brands in this age category. domestic brands face challenges when it comes to successfully
penetrating the market and will need to adapt to changing
consumer behaviours and technological innovations.
Premium brands are experiencing strong growth in Vietnam,
with rates in excess of 10% being seen across the dermatological,
skin care and deodorant categories as parents become more
willing to invest in expensive, better quality products. Consumer
awareness of the dangers surrounding cheap products bought
online or via underground networks means they are more
willing to spend on these premium products, particularly those
which address skin care concerns such as acne and dark under
eyes, as well as products with skin whitening properties.
As only companies with a commercial registration certificate from
Dominated by K-Beauty, especially local Vietnamese authorities are able to import and distribute
when it comes to the mass segment, cosmetics in the region, it’s important that brands work with
online influencers in Vietnam empower a partner who not only understands and is familiar with these
the consumer to become increasingly complexities, but is also capable of navigating the country’s ever-
aware of what each product can do; changing distribution landscape. With the right strategy and
for not only their skin and body but route to market, brands will find a lot of success in the Vietnamese
also their health. Online marketplaces market, making this a worthwhile option to explore.
such as Shopee, Tiki.VN and Lazada, All brands entering the Vietnamese market must comply
just to name a few, allow consumers with The Ministry of Health (MoH), specifically the Drug
to experience the in-store experience Administration of Vietnam (DAV), which is the central authority
from the comfort of their own home. overseeing cosmetic regulations in Vietnam. Manufacturers
Stats reveal that 22% of vietnamese and importers must obtain product registration from the MoH
consumers tune into live streaming before legally marketing their cosmetic products in Vietnam.
content regularly, with influencers such as Ho Ngoc Ha, co- This involves submitting detailed information on a product’s
founder of M.O.I cosmetics, turning consumers attention to the formulation, ingredients, labeling, and safety data.
importance of natural and organic and educating consumers Cosmetic product labels in Vietnam are regulated to provide
on the impact of ingredients on their skin. consumers with clear and accurate information. The labels
Imported and foreign brands continue to dominate the Vietnamese must be in Vietnamese and should include the product name,
market, with notable success stories from the US, Spain, France, ingredients, usage instructions, and safety warnings.
and Israel. Brands such as Paula’s Choice, Obagi, ZO Skin Health, Special attention needs to be given to cosmetic products intended
and Vivant Skincare exemplify this trend, as Vietnam represents for children and those containing specific ingredients. With
one of their primary, if not the first, export markets. These brands safety at the forefront of manufacturing but also a concern for
are renowned for their technical, science-based approaches Vietnamese consumers, brands should seek expert advice on how
to skincare, distinguishing themselves from natural or holistic to successfully navigate the legislation before entering this market.
products. This reflects a strong preference among Vietnamese
consumers for efficacy and
specialized formulations in their
skincare choices.
South Korean brands are also
doing very well in this market due
to the popularity of K-pop and
Korean films, which are inspiring
consumers to replicate K-beauty

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