Page 57 - EM - EXPORT MAGAZINE PERFUMERY EDITION

R E P O R xxx T

Vietnam recognizes the Certificate of Free Sales from most markets
(European Union, United States, Korea…) and the process for
registering skincare products is rather straightforward. However
brands shall be aware that ASEAN regulations prohibit the use of
certain widely-used active ingredients (azelaic acid, tretinoid…) and
this despite the products being approved for sales in their home
markets.

How can innovative strategies overcome infrastructural
limitations to ensure equitable access to beauty products
throughout Vietnam?
As I mentioned earlier, the Vietnamese beauty products distribution
is very fragmented, as no channel is necessarily dominating with
limited presence of modern retailers. Brands aspiring to leadership
may need to adopt a multi-channel approach (spa, social sellers,
stores, ecommerce) to ensure full coverage of targeted consumers
and for this need to enforce clear pricing and non-competition
rules.

Which is the go-to strategy for Spa and Salon network in
Vietnam? And why are customer acquisition and retention
What are the primary challenges faced in distributing beauty strategies the most important?
products effectively throughout Vietnam’s diverse regions? Brand specifically targeting the spa and clinic segment in Vietnam
Vietnam’s skincare market is largely concentrated within Hanoi shall be ready to invest in the following aspects:
and Ho Chi Minh City, however each T2/T3 city is a mini market • Advocacy: doctors and influent beauty experts shall back the
on its own. It stays true that in order to expand no brand can brands
avoid starting in either one or both Hanoi and HCMC, as not only • Sales: strong sales team with relationship management
the market is mainly there but a cascade effect will follow with the capabilities
provincial markets following the main cities trends. • Animation: the brand needs to constantly have something going
The main challenge would therefore be to operate in both cities on, with either expertise sharing, training, events…
where the ways of doing business are different: Hanoi consumers • Branding: online presence both at local and global level.
relying strongly on the doctors and spa owners advocacy while
HCMC’s being more eager to try new trends following beauty KOL/ Thank you to François Tavernier for sharing these important
KOC but having as a result lower brand loyalty. The brands shall also insights into the Vietnamese market. It’s clear to see that with
be ready to differentiate their marketing to follow the difference of the right guidance and partner, Vietnam holds great promise and
beauty standards, seasons and consumers needs in the two cities. opportunity for brands looking to expand into new territories.

How do logistical hurdles impact the distribution of beauty
products in Vietnam’s varied geographical landscape?
Although infrastructures are still being upgraded to reach
international standards, logistic systems are however in place and
running efficiently. It is therefore possible to deliver anywhere in
Vietnam within 2-3 days. However due to the distance (more than
1,000km) between Vietnam’s two main markets HCMC and Hanoi, a
brand may need to make the choice of having two bases (warehouse,
sales & trade marketing office…) for better responsiveness to
customers orders and needs.

In what ways do regulatory and market conditions pose
obstacles to the efficient distribution of beauty products
across Vietnam?

For more information on how IL Brand Consultancy can help you expand your brand,
please contact us on info@ilbc.co.uk or visit our website at www.ilbc.co.uk