Natural Cosmetics: Natural cosmetics are vitalised, especially in Vietnam. The growing consumer appetite for natural cosmetics is driving the multi-billion dollar domestic cosmetics market, which has recently been represented by a growing number of local players.
Natural Cosmetics: The growing consumer appetite for natural cosmetics is driving the multi-billion dollar domestic cosmetics market, which has recently been represented by a growing number of local players.
Regaining market share
Natural Cosmetics: Regaining market share
Pham Linh Dan, a 30-year-old writer living in Hanoi who suffers from alopecia, decided to use only natural-derived shampoos for her hair. Her favorite shampoo is Italian Nashi, an organic blend of argan and linseed oils.
Alopecia is a medical condition that causes hair loss on the scalp, face, and other areas of the body. It can affect both men and women and can occur at any age. There are several types of alopecia, each with different causes and symptoms.
The most common type of alopecia is androgenetic alopecia, also known as male-pattern baldness or female-pattern baldness. This condition is caused by a combination of genetics and hormones, and it typically starts with a receding hairline or thinning at the crown of the head. Androgenetic alopecia is more common in men, but women can also experience it.
Another type of alopecia is alopecia areata, which is an autoimmune disorder that causes hair loss in patches on the scalp and other areas of the body. This condition occurs when the immune system mistakenly attacks hair follicles, causing them to shrink and eventually stop producing hair. Alopecia areata can occur at any age, and it may be triggered by stress, illness, or other factors.
Alopecia totalis and alopecia universalis are two types of alopecia that cause complete hair loss on the scalp and the entire body, respectively. These conditions are rare, and their causes are not fully understood. Alopecia totalis and universalis can occur at any age, and they may be associated with autoimmune disorders or genetic factors.
Other types of alopecia include traction alopecia, which is caused by wearing tight hairstyles that pull on the hair, and telogen effluvium, which is a temporary condition that causes hair shedding due to stress, illness, or medication.
Treatment options for alopecia depend on the type and severity of the condition. For androgenetic alopecia, medications such as finasteride and minoxidil may be prescribed to slow down or reverse hair loss. For alopecia areata, corticosteroids or immunotherapy drugs may be used to suppress the immune system and reduce inflammation. Hair transplant surgery may also be an option for some people with alopecia.
In summary, alopecia is a medical condition that causes hair loss on the scalp, face, and other areas of the body. It can be caused by a combination of genetic, hormonal, autoimmune, and environmental factors. Treatment options depend on the type and severity of the condition and may include medications, immunotherapy, and hair transplant surgery.
Dan loves not only shampoo, but many other everyday products that contain natural ingredients, such as face wash, sunscreen, foundation, eye shadow or perfume. Dan has also purchased natural products such as body powder, shampoo and body lotion for his two-year-old daughter.
“Natural ingredients ensure that users will not experience any side effects such as skin allergies. Therefore, their prices are usually 20-30% higher than conventional products that may contain harmful substances,” Dan said, adding that she has now developed a habit of researching products Ingredient habits.
According to Huynh Bich Tram, deputy director of market research firm Nielsen Vietnam, a recent survey conducted by the company on the natural cosmetics market in six Asia-Pacific countries, including Vietnam, showed that 88 percent of Vietnamese consumers would buy new and improved cosmetics. Personal care product usage, including a high-quality range of products made with natural ingredients. This is the highest score in the area.
Nielsen Vietnam is a research firm that provides market research, consumer insights, and data analytics services to businesses operating in Vietnam. It is part of Nielsen, a global measurement and data analytics company that operates in over 100 countries.
Nielsen Vietnam specializes in providing market research data and insights to help companies make informed business decisions. Its services include consumer and retail measurement, media measurement, and digital measurement. The company also conducts custom research projects to help clients understand their customers and target markets better.
Consumer and retail measurement involves tracking the sales and performance of consumer goods, including food and beverage, household products, and personal care items. Nielsen Vietnam uses retail measurement data to provide insights into consumer behavior, purchasing habits, and market trends.
Media measurement involves tracking the viewership, readership, and engagement of various media channels, including television, radio, print, and digital media. Nielsen Vietnam provides media measurement services to help clients understand their audience and optimize their advertising campaigns.
Digital measurement involves tracking online consumer behavior, including website traffic, social media engagement, and e-commerce transactions. Nielsen Vietnam provides digital measurement services to help clients understand their online audience and optimize their digital marketing strategies.
Nielsen Vietnam also conducts custom research projects to help clients understand their customers and target markets better. This may include focus groups, surveys, and other types of market research to gather insights into consumer preferences, attitudes, and behaviors.
Overall, Nielsen Vietnam is a research firm that helps businesses operating in Vietnam make informed decisions based on market data and consumer insights. Its services are designed to provide clients with a competitive edge in a rapidly changing and highly competitive marketplace.
Statistics show that Vietnamese spend an average of US$4 on cosmetics per year. However, Vietnamese women alone spend an average of VND 140,000 (US$ 6.3) per month on cosmetics, mainly through the choice of two guided channels, friends (70%) and websites (58%).
According to the International Trade Center, the total value of cosmetics imported into Vietnam was US$500 million in 2011, rising to US$2 billion in 2016. With the increasing demand for natural cosmetics abroad, it is expected to reach 3-4 billion US dollars this year.
The International Trade Centre (ITC) is a joint agency of the United Nations and the World Trade Organization that provides support to small and medium-sized enterprises (SMEs) in developing countries to help them participate in international trade. The organization was established in 1964 and is headquartered in Geneva, Switzerland.
The primary goal of the International Trade Centre is to promote sustainable economic development by helping SMEs in developing countries to become more competitive and to integrate into global value chains. To achieve this goal, the organization provides a range of services and programs, including:
- Trade promotion and export development: The International Trade Centre provides training and advisory services to SMEs to help them improve their products and services, identify potential markets, and develop export strategies. The organization also supports trade fairs and exhibitions, and helps SMEs to participate in international trade missions.
- Business and trade policy: The International Trade Centre provides advice and support to governments and policymakers on trade and investment policies. The organization conducts research on trade-related issues and provides technical assistance to help governments develop trade policies that are supportive of SMEs and promote inclusive growth.
- Standards and quality management: The International Trade Centre helps SMEs to improve the quality and safety of their products and services through the implementation of international standards and certifications. The organization provides training and technical assistance on quality management, product testing, and certification.
- Women’s economic empowerment: The International Trade Centre has a particular focus on supporting women entrepreneurs and promoting gender equality in international trade. The organization provides training and advisory services to women-led SMEs, and advocates for policies that promote women’s economic empowerment.
Overall, the International Trade Centre plays an important role in supporting SMEs in developing countries to participate in international trade and promote sustainable economic development. The organization’s services and programs are designed to help SMEs overcome the barriers to trade and to take advantage of the opportunities presented by global markets.
Natural Cosmetics: Not only for foreign players
Natural Cosmetics: Not only for foreign players
The domestic cosmetics market is growing at an annual rate of 30%, attracting many global cosmetics brands such as L’Oreal, Kanebo, Au Hui, The Body Shop, The Face Shop, Shiseido, Yves Rocher, etc. These brands have launched natural cosmetics, shampoos and treatments that contain vitamins C and E.
Here are some of the top global cosmetics brands:
- L’Oréal Paris
- Estée Lauder
- MAC Cosmetics
- Chanel
- Dior
- Clinique
- Lancôme
- Shiseido
- Maybelline New York
- NARS
- Yves Saint Laurent
- Bobbi Brown
- Revlon
- Elizabeth Arden
- Kiehl’s
- Olay
- Neutrogena
- Lush
- The Body Shop
- Avon
Note that this is not an exhaustive list and there are many other successful global cosmetics brands. The ranking of these brands may also vary depending on different factors such as geographic location and market segment.
To keep up with the trend, multinational companies with factories in Vietnam such as Unilever, Kao and Procter & Gamble have also been labeling their products with local natural ingredients such as Sapinberry, green tea, cucumber, saffron, aloe vera, rice bran or brown rice.
Brown rice is a whole grain rice that has the outer layer, known as the bran, intact. This means that it retains more of its natural nutrients compared to white rice, which has had its bran and germ removed during processing. Brown rice has a nutty flavor and a slightly chewy texture, and is often considered to be a healthier alternative to white rice.
One of the main benefits of brown rice is its high fiber content. The bran layer in brown rice contains fiber, which helps to regulate digestion, prevent constipation, and maintain a healthy gut. Fiber also helps to slow down the absorption of glucose into the bloodstream, which can help to prevent blood sugar spikes and dips.
Brown rice is also a good source of vitamins and minerals. It contains vitamin B1, which is essential for healthy brain function, and vitamin B6, which is important for maintaining a healthy immune system. Brown rice also contains magnesium, which is important for bone health, and manganese, which helps to support the metabolism and maintain healthy skin.
Another benefit of brown rice is its lower glycemic index (GI) compared to white rice. The GI is a measure of how quickly a food raises blood sugar levels. Brown rice has a lower GI than white rice, which means that it is digested more slowly and can help to prevent blood sugar spikes and dips.
Overall, brown rice is a healthy and nutritious food that can be a good alternative to white rice. Its high fiber content, vitamin and mineral profile, and lower glycemic index make it a great choice for maintaining a healthy diet and preventing chronic diseases such as diabetes and heart disease.
However, the domestic cosmetics market is no longer the preserve of foreign players, as local companies have recently stepped up efforts to regain market share in the sector.
Well-known local brands in the market include Miss Saigon and Fresh from Saigon Cosmetics JSC (SCC), Thorakao from Lan Hao Cosmetics Production Ltd., Thai Duong from Sao Thai Duong JSC, and Lana and E 100 from Dai Viet Huong Ltd. (Viet Cong).
According to Nguyen Phuoc Hung, business director of SCC, natural shampoo and fragrance products currently account for more than 30 percent of the company’s total sales.
For traditional shampoo series such as Sapindus shampoo, the company has worked with overseas partners to redesign product packaging.
For new product lines such as neem leaf or grapefruit leaf extract shampoos, the company is working with foreign partners on products aimed at above-average target customers.
“Although keeping pace with domestic and foreign competitors, our current market share is only about 2 percent due to the slow pace of new product development. Our goal is to increase our market share to 3 percent this year,” Hong said.
Lanhe Cosmetics Co Ltd focuses on making products using herbs and botanicals such as Aloe Vera, Citronella Oil, Saffron, Grapefruit Leaf and Sapinberry through its Thorakao brand.
Saffron is a spice that is derived from the dried stigmas of the Crocus sativus flower. It is one of the most expensive spices in the world, both in terms of weight and volume. Saffron is prized for its unique flavor, aroma, and color, and is used in many cuisines around the world.
Saffron has been used for thousands of years in traditional medicine and has been attributed with a variety of health benefits. Some of the reported health benefits of saffron include:
- Anti-inflammatory properties: Saffron has been shown to have anti-inflammatory properties that may help reduce inflammation in the body. Inflammation is believed to be a contributing factor to many chronic diseases, including heart disease, diabetes, and cancer.
- Mood enhancement: Saffron has been used traditionally as a mood enhancer and has been shown in some studies to have antidepressant properties. It is thought that saffron may help regulate serotonin levels in the brain, which could contribute to its mood-enhancing effects.
- Improved brain function: Some studies suggest that saffron may have cognitive-enhancing effects, including improved memory and learning ability. Saffron has also been shown to have neuroprotective properties that may help prevent age-related cognitive decline.
- Appetite suppression: Saffron has been shown to help suppress appetite and reduce snacking between meals, which may help with weight management.
- Menstrual cramp relief: Saffron has been used traditionally to relieve menstrual cramps and may have antispasmodic properties that could contribute to this effect.
Overall, saffron is a unique and highly prized spice that is valued for its flavor, aroma, and color, as well as its reported health benefits. While more research is needed to fully understand the effects of saffron on human health, its long history of use in traditional medicine and its current use in many cultures suggest that it may have a place in a healthy, balanced diet.
With competitive prices, the company’s products are favored in the rural market. Thorakao intends to expand its global footprint in Saudi Arabia, Australia, the United States, France and Africa.
Natural Cosmetics: Distributors also join the game
Distributors also join the game
Korean fashion and lifestyle chain Ilahui, which entered the Vietnamese market more than a year ago, has now opened 37 stores in 26 provinces and cities in Vietnam.
Ilahui is a Korean retail company that specializes in selling a variety of affordable and high-quality lifestyle and household products. The company was founded in 2017 and has since expanded rapidly, with over 300 stores located in Korea, China, and Southeast Asia.
Ilahui offers a wide range of products including stationery, household goods, cosmetics, health and beauty items, accessories, and food products. The company is known for its innovative and trendy designs, and its commitment to sustainability and environmental responsibility.
One of Ilahui’s key selling points is its affordable prices. The company’s products are priced competitively, making them accessible to a wide range of consumers. In addition, Ilahui frequently offers discounts and promotions to further reduce the cost of its products.
Ilahui is also known for its commitment to sustainability. The company aims to reduce waste and promote environmental responsibility by using eco-friendly materials and minimizing packaging. Ilahui’s reusable shopping bags and water bottles have become particularly popular with environmentally-conscious consumers.
Overall, Ilahui has become a popular retail destination for consumers looking for affordable, trendy, and sustainable lifestyle and household products. Its commitment to sustainability, innovative designs, and competitive prices have helped to differentiate the company in a crowded retail market.
Vietnamese franchisor VIC Retail brought the chain to Vietnam after the chain already had roots in the UAE, the Philippines, China and Dubai, Thailand. This year, Liahuiyoupin will increase the number of stores to about 50, and plans to increase the number to 63 next year.
VIC Retail is a Vietnamese franchisor that operates a range of retail brands across Vietnam. The company was founded in 2004 and has since become one of the leading retail franchisors in the country, with over 1,500 stores and more than 20 brands under its management.
VIC Retail’s brands include a mix of international and domestic brands, spanning various industries such as fashion, beauty, and food and beverage. Some of its most popular brands include The Coffee House, BBQ Chicken, Baskin-Robbins, and Popeyes Louisiana Kitchen.
As a franchisor, VIC Retail provides a range of services to its franchisees, including training, marketing support, supply chain management, and operational support. The company also works closely with its franchisees to ensure that its brand standards are upheld, and provides ongoing support to help its franchisees grow their businesses.
One of the key strengths of VIC Retail is its ability to adapt to local market conditions. The company has a deep understanding of the Vietnamese consumer and is able to tailor its brands and products to meet the specific needs and preferences of Vietnamese customers. This has helped the company to build a strong reputation and a loyal customer base across the country.
Overall, VIC Retail is a well-established and successful franchisor in Vietnam, with a diverse portfolio of brands and a strong track record of supporting its franchisees. Its ability to adapt to local market conditions and its focus on building strong, lasting relationships with its franchisees have helped to differentiate the company in a competitive retail market.
According to Bui Ngoc Quynh Giao, Vietnam brand director of iihuiyou, in addition to expanding its store layout, iihuiyou will also bring natural and organic product lines of several world-renowned brands to Vietnam to cater to the trend.
In April 2018, the brand will launch a wide range of make-up products, from make-up to skin and hair care products for men, women and children, priced from 200,000 VND ($9) to 1 million VND ($45) wait. Take Vietnam for each item.
“This year, Liahui will focus on distributing products in the food, beverage and organic cosmetics sectors,” Giao said.
A few months ago, LaBambi, possibly Vietnam’s first distribution system for natural cosmetics, emerged as a competitor. To date, six of the top homegrown natural beauty brands – TheHerbalCup, Skinna, SheaGhana, Myin, Karose and Bambi Green – are all available at LaBambi.
Giao of iihuiyoupin Vietnam said that in addition to products of well-known foreign brands, major local cosmetics brands can also join iihuiyoupin stores.
Often local brands have poor packaging and weak marketing capabilities, resulting in high marketing costs. In addition, there is a “bottleneck” in the source of raw materials, which also explains why local cosmetics companies need to think carefully before entering the natural cosmetics market.
Currently, the quality of plant material is inconsistent. Therefore, in addition to improving design, packaging and distribution systems, local brands also need to ensure a source of materials with stable quality in order to increase market share and compete on an equal footing with international brands.
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