Is Vietnam Really a Golden Egg Market?

While the Vietnamese cosmetics market has grown influenced by the Chinese Hallyu wave, its scale remains relatively small. This is due to the lower frequency of cosmetics use among Vietnamese women, and the unique Vietnamese definition of cosmetics that includes not only skincare and makeup but also shampoos, body washes, and more. Furthermore, inadequate public transportation, widespread motorcycle use, and a relatively conservative culture have impacted cosmetics market growth. However, the increasing young population, changing consumer desires, and recent improvements in public transportation are boosting the potential for future growth in the Vietnamese cosmetics market. The case study of Orion's Vietnamese entry highlights the importance of establishing distribution networks and the need for localization strategies.

The speaker raises questions about the Vietnamese cosmetics market, questioning whether it truly is a golden goose. The discussion begins with the market size and growth potential.

Among the six major ASEAN countries, Vietnam's cosmetics market is the smallest. The speaker emphasizes its significantly smaller size compared to Thailand, Malaysia, Indonesia, and Singapore. This is attributed to the lower frequency of cosmetics use among Vietnamese women and a broader definition of cosmetics in Vietnam, encompassing products beyond skincare and makeup.

The speaker suggests that the consumption of cosmetics in Vietnam is related to the development of the smartphone market. The increased availability of smartphones has led to a higher potential for cosmetics use among the younger generation with increased consumer desires, but the lack of public transportation, widespread motorcycle use, and relatively conservative cultural norms still influence cosmetics market growth.