Beauty and Personal Care - Vietnam

Euromonitor International : Country Market Insight July 2010

Beauty and Personal Care

Vietnam

List of Contents and Tables

Executive Summary ................................................................................................................................................ 1 Economic Rebound Promotes Growth ...................................................................................................................... 1 Consumption Trend Emphasises Health and Wellness ............................................................................................. 1 the Reign of International Players and Masstige Products....................................................................................... 1 Modern Retail Channels Continue To Grow............................................................................................................. 1 Great Potential for Continuous Development........................................................................................................... 1 Key Trends and Developments .............................................................................................................................. 2 Young Population Drives Growth ............................................................................................................................. 2 Substantial Gaps Between Urban and Rural Areas Hold Back Expansion............................................................... 2 the Rise of Masstige Products ................................................................................................................................... 3 Demand for Organic and Natural Products Increases ............................................................................................. 4 the Unequal Competition Between International and Domestic Players .................................................................. 5 Market Data ............................................................................................................................................................ 5 Table 1 Sales of Beauty and Personal Care by Sector: Value 2004-2009....................................... 5 Table 2 Sales of Beauty and Personal Care by Sector: % Value Growth 2004-2009 ..................... 6 Table 3 Sales of Premium Cosmetics by Sector: Value 2004-2009................................................ 6 Table 4 Sales of Premium Cosmetics by Sector: % Value Growth 2004-2009 .............................. 7 Table 5 Beauty and Personal Care Company Shares by NBO 2005-2009...................................... 7 Table 6 Beauty and Personal Care Company Shares by GBO 2005-2009...................................... 8 Table 7 Beauty and Personal Care Brand Shares by GBN 2006-2009 ........................................... 9 Table 8 Sales of Beauty and Personal Care by Distribution Format: % Analysis 20042009................................................................................................................................. 10 Table 9 Sales of Beauty and Personal Care by Sector and by Distribution Format: % Analysis 2009 .................................................................................................................. 10 Table 10 Forecast Sales of Beauty and Personal Care by Sector: Value 2009-2014 ...................... 12 Table 11 Forecast Sales of Beauty and Personal Care by Sector: % Value Growth 2009-2014........................................................................................................................ 12 Table 12 Forecast Sales of Premium Cosmetics by Sector: Value 2009-2014 ............................... 13 Table 13 Forecast Sales of Premium Cosmetics by Sector: % Value Growth 20092014................................................................................................................................. 13 Appendix................................................................................................................................................................ 13 Definitions.............................................................................................................................................................. 13 Summary 1 Research Sources............................................................................................................. 14

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BEAUTY AND PERSONAL CARE IN VIETNAM

EXECUTIVE SUMMARY
Economic Rebound Promotes Growth
In 2009, Vietnam beauty and personal care witnessed better growth in current value terms in comparison to the previous year. Once the negative impact from the 2008 recession began to wear off and the country experienced positive signs of economic rebound, consumer confidence in spending quickly recovered, which in turn boosted consumption for most commodities including beauty and personal care. Vigorous marketing activities employed by manufacturers to compete with each other further stimulated consumer demand over the review period. Colour cosmetics, skin care and fragrances continued show the most outstanding performances, all observing higher value sales growth for the year.

Consumption Trend Emphasises Health and Wellness

Product development diverged with intensified product segmentation for different consumers groups of age, gender and income; however at the same time, there was a general focus on health and wellness. Vietnamese consumers have always been concerned about product safety as a result of unpleasant experiences with lowquality products in the past. Now with higher purchasing power and improved knowledge of beauty and personal care, they crave not only safe but also health-beneficial products and often give their judgement based on products labels and claims. Natural/organic contents are most favoured by consumers, being aligned with their belief of the positive impacts on their health. Similarly, multifunctional products with the added-value of health protection such as SPF also saw their sales increase significantly.

the Reign of International Players and Masstige Products

In the competition for sales and value share, domestic companies were left far behind by international players in all beauty and personal categories. Foreign brands flood both mass and premium segments, gaining consumer preference with dynamic marketing activities and good product quality, from notable players such as Unilever Vietnam Co Ltd and Procter & Gamble Vietnam. Meanwhile, local manufacturers continued to struggle to improve their positions within beauty and personal care. Another remarkable movement in beauty and personal care is the rapid increase in availability and popularity of masstige products. These offer consumers better quality and more sophisticated values with prices only marginally higher than standard mass brands whilst being much cheaper than premium ones.

Modern Retail Channels Continue To Grow

Modern retail channels marked their leadership against traditional stores with the dominance of supermarkets/hypermarkets and health and beauty retailers over independent small grocers and outdoor markets. The most important retail channel to beauty and personal care, supermarkets/hypermarkets continued to display robust growth in term of infrastructure, numbers and coverage in 2009. There are more consumers switching to supermarkets which offer a better shopping experience with easy accessibility, competitive price, good control of product origin and sanitary standard. Meanwhile, a non-store retail channel, direct selling experienced a boom period at the end of the review period led by Oriflame and Avon. Although not yet equal in position to compete with store-based retail channels, the channel posted outstanding sales performance and expects further growth in the future.

Great Potential for Continuous Development

Vietnam is expected to maintain its position as a dynamic country for beauty and personal care over the forecast period. There is still much potential to be exploited with the young population consisting of 50% under the age of 30 years and untapped regions such as the developing rural areas. The main consumption force, however, will continue to be people living in urban areas, whose demand is anticipated to become more sophisticated and closer to global beauty trends. Regarding the competitive environment, international companies will meet strong

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resistance and counter-attack from more domestic players such as International Consumer Products Ltd but will not easily give up their positions.

KEY TRENDS AND DEVELOPMENTS

Young Population Drives Growth
In addition to improved living standards and rising personal incomes, impressive growth in Vietnam beauty and personal care is greatly attributable to a large and expanding base of young consumers. According to statistics, Vietnam has a young population with more than 50% of its people falling under the age of 30 and below. This group thus is the targeted consumer group of manufacturer that will drive growth of beauty and personal care over the forecast period. Current Impact Overall, the young generation forms the largest and most important consumer group for beauty and personal care. This is especially so in the urban areas, as young people become more fashionable and beauty-conscious, they will have an increased, frequent demand for beauty and personal care. Many manufacturers have developed brands and products specially targeting this group and yield outstanding performances from companies such as Rohto-Mentholatum Vietnam Co Ltd, Avon Cosmetics Vietnam Ltd and Oriflame Vietnam Ltd to name a few. In addition to these mass brands, a great percentage of sales value for premium products was also generated by an important consumer group of young and successful people. In terms of marketing activities, it appears that most television commercials, newspaper and online advertisements are designed to suit young consumers tastes since their purchasing decisions depend greatly on how impressed they are by these advertisements. Outlook Vietnamese young consumers possess different consumption patterns from the previous generation, which was realised and employed by manufacturers to stimulate demand and generate sales in beauty and personal care. Obviously, their awareness of self-image, beauty and fashion trends is more developed and well-defined as a result of higher living standards and greater exposure to international cultures through public media such as television, newspaper and especially the internet. Another reason is that young people also have more active lifestyles which engage them in regular social activities with a need to express personality, differentiate themselves from others and improve social status. This explains why compared to other consumer groups, they have a much higher demand for beauty and personal care products as well as a willingness to spend more on beauty and personal care processes. New products often achieve good success from consumers of a young age because this group is most influenced by fashion trends as well as being more open to trying new experiences. Future Impact Over the forecast period, the young consumer group of less than 30 years, is anticipated to become the main consumption force and shape up most consumption trends in Vietnam beauty and personal care. With further improvement in products and brand awareness, they are expected to be well-informed enough to choose what best suits them. Thus, manufacturers should take this into consideration when planning their strategies for development and expansion in the near future.

Substantial Gaps Between Urban and Rural Areas Hold Back Expansion
Vietnam urban areas, known as big cities and provinces like Ho Chi Minh City or Hanoi, are the major market for beauty and personal care with the rapid growth of middle and high-income consumers, the ideal target groups for manufacturers. On the contrary, rural areas remain untapped because of consumers much lower personal income and poor living standards. Current Impact

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Over the review period, there was high availability of both international and local brands and products and more are expected to enter the promising urban market in the near future, given that the value sales growth rate for beauty and personal care in Vietnam remains among the highest in the region. As the competition becomes fierce and signs of saturation start to appear in some categories such as oral care and bath/shower, it is essential to expand beauty and personal care outside cities and towns to rural areas to sustain the development and penetrate more value share. However, the substantial gaps between these areas in terms of consumers income and living standards impeded manufacturers attempts to expand and may soon become a main threat to growth. Outlook Although Vietnams urbanisation continues at rapid speed, manufacturers cannot only rely on this fact on which to base their market expansion plans. For some indispensable basic products such as soap, shampoo, toothpaste and toothbrushes, it is proven that effective communication via marketing activities and education programmes can help consumers in rural areas improve their awareness of personal care to a certain extent and create initial base for later development of the brands and products. For example, P/S from Unilever with its programme Protect Vietnam Smile successfully reached consumers in rural and remote areas in order to educate them about the benefits of using oral care products, thus, building up its reputation and image to a new higher level and becoming the dominant brand in the category. Rural areas are, in fact an important segment to many local companies which cannot compete directly with international players in urban areas due to the lower position of weak brands and limited capital for marketing activities. Instead, their products, Thorakao, Da Lan, Daso and Saigon to name a few choose to target lowerincome consumers living in small provinces and villages as one of their strategic consumer groups to generate sales and improve share value. Future Impact There are other difficulties to be concerned about when manufacturers plan to penetrate these rural areas such as poor-developed infrastructure, fragmented distribution networks and limited purchasing power of consumers due to poor living standards. However, as the outlook of the economy looks as positive as ever, the gaps between urban and rural areas in Vietnam are expected to contract as consumers income levels will improve and be distributed more equally. Not only basic personal care products but also beauty products such as colour cosmetics and skin care are expected to seek further growth and expansion from these areas.

the Rise of Masstige Products

Mass products completely dominate beauty and personal care in Vietnam in term of value and volume sales despite the recent strong growth of premium brands. The situation is not expected to change soon; however, since consumers purchasing patterns in Vietnam are changing with the fast growth of the middle-income group, masstige brands are showing impressive development. Overall, consumers are beginning to favour these middleend products. Current Impact Masstige brands and products have become increasingly available in a wide scale through various retail channels, most notably supermarkets/hypermarkets and beauty specialist retailers. Consumers, armed with better brand awareness and higher demand for product quality, are attracted by higher end products with mid-range prices such as LOral, Revlon, the Face Shop or Dr Men. LOral, for example, was able to maintain its shares from 2008 despite rising competition from other multinational players such as Procter & Gamble Vietnam Ltd. Moving forwards, the companys construction of its factory in Vietnam is expected to be completed by the end of 2010, with its main operation focus on masstige products to further penetrate Vietnam beauty and personal care. This is expected to aid the further development and penetration of its brands sales within the Vietnamese market by catering to specific domestic needs such as colours preferences, pack sizes and localized pricing strategies. On the other hand, local companies such as Saigon Cosmetics also made it a main strategy to launch new masstige fragrances to target the expanding middle-income consumers and transform their brands from low-end to a higher-end image.

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Outlook Vietnam is set to achieve its middle-income country status with an annual average income per capita of US$1,000. However, even with expected improved economic conditions by 2014, it is still a long way to avoid the middle-income trap, reaching an even higher income and becoming a developed country. Thus, it appears that the robust development of premium brands in Vietnam may not be that sustainable and will come to a halt after some time, while masstige products are to strengthen their favourable position among consumers and become one main factor to drive sales. Future Impact Over the forecast period, the importance of masstige products will be realised by both international and domestic players as consumers are expected to continue to trade up from mass to masstige products with marginally more expensive price-tags but with more sophisticated functions, better ingredients and technology. Masstige brands may compete directly with premium brands in term of value and volume sales.

Demand for Organic and Natural Products Increases

With increasing purchasing power, Vietnamese consumers have more options in terms of products and brands to choose from and are generally becoming more health-conscious. While consumers are willing to turn their backs on products which have proven to have negative impacts on health, their demand for products which are healthbeneficial according to their beliefs rapidly increased. This consumption trend has evolved around organic and natural products. Current Impact Natural products mark their strong presence across almost all categories within beauty and personal care from oral care and deodorants to skin care and colour cosmetics. These products are claimed to be produced using extracts from natural and herbal ingredients such as sea salt, green tea and ginger or using advanced biotechnology, which is believed to be both less harmful in comparison to standard chemical ingredients and beneficial to ones health in various ways. International and domestic manufacturers alike did not overlook this important trend and successfully launched numerous product lines to catch up with consumer demand. P/S Green Tea, Hazeline Cucumber shower gel and body moisturiser and Sunsilk Bo Ket are only a few examples of natural products that Unilever, overall leader of beauty and personal care in Vietnam added to its product portfolio since its entry. The border line between mass and premium products cannot prevent manufacturers on both sides from creating the same strategies of developing new products following the new wave of returning to nature. Outlook Products with claims of natural ingredients not only assure consumers of their quality but can also exploit some well-known features of these ingredients as a way to promote their functions. Green tea, for example, known to contain a large amount of antioxidants which are believed to be able to protect the skin from the polluted environment and slow down the skin ageing process was incorporated into various skin care products such as facial cleansers, moisturisers and face masks because the green tea ingredient alone is already a guarantee for the products effectiveness. Manufacturers may incorporate traditional medicinal ingredients with functions and benefits familiar to Vietnamese culture such as ginger, bo ket, green tea or honey in the products content to cater to local consumers liking and thus, gain their confidence and preference for the product. Future Impact In the near future, as more manufacturers tap into this trend and consumer awareness is further improved by advertising and marketing activities, the demand for natural and organic products is expected to continue growing, thus, drive sales growth. The robust appearance of too many products with various claims of different benefits, however, may confuse consumers. Therefore, the key point to competition is to communicate clearly the function of the products natural ingredients as well as its long-term benefit to the consumers.

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the Unequal Competition Between International and Domestic Players

International companies have dominated more than 90% of beauty and personal care in Vietnam since 2000. Meanwhile, domestic players, even the once well-known brands, continued to lose their value share to the multinational competition and had to struggle to maintain their positions. Current Impact The high availability and popularity of international products can be observed clearly in all categories, ranging from basic personal care products such as toothpaste and shampoo to beauty products such as colour cosmetics, skin care and even niche categories such as baby care. Foreign brands not only led beauty and personal care horizontally but also vertically with their full coverage of mass and premium categories. Some notable players such as Unilever, Procter & Gamble Vietnam Ltd and Beiersdorf AG specialised in mass products and Shiseido Co Ltd, LOral and Kanebo Cosmetics Inc focused on premium brands. Meanwhile, according to Ms Nguyen Thi Kim Thoa, chairwoman of the Ho Chi Minh Citys Cosmetic Association, only about 400 companies produce beauty and personal care products in Ho Chi Minh City and only 10 of them are well-known, including Saigon Cosmetics, Thorakao and Lana Cosmetics. Success stories like the one of International Consumer Products Ltd with its local winning brands since 2006, Xmen and Dr Men are hard to find. The remaining domestic manufacturers find it very difficult to compete with foreign companies who have had a strong hold on Vietnamese beauty and personal care for a long time. Most local companies are of small to medium-sized with limited capital and production capacity, and thus, are already in a disadvantageous position in terms of economic scale and budget for research and development and marketing activities. Outlook Local manufacturers increased their efforts to compete against foreign players, firstly by developing their distribution systems. Thus, their presence in supermarkets/hypermarkets, the most important retail channel in beauty and personal care increased also. For instance, Saigon Cosmetics began to introduce its products at the Co-op Mart chains. In addition, domestic companies switched their strategies to target the lower segment of consumers in untapped markets such as rural areas to increase value share. An example of a company that follows this strategy is My Hao, with its products widely available in many provinces across the country. However, there are still many problems to be addressed. The overall quality of domestic products is good but they do not pay enough attention to packaging design and advertising, which are often the two biggest factors that impress consumers and encourage them to purchase products. Building a strong brand name is an important matter but until now, few domestic companies have successfully developed nationwide reputations which means consumers are unaware of them, despite their high quality. Future Impact The environment within beauty and personal care is anticipated to become increasingly more competitive in the future. The competition will develop not only among big multinational manufacturers but also between international and domestic players. Although the situation cannot be changed soon and foreign manufacturers are expected to remain in their leading positions, local companies will collaborate with each other to defend and develop their sales. When the importance of brand equity and marketing activities is absorbed by domestic players, they will learn to employ these tools effectively to gain competitive advantage.

MARKET DATA
Table 1 VND billion 2004 Baby Care 168.7 2005 182.5 2006 196.6 2007 212.7 2008 229.9 2009 249.5 Sales of Beauty and Personal Care by Sector: Value 2004-2009

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Bath and Shower Colour Cosmetics Deodorants Depilatories Fragrances Hair Care Men's Grooming Oral Care Oral Care Excl Power Toothbrushes Skin Care Sun Care Sets/Kits Premium Cosmetics Beauty and Personal Care
Source: Note 1: Note 2:

944.9 201.4 59.0 4.2 166.7 1,947.0 248.9 2,267.1 2,267.1 602.5 46.8 70.1 274.9 6,686.9

1,020.4 242.6 68.1 4.6 189.0 2,085.4 277.8 2,525.5 2,525.5 665.3 55.7 78.5 292.1 7,344.7

1,091.3 291.3 75.2 5.0 213.9 2,220.7 311.9 2,824.0 2,824.0 777.1 67.2 89.9 339.6 8,099.9

1,166.9 349.8 84.5 5.5 242.4 2,335.4 346.3 3,108.1 3,108.1 880.2 81.7 104.2 405.6 8,838.9

1,243.1 409.4 92.2 5.9 280.0 2,448.9 377.9 3,393.4 3,393.4 1,003.5 98.5 118.8 479.0 9,610.7

1,319.7 483.0 100.1 6.5 327.8 2,580.4 410.6 3,709.8 3,709.8 1,156.1 117.8 134.3 566.8 10,490.7

Official statistics, trade associations, trade press, company research, store checks, trade interviews, Euromonitor International estimates Premium cosmetic sales are additionally included within Baby care, Bath & shower products, Deodorants, Colour cosmetics, Hair care, Fragrances, Skin care, Sun care and Sets/Kits Sum of sectors is greater than market size because the four Men's toiletries subsectors are included in Men's grooming products as well as in Deodorants, Skin care, Bath and shower products and Hair care.

Table 2

Sales of Beauty and Personal Care by Sector: % Value Growth 2004-2009

% current value growth 2008/09 Baby Care Bath and Shower Colour Cosmetics Deodorants Depilatories Fragrances Hair Care Men's Grooming Oral Care Oral Care Excl Power Toothbrushes Skin Care Sun Care Sets/Kits Premium Cosmetics Beauty and Personal Care
Source: Note 1: Note 2:

2004-09 CAGR 8.1 6.9 19.1 11.1 9.1 14.5 5.8 10.5 10.4 10.4 13.9 20.3 13.9 15.6 9.4

2004/09 TOTAL 47.9 39.7 139.9 69.6 54.6 96.7 32.5 65.0 63.6 63.6 91.9 152.0 91.6 106.2 56.9

8.5 6.2 18.0 8.6 9.2 17.1 5.4 8.7 9.3 9.3 15.2 19.6 13.0 18.3 9.2

Official statistics, trade associations, trade press, company research, store checks, trade interviews, Euromonitor International estimates Premium cosmetic sales are additionally included within Baby care, Bath & shower products, Deodorants, Colour cosmetics, Hair care, Fragrances, Skin care, Sun care and Sets/Kits Sum of sectors is greater than market size because the four Men's toiletries subsectors are included in Men's grooming products as well as in Deodorants, Skin care, Bath and shower products and Hair care.

Table 3 VND billion

Sales of Premium Cosmetics by Sector: Value 2004-2009

2004 Premium Baby Care Premium Bath and Shower Premium Colour Cosmetics Premium Deodorants Premium Fragrances Premium Hair Care Premium Skin Care Premium Sun Care Premium Sets/Kits 0.8 11.3 40.3 3.5 57.5 23.4 132.5 4.2 1.3

2005 1.5 15.3 46.1 4.1 68.4 27.1 123.1 5.0 1.6

2006 2.0 18.6 55.3 4.5 81.7 33.3 136.0 6.4 1.9

2007 2.6 19.8 75.2 5.1 96.8 42.0 154.0 7.8 2.3

2008 3.0 22.4 90.1 5.4 115.8 51.4 178.6 9.6 2.7

2009 3.5 25.1 105.8 6.1 139.5 64.5 208.1 11.1 3.2

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Premium Cosmetics
Source: Note:

274.9

292.1

339.6

405.6

479.0

566.8

Official statistics, trade associations, trade press, company research, store checks, trade interviews, Euromonitor International estimates Premium cosmetic sales are additionally included within Baby care, Bath & shower products, Deodorants, Colour cosmetics, Hair care, Fragrances, Skin care, Sun care and Sets/Kits

Table 4

Sales of Premium Cosmetics by Sector: % Value Growth 2004-2009

% current value growth 2008/09 Premium Baby Care Premium Bath and Shower Premium Colour Cosmetics Premium Deodorants Premium Fragrances Premium Hair Care Premium Skin Care Premium Sun Care Premium Sets/Kits Premium Cosmetics
Source: Note:

2004-09 CAGR 32.9 17.2 21.3 11.5 19.4 22.5 9.4 21.4 20.6 15.6

2004/09 TOTAL 314.2 121.1 162.7 72.4 142.4 176.1 57.0 163.2 155.5 106.2

16.9 12.1 17.4 12.3 20.4 25.4 16.5 15.9 17.9 18.3

Official statistics, trade associations, trade press, company research, store checks, trade interviews, Euromonitor International estimates Premium cosmetic sales are additionally included within Baby care, Bath & shower products, Deodorants, Colour cosmetics, Hair care, Fragrances, Skin care, Sun care and Sets/Kits

Table 5 % retail value rsp Company

Beauty and Personal Care Company Shares by NBO 2005-2009

2005 31.3 11.5 8.3 4.4 3.0 2.3 1.1 3.3 1.7 2.6 1.0 1.5 1.0 0.9 0.3 0.7 0.4 0.8 0.5 0.6 0.5 0.3

2006 31.7 11.7 7.9 4.2 3.0 2.8 1.6 3.3 1.8 2.5 1.1 1.4 0.9 1.0 0.4 0.6 0.4 0.7 0.5 0.3 0.4 0.3

2007 31.8 11.7 7.9 4.3 2.8 2.9 2.1 3.1 2.0 2.1 1.3 1.1 0.9 0.8 0.4 0.5 0.4 0.6 0.4 0.3 0.4 0.3

2008 31.9 11.9 8.0 4.4 4.0 2.6 2.9 2.0 2.9 2.2 1.9 1.5 1.2 0.9 0.7 0.5 0.5 0.4 0.5 0.4 0.3 0.4 0.3

2009 31.8 11.7 8.1 4.4 4.0 2.9 2.9 2.6 2.6 2.3 1.6 1.6 1.4 0.9 0.6 0.5 0.5 0.4 0.4 0.4 0.4 0.3 0.3

Unilever Vietnam Co Ltd Procter & Gamble Vietnam Ltd Colgate-Palmolive (Vietnam) Co Ltd Oral-B (Vietnam) Ltd L'Oral Vietnam Co Ltd Unza Vietnam Co Ltd Johnson & Johnson Vietnam Co Ltd Oriflame Vietnam Ltd LG Vina Cosmetics Co Ltd Beiersdorf AG Henkel Vietnam Co Ltd Shiseido Co Ltd Avon Cosmetics Vietnam Ltd GlaxoSmithKline Vietnam Saigon Cosmetics Corp Rohto Mentholatum (Vietnam) Co Ltd Croma Pharma GmbH Kanebo Cosmetics Inc Daso Group Revlon Inc Kao Vietnam Ltd Lana Cosmetics Bbchen-Werk Ewald Hermes Pharmazeutische Fabrik GmbH Ascendia Brands Inc Lion Corp

0.4

0.4 0.4

0.4 0.3

0.3 0.3

0.3 0.3

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Pigeon Corp International Consumer Products Ltd Summit Co (M) Sdn Bhd Elizabeth Arden Inc Jordan AS Pure Labs Inc Chanel SA Dorco Co Ltd Creative Nature Group Energizer Holdings Inc Rohto-Mentholatum Vietnam Co Ltd Este Lauder Cos Inc Coty Inc International Minh Viet Co Ltd John Paul Mitchell Systems Inc Gannon Vietnam Ltd Pfizer Vietnam Co Ltd Lander Co Inc Others Total
Source:

0.3 0.1 0.2 0.1 0.4 0.2 0.1 0.2 0.1 0.1 0.1 0.1 0.1 0.1 0.1 3.6 0.5 0.5 14.8 100.0

0.3 0.1 0.2 0.2 0.3 0.2 0.1 0.2 0.1 0.1 0.1 0.1 0.1 0.1 0.1 3.6 14.8 100.0

0.3 0.2 0.2 0.2 0.3 0.2 0.2 0.2 0.1 0.1 0.1 0.1 0.1 0.1 0.1 3.9 14.7 100.0

0.3 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.1 0.2 0.1 0.1 0.1 0.1 0.1 14.4 100.0

0.3 0.3 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.1 0.1 0.1 13.9 100.0

Trade associations, trade press, company research, trade interviews, Euromonitor International estimates

Table 6 % retail value rsp Company

Beauty and Personal Care Company Shares by GBO 2005-2009

2005 31.3 16.0 8.3 3.7 2.4 3.0 1.1 3.3 1.7 1.1 2.6 1.5 1.0 0.6 0.4 0.9 0.7 0.4 0.8 0.5 0.5 0.3 0.4 0.3 0.1 0.1 0.2 0.2 0.4 0.2

2006 31.7 16.0 7.9 3.7 2.9 3.0 1.6 3.3 1.8 1.2 2.5 1.4 0.9 0.7 0.5 1.0 0.6 0.4 0.7 0.5 0.4 0.3 0.4 0.4 0.3 0.1 0.2 0.2 0.2 0.3 0.2

2007 31.8 16.1 7.9 4.1 2.9 2.8 2.1 3.1 2.0 1.4 2.1 1.1 0.9 0.7 0.5 0.8 0.5 0.4 0.6 0.4 0.4 0.3 0.4 0.3 0.3 0.2 0.2 0.2 0.2 0.3 0.2

2008 31.9 16.4 8.0 4.1 2.9 2.6 2.0 2.9 2.2 1.6 1.9 1.2 0.9 0.8 0.6 0.7 0.5 0.5 0.5 0.4 0.4 0.3 0.3 0.3 0.3 0.2 0.2 0.2 0.2 0.2 0.2

2009 31.8 16.2 8.1 4.2 3.0 2.9 2.6 2.6 2.3 1.7 1.6 1.4 1.0 0.8 0.7 0.6 0.5 0.5 0.4 0.4 0.3 0.3 0.3 0.3 0.3 0.3 0.2 0.2 0.2 0.2 0.2

Unilever Group Procter & Gamble Co, The Colgate-Palmolive Co L'Oral Groupe Johnson & Johnson Inc Unza Nusantara Sdn Bhd Oriflame Cosmetics SA LG Group Beiersdorf AG Shiseido Co Ltd Henkel AG & Co KGaA Avon Products Inc GlaxoSmithKline Plc Kao Corp Rohto Pharmaceutical Co Ltd Saigon Cosmetics Corp Croma Pharma GmbH Pure Labs Inc Daso Group Revlon Inc Lana Cosmetics SAE Nestl SA Ascendia Brands Inc Lion Corp Pigeon Corp International Consumer Products Ltd Elizabeth Arden Inc Chanel SA Coty Inc Jordan AS Dorco Co Ltd

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Davines Energizer Holdings Inc Este Lauder Cos Inc International Minh Viet Co Ltd John Paul Mitchell Systems Inc Clarins SA pH Beauty Labs LLC Velouers France Mascolo Plc Others Total
Source:

0.1 0.1 0.1 0.1 0.1 0.1 0.3 0.3 0.1 14.9 100.0

0.1 0.1 0.1 0.1 0.1 0.1 0.2 0.2 0.1 13.6 100.0

0.1 0.1 0.1 0.1 0.1 0.1 0.2 0.2 0.1 13.6 100.0

0.1 0.2 0.1 0.1 0.1 0.1 0.2 0.2 0.1 13.2 100.0

0.2 0.2 0.2 0.1 0.1 0.1 0.1 0.1 0.1 12.7 100.0

Trade associations, trade press, company research, trade interviews, Euromonitor International estimates

Table 7 % retail value rsp Brand P/S Colgate Close-Up Pantene Dove Sunsilk Oral-B Oriflame Rejoice

Beauty and Personal Care Brand Shares by GBN 2006-2009

Company Unilever Vietnam Co Ltd Colgate-Palmolive (Vietnam) Co Ltd Unilever Vietnam Co Ltd Procter & Gamble Vietnam Ltd Unilever Vietnam Co Ltd Unilever Vietnam Co Ltd Oral-B (Vietnam) Ltd Oriflame Vietnam Ltd Procter & Gamble Vietnam Ltd Unilever Vietnam Co Ltd L'Oral Vietnam Co Ltd Procter & Gamble Vietnam Ltd Procter & Gamble Vietnam Ltd Unza Vietnam Co Ltd LG Vina Cosmetics Co Ltd Unilever Vietnam Co Ltd Johnson & Johnson Vietnam Co Ltd Beiersdorf AG Unilever Vietnam Co Ltd Shiseido Co Ltd Procter & Gamble Vietnam Ltd GlaxoSmithKline Vietnam Colgate-Palmolive (Vietnam) Co Ltd Colgate-Palmolive (Vietnam) Co Ltd Procter & Gamble Vietnam Ltd Henkel Vietnam Co Ltd Unza Vietnam Co Ltd Johnson & Johnson Vietnam Co Ltd Oral-B (Vietnam) Ltd LG Vina Cosmetics Co Ltd L'Oral Vietnam Co Ltd Avon Cosmetics Vietnam Ltd

2006 14.9 4.9 4.7 3.2 3.0 3.5 2.1 1.4 1.8 1.7 2.3 1.0 1.5 1.0 1.4 1.4 1.0 1.1 0.8 0.9 0.9 0.6 1.3 0.9 1.1 0.7 0.5 0.4 1.3 0.7

2007 15.1 5.2 4.7 3.3 3.1 3.1 2.2 1.8 1.9 1.8 1.9 1.2 1.4 1.2 1.4 1.4 1.1 1.2 1.0 1.1 0.9 0.7 1.0 0.9 0.9 0.7 0.5 0.5 1.1 0.6

2008 15.3 5.4 4.6 3.3 3.2 3.0 2.2 1.7 2.0 1.9 2.0 1.8 1.5 1.3 1.4 1.4 1.3 1.2 1.2 1.1 1.2 0.9 0.8 0.9 0.8 0.8 0.6 0.6 0.5 0.8 0.5 0.5

2009 15.4 5.6 4.6 3.3 3.2 2.8 2.2 2.1 2.0 1.9 1.9 1.7 1.6 1.6 1.4 1.3 1.3 1.3 1.2 1.2 1.1 0.9 0.8 0.8 0.7 0.7 0.6 0.6 0.6 0.6 0.5 0.5

Lux Garnier Fructis Head & Shoulders Olay Enchanteur Double Rich Lifebuoy Johnson's Baby Nivea Visage Clear Shiseido Pert Plus Aquafresh Colgate Herbal Palmolive Safeguard Fa Eversoft Listerine Oral-B Advantage Debon L'Oral DermoExpertise Avon

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Camay Darlie Sunplay Croma Avon Color Schauma L'Oral Paris Dacco Garnier Fructis Others Total
Source:

Procter & Gamble Vietnam Ltd Colgate-Palmolive (Vietnam) Co Ltd Rohto Mentholatum (Vietnam) Co Ltd Croma Pharma GmbH Avon Cosmetics Vietnam Ltd Henkel Vietnam Co Ltd L'Oral Vietnam Co Ltd Daso Group Gannon Vietnam Ltd

0.7 0.5 0.4 0.6 0.4 1.0 0.6 2.0 31.6 100.0

0.6 0.5 0.4 0.5 0.3 0.8 0.5 2.1 31.3 100.0

0.6 0.5 0.5 0.5 0.4 0.6 0.4 0.5 30.2 100.0

0.5 0.5 0.5 0.5 0.5 0.5 0.4 0.4 30.1 100.0

Trade associations, trade press, company research, trade interviews, Euromonitor International estimates

Table 8 % retail value rsp

Sales of Beauty and Personal Care by Distribution Format: % Analysis 2004-2009

2004 Store-Based Retailing Grocery Retailers Discounters Small Grocery Retailers Convenience Stores Forecourt Retailers Independent Small Grocers Supermarkets/Hypermarkets Other Grocery Retailers Non-Grocery Retailers Health and Beauty Retailers Beauty Specialist Retailers Chemists/Pharmacies Parapharmacies/Drugstores Other Health and Beauty Retailers Mixed Retailers Department Stores Mass Merchandisers Variety Stores Warehouse Clubs Outdoor Markets Other Non-Grocery Retailers Non-Store Retailing Direct Selling Homeshopping Internet Retailing Vending Total
Source:

2005 96.3 56.4 0.0 30.1 0.0 0.0 30.1 24.5 1.8 39.9 22.4 12.7 7.2 2.0 0.4 3.8 3.8 0.0 0.0 0.0 13.3 0.5 3.7 2.9 0.0 0.8 0.0 100.0

2006 95.8 58.3 0.0 31.1 2.6 0.0 28.6 25.5 1.6 37.5 21.2 11.8 6.9 2.0 0.5 3.9 3.9 0.0 0.0 0.0 11.9 0.5 4.2 3.3 0.0 0.9 0.0 100.0

2007 95.6 58.9 0.0 31.4 4.1 0.0 27.3 26.4 1.1 36.7 20.6 11.3 6.5 2.2 0.5 4.5 4.5 0.0 0.0 0.0 11.2 0.4 4.4 3.5 0.0 0.9 0.0 100.0

2008 95.3 58.8 0.0 30.6 4.4 0.0 26.2 27.2 0.9 36.5 20.6 11.1 6.6 2.4 0.5 5.1 5.1 0.0 0.0 0.0 10.4 0.4 4.7 3.8 0.0 1.0 0.0 100.0

2009 94.5 58.1 0.0 29.5 4.6 0.0 24.9 27.7 0.9 36.5 20.8 11.1 6.8 2.4 0.6 5.5 5.5 0.0 0.0 0.0 9.7 0.4 5.5 4.6 0.0 0.9 0.0 100.0

97.5 56.4 0.0 30.9 0.0 0.0 30.9 23.1 2.4 41.1 22.4 13.0 7.1 1.8 0.4 3.3 3.3 0.0 0.0 0.0 14.8 0.6 2.5 2.5 0.0 0.0 0.0 100.0

Official statistics, trade associations, trade press, company research, store checks, trade interviews, Euromonitor International estimates

Table 9

Sales of Beauty and Personal Care by Sector and by Distribution Format: % Analysis 2009

% retail value rsp BC BS CC D DP F

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Store-Based Retailing Grocery Retailers Discounters Small Grocery Retailers Convenience Stores Forecourt Retailers Independent Small Grocers Supermarkets/Hypermarkets Other Grocery Retailers Non-Grocery Retailers Health and Beauty Retailers Beauty Specialist Retailers Chemists/Pharmacies Parapharmacies/Drugstores Other Health and Beauty Retailers Mixed Retailers Department Stores Mass Merchandisers Variety Stores Warehouse Clubs Outdoor Markets Other Non-Grocery Retailers Non-Store Retailing Direct Selling Homeshopping Internet Retailing Vending Total

98.9 56.1 0.0 23.1 4.0 0.0 19.1 33.0 0.0 42.8 18.0 5.0 10.0 0.0 3.0 14.1 14.1 0.0 0.0 0.0 8.7 2.0 1.1 0.8 0.0 0.3 0.0 100.0 HC

98.4 65.7 0.0 29.2 6.3 0.0 22.9 36.0 0.4 32.8 19.8 19.8 0.0 0.0 0.0 7.0 7.0 0.0 0.0 0.0 6.0 0.0 1.5 1.5 0.0 0.0 0.0 100.0 MG 97.1 68.9 0.0 34.6 6.2 0.0 28.5 34.2 0.1 28.3 12.3 6.3 0.1 5.7 0.2 6.3 6.3 0.0 0.0 0.0 9.6 0.0 2.9 2.4 0.0 0.5 0.0

64.8 23.0 0.0 2.0 0.0 0.0 2.0 21.0 0.0 41.8 24.5 24.5 0.0 0.0 0.0 10.0 10.0 0.0 0.0 0.0 5.3 2.0 35.2 32.2 0.0 3.0 0.0 100.0 OC 99.9 62.9 0.0 38.3 4.8 0.0 33.5 22.5 2.1 37.0 23.0 0.0 17.0 6.0 0.0 0.0 0.0 0.0 0.0 0.0 14.0 0.0 0.1 0.1 0.0 0.0 0.0

87.9 40.3 0.0 4.5 0.0 0.0 4.5 35.8 0.0 47.6 27.0 26.7 0.3 0.0 0.0 9.0 9.0 0.0 0.0 0.0 11.6 0.0 12.1 11.5 0.0 0.6 0.0 100.0 SKC 82.5 29.0 0.0 8.5 2.0 0.0 6.5 20.5 0.0 53.5 30.4 28.0 2.4 0.0 0.0 12.5 12.5 0.0 0.0 0.0 8.6 2.0 17.5 14.5 0.0 3.0 0.0

100.0 53.5 0.0 32.5 2.0 0.0 30.5 21.0 0.0 46.5 0.0 0.0 0.0 0.0 0.0 9.5 9.5 0.0 0.0 0.0 37.0 0.0 0.0 0.0 0.0 0.0 0.0 100.0 SUC 97.4 51.0 0.0 18.0 6.0 0.0 12.0 33.0 0.0 46.4 29.0 27.0 2.0 0.0 0.0 16.0 16.0 0.0 0.0 0.0 1.4 0.0 2.6 2.0 0.0 0.6 0.0

63.0 12.0 0.0 0.0 0.0 0.0 0.0 12.0 0.0 51.0 24.0 24.0 0.0 0.0 0.0 16.0 16.0 0.0 0.0 0.0 11.0 0.0 37.0 29.8 0.0 7.2 0.0 100.0 SK 99.0 69.5 0.0 22.0 3.0 0.0 19.0 46.2 1.3 29.5 15.0 15.0 0.0 0.0 0.0 4.5 4.5 0.0 0.0 0.0 10.0 0.0 1.0 0.0 0.0 1.0 0.0

Store-Based Retailing Grocery Retailers Discounters Small Grocery Retailers Convenience Stores Forecourt Retailers Independent Small Grocers Supermarkets/Hypermarkets Other Grocery Retailers Non-Grocery Retailers Health and Beauty Retailers Beauty Specialist Retailers Chemists/Pharmacies Parapharmacies/Drugstores Other Health and Beauty Retailers Mixed Retailers Department Stores Mass Merchandisers Variety Stores Warehouse Clubs Outdoor Markets Other Non-Grocery Retailers Non-Store Retailing Direct Selling Homeshopping Internet Retailing Vending

98.8 71.5 0.0 36.6 6.0 0.0 30.6 34.5 0.4 27.3 14.3 11.0 0.9 0.2 2.2 6.0 6.0 0.0 0.0 0.0 7.0 0.0 1.2 0.7 0.0 0.5 0.0

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Total
Source: Key:

100.0

100.0

100.0

100.0

100.0

100.0

Official statistics, trade associations, trade press, company research, store checks, trade interviews, Euromonitor International estimates BC = Baby care; BS = Bath and shower products; CC = Colour cosmetics; D = Deodorants; DP = Depilatories; F = Fragrances; HC = Hair care; MG = Men's grooming products; OC = Oral Care; SKC = Skin care; SUC = Sun care; SK = Sets/Kits

Table 10 VND billion

Forecast Sales of Beauty and Personal Care by Sector: Value 2009-2014

2009 Baby Care Bath and Shower Colour Cosmetics Deodorants Depilatories Fragrances Hair Care Men's Grooming Oral Care Oral Care Excl Power Toothbrushes Skin Care Sun Care Sets/Kits Premium Cosmetics Beauty and Personal Care
Source: Note 1: Note 2:

2010 259.9 1,375.2 555.8 106.4 6.8 369.1 2,671.1 436.9 3,921.8 3,921.8 1,288.9 133.2 147.7 653.4 11,154.9

2011 273.1 1,431.2 645.0 113.2 7.2 413.1 2,767.3 466.9 4,133.3 4,133.3 1,447.9 151.0 165.4 754.6 11,879.7

2012 289.4 1,486.7 753.5 120.4 7.6 459.1 2,871.1 501.3 4,349.2 4,349.2 1,638.8 171.8 186.9 875.2 12,679.6

2013 308.3 1,541.4 887.7 127.9 7.9 506.6 2,973.5 539.2 4,559.1 4,559.1 1,866.3 196.0 214.0 1,021.4 13,547.3

2014 329.5 1,594.8 1,055.5 135.5 8.3 555.7 3,076.7 580.1 4,751.4 4,751.4 2,138.8 224.5 248.3 1,199.6 14,490.8

249.5 1,319.7 483.0 100.1 6.5 327.8 2,580.4 410.6 3,709.8 3,709.8 1,156.1 117.8 134.3 566.8 10,490.7

Official statistics, trade associations, trade press, company research, trade interviews, Euromonitor International estimates Premium cosmetic sales are additionally included within Baby care, Bath & shower products, Deodorants, Colour cosmetics, Hair care, Fragrances, Skin care and Sun care Sum of sectors is greater than market size because the four Men's toiletries subsectors are included in Men's grooming products as well as in Deodorants, Skin care, Bath and shower products and Hair care

Table 11

Forecast Sales of Beauty and Personal Care by Sector: % Value Growth 2009-2014

% constant value growth 2009-14 CAGR Baby Care Bath and Shower Colour Cosmetics Deodorants Depilatories Fragrances Hair Care Men's Grooming Oral Care Oral Care Excl Power Toothbrushes Skin Care Sun Care Sets/Kits Premium Cosmetics Beauty and Personal Care
Source: Note 1: Note 2:

2009/14 TOTAL 32.0 20.8 118.5 35.4 27.8 69.5 19.2 41.3 28.1 28.1 85.0 90.5 84.9 111.6 38.1

5.7 3.9 16.9 6.3 5.0 11.1 3.6 7.2 5.1 5.1 13.1 13.8 13.1 16.2 6.7

Official statistics, trade associations, trade press, company research, trade interviews, Euromonitor International estimates Premium cosmetic sales are additionally included within Baby care, Bath & shower products, Deodorants, Colour cosmetics, Hair care, Fragrances, Skin care and Sun care Sum of sectors is greater than market size because the four Men's toiletries subsectors are included in Men's grooming products as well as in Deodorants, Skin care, Bath and shower products and Hair care

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Table 12 VND billion

Forecast Sales of Premium Cosmetics by Sector: Value 2009-2014

2009 Premium Baby Care Premium Bath and Shower Premium Colour Cosmetics Premium Deodorants Premium Fragrances Premium Hair Care Premium Skin Care Premium Sun Care Premium Sets/Kits Premium Cosmetics
Source: Note:

2010 3.9 27.5 125.1 6.6 161.9 77.5 234.6 12.7 3.7 653.4

2011 4.4 30.1 148.4 7.1 186.7 91.3 267.9 14.5 4.3 754.6

2012 5.2 32.7 177.1 7.7 213.4 109.1 308.1 16.7 5.2 875.2

2013 6.2 35.5 213.0 8.3 241.1 127.9 363.9 19.2 6.4 1,021.4

2014 7.6 38.3 258.6 8.9 269.9 147.7 438.4 22.2 7.9 1,199.6

3.5 25.1 105.8 6.1 139.5 64.5 208.1 11.1 3.2 566.8

Official statistics, trade associations, trade press, company research, store checks, trade interviews, Euromonitor International estimates Premium cosmetic sales are additionally included within Baby care, Bath & shower products, Deodorants, Colour cosmetics, Hair care, Fragrances, Skin care and Sun care

Table 13

Forecast Sales of Premium Cosmetics by Sector: % Value Growth 2009-2014

% constant value growth 2009-14 CAGR Premium Baby Care Premium Bath and Shower Premium Colour Cosmetics Premium Deodorants Premium Fragrances Premium Hair Care Premium Skin Care Premium Sun Care Premium Sets/Kits Premium Cosmetics
Source: Note:

2009/14 TOTAL 116.9 52.6 144.5 46.5 93.5 128.9 110.7 100.7 146.5 111.6

16.8 8.8 19.6 7.9 14.1 18.0 16.1 14.9 19.8 16.2

Official statistics, trade associations, trade press, company research, store checks, trade interviews, Euromonitor International estimates Premium cosmetic sales are additionally included within Baby care, Bath & shower products, Deodorants, Colour cosmetics, Hair care, Fragrances, Skin care and Sun care

APPENDIX
Bo Ket : Vietnamese for Chinese Honey Locus which is believed to be a good nutritional source for hair. It helps to maintain the hairs appearance, keeping it smooth and shiny.

DEFINITIONS
This report analyses the market for Beauty & Personal Care in Vietnam. For the purposes of the study, the market has been defined as follows: Baby care Bath and shower Colour cosmetics Deodorants Depilatories

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Fragrances Hair care Men's grooming products Oral care Skin care Sun care Sets/Kits

Sources used during research include the following:

Summary 1 Official Sources Research Sources American Chamber of Commerce Australia Embassy General Statistic Office Hanoi Revenue Office Hochiminh Revenue Office Ministry of Health Ministry of Information Ministry of Trade Statistics Bereau Viet Trade Vietnam Chamber of Commerce & Industry Vietnam Custom Office Vietnam General Statistic Office Vietnam Trade Fair Trade Associations Cosmetics, Toiletries & Fragrances Association (CTFA) Vietnam National Essential Oils, Aromatic & Cosmetics Trade Press Beauty Business News Cam Nang Mua Sam Camnangmuasam.com Cosmade.com Cosmetics Magazine Cosmetique News Dep Magazine Online Diendannuochoa.com European Cosmetic Markets Financial Times Forbes Happi Magazine International Cosmetique News Nuoc Hoa Sai Gon

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Phu Nu Online Newspaper Sai Gon Marketing Magazine Online Saigon Marketing Magazine Online Saigon Times Weekly Sify.com Soap Perfumery & Cosmetics South Information Net Thegioidep.vn Thoi bao kinh te VN Tuoi Tre Newspaper Online Vietnam Agency Vietnam Economy News Online Vietnam News vietnamnet.vn
Source: Euromonitor International

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