Baby and Child-Specific Products in Vietnam

PROSPECTS

Slower birth rate, maturity constrain category growth in Vietnam

In 2018, baby and child-specific products continued to experience slower value and volume growth. It is mainly because Vietnam’s birth rate has dropped to the lowest in the world whereas its infertility rate jumped to the highest rate, according to the World Health Organization and a study of Reproductive Endocrinology and Infertility Association in 2018.

Infertility rate expected to keep increasing

In 2018, the Reproductive Endocrinology and Infertility Association predicted that the infertility rate will keep increasing over the forecast period due to unhealthy lifestyles and a polluted environment. Although the government is planning to decrease environment pollution and is encouraging people to exercise more, at the beginning of 2019 it had no sustainable policy in place to solve these problems effectively.

Pharma baby and child-specific products receives more attention

In 2018, pharma baby and child-specific products received more attention from consumers due to increasing environmental pollution and higher living standards. In Vietnam, Cetaphil or La Roche Posay were amongst the few popular pharma brands offering baby and child-specific products during the review period.

COMPETITIVE LANDSCAPE

Johnson & Johnson Vietnam maintains its lead

In 2018, Johnson & Johnson Vietnam (Johnson’s Baby) continued to lead baby and child-specific products, mainly thanks to its familiar brand name and its wide distribution network across the country. Although Johnson & Johnson Vietnam has continuously lost value share to international and other competitors in the last few years due to a major scandal in 2012 concerning chemical ingredients (such as formaldehyde) in its products, the company is recovering gradually thanks to a huge effort of company to launch new products, expand the market and conduct marketing campaign in 2018.

International brands continue to hold the leading positions

In 2018, famous international brands in Vietnam such as Johnson & Johnson Vietnam, Bübchen-Werk Ewald Hermes Pharmazeutische Fabrik and Pigeon Corp continued to hold the leading value shares on the strength of their product quality, wide distribution networks and reliable brand names in Vietnam. Meanwhile, the presence of domestic players continued to be limited in baby and child-specific products in Vietnam.

Vietnam attracting more investment, and set to see more competition in the baby and child-specific arena

Since Vietnam has recently become a member of various international organisations, especially the Trans-Pacific Partnership and APEC, it has become an attractive country for foreign countries to invest in and the various M&A events recorded between 2017 and 2018 are evidence of its potential. This, together with the low birth rate recorded in 2018, is leading to a more competitive landscape for both new and existing players within baby and child-specific products seeking to attract more interest from Vietnamese consumers.

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