Colour Cosmetics in Vietnam

PROSPECTS

Gradual increase in demand for colour cosmetics

Over the review period, demand for colour cosmetics increased significantly, especially amongst the young generation. It is mainly due to strong penetration of Western and Korean culture through social networks and media.

Lip products sees the fastest growth

Overall, most colour cosmetics categories witnessed strong value and volume growth in 2018, with BB/CC creams and lipstick growth being amongst the most remarkable. Lipstick remains the most developed category and lip products overall saw the fastest double-digit volume growth over the year.

Colour cosmetics set to see double-digit value and volume growth over the forecast period

Over the forecast period, volume sales of colour cosmetics are predicted to keep growing dramatically thanks to increasing living standards and better economic performance. Together with strong development of the internet network and modern lifestyle in rural areas, the habit of using colour cosmetics is expected to increase gradually amongst middle- and low-income segments in the next few years.

COMPETITIVE LANDSCAPE

Estée Lauder Vietnam remains the leader in 2018

In 2018, Estée Lauder maintained its leading position within colour cosmetics with its popular brands including Mac, Estée Lauder, Clinique and Bobbi Brown. Amongst them, Mac is the leading brand; it has been particularly successful by offering various product types serving multiple functions.

Estée Lauder starts selling through Lazada in 2019

Over the forecast period, Estée Lauder is predicted to keep growing strongly mainly thanks to its high brand reputation and commitment to developing new colour cosmetics to maintain and increase consumer interest. Moreover, Estée Lauder also plans to sell products through Lazada – one of the most popular online retailers in Vietnam – in 2019, and this factor should significantly boost Estée Lauder’s value growth between 2019 and 2023.

Premium brands are gaining value share

In the review period, more middle- and high-income consumers were willing to spend on premium brands. Indeed, premium brands such as Mac, Chanel, Estée Lauder, Bobbi Brown, Lancôme and Dior all saw double-digit value growth in 2018.

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