Fragrances was hit hard by the event of COVID-19 in 2020, due to fewer social and grooming occasions through the time of national lockdowns, alongside a significant decline in tourism – a route to sale which is especially important for fragrances, especially for local brands such as Miss Saigon (Saigon Cosmetics Corp). Furthermore, fragrances also sees strong sales though shopping malls, thus closures of this channel also added downwards pressure on the category.
A significant number of illegal and counterfeit goods in Vietnam remained throughout the review period, while the government continues to try to monitor the existence of those products. In 2020, thousands of counterfeit fragrances, such as Miss Saigon, Dior, Channel, Versace etc, were confiscated by the Department of Economic Police.
Coty Inc maintained its company lead in fragrances in 2020, although its Davidoff brand only came in at third place in brand terms, behind top-placed DKNY (Estée Lauder Vietnam Co Ltd) and second-placed Issey Miyake (Shiseido Cosmetics Vietnam Co Ltd). Coty Inc’s portfolio also includes brands Guess, adidas classic, Gucci.
Fragrances is expected to bounce back in line with the recovery of the economy. According to General Statistic Office report in December 2020, the Vietnam economy was predicted to record a positive growth rate of 2% by the end of 2020 and continue to increase by 6% in 2021, mainly thanks to various niche regulations completed by the government to help the economy recover.
Online channels will continue to be the most effective for companies to reach their customers over the forecast period, both through digital marketing and social media platforms, through to e-commerce per se. However, as a large number of counterfeit products are sold via online channels, this may limit the growth rates over the forecast period.
Premium fragrances are expected to recover over the forecast period, thanks to the bright economic performance expected and higher standards of living. For example, premium fragrance sets/kits is expected to see some of the strongest growth over the forecast period.
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Understand the latest market trends and future growth opportunities for the Fragrances industry in Vietnam with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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This report originates from Passport, our Fragrances research and analysis database.
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