Premium Beauty and Personal Care in Vietnam

PRE-COVID-19 PERFORMANCE

Rising disposable incomes and fashion awareness boost premium sales

According to the General Statistic Office, Vietnam’s GDP is expected to continue growing strongly. The improving economy prompted more consumers to spend money on travel, apparel and beauty and personal care products, even on premium brands.

New fashion trends fuel interest in premium colour cosmetics

Dynamic marketing and innovation key to attracting consumers

Shiseido Vietnam continues to lead premium beauty and personal care sales in Vietnam, largely due to its strength within the key skin care category, where it offers various product types with multiple functions. Over the forecast period, the company is expected to see healthy growth, mainly thanks to its strong brand reputation and huge efforts to develop new colour cosmetics.

2020 AND BEYOND

COVID-19 impact

Sales of premium beauty and personal care are expected to increase by a strong 8% in 2020 in 2019 constant value terms, highlighting how the impact of COVID-19 is expected to be limited. Nevertheless, during the first half of 2020, the pandemic resulted in some consumers shifting towards cheaper mass products, with economic uncertainty causing mid- and high-income consumers to cut back on spending.

Affected products within premium beauty and personal care

With most workplaces closed and socialising in person coming to a halt during the COVID-19 lockdown, there has been a slight shift away from many premium beauty and personal care products. Premium colour cosmetics, fragrances, hair care and adult sun care are expected to be hit hardest as consumers spend more time at home.

Recovery and opportunities

Over the forecast period, demand for premium beauty and personal care is expected to slightly impacted by a shift towards cheaper mass products among price sensitive consumers. Many consumers will remain highly price-sensitive and continue to prioritise essential purchases, while seeking the lowest available prices.

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