Skin Care in Vietnam

PRE-COVID-19 PERFORMANCE

Rising image awareness boosts demand for premium brands

Premium brands such as Shiseido, Estée Lauder, Nu Skin and Amway continue to see strong value growth, mainly thanks to the stronger economy, gradual increase in average incomes, higher living standards and strong development of social networks. Over the review period, people with a strong belief in the quality of premium brands were more willing and better able to spend money on expensive premium skin care products.

Ageing population fuels interest in anti-agers

According to the Ministry of Healthcare, Vietnam’s population has been ageing since the end of 2011, with the birth rate averaging around 1% from 2011 to 2020. As a result, the percentage of people aged above 60 years old increased from 9.

Consumer trust key to success of leading international brands

Shisedo Vietnam continues to lead skin care due to its strong financial capacity and brand reputation. During 2019, the company was very active in terms of performing marketing activities such as creating campaigns or skin care festivals within shopping malls as a way to increase interaction with customers, as well as to introduce new products into the market.

2020 AND BEYOND

COVID-19 impact

Sales of skin care are now expected to rise by 10% in 2020 in 2019 constant value terms in light of the impact of COVID-19. There are a number of factors limiting sales of skin care in 2020.

Affected products within skin care

By the end of 2020, the majority of product areas within skin care are expected to see lower than expected volume and value growth. However, demand for facial cleansing wipes has actually been boosted by the events of 2020, with consumers purchasing these products in order to sanitise their faces in the hope of preventing the spread of the virus, particularly while away-from-home.

Recovery and opportunities

As consumers begin to spend more time away-from-home once more as the lockdown eases, sales growth for skin care will begin to normalise. However, strong price-sensitivity will persist over the forecast period, with discounting likely to be widely used to drive sales growth for leading brands and affordable domestic brands likely to attract a growing number of people, particularly if they are able to offer effective natural ingredients.

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