Vietnam Cosmetic Industry Monitor Report (2018/03)


Industry Overview

The market of cosmetics in Vietnam is extremely hot when the statistics show that Import turnover of cosmetic products in the past year reached nearly 6 billion US dollars, doubling the results of 2016. Thus, in the last year, Vietnam's trade deficit of this product reached about 5 billion dollars.Thus, the demand for cosmetic products in Vietnam is extremely potential.


In the rage of cosmetics, it is predicted that natural cosmetics will rise to the throne, which is really true?.The answer will be showed in I-Buzz Research Company's study on the trend of using cosmetics in Vietnam in March.


1. Top10 Brand Volume Ranking


In this report, we study 88 most favored cosmetics brands of World and view their performance in Vietnam’s word of mouth market. The total volume of this industry was 8341. The word of mouth for the top 10 brands occupied 6709.


Figure 1. Hot models Internet word of mouth ranking in March - The throne of foreign cosmetics


As seen in Figure 1, topping the list was the 3 Concept Eyes (a Korea brand) with 2690 volume, representing 40.1% of the top 10 brands.3CE is one of the most famous brands in lipstick products. It is not only asserted its name by quality but also always has incentive or discount events for customers. Especially, the network marketing channels create a high impact on customers.Second,third, fourth were Biore (827 volume), Nivea (800 volume) and Missha (695 volume), respectively. Biore and Nivea were penetrated very early in Vietnam, quite impressive in the subconscious of customers. These two brands is suitable for many customers in terms of price and quality. In addition, Top brands are 3 Concept Eyes (2690 volume) and 10th Brand Roche-Posay (239). The difference in word of mouth between the first and the last top brands is 2451 volume or 91.1%.


2. Top10 Brand Volume Day Trend


Based on the information shown in Figure 2, we can make some comparisons among brands trend. The highest point that was on 03/18 discussed 3 Concept Eyes brand. The hottest topic is related to the event “Test and donate lipstick for free”. There were a total of 524 responses. The second is shown on 2018/03/04 with “3CE's new launch event”, there were 451 replies.


Figure 2. Top10 Brand Volume Day Trend


Next is on 2018/03/19 with the theme “Minigame buys Nivea's Makeup Set and Whitening Serum” received 446 replies. As seen in Figure 2, in March there are two days of 3CE products reaching the top both on the introduction of new products ,the trial and donation of the product. Then Nivea's products are also of great interest from the online community for its award-winning mini-games.

In sum, to create an effect with customers having good products is not enough. Need to know the marketing channels effectively and need to catch the psychology of customers, put the interests of customers to the top.


3. TOP10 Channel Volume Ranking


In March,the Sammishop page drew 3811 volume from the internet community, nearly half of the volume used in the entire 10 pages were approximately 47.1%, as shown in Figure 3. The features of this page are they always can create new interesting events.


Figure 3. TOP10 Channel Volume Ranking


The second was Hanoi with 1461 volume this month. In fact, this is a page dedicated to food but with the advantage of having a huge fans and the a lot of members are women on all matters related to cosmetics also attracted a big interaction. The major events that attract viewers are trial,free gifts of some products, such programs attract the consumer.

Third,Koala main spot of this page is the incentive programs for products, mainly products extracted from nature such as flowers, tubers, fruits.It also reached 839 volume.


4. TOP10 Hot Topics


Top10 hot topics for discussion have been shown in Table 1. Most of the hot topics had talked about the sales promotions programs, such as discounts, free gifts, buy one get one free, mini game and combo set offered at a cheaper price. The product categories were dominated in these hot topics are lipsticks, makeup remover cleansing water, sunscreen, following by mask and BB cream.


Table 1. TOP10 Hot Topics


Based on the data, it can be seen that in order to attract more and more customers or boost consumers’ purchasing power, the companies or sellers prefer to offer discount programs. This strategy seems to be effective in a lot of the observed cases and employed on special days such as International Women’ s Day (in the 5th case) or April Fool’s Day (in the 7th case). The second sales promotion program that has been applied is free gift with purchase terms and condition. Specifically, the first discussion topic which got the most attention introduced the opening of a new cosmetic store. In order to increase the number of visitors, 100 free 3CE matte lipstick were offered to the first 100 customers whose purchasing bills at at least 99,000 Vietnamese Dong. In addition, inviting consumers to join a mini-game is considered as another way to get customer involved and spread product information via word of mouth marketing. For example, in the second and the third discussion topics, people who like fan page, like and share discussion topic and tag their friends in a comment can have chance to get a combo of Biore’s cleansing water and UV protection milk or a combo of Nivea’s cleansing water and sunscreens for dirt cheap.

The rest of these hot topics were mentioned about launching hot items at discounted prices to boost consumers’ purchasing power (e.g., the 4th case - 3CE Velvet Lip Tint, Velvet Lipstick, etc.)

3 Concept Eyes (or 3CE) is brand dominated in these discussion topics. Particularly, 3CE has been appeared in 3 of top 10 hot topics that were discussed in March, followed by Missha with twice discussion topics.

In most of these topics, consumers discussed about different types of products which are suitable for various skin types, how product works, how to use product(s). They also concerned about delivery methods and whether free logistics is offered or not.


5. Makeup Hot Word Cloud


The word cloud is shown in Figure 4. These keyword can be grouped into different categories: Marketing Channel (e.g. keyword No.1 – Website, No. 2 – Youtube, No.17 – Message), Product Features (e.g. keyword No. 4 – Color, Color Tone, No. 5 – Ingredient, No.6 Sun Protection, No.21 Anti-Aging, etc.), Price (e.g. keyword No.3 Low Price, Discounted Price, No.16 – Discount, Promotion), Positive Reviews (e.g. Keyword No. 18 – Deep Cleansing, No.19 - Skin Protection, No.23 Cool), Negative Reviews (e.g. keyword No. 14 – Allergy, Acne, No. 25 Irritating) and Service (e.g. keyword No. 7 Delivery Method, Free Delivery, No. 27 - Free Makeup & Beauty Consultation).

Figure 4. Makeup Hot Word


6. Characteristic Group Radar Chart


The total number of volume of 6 characteristic group(which contains many words) is 9078.Product features gets 2558 volume, positive reviews gets 2000 volume and 2538 volume about marketing.Negative Reviews were at least 497 volume of interest. Price and services were 807 volume and 678 volume respectively.


Figure 5. Radar chart for Groups of Hot Keyword

In addition, Marketing and Product Features are the most dominated in discussion, followed by Positive Reviews, Price and Services. Negative Reviews seem to lost a little attention in the this survey, as shown in Figure 5.