Product Launch Proposal in Vietnam|
Table of Contents
2. Company Overview
3. Vietnam General Information
4. Social factors
5. Market Trends
6. The Body Shop Products
7. Vietnam Product Market Entry
8. Legal factors
10. Sales Channel
12. Appendix and Appendices
Global companies today face the problem of initiating a global product launch, the situation of which has been further complicated by the changing global structure. To keeping up with the changing trends of economies, our company -The Body Shop – is willing to step forward. This proposal is about the possible entry of The Body Shop in Vietnam market.
The Body Shop is a famous retail brand in the world. It has a good position in creating naturally inspired skin and hair care products. Headquartered in Littlehampton, West Sussex, England, The Body Shop was founded by the late Dame Anita Roddick and is now part of the L'Oréal corporate group. Within about 70 years, it has grown from a small and simple shop into a multinational company rapidly. Today, The Body Shop established more than 2,500 stores in over 61 counties worldwide. It also has more than 35 suppliers from 25 counties. Indeed, the Body Shop has gone global, cutting across various cultures. It is now the second largest cosmetic franchise in the world. Major of our sales are targeted on four regions: Americas 31%, The UK and the republic of Ireland 29.7%, Europe, Middle East and African 19.4%, Asia Pacific 17.7%. (Figure 1)
For many years, The Body Shop® has constantly sought out wonderful natural ingredients from all four corners of the globe, and brings products bursting with effectiveness to enhance natural beauty. While doing all of this The Body Shop also strives to protect this beautiful planet and the people who depend on it — not because it's fashionable, but based on the belief that it's the only way to do business.
Vietnam General Information
Vietnam is one of the world’s fastest growing economies with GPD growth rate of 8% (1990-1997) and 7.3% (2004 – 2009). The recent Demographic survey shows that with a population of over 86 million, Vietnam is the 13th most populous country in the world. The Body Shop focuses our developing strategy in entering Vietnam market not only because of its demographic advantage but also its economic environment. According to economists’ analysis, Vietnam can be the fastest growing of emerging economies by 2025 with a potential growth rate of almost 10% annually. In recent years, Japanese, American, and Taiwanese companies are investing large sums of money into Vietnam’s high-tech industry. Some investment officials attribute growing interest in Vietnam to the government’s more open policy in attracting foreign direct investment (FDI). The country’s low labor costs compared to other manufacturing geographies, and a relatively low finished product cost are Vietnam’s absolute advantages.
Despite income growth in recent years of near 7% annually,and poverty levels declining to a regionally favorable 2.2%, Vietnam’s nominal income levels remain low. Gender equality, rural unemployment, working conditions, and child labor remain issues of concern. No doubt that Vietnam has made impressive achievement in the past decade or so in term of sustained economic growth and poverty reductions. Important challenges remain, however, and further efforts will be needed to effectively address remaining problems of poverty and social exclusion. If The Body Shop could enter into Vietnam market successfully, it will offer at least 5,000 positions each year. Defiantly, it will increase the employment rate. Our mission is to commit to creating more employment opportunities and coordinating with their local government for a better economic growth. Another social factor we have considered...