The Face Shop, the world-known brand is getting increasingly popular and experienced the success in many countries such Canada, U.S.A, China, and Japan, Korea, Singapore, Jordan, Thailand. To further expand the markets, The Face Shop sees massive opportunities in other emerging cosmetic markets such as Vietnam.
To propose the market plan, we have analysed the environment of Vietnamese market in the political, legal, economic, geographical, social, cultural, technology, trading infrastructure and market aspects. It is concluded from the analysis that Vietnam’s economy is developing fast with the stable political conditions. Furthermore, it is easy for the foreign companies to run business in Vietnam due to the friendly policies and few barriers of trade. The people are eager for fashion, multi-culture and dependence. It is hot and humid in Vietnam due to its tropical location which is the reason why the sun creams and whitening products are popular.
Hanoi, which is the capital city of Vietnam and also a shopping paradise with many shopping malls, has been selected as the city which we will firstly export products to. It is the city with high fashion conscious and relatively high living standards. Hanoi In addition, the modern facilities of container loading by shipping in Hanoi enable The Face shop to export products conveniently and economically to Vietnamese Cosmetic market.
Before making the decision of entering the market, we see that there are a host of attractive opportunities. For example, rapid internet growth means increasing transactions through our well-developed online trading system which reduce fees like transporting cost, labour cost. Other opportunities are like increased awareness of environment, the domination of foreign brands in the market, rapid development of economy and female roles and more fashion-conscious youth etc. can all boost the sales. However, problems like
Cited: Vietnamese consumers, mostly young girls and women, spent US$82 million on beauty and skin care products（High-grade cosmetics overflow into Vietnam, 2006）, our company’s goal of annual sales for the next year is about 10 million dollars. 13.2 Target customers There are three groups of customers: Y-Young (18-29 years), M-middle-aged (30-45 years) and O-old customers (above 45) (from http://www.cosmetic-business.com/en/showartikel.php?art_id=1673 accessed by 25th May 2011) (fromhttp://www.internationalbusinessstrategies.com/market-research-reports/43190608.html accessed by 27th May 2011) The Face shop can also go into partnerships with major companies such as supermarkets and real estate companies