Global and Domestic Impacts of the Cosmetic Industry
Among the Asia Pacific markets, Vietnam is the fastest growing market. Vietnamese consumers have recently been exposed to more disposable income and a higher standard of living. According to the Euromonitor’s report in 2008, Vietnam has a market value more than 70 billion US dollars. It is reported that approximately 90-95 percent of the market for international cosmetics products in Vietnam is centered on cosmopolitan areas of the country, for example, Ho Chi Minh City in the south and Hanoi in the north. The availability of having these products imported from foreign countries is becoming more common in the country of Vietman. These people would rather have quality name brand products, rather than the domestic brands, which cannot simply compete with quality of brands like Estee Lauder, L’Oreal, Clinique, Clarins, and Maybelline. Because of this high demand for cosmetics, Vietnam is considered as a very potential market for this industry. Organizations like ASEAN (Association of Southeast Asian Nations) are trying to come up with their own cosmetic products, producing them and marketing the products domestically.
As Vietnam's economy continues to develop, a growing middle class sector is emerging. An attractive segment within this group would include the market for cosmetics. “Vietnam is predicted to continue its robust development in beauty and personal care over the forecast period. The country has great potential for growth with the young population and the untapped market in rural areas. Consumers, especially those living in urban areas, are expected to have more exposure to the products’ benefits and usage and therefore have more sophisticated demand for beauty and personal care products. Value growth and product availability are both expected to be strong” (Huong pg.3). The economy of Vietnam today has changed greatly in the past five years. Poverty has declined significantly and...
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