Cosmetic market in Vietnam

Abstract: Introduction: Among the Asia Pacific markets, Vietnam is the fastest growing market. However, despite the high growth, the competition in Vietnam is stiff as the main competitor as Unilever, L’Oreal, Johnson & Johnson and P&G occupy the market. Therefore, cosmetic company need effective marketing plan to cope with strong competition. Problem Statement: “How can cosmetic companies successfully plan a marketing strategy in the Vietnamese cosmetic market for its skin care product line?” Purpose: To study (1) Market’s environment which includes economic, legal, and culture aspects; (2) Market’s Competition which includes marketing strategy of existing cosmetic companies; and (3) Consumers’ demands which contains demographic, psychographic elements and marketing mix. Research tools: Interview, field study and secondary data Finding & analysis: The market environment in Vietnam in term of economic, legal and culture is favorable. The consumers demand in skin care products of the Vietnamese is increasing. However, the competition is high. Therefore, the newcomer should be competitor oriented. Recommendation: However, there are some sections that are less competitive: (1) low price moisturizing, (2) low price acne products and (3) low-price, middle-price and high-price suncare products. The cosmetic company should design their marketing mix to serve this section.