Product innovation drives growth
New launches illustrate the efforts of the cosmetics and toiletries manufacturers to diversify their product ranges. Firstly, product segmentation isincreasing, as the manufacturers are targeting specific consumer groups. Products for teenagers, men or women are becoming more popular. Secondly, the demand of consumers for products containingnatural ingredients has led to many manufacturers researching and developing such products. Sales of multi-function products are also increasing, due to convenience and cost reasons.
The Vietnamese cosmetics and toiletries market is big enough for both domestic and multinational manufacturers. International brands still account for a large share of the cosmetics andtoiletries market, such as the well-known names which are produced locally by, for example, Unilever Vietnam and Procter & Gamble Vietnam. With high-quality products, strong and effective marketing strategies,these players hold the largest shares. However, domestic manufacturers, such as International Consumer Products have also improved their positions in the market.
Store-basedretailing is facing strong competition from non-store retailing, such as direct sellers. However, store-based retailing still accounts the bulk of cosmetics and toiletries sales in 2008. The main...