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Domestically-made cosmetics selling better thanks to inflation
While cosmetics products are selling more slowly at supermarts and shops as housewives tighten their purse-strings in the high inflation period, domestically-made products have been selling better.
Some domestic cosmetics producers have reported 20% increases in sales in the last few months.
Mai Tan Dung, Sales Director of Lan Hao Cosmetics Company, said that sales of the make-up powder Two Way Cake have increased by five times, while 24 of 70 items of the company have seen sales increase by 30%.
Explaining the satisfactory sales, Dung said that famous products from South Korea, Thailand and Taiwan have become more and more expensive, while cheap products still cannot win the confidence of customers. Meanwhile, domestic products prove to be safe, while they have reasonable sale prices which prove to fit the pockets of the majority of Vietnamese people.
Analysts also say that cosmetics products with no clear brand names imported from Thailand and China now cannot find buyers; this has also brought an opportunity for domestic producers to sell their products.
Huynh Kien Nam, Director of Gia Dinh Cosmetics Company, said that women in rural areas now are also choosing products with good brand names to buy. Nam said that the company’s sales have increased by 30%.
However, imports and products made under licences of foreign manufacturers are still dominating the cosmetics market with hundreds of brand names, from luxury items to ones for normal people. Regarding the group of products for hair care, Unilever’s products now hold 47% of the market share, P7G 30%, followed by Singaporean and Chinese trademarks.
As for the group of skin-care products, imports and products made under licences of foreign manufacturers are now holding 95% of market shares in big cities like Hanoi and HCM City.
Domestic producers well understand that they cannot compete with imports in the segment of luxury items for consumers with medium and high incomes.
Lan Hao has stopped selling colour lipstick, Saigon Cosmetics now focuses on selling perfume priced a bit higher than VND100,000/bottle. Some other companies have stopped selling luxury shower cream with sale prices equal to those of imports.
According to Luong Van Vinh, Director of My Hao Company, a Vietnamese woman spends $3-4 on cosmetics products a year. The figures are $41.7 in Taiwan, $40.9 in South Korea, $35.7 in Hong Kong, $19.5 in Thailand, and $10 in China.
VNN
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