HAIR CARE IN VIETNAM - ANALYSIS

Country Report | Jun 2019

HEADLINES Market Sizes

Current value sales of hair care rise by 5% to reach VND14.9 trillion in 2018 Sales of Hair Care
Natural and organic products become product trends Retail Value RSP - VND billion - Current - 2004-2023

Salon professional hair care sees highest unit price increase and second-highest
value growth in 2018
14,960 Forecast
20,000
Unilever Vietnam International maintains its lead with a value share of 36% in 2018
Hair care is predicted to increase at a current value CAGR of 5% (1% 2018 constant
value CAGR) over the forecast period to reach VND19.2 trillion in 2023 15,000

PROSPECTS
10,000
Natural and herbal hair care becomes a trend in 2018
In 2018, both manufacturers and Vietnamese consumers paid great attention to herbal
and naturally positioned products due to consumers’ increasing interest in health and 5,000
wellbeing. Moreover, since air and water pollution has become more serious in
Vietnam, more and more consumers are willing to spend on natural and herbal
products for hair care treatment such as for dandruff and moisturising. Following this
trend, many new brands offering natural or herbal ingredients were launched, such as 0
2004 2018 2023
shampoos Thai Duong 3 and Thai Duong 7 (Sao Thai Duong), which Vietnamese
consumers eagerly welcomed due to their containing traditional herbal ingredients
specifically for dandruff treatment. Indeed, Sao Thai Duong was listed amongst the top
10 most reliable local brands in 2018. Sales Performance of Hair Care
% Y-O-Y Retail Value RSP Growth 2004-2023
Environmental pollution and higher awareness will invite further
demand 4.6% Forecast
20%
Over the forecast period, demand for natural and herbal hair care is predicted to keep
growing gradually due to increasing environmental pollution and Vietnamese
consumers’ higher awareness. Despite its higher price, more people will prefer natural
and herbal hair care products to traditional ones because they strong believe in the 15%
benefits that herbal properties can bring. Unilever and other major players are
expected to launch new product lines containing natural and herbal ingredients such as
grapefruit or multiflorous knootweed over the forecast period in order to respond to
higher demand from Vietnamese consumers. 10%

Unauthorised products have negative effect on performance of hair

care 5%

In the review period, the volume of unauthorised products entering the Vietnamese
marketplace increased considerably, together with higher demand for hair care
products in the country. Although there is a plethora of hair care products available in 0%
the legitimate retailing market, a significant number of Vietnamese consumers prefer 2004 2018 2023
purchasing the unauthorised products due to their strong belief in the quality of
imported products from developed countries such as US, Korea or Japan. In Vietnam,
this trend has had a negative effect on value growth of hair care for several years.
However, as the government succeeds in controlling the volume of unauthorised
imports and requires small online companies or individuals to pay taxes if they want to
continue doing business, value sales of legitimate products will likely improve.

COMPETITIVE LANDSCAPE

Unilever Vietnam International maintains its leading position

In 2018, Unilever Vietnam continued to hold the leading retail value share in hair care.
The company is noted for its leading hair care brands such as Clear, TRESemmé, Sunsilk,
Dove and Lifebuoy. These brand names have been in Vietnam for a long time and most
Vietnamese consumers consider them reliable. Although hair care is experiencing a
slower growth pace than before, the company expects to maintain its position in the
category by investing in dynamic marketing activities and developing new products. For
example, the company organised a music festival named Ravolution to advertise its
Clear brand and had welcomed over 40,000 people to the festival by the end of June
2018. Over the forecast period, the company is predicted to witness healthy growth
with the launch of its new brand named Bountique, which contains natural and herbal

© Euromonitor Interna onal 2019 Page 1 of 3

ingredients following the trend mentioned above.
Sales of Hair Care by Category
Retail Value RSP - VND billion - Current - 2018 Growth Performance
Premium brands are gaining its market share
In the review period, Vietnamese consumers, especially amongst the middle- and high- 2-in-1 Products
-
income segment and particularly amongst white-collar workers, seemed to turn from
buying mass brands to premium ones. Indeed, although hair care has not been Colourants
574.6
performing as well compared to the previous years, the sales value of premium brands
such as Amway and Nu Skin saw healthy value and volume growth in 2018. It was mainly Conditioners and Treatments
1,255.5
thanks to huge efforts of these companies to expand their distribution networks to
new markets and maintain relationships with retailers. Besides that, high product Hair Loss Treatments
-
quality is the most important factor driving the demand for premium brands. Over the
forecast period, value sales of premium brands such as Nu Kin are expected to grow Perms and Relaxants
10.1
gradually thanks to an even brighter economic outlook and higher living standards.
Salon Professional Hair Care
497.1
Shampoos
12,349.2
Styling Agents
273.3
-10% 0% 15%

HAIR CARE 14,959.8 CURRENT % CAGR % CAGR

YEAR % 2013-2018 2018-2023
GROWTH

Competitive Landscape

Company Shares of Hair Care

% Share (NBO) - Retail Value RSP - 2018

Unilever Vietnam Interna... 35.8%

Procter & Gamble Vietnam... 12.2%
Unza Vietnam Co Ltd 4.9%
International Consumer P... 4.5%
L'Oréal Vietnam Co Ltd 2.1%
Sao Thai Duong Cosmetics... 1.8%
Hoyu Corp 0.9%
LG Vina Cosmetics Co Ltd 0.9%
Dai Viet Huong Trading M... 0.5%
Mascolo Ltd 0.4%
Creative Nature Group 0.4%
Henkel Vietnam Co Ltd 0.4%
John Paul Mitchell Syste... 0.3%
Amway Vietnam Ltd 0.3%
Oriflame Vietnam Ltd 0.3%
Colgate-Palmolive (Vietn... 0.1%
Janssen-Cilag Ltd 0.1%
Mandom Vietnam Co Ltd 0.1%
Revlon Inc 0.1%
Others 33.8%

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 Brand Shares of Hair Care
% Share (LBN) - Retail Value RSP - 2018

Clear 11.5%
Sunsilk 9.5%
Dove 7.6%
X-Men 4.5%
Pantene 4.3%
Head & Shoulders 4.1%
Clear Men 3.7%
Romano 3.7%
Rejoice 3.5%
Lifebuoy 2.0%
Thai Duong 1.8%
L'Oréal Professionnel 1.8%
TRESemmé 1.4%
Enchanteur 1.3%
Bigen 0.9%
Double Rich 0.9%
Ramus 0.5%
TIGI 0.4%
Davines 0.4%
Others 36.2%

Increasing share Decreasing share No change

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