Thai cosmetic brands coming to stores across Vietnam

“The shift comes as rising consumer incomes and changing lifestyles in markets like Vietnam are driving higher sales and bottom line profits and that hasn’t gone unnoticed by Thai beauty and wellness professionals,” said the Consul General.

She said Thai industry export revenues jumped three and one-half fold year-on-year to US$7 billion in 2014 of which approximately one-quarter was shipped to markets in Southeast Asia.

Vietnam is a big market with people constantly on their mobiles and they are increasingly demanding convenience, whether it’s restaurants, bars or entertainment. The cosmetics industry is no different.

Products such as shampoos have found favour in Vietnam, especially among the youth and industry leaders now have ambitious plans— betting that the growing middle class and rising disposable incomes will continue to drive revenue growth.

We are still in the early days of the new trend and industry leaders believe there is exponential potential for further growth as “Some of the most discerning skin-care consumers are Vietnamese women and men,” she said.

Thai products

Ketmanee Lertkitcha, President of the Thai Cosmetics Manufactures Association in turn said Thailand has now become the globe’s second largest shampoo supplier and 12th largest exporter of skin care products.

“The cosmetic industry in Thailand has targeted to outperform last year’s figures with gross revenues to climb to an all-time record high US$7.6 billion this year.”

She said the formation of the ASEAN Economic Community (AEC) by year’s end presents an ideal occasion for the expansion into market such as Vietnam, Laos, Cambodia and Myanmar.

A few market analysts have suggested Vietnamese and Thai businesses join forces to produce cosmetics as the combination of the former’s advantages in labour and the latter’s cutting-edge technologies, innovation and experience could be a winning combination.

Nowadays, Thai products can be seen everywhere in Vietnam and they are rapidly becoming the dominant brands on the retail shelves due to their high quality and eye-catching products packaging.

Market research shows that Vietnamese consumers are turning towards natural and organic cosmetics and Thai businesses with abundant resource of materials and self-contained production chains are moving to take command of the market.

Lertkitcha stressed that to promote its products, Thailand has and will continue to organize numerous exhibitions and trade fairs throughout Southeast Asia, most notably COSMEX, which emphasizes the production side of the industry.

The 2015 COSMEX trade fair set for this upcoming November 3-5 at the Bangkok International Trade & Exhibition Centre has about 6,000 businesses already registered to attend.

Vietnam’s total commercial and services trade with Thailand has increased on average 13% per annum over the past five years and is anticipated to increase again this year as Thai brands make their move to take over the cosmetics industry.