HEALTH AND BEAUTY SPECIALIST RETAILERS IN VIETNAM - ANALYSIS

Country Report | Jan 2019

HEADLINES Market Sizes

Health and beauty specialist retailers grows by 9% in current value terms to reach Sales of Health and Beauty Specialist Retailers
sales of VND109.1 trillion in 2018 Retail Value RSP excl Sales Tax - VND billion - Current - 2004-2023
Vitamins and dietary supplements sees rising demand
Chained retailers take share from independent players
218,732 Forecast
400,000
Health and beauty specialist retailers is expected to grow at a 9% current value CAGR
(5% 2018 constant value CAGR) over the forecast period to reach sales of VND168.5
trillion by 2023
300,000

PROSPECTS
Vitamins and dietary supplements sees rising demand 200,000

With rising disposable income and increasing health awareness, consumption of

vitamins and dietary supplements is on the rise. Consumers are more willing to spend
on vitamins and dietary supplements to enhance their health and prevent illnesses. 100,000
Pharmacies/drugstores and parapharmacies are the most common channels in which to
obtain vitamins and dietary supplements. Thanks to the rising popularity of these
products, pharmacies and parapharmacies are expected to record good positive growth 0
over the forecast period. 2004 2018 2023

Optical goods stores records the fastest outlet growth

Sales Performance of Health and Beauty Specialist Retailers
In 2018, optical goods stores recorded the fastest outlet growth among all health and
% Y-O-Y Retail Value RSP excl Sales Tax Growth 2004-2023
beauty specialist retailers. This can be attributed to the increasing influence of Korean
culture, resulting in higher usage of contact lenses and sunglasses besides normal
corrective spectacles. Rising awareness of optical health has also helped organised
players such as Doll Eyes and Eyewear Hut to grow more strongly as customers seek
11.3% Forecast
30%
more trusted brands with better quality. Over the forecast period, this trend is
expected to continue, with the younger generation being the increasingly important
target. 25%

Internet retailing of health and beauty products grows 20%

Due to the rising demand for personal care and the enhancement of health and beauty,
there are an increasing number of health and beauty products in Vietnam. Within 15%
internet retailing, there are an increasing number of small and medium-sized retailers,
which focus on this channel for its low maintenance costs and the absence of rental 10%
fees. These retailers differentiate themselves from the bigger retailers by having a
wider range of products which are imported from Thailand or Korea, which usually have
lower prices to target the young generation. 5%

COMPETITIVE LANDSCAPE 0%
2004 2018 2023

Chained retailers take share from independent players

Despite the dominance of independent pharmacies, chained players are gradually Sales of Health and Beauty Specialist Retailers by Category
increasing their share. Chained retailers usually have a wider range of products Retail Value RSP excl Sales Tax - VND billion - Current - 2018 Growth Performance
including OTC, prescription medicines, vitamins and dietary supplements. Chained
retailers also employ more certified pharmacists in order to give customers better Beauty Specialist Retailers
advice. Customers therefore switch to these players for their greater trustworthiness. 32,700.6
However, the trend is still largely confined to urban areas, as most chained retailers do Chemists/Pharmacies
not focus on rural areas. 153,152.8
Optical Goods Stores
International players lead beauty specialist retailers 5,008.6
Drugstores/Parapharmacies
With stronger financial strength for outlet expansion and marketing, international 26,441.3
players lead beauty specialist retailers. Many of them are Japanese and Korean players Vitamins and Dietary Supplements...
such as Shiseido, The Face Shop and Nature Republic. These brands have an Asian 1,429.1
image which is relevant to local consumers. Their high quality which has been built 0% 15% 25%
over years of research and development also plays a key role in their success.
HEALTH AND BEAUTY SPECIALIST 218,732.5 CURRENT % CAGR % CAGR
RETAILERS YEAR % 2013-2018 2018-2023
Watson enters Vietnam GROWTH

Watson has entered Vietnam with its first store in Bitexco Tower, Ho Chi Minh City. The

© Euromonitor Interna onal 2019 Page 1 of 2

new outlet, which spans two storeys, is expected to open in early 2019. Its direct
international competitor, Guardian, has achieved success in Vietnam by changing the Competitive Landscape
customer shopping habit for vitamins and dietary supplements and beauty and
personal care products. Following in Guardian’s footsteps, Watson is expected to Company Shares of Health and Beauty Specialist Retailers
differentiate itself by offering a wide range of beauty and healthcare products in its % Share (NBO) - Retail Value RSP excl Sales Tax - 2018
stores, some of which could be the first in Vietnam. Private label products will also be a
focus in order to create a loyal base of customers to its stores. Anh Rang Eyewear JSC 0.3%
Hoa Sen Viet Co Ltd 0.2%
Medicare Co Ltd 0.1%
Giant South Asia (Vietna... 0.1%
Pharmacity Corp 0.1%
Phano Pharmaceutical JSC 0.1%
Doll Eyes JSC 0.1%
TBS (Vietnam) Co Ltd 0.1%
Shiseido Cosmetics Vietn... 0.1%
Viscc Co Ltd 0.1%
My Chau Pharma JSC 0.0%
Kim Linh Nutrition Food ... 0.0%
Others 98.6%

Brand Shares of Health and Beauty Specialist Retailers

% Share (LBN) - Retail Value RSP excl Sales Tax - 2018

Eyewear Hut 0.3%

The Face Shop 0.2%
Medicare 0.1%
Guardian 0.1%
Pharmacity 0.1%
Phano Pharmacy 0.1%
Doll Eyes 0.1%
The Body Shop 0.1%
Shiseido 0.1%
Vistar Pharmacy 0.1%
My Chau 0.0%
GNC 0.0%
Others 98.6%

Increasing share Decreasing share No change

© Euromonitor Interna onal 2019 Page 2 of 2