South Korea’s beauty items are hot in Vietnam, strengthening its dominance versus Japanese and European brands through digital channels.
SEE ALSO : K-beauty exports rise 16% despite Covid-19
According to a report by the Institute for International Trade under the Korea International Trade Association (KITA), Korea’s exports of cosmetics products totaled record US$227.31 million in 2020, up 17.6 percent from a year ago.
Korean brands made up 48.1 percent share in imported cosmetics market in Vietnam, keeping to the top for five consecutive years. Japan’s share was 16.1 percent and France 10.8 percent.
Channels have diversified to deepen penetration.
Mobile marketing and trading service provider Mate Korea launched an exclusive platform to offer Korean items on Zalo Shop, the e-commerce platform of Vietnam’s top mobile messenger app Zalo used by 86 percent of the entire Vietnamese population. It now has expanded its foothold across the Southeast Asian country with its solution to connect Vietnamese buyers with Korean firms.
Another startup Zackdang Company attracted more than 150,000 users to its beauty video app Zamface in just two months of launch in Vietnam in April with its AI-based makeup skills and product curation solutions.
Vietnam’s cosmetics, perfume and other beauty products market expanded to record US$2.11 billion last year and is estimated to reach US$3.42 billion by 2025. Cosmetics market is forecast to grow by an annual 10.1 percent for the next five years.
“Tariffs would be sharply lowered from this year under bilateral FTA that goes into effect this year, giving more opportunities for Korean brands,” said Kim Bo-kyung, a senior analyst at the KITA.
(Source: Pulse News)