The market for personal care products for men in Vietnam continued to demonstrate notable growth from 2004 to 2007, growing at an average rate of 12% per year, with buoyant sales through 2009. This significant increase is driven by rising incomes, manufacturers’ advertising and promotional campaigns, increased product awareness and growing interest in fashion, style and appearance enhancement among men.
An additional factor fuelling growth is urbanization. An increasing number of rural Vietnamese men are moving to large cities searching for work and a better life. The greater exposure to modern lifestyles, trends and products is accelerating demand for more advanced toiletries. In recent years, consumers, especially men in urban areas, have become more exposed to advertising and promotions by manufacturers, and have access to a greater variety of toiletry products. The last few years have also seen an expansion of the retail sector, with new and modern boutiques, supermarkets and shopping smalls springing up in the major cities and population centers throughout Vietnam.
More than 85% of personal care products for men sold in the Vietnamese market are locally made. Imported products tend to come from Japan, South Korea, the U.S. and Europe. The demand among men for more sophisticated products is maturing, and shifting toward prestigious and quality brand names. Foreign companies that already have manufacturing facilities in Vietnam recognize the market’s future potential and their subsequent push to increase sales through more advertising is driving fierce market competition. Local manufacturers are also working hard to gain a larger market share by investing in more research and development, marketing and distribution activities to improve their products. This rapidly developing market offers numerous opportunities for American companies. Opportunities exist to sell and distribute finished toiletries and also supply raw materials and manufacturing technology to local manufacturers.
Approximately 65% of the Vietnamese population is under 35 years of age, and this young, aspirational generation is expected to underpin the performance of the toiletries market over the foreseeable future.
According to local market experts, young male consumers not only demonstrate a tendency to spend more than their older counterparts, they are also more open to new products and trends. They are also more prepared to make trial purchases, and are particularly interested in valueadded products. The demand for import premium products among the wealthiest group of consumers living in the large cities is also expected to increase sharply, due to their greater exposure to international trends and lifestyles.
In 2007, the market for personal care products for men in Vietnam grew by 28%. This enormous single-year growth is due to the introduction of new brand name products and heavy TV advertisement, which have combined to increase interest among consumers. According to industry sources, sales of personal care products for men are expected to grow at around 15 – 17% annually over the next three years, as this relatively untapped market segment becomes increasingly accepting of more foreign and domestic brands.
By Huong Nguyen