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Cosmetic retail giant Sephora penetrates Vietnam

Instead of opening a physical store, Sephora entered the Vietnamese market through an e-commerce channel first.

Cosmetic retailer Sephora has just confirmed that it has operated an e-commerce store for the Vietnamese market at the company’s website, after 5 months of trial operation.

Consumers in Vietnam can buy products directly from this retailer and enjoy the policy of cross-border shipping to Vietnam, which was not possible before. The order will be delivered from the warehouse in Singapore to the recipient’s address without going through an intermediary. On this store, all content has been Vietnameseized, offering more than 70 international cosmetic brands.

A Vietnameseized sales interface of Sephora.  Screenshots

A Vietnameseized sales interface of Sephora. Screenshots

Statista’s report forecasts, the revenue of Vietnam’s personal care and beauty products market in 2021 is estimated at 2.3 billion USD and growing at an annual rate of 5.9% to 2025. This year alone, market size can reach 2.45 billion USD.

According to this unit, Vietnam is one of the countries with the fastest growing middle-class population in Southeast Asia. As people’s income improves, the demand for various consumer goods, especially cosmetics and personal care items, will increase.

“Revenue of the beauty and personal care product market in Vietnam will decrease slightly in 2020 due to the impact of the pandemic, but it is forecast to grow again as consumers regain confidence to spend,” he said. the report said.

According to a survey in 2020 also by Statista, about 30% of Vietnamese women wear makeup daily, in which lipstick is the most popular item. Vietnamese women also put a lot of effort into taking care of their skin, so skin care routines with many steps and products are quite common. Cleansers, sunscreens, and masks are among the most sought after skin care products. The average spending on makeup by Vietnamese women ranges from 300,000-500,000 VND, and on skin care products is 200,000 – 300,000 VND per year.

The cosmetics business through e-commerce has been expanding rapidly in recent years. Cosmetics are constantly on the top of online shopping lists, especially for urban consumers.

The share of e-commerce value of personal care products in urban areas of Vietnam more than doubled in 2020 compared to 2018. As more and more people are comfortable shopping for items. online, brands have also sought to promote online channels.

For example, livestream to sell cosmetics is becoming a trend in Vietnam. In addition, the use of online channels for shopping by people in Vietnam has spiked during the pandemic.

Sephora itself also confirms that Vietnam is one of the Asian countries with an increasing number of consumers interested in prestigious and quality beauty solutions, reflected in their regular visits to their website at Singapore, USA and other websites. This may also be part of the reason the company wants to reach this market through the online channel first to probe the reaction.

Sephora was founded in France nearly 50 years ago. Today this cosmetics retail chain is owned by LVMH Moët Hennessy Louis Vuitton. In 2008, Sephora launched into Southeast Asia by opening its first retail store in Singapore. In Singapore, Malaysia, Thailand, Australia, New Zealand, Korea, Hong Kong, India and Indonesia alone, they have more than 100 stores.

In 2015, Sephora acquired Luxola, a Singaporean online cosmetics startup, with a vision to build e-commerce stores in Southeast Asia. In October 2021, they increased their presence in 8 new markets including Taiwan, Vietnam, Bangladesh, Pakistan, Laos, Sri Lanka, Myanmar and Brunei, through an e-commerce channel. Currently, Sephora has not shared information about its plan to open a physical store in Vietnam.


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