Vietnamese e-commerce witnesses 74% surge in cosmetic sales amid economic challenges
Wednesday, December 27, 2023, 21:21 GMT+7
Sales of cosmetics and beauty products on e-commerce platforms in Vietnam jumped to VND22.2 trillion (US$912.2 million) in January-October, marking an astounding 74-percent rise compared to the same period in 2022, according to market data analysis platform Metric.
Despite economic challenges, the cosmetic sales showcase the resilience of e-commerce platforms operating in the Southeast Asian country, with facial care boasting 61-percent growth.
Key products like serum, sunscreen, and moisturizers drive such sales, reaching VND2.2 trillion ($90.2 million), VND1.8 trillion ($73.8 million), and VND1.5 trillion ($61.5 million), respectively.
Other beauty product groups also exhibited growth, notably beauty kits, with a remarkable 191-percent surge, mostly attributed to convenience and cost-effectiveness.
In Q3 2023, the four e-commerce platforms Shopee, Lazada, Tiki, and Sendo collectively earned over VND6 trillion ($246.1 million) from cosmetics and beauty products, a 45-percent year-on-year increase, although the number of sales-driven shops declined eight percent.
They are poised to achieve VND6.5 trillion ($266.6 million) in sales in Q4 2023.
TikTok Shop’s entry boosted e-commerce revenues, holding an average 25-percent market share with over 60 million products sold.
Inclusion of TikTok Shop’s earnings may result in a cosmetics market revenue exceeding VND8 trillion ($328.2 million).
Foreign skincare brands dominated the market, particularly La Roche-Posay, Anessa, Skin1004, Simple, and Laneige.
Although regular shops contribute the majority of cosmetics revenues, the top five sales performers were verified mall shops, representing leading brands like La Roche-Posay, L’Oréal, and Anessa.
The below-VND500,000 ($20.5) price segment captured 80 percent of the market share, with the VND100,000-200,000 ($4-8) range being the best-selling.
The VND200,000-500,000 segment led in sales, generating nearly VND8 trillion ($328.2 million) and constituting 35 percent of the industry's market share.
The period from November to February experienced a downturn, with growth resuming from March onward.
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