2. Summary
The beauty and cosmetics retail market in Vietnam has been estimated to be worth US$1.7 billion
annually, a figure that will likely reach US $2.35 billion by 2018, according to market research
company Mintel.
Though the market is relatively small, growth in most beauty and personal care categories is
expected to continue to expand over the next decade as per capita spending rises commensurate
with the upward trend in GDP per person per year and the country moves into the middle-income
ranks.
We see an opportunity for revenue growth in opening a beauty academy and chain of
cosmetic store in Vietnam
Customer is ready to spend big budget
for cosmetic and beauty salon
Raising demand of beauty industry
Young and high budget customer who willing
to pay for high quality product
3. Market Opportunity: Revenue potential
The beauty and cosmetics retail market in Vietnam has
been estimated to be worth US$1.7 billion annually, a figure
that will likely reach US $2.35 billion by 2018
Middle class spending on the rise with
high demand for cosmetic and
beauty industry in Vietnam
Foreign sector
dominate with
90% market share
belong to
international
brands and only
10% from
domestic brands
4. Market Opportunity: High demand
The research of Q&Me shows that
there is 44% of Vietnamese
women usually wearing makeup in
which 24% women wear makeup
every day, 44% women wear
makeup once a week.
Using Korean cosmetic and
make up like Korean movie star
is among the most affluent lifestyle
for young people in Vietnam
High population with young and
active generation make Vietnam a
very potential market
Vietnam committed to cut tariffs on 200 products imported from the Republic of Korea (RoK),
including cosmetics. Analysts predicted that from 2017-2018, when the import tariff is cut to 20%,
RoK cosmetics would be even more commonly used in Vietnamese beauty industry.
5. Target Customer for cosmetic retail
Psychographic
Geographic Behavior
Social graphic
Demographic
Target
Customer
- Women: from 15 to 55
- Middle class with high spending income
- High school, students, woman working
in office that need outlook
- Actor, actress, singers or people who
work in entertainment industry
-Like Korean style
- Young teenager who want to
follow the trend
- Demand for high quality
products
- Living in the city
- Urban area (Hanoi and
HCM city)
- Woman who drive car or walk like to
wear make up rather than who drive
motorbike
- Vain and care about
outlook
- Beauty obsession
- In love
- Start to get old and
want to look younger
6. Target Customer for beauty academy
Need to train for staff and import more technology from Korean
Very high demand in Vietnam with beautify and make up service for the bride or
for people who want to take pictures
In Vietnam have very few university, colleague or training center that open
courses on beautify training
Spa and beauty
salon
Bridal service and
wedding dress
Vocational
training center
Open class in
office
Open class to teach make up and skincare for women who work in office
7. Key success factor
Good product
and service
Competitive
price
Easy to use
Easy to reach
Location!
High quality
cosmetic and useful
training program
Even thought people
start to care for more
quality but price always
the key for any
purchasing decision
Easy to find what
customer want,
Service that customer
can reach by various
method is a winner
Find the right location
to open stores or
academy is the most
important KSF
Customer retention
New Customer
Key success factor
8. Competitive analysis
Conclusion
There is room for cosmetic and beautify training service to grow as increasing of market demand and low
barrier from other external force
Entrance Barrier
=> Low
VN and RoK sign Free Trade Agreement included cosmetic
Open policy from government and high demand of customers
Need experience team to maintain and monitoring
Supplier Low barrier for cosmetic supplier
Imported tax reduce 20%
International brands are dominated with 90% market share
Substitute High and competitive market
Various sources of cosmetic and beatify course selling, both online and
offline for customer
Buyer High demanding for cosmetic and make up training
However, spending for products and service in beauty industry still low
Industry rival High competition market
Many new brands occurs, include private brands
9. Competitors analysis
Current beauty academy in Vietnam
Seoul Spa
Address: No. 5 Bau Cat 6, Ward 14, Tan Binh District, Ho Chi Minh City
Website: www.seoulspa.vn
Seoul spa is designed and built based on Korean spa style. Center for training
spa services with good quality and stability through each generation of students.
Post-graduate students at the center have skills in spa management, skin care
skills, basic spa skills to advanced.
When enrolled in the Seoul spa, students will be provided with free access to a
Korean spa curriculum. Students not only learn theory but will practice for
customers of the center so your professional skills will be significantly improved
after the course.
Each course at the center has an average tuition fee of around 10,000,000
VND for the entire course content, which is the average tuition fee for all spa
training centers.
Beaulus Cosmetology Training Center
Address: 725 Le Hong Phong, Ward 12, District 10, Ho Chi Minh City
Website: www.truongthammybeaulus.vn
Beaulus Beauty Training Center is the leading spa training school in Vietnam
today. Teachers at the school are trained in specialized countries in Korea,
Europe, America, ... with high level and professional.
Beaulus Beauty Training Center offers a wide range of courses from basic to
advanced and tuition fees range from 2,000,000 VND to 3,000,000 VND.
Deep specialist courses are contacted for quotes and advice.
10. Competitors analysis
Current beauty academy in Vietnam
Viet Beauty
Viet Beauty is an international spa training center in Hanoi, with years of
experience in beauty care and trainee training. When students take the course,
they will be trained by leading experts in the field of aesthetics in Asia and
Europe. During the course, participants will be trained from basic to advanced,
supervised carefully when practicing and will be practiced with regular skin care
for their clients.
Address: số 53, ngõ 73, Nguyễn Trãi, Hà Nội.
Placen care
Placen care is one of the most prestigious spa training centers in Hanoi and has
trained many hardworking and skilled trainees. During the course, students will
be able to work with top doctors and experts in Vietnam.
Address: số 37 Ngô Thì Nhậm, Hai Bà Trưng, Hà Nội.
11. Competitors analysis
Current beauty academy in Vietnam
Hand Viet
Hand Viet is one of the earliest aesthetic training
centers in Hanoi. Right from the moment of his
birth, he received a lot of practitioners' beliefs.
With the great advantage of reasonable price,
training certificate of the General Department of
Vocational Training (or national standards) and
experience a lot of practical
Address: Alley 33, house number 14, Ta Quang
Buu, Bach Khoa, Hanoi.
Bich Nguyet
Bich Nguyet is one of the leading spa training
providers in Hanoi. With many years of
experience, students here will be trained in
accordance with international standards, the
duration of the course is practiced will occupy a
greater amount of time than the theory and
especially after good Businesses will be
supported to maximize employment for trainees.
Address: 1A, Thai Phien, Hai Ba Trung, Hanoi.
12. Competitors analysis
Current beauty academy in Vietnam
Cali Center for Beauty Training
Address: 167 Vo Van Tan, Ward 5, District 3, Ho Chi Minh City
Website: www.daotaothammy.com
Cali Beauty Training Center is a professional spa training center for learners. After
graduation will receive a national practice. Equipped with state-of-the-art technology
and equipment, trainees can study and practice real, combined with real-life theory
that will cultivate the fast learner experience.
Trainees are well trained in terms of professionalism, no extra fees, no boarding
fees and special employment support after graduation. Trainees are trained 3
continuous courses from basic to advanced: basic skin care, professional facial skin
care, advanced facial care.
New Beauty
Address: 51A Phan Dang Luu Street, Ward 7, Phu Nhuan District, Ho Chi Minh City
Website: www.newschoolsaigon.com
New Beauty School is considered a professional spa training center with
experienced teaching staff. Students studying at the center will be sponsored all the
cosmetics used in the course of study, exposure and use of modern technology.
After graduating from the center you can use the practice certificate throughout the
country. The Center offers a variety of courses and content. Tuition fees range from
2.500.000 VND to 6.000.000 VND.
13. CONCLUSION
Vietnam is a very
potential market
High competition
with local beauty
academy
Low trade barrier and
have support from
government
Find the right
target customers
in the market
High population with big
proportion of teenager
and young woman have
favorite to use Korean
product
Vietnam have many beauty
academy opened but mostly
from local brands, few from
Korean and US. Hochiminh
City is more competitive than
Hanoi
Launch the first beauty academy and cosmetic store to test the
market before opening a chain
Start to do business
plan and prepare for
the launch
FTA and reduction of
import tax is the key
competitive advantage
to enter beauty industry
in Vietnam
Find the right location,
target right customers at
the right time is crucial
important