Korean cosmetic brands make strides in Southeast Asia
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According to Bain & Company and Euromonitor, the penetration rate of Korean beauty brands Southeast Asia has surged to 10.1 percent in 2022 from 4.1 percent in 2014, entering double digits for the first time.
Vietnam stands out as a focal point in this growth. The country is deemed to have substantial growth potential in the global beauty industry.
According to global market research firm Statista, the local beauty and cosmetics market in Vietnam is projected to expand from $1.5 billion in 2015 to $2.7 billion in 2027.
With Vietnam‘s hot and humid climate, there is a high demand for sunscreen year-round, as well as a significant market for functional derma products addressing issues like acne and enlarged pores.
Capitalizing on this demand, Korean derma cosmetics brands have successfully captured the Vietnamese market with superior product quality. A prime example is Gowoonsesang Cosmetics’ Dr. G.
Entering the Vietnamese market in 2021, Dr. G has achieved placement in over 1,000 offline stores within just two years, securing a stable sales channel.
Dr. G has emerged as one of the top three best-selling brands in Vietnam‘s major retail chain, Sammi Shop, and even claimed the top spot in sales during key seasons last year.
During weekday evenings in January, Sammi Shop’s cosmetics store located in downtown Hanoi, Vietnam, was bustling with 20 to 30-year-old office workers and students.
The store featured the latest K-pop music playing in the background, with prominent displays of Korean cosmetics brands such as Dr. G and Dear, Klairs.
Situated in university and office districts, the store attracts 700 to 1,000 visitors daily.
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