Japanese beauty brands secure foothold in Vietnam

Japanese personal care firms Takara Belmont, Menard, and Shiseido have found ways to get their parts in the Vietnamese cosmetics market, whose value is expected to hit $2.35 billion this year, according to the Dau Tu (Investment) newspaper.

Illustrative photo

Illustrative photo

The paper reported that in late January, Takara Belmont said it had acquired 97 percent of shares in Ngu A Chau, a leading producer of hair care products in Vietnam, for JPY900 million ($8.2 million ).
With the acquisition, Takara Belmont, which entered Vietnam in 2013 by establishing a plant making dental equipment, has made the first step into the local beauty market.
Founded in 1921 and venturing into the hairdressing & beauty field 10 years later, Takara Belmon owns the Lebel brand, which holds the second biggest share of Japan’s hair care market.
Ngu A Chau has a plant and a network of over 200 distribution agencies for its KANAC and other brands of hair care products, which account for about 10 percent of local market share in the field. It is also the first company in Vietnam meeting international standards set for good manufacturing practice in 2011, meaning their products are qualified for export.
Following the merger, Takara Belmont said it would maintain the Vietnamese partner’s name and brand, but appointed a new leader board to help apply Japanese technology in the production.
President and CEO of Takara Belmont Hidetaka Yoshikawa was quoted by the newspaper as saying that the company aims at turning Ngu A Chau’s brands into the top ones not only in Vietnam but also in Southeast Asia.
Menard, and Shiseido, meanwhile, have consolidated their foothold in Vietnam after years of serving local customers.
After 14 years in Vietnam, Menard has 26 cosmetics stores and spas in Hanoi, Ho Chi Minh City and Hai Phong, alongside a nationwide distribution network.
Le Thanh Huong, director of Menard Vietnam, said revenue growth of her company far exceeds the annual growth rate of the local cosmetic market, making Vietnam an important market in Menard’s development strategy.
Menard owns two production plants in Japan serving domestic demand and exports to the Europe and Vietnam. About 99 percent of Menard products sold in Vietnam are made in Japan.
Shiseido, one of the world’s oldest cosmetics companies, established its Vietnamese branch nearly a decade ago to develop a distribution system it had built in the country since 1997.
In 2012, Shiseido Vietnam ended its distribution contract with the Vietnamese company Thuy Loc. All of the company’s products now can only be purchased at Shiseido Vietnam’s official stores and legal agents.
By opening a flagship store on adayroi.com, an e-commerce site run by VinGroup, the company is a pioneer of luxury brands in Vietnam’s online market, which mostly attracts the participation of small- and medium-sized firms.

Vietnamnews

Other news

Most view

Banking-finance

VNPT & SeABank cooperate to enhance connections

The Vietnam Posts and Telecommunications Group (VNPT) and SeABank just co-signed cooperation agreement, aiming to develop the two sides’ economic, business and investment potential.


Economy

185 leading domestic & in't enterprises join in VN ETE 2018

The Vietnam Exhibition of Electrical Technology and Equipment (Vietnam ETE 2018) and the Exhibition of Products, Technologies for Energy Saving and Green Power (ENERTEC EXPO 2018) yesterday kicked off in HCMC’s Saigon Exhibition Convention Center in district 7.

Self - introduction

VNPT targets to be leading digital service provider in Vietnam

The grand opening ceremony of the VNPT-Information Technology Company (VNPT-IT), a new member of the Vietnam Posts and Telecommunications Group (VNPT), was held yesterday in Hanoi. With thousands of IT engineers and the focus on developing state-of-the-art technological products related to Artificial Intelligence (AI), Bigdata, and Blockchain, the new company is considered the main force to help VNPT fulfill the goal of becoming a leading digital service provider in Vietnam and an important Digital Hub of the neighborhood as well as the world.

Stock market

SAS profits VND 118bln

The Southern Airports Service Joint Stock Company (Sasco) which is listed under code SAS on the Unlisted Public Company Market (UPCoM), announced its second quarter’s financial report with net revenue at VND 634.5billion, an increase of 14 percent compared to last year.