Beauty, personal care forms huge market for cross-border traders

Tuesday, Apr 16, 2024 07:52

A made-in-Việt Nam personal care product. Many opportunities are available for Vietnamese personal care brands on cross-border e-commerce platforms. — Photo courtesy of Amazon Global Selling

Cross-border beauty and personal care is a huge market for Vietnamese companies thanks to the growing realisation of gender equality in which more women are immersing themselves in the workforce globally.

Currently, with a growing awareness of gender equality, economic pressure, and the gradual implementation of Government policies and measures to encourage women’s employment, more women in the world are immersing themselves in the workforce.

This shift has ignited a surge in products catering to their multifaceted needs, encompassing work, household responsibilities, and personal interests.

In addition, factors such as rapid urbanisation, busy lifestyles, and rising purchasing power have contributed to the growing popularity of women's products being sold through online channels.

These platforms offer convenience, extensive product selections, promotional deals, and various payment options, making them the preferred shopping destination for many consumers.

Therefore, there are increasing demands and requirements for women-related products to tailor to their lifestyle and needs globally. Also, such products have expanded more on online purchasing channels.

According to McKinsey and Company, e-commerce is expected to continue as the fastest-growing sales channel for beauty products, with an annual growth rate of 12 per cent from 2022 to 2027.

Additionally, Statista indicates that the global market of beauty and personal care e-commerce alone is estimated at around US$119 billion, and is forecasted to hit $184 billion by 2028.

Another example shown in Amazon’s Global Consumer Trends and Purchasing Behavior Vol. 2 2023 data indicates a strong inclination among Japanese women towards household products that streamline and simplify domestic chores.

This includes a preference for smart washing machines, dryers, portable vacuum cleaners, and sweeping robots, reflecting a desire for convenience and efficiency in managing household tasks.

Amazon’s Global Consumer Trends and Purchasing Behavior handbook Vol. 1 2023 pointed out that “The rise of SHE power” is a trend that most businesses and organisations advocate and promote. Women consumers seek fair treatment. Limited and basic products are not enough; they choose brands that advocate female empowerment and purchase personalised products tailored to their body type, age, or life stage.

Products for women cover many categories, including beauty and personal care, fashion, home and kitchen, and mom and baby supplies.

There are some rising trends in terms of functionality and design style for these product categories that manufacturers and sellers around the world need to pay attention to and promptly apply to win global female customers, Amazon said.

Amazon's Product Opportunity Explorer underscores the enduring allure of beauty and personal care products on their online stores. Consumers globally are increasingly turning to online channels to discover and purchase a diverse array of skincare items, hair care solutions, nail polish, and beauty applications.

In Việt Nam, for the first time, beauty has emerged as one of the top five best-selling categories from Vietnamese selling partners on Amazon globally in 2023.

Meanwhile, apparel has maintained its position in the top-selling list from Vietnamese sellers on Amazon for the latest three years, highlighting the consistent demand for fashion items tailored to women's preferences.

According to Amazon’s Vietnam’s SMEs Empowerment Report 2023, over the 12 months ending August 31, Vietnamese selling partners sold more than 17 million products on Amazon, a collective growth of more than 50 per cent year-over-year in export value growth through selling on Amazon that demonstrates the opportunity Amazon unlocks for small businesses across the country.

The most exported and sold categories from Vietnamese selling partners in Amazon’s store in 2023 were home, kitchen, health and personal care, apparel, and beauty.

This list reaffirms Việt Nam’s extensive experience in producing and exporting key goods including furniture, handcrafted home decor, and garments.

This year, the ongoing emergence of health, and personal care and beauty, which have been rapidly growing in recent years, broadened the picture of flourishing online exports and strengthened the supply role of Việt Nam in women-related products for female customers around the world, the company said.

The attainment of these figures owes much to Vietnamese brands and businesses leveraging Việt Nam's distinctive strengths. The textile and garment industry in Việt Nam, characterised by craftsmanship, innovation, and cultural heritage, exemplifies the nation's ability to capitalise on global trends.

The beauty and personal care manufacturing industry leveraged the country's abundant natural resources, such as turmeric, coconut, aloe vera, rice, and locust, known for their anti-inflammatory, moisturising, and antimicrobial properties, positioning Việt Nam as an emerging supply chain in the beauty and personal care industry, and thus setting the launchpad for V-beauty in the global market.

Abera, a Vietnamese beauty brand founded by men, has successfully earned consumer trust on Amazon with its range of gentle skincare products for women.

By focusing on specialised treatment solutions instead of multi-purpose ones, Abera targets specific market gaps and leverages natural resources to craft high-demand products. They utilise natural Việt Nam-originated ingredients and tailor solutions for the skin, hair, and oral care needs of customers.

Upon observing these trends in women-oriented products, it becomes evident that Vietnamese beauty, fashion, and mom and baby brands are not only thriving but also continuously pushing the boundaries of innovation within their respective fields, Amazon said, confirmed that brands have boldly ventured into cross-border e-commerce, enabling them to not only accelerate their growth but also establish connections with global economic leaders. VNS

Comments (0)