Sunplay
*SPF refers to Sun protection factor. The higher it is the longer the protection from the sun.
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As Vietnam’s economy has expanded, there has been an increase in the population of middle- and high-income consumers, particularly those living in main cities such as Ha Noi and Ho Chi Minh. As a result, living standards in Vietnam have changed and improved gradually. Beauty and personal care products have grown increasingly important and consumers place greater emphasis on the quality of products. Among various beauty and personal care products, sun care has received more attention from consumers, especially women and the young generation who want to maintain their fair skin.
Sun care witnessed a healthy growth rate of 11% in 2015 due to a strong increase in awareness of using sun care among Vietnamese consumers through social networks and media advertisements from leading companies. Information through media channels about skin damage by the sun and pollution in the environment have made consumers became more concerned about skin protection. Vietnamese consumers are regularly exposed to the sun due to the tropical climate, and sun protection products are essential to prevent sunburn and skin darkening. Major Players Rohto-Mentholatum Vietnam Co Ltd continued to lead sales of sun care with a market share of 18.3% in 2015. The success of this company is mainly due to its strong brand reputation as the first sun care product in Vietnam, its affordable price, wide distribution, as well as diversified products. Its strongest brand is SunPlay. SunPlay has different product lines of sun protection lotion to satisfy customer preferences and needs. The company’s products are popular due to high brand recognition and affordable prices. The brand uses “same for less” (same benefit but less price) positioning strategy compared to the other brands in the market. The brand is also available through a wide distribution network that consists of pharmacies, supermarkets, convenience stores, as well as several online stores. Competitors Its closest competitor is Beiersdorf Company ranked second with its brand Nivea Sun. Nivea brand has quickly gained popularity since Beiersdorf invested in extensive marketing activities in magazines to promote a positive image for Nivea Sun. Biore and Faceshop are also close behind Sunplay and is gaining popularity (ranked 3rd and 4th accordingly). They are all priced similar to Nivea although Faceshop is slightly more expensive that Nivea and Biore. Nivea has 3 varieties of sun care products in the market and are priced slightly higher than SunPlay. The number of people in the middle- and high-income segments has increased slightly in Vietnam due to better economic performance. Hence, there has been a shift away from mass brands towards premium ones due to higher consciousness of using sun care products. L’Oréal and Shiseido are some of the premium brands in this industry and they have invested in many promotion events in order to attract more customers. In 2015, Vichy brand of L’Oréal Vietnam Co Ltd recorded a strong growth in sales in its sun care category. Although there are few marketing campaigns or activities recorded by the company, thanks to its good quality and high reputation among pharmaceutical brands Vichy has become a favourite premium brand for most Vietnamese consumers. Vichy from L’Oréal offers 4 different products in their sun care product line. Shiseido offers the most varieties with over 10 different categories of sun care products. Garnier is another brand from L’Oréal Vietnam Co Ltd that also offers sun care products in Vietnam. Garnier is priced cheaper than Vichy and appeals to customers who like botanic (fruit’s, seeds, flowers etc) flavours and smells. Most Vietnamese consumers believe that higher SPF products offer better protection. Thus, most sun care of SPF50+ continued to hold the majority share of sales in 2015. Rohto’s Sunplay Aqua Rich Essence Water Base is one the favourite new products in this category. It has received a huge welcome from consumers due to having less sticky and lighter textures. Future trends There is a trend now of merging between facial make-up, facial care and sun protection. People, especially female consumers, tend to buy make-up with an added sun protection function for whenever they go outside and even for at work due to its convenience. Thus, many companies have launched and developed this type of product but with low sun protection of SPF15-30 only, which is suitable for office workers and those wanting to avoid skin dryness. Shiseido is leading the way in this segment. They offer sun care products on its own as well as all in one sun care products which also acts as skin care, moisturiser and makeup. This line is called the “Protective Foundations” and they charge premium prices for it. Baby and child-specific sun care remains very small and its high price is the most significant reason. Only some parents use sun care products for their children when they are outside the home. This is because most Vietnamese consumers still do not see the difference between baby and adult sun care. Moreover, significantly higher prices provide a major barrier to sales of this product. Mass brands however are slowly losing market share to premium brands, and because of this most mass companies paid attention to expanding their distribution networks, investing in marketing campaigns and advertisements in order to remind customers and strengthen their reputations. SunPlay would like to expand the market by offering affordable makeup suncare products which combine make-up, facial care and sun care. They plan to launch a new product in this category in October 2016. Sun care is predicted to be more competitive in the forecast period due to more international companies entering Vietnam after the signing of the Trans-Pacific Partnership pact in 2015. On the other hand, a strong increase in the number of cosmetics products containing sun protection, such as BB/CC cream, will negatively affect sun care retail value sales. As a result, existing companies should pay attention to developing new products and running marketing campaigns to strengthen their brands before newcomers arrive in the forecast period. |