SANITARY PROTECTION IN VIETNAM - ANALYSIS

Country Report | Apr 2022

KEY DATA FINDINGS Market Sizes

Retail value sales grow by 8% in current terms in 2021 to VND9.6 trillion Sales of Sanitary Protection
Pantyliners is the best performing category in 2021, with retail value sales growing Retail Value RSP - VND billion - Current - 2007-2026
by 10% in current terms to VND921 billion
Diana JSC is the leading player in 2021, with a retail value share of 41%
9.612 Forecast
20.000
Retail sales are set to rise at a current value CAGR of 10% (2021 constant value CAGR
of 6%) over the forecast period to VND15.4 trillion
15.000
2021 DEVELOPMENTS

Sanitary products distribution faced with difficulties during the 2021

10.000
lockdown
During the strict lockdown in the south of Vietnam, which lasted from May to October
2021, sanitary protection products were not classified as essentials and, therefore, did
5.000
not make it onto the government’s list of necessities. This challenged the category’s
logistics and the distribution of sanitary protection products to rural areas. Noticeably,
in July 2021, the leading player’s Diana products were temporarily not to be seen on the
shelves of Vinmart supermarkets. This state of affairs led to a lot of discussion on social 0
media, which resulted in the company having to explain that the shortage of products 2007 2021 2026
was due to the considerable impact of the COVID-19 crisis on its key Bac Ninh factory
and difficulties in distribution networks.
Sales Performance of Sanitary Protection
Overall, however, sanitary products still recorded positive growth during the year,
% Y-O-Y Retail Value RSP Growth 2007-2026
supported by rising hygiene standards amongst consumers and growing consumer
product-awareness. Vietnamese women now have greater awareness of sanitary
products, while educational efforts by the Ministry of Education and Training are also
helping young Vietnamese girls to gain knowledge about menstruation and how to
7.7% Forecast
25%
use/change sanitary protection in the right way.
While slim/thin/ultra-thin sanitary towels are used more from the third day of menses 20%
onwards in Vietnam, standard (maxi) sanitary towels remain a safe choice for
consumers. As they have a similar unit price (although the slim/thin towels cost slightly
more), Vietnamese women tend to buy both types every month. However, standard 15%
sanitary towels continued to account for a larger percentage of sales due to the strong
preference in suburban and rural areas where people feel the standard products are
safer, as well as offering better value for money. Pantyliners continued to appeal to a 10%
wide range of women, especially as they cost less than other sanitary protection
products. Tampons, on the other hand, continued to account for an insignificant share
of value sales in the country due to Vietnamese cultural taboos, with such products 5%
only sold in large cities. However, tampons are becoming more widely accepted
amongst younger Vietnamese women and those exposed to Western lifestyles.
Usage of night-time sanitary protection in a pants format as an alternative to retail 0%
2007 2021 2026
adult incontinence is a trend in large cities due to its lower price and good quality.
Along with the green living trend, reusable sanitary protection has also been seen. This
space features the Green Lady Vietnam brand, which is being pioneered in Ho Chi Minh
and Hanoi. The brand targets environmentally-conscious young white-collar co-workers Sales of Sanitary Protection by Category
and university students who prefer to use reusable cloth sanitary towels that can help Retail Value RSP - VND billion - Current - 2021 Growth Performance
prevent 20 used regular pads from being thrown away every month. Green Lady
Vietnam offers reusable sanitary products through e-commerce sites. It also organises Pantyliners
workshops on menstruation and the environment to raise awareness of both. Not only 921,2
is the brand gaining success in Vietnam, but it is also exporting to neighbouring Tampons
countries such as Cambodia, Myanmar and Indonesia. However, while reusable sanitary 13,1
towels are certainly better for the environment, there are some concerns about Towels
whether they are capable of maintaining good hygiene. 8.677,5
Sanitary Protection Including In...
Cooling, freshness and softness remain key factors for sanitary 9.611,8
protection 0% 10% 15%

SANITARY PROTECTION 9.611,8 CURRENT % CAGR % CAGR

In general, in an era of green living and healthier lifestyles, there is growing demand in YEAR % 2016-2021 2021-2026
Vietnam for sanitary protection products with value-added features such as cooling, GROWTH
freshening and antibacterial properties, natural scent, superior absorption levels and
comfortable design. In a continuation from the previous year, demand for products
with cool and fresh properties and natural scents rose significantly amongst younger
generations of women in 2021. Companies focused on improving their products,

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providing clear usage instructions and highlighting the manufacturing origin on their Competitive Landscape
packaging. The Diana brand continued to perform especially well with constant
innovation and by using new technologies and cool, refreshing ingredients in its
sanitary protection products as a result of continuous research to study and understand Company Shares of Sanitary Protection
Vietnamese consumers’ consumption habits and behaviour. % Share (NBO) - Retail Value RSP - 2021

Cooling fresh menthol technology innovated by Unicharm (Diana JSC) has been very Diana JSC 40.9%
successful since launching in the Vietnamese market. In fact, it became a key Kimberly-Clark Vietnam C... 39.3%
differentiating feature for its products over its competitors. However, since the initial
launch, this technology has also been applied in other brands. For instance, it is now Procter & Gamble Vietnam... 5.5%
present in Kotex’s Herbal Cool and in Kao’s Laurier Super Slimguard Cool variant, both
Johnson & Johnson Inc 3.4%
of which have also become popular. Kotex’s Max Cool products have recently applied
the concept to various areas, including pantyliners and overnight sanitary towels, which Kao Vietnam Ltd 2.5%
is proving popular amongst teenagers. In addition, herbal scents combined with cooling
technologies are exciting for consumers in the high-end segment. However, due to the Taisun Vietnam Ltd 1.3%
high price of those products consumers also expect to have added features such as Others 7.2%
antibacterial properties and/or extra softness for sensitive skin. Moreover, products
with an antibacterial functionality were also boosted by heightened health and
hygiene concerns stimulated by the COVID-19 pandemic, with industry players focusing
heavily on this attribute in their marketing campaigns.
Brand Shares of Sanitary Protection
Diana and Kimberly-Clark remain largest players % Share (LBN) - Retail Value RSP - 2021

In 2021, Diana JSC and Kimberly-Clark Vietnam remained the largest players in sanitary Diana 40.9%
protection with their respective Diana and Kotex brands. With investment from its
global brand owner, the Japanese company, Unicharm, the Diana brand has sustained Kotex 39.3%
growth, while Kimberly-Clark has intensified its advertising efforts to regain its leading Whisper 5.5%
position. Diana’s products reflect a deep local understanding while its iconic Cool Fresh
sanitary pads have become the best seller across all channels. In the night segment, Laurier 2.5%
Kotex has been present since 2018, however, Diana’s Super night pants have been Carefree 1.8%
more notable and proven to be an appreciated innovation amongst women seeking
convenience. Modess 1.6%

Sunfree 1.3%
The market has become more competitive with many brands beside Diana and Kotex.
Procter & Gamble’s Always/Whisper gained value share in 2021 as did the Japanese Others 7.2%
brand, Laurier, by Kao Vietnam. Moreover, a number of local and small brands focus on
rural areas, where consumers are traditionally much more price-sensitive and 5-Year Trend
Increasing share Decreasing share No change
demonstrate lower demand for sanitary products. Nonetheless, thanks to their offer of
cheaper price ranges, better quality, and wisely chosen distribution networks, local
brands are gaining trust amongst these consumers. Due to the strong brand-loyalty that
has been generated in this category, Vietnamese consumers rarely switch to other
brands. As such, all brands are extending their reach through different channels to
improve the ease of purchase and to offer wider availability.
E-commerce players such as Tiki, Lazada and Shoppe became a fast and more
convenient choice during the COVID-19 crisis, as consumers opted to avoid contact with
other people as much as possible. This channel also benefited from promotional offers.

PROSPECTS AND OPPORTUNITIES

Sanitary protection expected to see stable growth over forecast period
According to government statistics, women comprised 50.2% of the Vietnamese
population in 2020. Improving income levels and hygiene standards are expected to
offer stable growth for the sanitary protection market in Vietnam over the forecast
period. Rural areas offer particularly strong growth potential as sex education, which
has been a focus for the government, grows in these regions. In addition, according to
The Ministry of Health, the frequency of early puberty in children has increased and has
become relatively common amongst girls around 12 years of age. Therefore, it is
important to educate young girls on puberty and menstruation. Brands could look to
cooperate with the government on educational activities which could help to drive
strong product- and brand awareness.

Attractive packaging and combo packs to help drive sales

Over the forecast period, features such as attractive packaging and combo packs are
expected to help drive sales in the sanitary protection category. For instance, Kotex
Mini Meow introduced packaging with endearing elements and attractive colours,
which was widely available through supermarkets and was well received by teenagers.
This trend is expected to continue over the forecast period as such packaging is
appealing for younger consumers. Selling combo packs, such as buy two slim/standard
packs and get one night towel or pantyliner product free, is already a prominent
strategy in supermarkets and is likely to remain popular during the forecast period. Due
to demand for different product types across different days of the period, consumers
are expected to invest in such combo packs, which offer them variety and convenience.

Stronger brand presence expected through e-commerce

The dynamic expansion of e-commerce during the COVID-19 crisis, when consumers
appreciated the channel’s reduced risk of viral transmission through social contact as
well as its convenience, has made an online presence essential for sanitary protection
brands. This has already led many brands to open their own official brand stores on

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platforms such as Shopee, Lazada and Tiki, and this number is expected to increase as
more players look to establish an online presence. From a consumer perspective, as
fake sanitary protection products have been found in the market recently, consumers
are expected to prefer purchasing from brands’ official stores rather than from third
party sellers. As a result, it is becoming crucial for players to have their own official
online stores.

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