Bath and Shower in Vietnam

Euromonitor International
July 2020
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LIST OF CONTENTS AND TABLES

HEADLINES ................................................................................................................................. 1
PRE-COVID-19 PERFORMANCE ............................................................................................... 1
New packaging and rising hygiene awareness boost demand ................................................. 1
New herbal and naturally positioned products attracting health focused consumers ................ 1
Consumer trust and extensive distribution key to success of global players ............................ 2
2020 AND BEYOND ..................................................................................................................... 2
COVID-19 impact...................................................................................................................... 2
Affected products within bath and shower ................................................................................ 3
Recovery and opportunities ...................................................................................................... 3
CATEGORY DATA ....................................................................................................................... 4
Table 1 Sales of Bath and Shower by Category: Value 2014-2019 .......................... 4
Table 2 Sales of Bath and Shower by Category: % Value Growth 2014-2019 .......... 4
Table 3 Sales of Bath and Shower by Premium vs Mass: % Value 2014-2019 ........ 4
Table 4 NBO Company Shares of Bath and Shower: % Value 2015-2019 ............... 4
Table 5 LBN Brand Shares of Bath and Shower: % Value 2016-2019...................... 5
Table 6 Forecast Sales of Bath and Shower by Category: Value 2019-2024 ........... 6
Table 7 Forecast Sales of Bath and Shower by Category: % Value Growth
2019-2024 .................................................................................................... 7
Table 8 Forecast Sales of Bath and Shower by Premium vs Mass: % Value
2019-2024 .................................................................................................... 7

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BATH AND SHOWER IN VIETNAM

HEADLINES
▪ Rising hygiene awareness as a result of COVID-19 boosts demand for liquid and bar soap in
2020
▪ Bath and shower current retail value sales rise by 7% to VND4.1 trillion in 2019
▪ Consumers are attracted by new herbal and natural products
▪ Intimate washes leads growth in 2019, with current retail value sales rising by 11%
▪ Unilever Vietnam continues to lead sales in 2019, posting a retail value share of 28%
▪ Over the forecast period, bath and shower is expected to post a retail value CAGR of 11% at
current 2019 prices (7% constant value), with sales reaching VND6.9 trillion in 2024

PRE-COVID-19 PERFORMANCE

New packaging and rising hygiene awareness boost demand

Over the review period, interest in herbal and naturally positioned products continued to
increase strongly due to rising awareness of the benefits of using these products to protect skin
from toxic chemicals. Together with the strong development of social networks, this has resulted
in increased demand for natural products, not only in big cities but also other provinces across
Vietnam. Therefore, many mass and premium brands focused on improving their formulations
as natural products and highlighting natural positioning on packaging to promote these attributes
to potential consumers. For example, Unilever Vietnam International recently launched a new
naturally positioned shower gel series containing various popular natural ingredients such as
Matcha & Pomegranate, Turmeric & Kiwi and Oat & Raspberry.
Another trend, has been the strong performance of intimate washes due to higher awareness
of the benefits among Vietnamese consumers. Furthermore, higher infertility is also a significant
factor boosting value sales of this product. According to the WHO, Vietnam is one of the Asia
Pacific countries with the lowest fertility rates. As a result, female consumers have started
paying more attention to intimate hygiene for both health and fertility reasons.
On the other hand, regular bath and shower products are seeing slower growth, mainly
because of increasing maturity. However, body wash/shower gel continues to see solid growth
thanks to its multiple factors and the offering of a wide range of scents for customers to choose
from. Moreover, there has been a merger between fragrance and body wash/shower gel. For
example, The Body Shop recently launched a new line body wash/shower gel line featuring
White Mush perfume.

New herbal and naturally positioned products attracting health focused

consumers
Over the forecast period, herbal and naturally positioned product trends are expected to
continue to gradually increase in popularity in line with the improving economy and living
standards, with more consumers looking to spend on such products in order to enjoy healthier
skin. Existing manufacturers are expected to launch more of these types of products and/or to
renew their labels to highlight existing natural/herbal ingredients. All bath and shower products
are set to see double-digit value growth thanks to the strong economy and increasingly higher
living standards. As body wash/shower gel has received attention from manufacturers seeking

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to develop more sophisticated products, more consumers will likely prefer using bath
wash/shower gel rather than bar soap, with this trend continuing to increase strongly in rural
areas.
In response, a growing number of international and local players will look to focus on
developing new products containing natural extracts or organic ingredients over the review
period. Since pollution has become a more serious issue in Vietnam, anti-pollution positioning is
increasingly important and is used by players to gain the attention of local consumers. For
example, Unilever Vietnam International launched new products containing activated charcoal
and matcha and bitter melon in 2019 to detox and prevent air pollutants, as well as bacteria.

Consumer trust and extensive distribution key to success of global

players
Unilever Vietnam International continues to lead bath and shower sales in Vietnam, mainly
thanks to dynamic marketing activities, huge financial capacity and strong product innovation.
The company has also recently launched various new products with different ingredients and
functions to gain the attention of Vietnamese consumers. For example, under its popular
Hazeline range, Unilever Vietnam recently introduced new bath and shower gel products with
whitening properties and which contain natural ingredients such as Matcha & Pomegranates,
Yuzu & Cherry and Oats & Strawberry.
Since Vietnam signed various FTAs with developed countries like South Korea, Japan and
Australia over the review period, the market is predicted to become more competitive due to the
appearance of new international players. Among those countries, players from South Korea are
predicted to penetrate the market strongly due to the widespread popularity of K-pop culture.
Local players thus continue to account for only a small share of total sales within bath and
shower due to limited financial capabilities. In order to compete with foreign brands, large and
small local companies have started to pay attention to developing natural and organic products.
For example, Win Beauty White MTV has been very successful with its herbal intimate washes
in the last two years and has proven popular among Vietnamese consumers.

2020 AND BEYOND

COVID-19 impact
Bath and shower sales are now expected to grow by 8% at constant 2019 price value terms in
2020. Stockpiling was seen at the start of the COVID-19 pandemic in March 2020, in turn
encouraging further panic buying due to concerns over product shortages in stores. Throughout
the pandemic, consumers have continued to use more body wash/shower gel in order to ensure
optimum hygiene levels and prevent the spread of germs. With consumers prioritising essential
products in response to economic uncertainty, bath and shower has benefited from offering
affordable prices and the fact that many products are viewed as everyday necessities. With
hygiene concerns remaining high, bath and shower is expected to see a good performance over
2020 as a whole.
Bar and liquid soap have performed particularly well in light of the rise in hygiene awareness,
with such products even seeing shortages initially as consumers panicked and stockpiled.
Indeed, customers were only allowed to buy one liquid soap or hand sanitizer product per
person in most supermarkets, hypermarkets and even pharmacies. However, this shortage did
not last long as the government quickly encouraged both local and international companies to
increase production or to start producing those goods during the pandemic. As a result, the

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amount of production has met demand and some local companies even exported to other
countries for pandemic control purposes.

Affected products within bath and shower

With frequent handwashing recommended to prevent the spread of COVID-19, bar soap and
liquid soap in particular will see a rise in demand in 2020. Many local players have expanded
into antibacterial products in these areas, while also introducing hand sanitisers in response to
heavy demand.
While there will be growing use of hand sanitisers in 2020, this will not pose any constraint to
sales growth for bar and liquid soap, with consumers increasing their use of all three as they
seek to halt the spread of COVID-19. A popular bundling promotion during and after the
lockdown has seen bar or liquid soap combined with hand sanitisers.
However, while bar and liquid soap will perform well, products with luxury or non-essential
positioning will struggle to maintain sales in 2020. The COVID-19 pandemic is spurring many to
cut back on spending where possible in 2020, thus negatively non-essential areas such as bath
additives and body powder. On the other hand, premium products are likely to prove resilient if
viewed as essential due to the popularity of dermocosmetics body wash/shower gel and bar
soap among those with sensitive skin.
Overall, awareness of hygiene among Vietnamese consumers has increased strongly thanks
to huge efforts by the government to educate people on how to protect themselves from COVID-
19. For example, a popular song named Ghen Covy was made by the lyricist Khac Hun and
with Vietnam’s National Institute of Occupational and Environmental Health. The main purpose
of this song is to teach people how to thoroughly wash their hands during the worldwide
coronavirus outbreak.

Recovery and opportunities

In the wake of the COVID-19 pandemic, demand is likely to normalise to an extent by 2021.
However, greater hygiene concerns will persist, encouraging many to continue washing with bar
or liquid soap more frequently and also supporting sales of antibacterial products in these areas.
As the economy slowly recovers, bath additives will also return to previous growth rates. Many
consumers will continue to prioritise essentials and to seek low-priced products, which is likely
to benefit private label and encourage the stronger use of price promotions. Leading
multinationals will fight to retain share via frequent discounting in order to appeal to price-
sensitive consumers.
Consumer interest in more natural and environmentally-friendly products will continue to grow
over the forecast period, although price and cleansing power may take precedence in shaping
purchasing decisions, thus benefiting economy options and antibacterial products. Bar soap is
likely to see one of the fastest current value growth rates across. This will be partly a result of its
reputation for cleansing power and a more environmentally-friendly image in comparison to
liquid soap and body wash/shower gel due to less usage of plastic packaging. However, the
success of bar soap will also be linked to these products’ lower cost per wash.
The government decided to close most entertainment locations such as shopping malls and
spas due to the introduction of social distancing in April 2020. However, supermarkets,
hypermarkets, convenience stores and pharmacies were allowed to remain open. Nevertheless,
most people still prefer staying at home and online shopping instead of buying products at
stores. The government has also encouraged both local and international companies to
increase production in response to higher demand for soap, liquid soap and hand sanitizer
goods . Therefore, companies such as Lixco Group and The Saigon Union of Trading Co-

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operatives are looking to invest in such goods. Production currently meets demand, with some
local companies even exporting to other countries for pandemic control purposes.

CATEGORY DATA
Table 1 Sales of Bath and Shower by Category: Value 2014-2019

VND billion
2014 2015 2016 2017 2018 2019

Bar Soap 673.6 715.4 758.3 801.6 841.7 875.9

Bath Additives - - - - - -
Body Powder 44.8 35.8 32.2 30.9 30.8 30.6
Body Wash/Shower Gel 1,824.0 1,941.3 2,108.4 2,286.7 2,469.7 2,643.5
Intimate Hygiene 98.8 135.0 202.9 348.2 390.0 430.9
- Intimate Washes 98.8 135.0 202.9 348.2 390.0 430.9
- Intimate Wipes - - - - - -
Liquid Soap 53.2 60.1 67.3 75.0 83.5 92.1
Bath and Shower 2,694.3 2,887.5 3,169.0 3,542.5 3,815.6 4,073.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 2 Sales of Bath and Shower by Category: % Value Growth 2014-2019

% current value growth

2018/19 2014-19 CAGR 2014/19 Total

Bar Soap 4.1 5.4 30.0

Bath Additives - - -
Body Powder -0.4 -7.3 -31.5
Body Wash/Shower Gel 7.0 7.7 44.9
Intimate Hygiene 10.5 34.3 336.4
- Intimate Washes 10.5 34.3 336.4
- Intimate Wipes - - -
Liquid Soap 10.2 11.6 73.1
Bath and Shower 6.7 8.6 51.2
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 3 Sales of Bath and Shower by Premium vs Mass: % Value 2014-2019

% retail value rsp

2014 2015 2016 2017 2018 2019

Mass 97.6 97.5 97.4 97.3 97.2 97.1

Premium 2.4 2.5 2.6 2.7 2.8 2.9
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 4 NBO Company Shares of Bath and Shower: % Value 2015-2019

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% retail value rsp

Company 2015 2016 2017 2018 2019

Unilever Vietnam 31.1 30.2 28.6 27.5 27.5

International Co Ltd
Unza Vietnam Co Ltd 13.9 13.3 12.3 11.6 11.0
International Consumer 8.2 8.2 7.8 7.8 7.7
Products Co Ltd
Hoa Linh Pharma Co Ltd 2.6 3.8 6.1 6.5 6.7
Sanofi-Aventis Vietnam 1.3 1.9 3.0 3.1 3.2
Co Ltd
Dai Viet Huong Trading 2.7 2.8 2.9 3.0 3.0
Manufacturing Co Ltd
Viet My Group 5.5 5.0 3.5 3.0 2.8
Procter & Gamble 2.5 2.4 2.4 2.3 2.3
Vietnam Ltd
Gia Dinh Comestic Co Ltd 1.8 1.8 1.9 1.7 1.6
LG Vina Cosmetics Co Ltd 2.9 2.6 2.1 1.7 1.4
Henkel Vietnam Co Ltd 1.3 1.2 1.3 1.3 1.2
Johnson & Johnson 1.7 1.4 1.2 1.1 1.0
Vietnam Co Ltd
Oriflame Vietnam Ltd 0.4 0.9 0.9 0.8 0.7
Amway Vietnam Ltd 0.9 0.6 0.5 0.4 0.5
3Ri Chemical Co Ltd 0.4 0.4 0.4 0.4 0.4
Kao Vietnam Ltd 0.9 0.8 0.6 0.4 0.3
Khobates Industries Sdn 0.2 0.2 0.2 0.2 0.2
Bhd
Oral-B (Vietnam) Ltd 0.2 0.2 0.2 0.2 0.2
Pigeon Corp 0.1 0.0 0.0 0.0 0.0
Beiersdorf Vietnam Ltd Co 0.3 0.3 0.3 0.0 0.0
Colgate-Palmolive 0.8 0.3 0.1 0.0 0.0
(Vietnam) Co Ltd
Ascendia Brands Inc 0.1 0.0 0.0 - -
Saigon Cosmetics Corp 0.2 0.2 - - -
Daso Group 0.2 0.2 - - -
Avon Cosmetics Vietnam - - - - -
Ltd
Others 20.2 21.4 23.9 26.8 28.3
Total 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 5 LBN Brand Shares of Bath and Shower: % Value 2016-2019

% retail value rsp

Brand (GBO) Company (NBO) 2016 2017 2018 2019

Lifebuoy (Unilever Unilever Vietnam 22.2 22.1 21.7 22.0

Group) International Co Ltd
X-Men (Marico Ltd) International Consumer 8.2 7.8 7.8 7.7
Products Co Ltd
Enchanteur (Wipro Unza Vietnam Co Ltd 8.7 7.9 7.3 6.9
Ltd)
Da Huong Hoa Linh Pharma Co Ltd 3.8 6.1 6.5 6.7
Hazeline (Unilever Unilever Vietnam 4.3 3.8 3.5 3.3
Group) International Co Ltd
Lactacyd (Sanofi) Sanofi-Aventis Vietnam 1.9 3.0 3.1 3.2
Co Ltd
E100 Dai Viet Huong Trading 2.8 2.9 3.0 3.0

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Manufacturing Co Ltd
Thebol Viet My Group 5.0 3.5 3.0 2.8
Romano (Wipro Ltd) Unza Vietnam Co Ltd 2.8 2.5 2.4 2.2
Gervenne (Wipro Ltd) Unza Vietnam Co Ltd 1.8 1.9 1.9 1.8
Safeguard (Procter Procter & Gamble 1.8 1.9 1.8 1.8
& Gamble Co, The) Vietnam Ltd
Dove (Unilever Group) Unilever Vietnam 2.1 1.9 1.7 1.7
International Co Ltd
Familiar Gia Dinh Comestic Co Ltd 1.8 1.9 1.7 1.6
Double Rich (LG LG Vina Cosmetics Co Ltd 2.6 2.1 1.7 1.4
Household & Health
Care Ltd)
Oriflame (Oriflame Oriflame Vietnam Ltd 0.9 0.9 0.8 0.7
Cosmetics SA)
Coast (High Ridge Henkel Vietnam Co Ltd 0.7 0.7 0.7 0.7
Brands Co)
Johnson's Baby Johnson & Johnson 0.7 0.6 0.6 0.6
(Johnson & Johnson Vietnam Co Ltd
Inc)
Camay (Unilever Procter & Gamble 0.6 0.5 0.5 0.5
Group) Vietnam Ltd
Lux (Unilever Group) Unilever Vietnam 1.5 0.9 0.6 0.5
International Co Ltd
G&H (Amway Corp) Amway Vietnam Ltd 0.6 0.5 0.4 0.5
Dr Clean 3Ri Chemical Co Ltd 0.4 0.4 0.4 0.4
Bioré (Kao Corp) Kao Vietnam Ltd 0.8 0.6 0.4 0.3
Johnson's pH 5.5 Johnson & Johnson 0.4 0.3 0.3 0.3
(Johnson & Johnson Vietnam Co Ltd
Inc)
Fa (Henkel AG & Co Henkel Vietnam Co Ltd 0.2 0.3 0.3 0.3
KGaA)
Dial (Henkel AG & Henkel Vietnam Co Ltd 0.3 0.3 0.3 0.3
Co KGaA)
Fruiser Khobates Industries Sdn 0.2 0.2 0.2 0.2
Bhd
Carefree (Johnson & Johnson & Johnson 0.2 0.2 0.2 0.2
Johnson Inc) Vietnam Co Ltd
Gillette Series Oral-B (Vietnam) Ltd 0.2 0.2 0.2 0.2
(Procter & Gamble
Co, The)
Pigeon Pigeon Corp 0.0 0.0 0.0 0.0
Palmolive (Colgate- Colgate-Palmolive 0.2 0.1 0.0 0.0
Palmolive Co) (Vietnam) Co Ltd
Eucerin (Beiersdorf Beiersdorf Vietnam Ltd Co 0.2 0.2 - -
AG)
Lander Ascendia Brands Inc 0.0 0.0 - -
Dacco Daso Group 0.2 - - -
Fresh Saigon Cosmetics Corp 0.1 - - -
Cleopatra (Colgate- Colgate-Palmolive 0.0 - - -
Palmolive Co) (Vietnam) Co Ltd
Eversoft (Wipro Ltd) Unza Vietnam Co Ltd 0.0 - - -
Others Others 21.6 24.0 26.9 28.3
Total Total 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 6 Forecast Sales of Bath and Shower by Category: Value 2019-2024

VND billion

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2019 2020 2021 2022 2023 2024

Bar Soap 875.9 974.3 1,073.6 1,151.0 1,206.2 1,239.9

Bath Additives - - - - - -
Body Powder 30.6 29.3 28.0 26.7 25.5 24.3
Body Wash/Shower Gel 2,643.5 2,811.6 3,022.8 3,228.6 3,400.1 3,534.5
Intimate Hygiene 430.9 471.9 516.1 559.0 599.5 636.6
- Intimate Washes 430.9 471.9 516.1 559.0 599.5 636.6
- Intimate Wipes - - - - - -
Liquid Soap 92.1 105.4 117.6 129.1 139.7 149.5
Bath and Shower 4,073.0 4,392.6 4,758.1 5,094.3 5,371.0 5,584.8
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 7 Forecast Sales of Bath and Shower by Category: % Value Growth 2019-2024

% constant value growth

2019/2020 2019-24 CAGR 2019/24 Total

Bar Soap 11.2 7.2 41.6

Bath Additives - - -
Body Powder -4.2 -4.5 -20.6
Body Wash/Shower Gel 6.4 6.0 33.7
Intimate Hygiene 9.5 8.1 47.7
- Intimate Washes 9.5 8.1 47.7
- Intimate Wipes - - -
Liquid Soap 14.5 10.2 62.4
Bath and Shower 7.8 6.5 37.1
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 8 Forecast Sales of Bath and Shower by Premium vs Mass: % Value 2019-2024

% retail value rsp

2019 2020 2021 2022 2023 2024

Mass 97.1 97.0 96.9 96.8 96.8 96.8

Premium 2.9 3.0 3.1 3.2 3.2 3.2
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

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