INCREASING THE BRAND AWARENESS OF SULWHASOO COSMETICS IN THE VIETNAMESE MARKET

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Increasing the Brand Awareness of Sulwhasoo Cosmetics in the Vietnamese Market
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ABSTRACT

INTRODUCTION
1. The urgency of the topic
Sulwahsso is a premium cosmetic company based in South Korea, which is
famous for that it combines both Korean traditional herbal medicine approaches
and beauty science. The brand has effectively placed itself within the aristocracy of
the Asian skin care market including countries like Koreas ad China. Nonetheless,
Sulwhasoo still has a small market share and it is therefore considered that
Sulwhasoo’s brand in Vietnam can be still growing. As a result, the future potential
of Vietnam’s cosmetic industry suggests that the brand could go deeper into
customers and occupy a larger market share of the Southeast Asia that originally
began as a facial care brand. The awareness of beauty care products has gradually
increased and the Vietnamese people are looking forward to using expensive
skincare products. According to the Statista, in 2023 the market in Vietnam of the
beauty and personal care was $2.5 billion; the CAGR in the period 2021-2026 is
7.4%. This growth is as a result of sheer population growth, increased urbanization,
embracing of technology and a youthful population that is conscious of world
beauty trends. Accordingly, it can be noted that Sulwhasoo has the potential for the
development of this market, albeit with the emergence of low brand awareness.
Currently, Vietnam has joined the list of the SEA nations that represent a high
economic growth rate and, according to the World Bank (2023), has revealed a
projected GDP of 8 percent for the year 2022. This kind of economic development
has produced the middle-income earners to circulate in the market, these are
capable of buying the higher end brands and products such as cosmetics. Besides,
the population in Vietnam is relatively young especially the consumer in social

networks which is much more conscious to digital media that is much suitable to
brand awareness campaign. However, one more characteristic of Vietnam’s market
is the high competitive rivalry; this market is full of both domestic and
international players. Therefore, for Sulwhasoo to establish its brand within this
particular market, the firm has to use the following marketing strategies that are
expected to touch the emotions of the targeted customers within the given society.
In addition, because e-commerce has rapidly grown in Vietnam with an estimation
that by 2025, 30% of the beauty products are going to be sold online, Sulwhasoo
must step up its branding and advertising strategies of its products to the customers
(Euromonitor International, 2022).
Brand awareness is one of the most essential components of any company
because it defines buyers’ perceptions, motives for purchase, and future loyal
behavior. The beauty and personal care industry comes with the core necessity that
luxury skincare brands like sulwhasoo should enjoy a high degree of brand
visibility in the market. This need becomes even more pressing when considering a
start or an expansion into a new and aggressive market such as Vietnam, where
both domestic and international competitors are gearing up for the fight of market
share. Therefore, Brand awareness is important because the extent level reveals to
what level the consumers are familiar with the brand and its products. This means
that raising brand awareness is a key success factor when it comes to directing
higher amounts of consumer preference and trust toward a company’s products and
services – the factors than underpin market domination. In a situation where there
are many varieties of the skincare products, the limited information processing
decision making technique the consumers utilize is the recognized brand.
Consumer research reveals that 70 % of consumers rely on brand awareness in

their choice of products, especially in the skincare segment where brand trust will
have a major bearing on how individuals make their decision (Forbes, 2022). The
above statistic indicates that continuing the message of recognition and
believability to consumers in the luxury market as a slightly popular brand is
necessary for Sulwhasoo to maintain. There are other aspects that have to be
recognized: these are the strategies and the action which should be optimal for
Sulwhasoo to bring the new advantages in the Vietnamese market. That is where
effective brand awareness programme will not only enable Sulwhasoo to move
deeper into the market but also create permanent customer base among the
Vietnamese. It means that localised promotional campaigns, working with major
opinion leaders, web-based marketing and maybe even tailored product offerings
may be necessary. Failure to correctly apply right tactics, which focuses on
introducing Sulwhasoo brand to this market could make Sulwhasoo lose market
share to better competitors in Vietnam. Thus, one might demand and propose
launching proper activities to reveal the brand within this new market sphere and
ensure its effectiveness.
For all of the above reason, the author decided to research on the topic
“INCREASING THE BRAND AWARENESS OF SULWHASOO COSMETICS
IN THE VIETNAMESE MARKET”
2. Research objectives
This study will concentrate on Sulwhasoo Cosmetics establishing its brand
into the Vietnamese market with the key targeted goal of enhancing brand
recognition as one of the significant prescriptions for brands in the competitive and
growing market segment. The objective of the research is therefore to outline and

discuss trends relevant to Vietnamese cosmetics market, the customers and the
competition as well as the influence of globalization on the brands. The paper also
examines other legal provisions affecting the importation of cosmetics and FTAs
that affect the cosmetics market in Vietnam. In addition, the research will look at
the cosmetics regulations in both countries to know the difficulties and
opportunities for the market entry and expansion in Vietnamese and South Korean
markets. The main emphasis is made on marketing mix variables so that
appropriate marketing mix can be determined to promote Sulwhasoo as a leading
cosmetic brand.
3. Research subject
This research investigates the method of creating and implementing
marketing strategies in order to increase Sulwhasoo Cosmetics brand recognition
in Vietnam. To enter into the Vietnamese market, digital marketing, KOL
collaborations, and localized campaigns is used as the strategy of setting its
dominance and the degree of competition within the Vietnamese Cosmetics
market.
4. Scope of research
 Time: June, 2024
 Place: 2 urban cities in Vietnam (Hanoi, Ho Chi Minh City)
 Content: Marketing strategies in terms of digital marketing, KOL
collaborations, and localized campaigns.

5. Methodology
5.1. Research Design
In this study, the level of Sulwhasoo brand awareness in Vietnam relative to
other brands of cosmetics was established from both quantitative and qualitative
data collected. The study adopts survey data and literature review from industry
reports, marketing and academic research to build the general perspective
regarding brand awareness and customer choice in Vietnamese cosmetics market.
For quantitative aspect, self-completed questionnaires will be administered to
thirty Vietnamese consumers with variation in demographic characteristics to get
quantitative data regarding brand familiarity, buying behavior and Sulwhasoo as
compared to other Vietnamese and international similar brands. It is necessary to
focus on the qualitative part, as interview and focus group data provide a denser
view on the consumers’ attitudes, perceptions, and the rational that have led to the
choice of specific brands. This paper will employ both qualitative and quantitative
research to analyze the state of Sulwhasoo in the Vietnamese market and develop
necessary steps and plans to enhance the cosmetics brand with which the company
operates.
5.2. Data Collection
The research methodology adopted for this study is through both primary
and secondary research data collection tools to properly assess Sulwhasoo Brand
Awareness in Vietnam. This will be developed from other analytical works
comprising of research reports, business analyses, market research, and journal
articles. These sources will bring relevant information about the present cosmetics
market in Vietnam, consumption trends, and competition. The acknowledgement of

these literatures will assist in developing a basic understanding of the levels of
brand awareness and the competitive environment on the market. Thus, primary
data will be obtained from the perception point of a sample of Vietnamese
consumers drawn through a structured questionnaire. Sulwhasoo brand associated
recognition, preference, usage and attitude towards Sulwhasoo and other beauty
brands through a survey. The primary data collection shall offer the first-hand data
on the consumer’s perception of Sulwhasoo and assessment of the company’s
current brand technique for further marketing strategies adjustments.
5.3. Data Analysis
Data analysis will include theme analysis of qualitative data. Thematic
coding will reveal crucial themes and patterns about brand awareness and market
positioning. Quantitative data anlysize by Excel to draw into chart, table,
graphs…..
6. Structure of research
Except the Introduction and Conclusion parts, the research includes three
chapters:
 CHAPTER 1: LITERATURE REVIEW
 CHAPTER 2: FINDINGS AND DISCUSSION
 CHAPTER 3: RECOMMENDATIONS

CHAPTER 1: LITERATURE REVIEW
1.1. Introduction to brand awareness
1.1.1. Definition of brand awareness
Brand awareness is the extent to which a customer develops recognition or
recall of a brand within their mental reference system. It is very strategic in
consumer decision-making since it leaves a direct impact on a consumer to choose
and have a preference towards specific product or service (Keller, 2020). High
brand awareness implies that a brand name is recognizable by customers most of
the time, this position will gain customer confidence and predisposition towards
the purchase of the products. Lemon & Verhoef (2016) post that brands with high
levels of awareness are in a better position since they stand higher chances to be
considered and influence sales. Brand awareness is one of the components of brand
equity defined as additional value that a brand creates for a particular product or
service in consumers’ minds (Keller, 2020). Brand equity, thus, can be limited by
brand familiarity and brand associations. It was discovered that there is trust on
familiar brands as frequency or familiarity tend causes favourable perceptions of
quality and reliability. Consequently, organizations commit their resources towards
brand familiarity to make their market influence Consumer behavior (Hsu & Lin,
2019).
Keller’s (2020) Brand Equity Model helps to distinguish between brand
awareness and brand equity. According to Keller, brand knowledge causes both
brand familiarity and brand attitude for brand equity. In the concept, Brand
awareness is concentric to brand image which is customer perceived image of the

brand. This is because great frequency familiarity breeds deeper brand
associations, superior total brand equity, and valuable consumer loyalty. E. St.
Elmo Lewis defined the structure of AIDA Model (Attention, interest, desire,
action) which has been discussed in the following studies and has vital role to
explain the stages of customer engagement even today. This model shows that
differentiation is most effective when using brand recognition to gain consumer
attention, the first part of the customer journey. Any brand that fails to build
awareness among the targeted earners cannot lead the customers through the
interest, desire and action stages. This model directs the focus towards brand
awareness as an area of concern when addressing the issue of consumers as well as
marketing phenomena.
1.1.2. Impact of brand awareness on consumer behavior
The results confirmed that there is a significant positive relationship between
brand awareness and consumer purchase intentions and brand loyalty. A familiar
brand tends to come to mind during the time of making a purchase decision. The
study found out that brand awareness has positive impact on purchasing decisions
because the brand is familiar to the consumers (Sweeney & Soutar, 2015).
According to the study done by Chen and Xie in 2020, it was revealed that
enhanced brand familiarity enhances the perception of consumer reliability besides
the intention to purchase. Awareness reduces the perceived risk and uncertainty
associated with a brand making the consumer more comfortable with making the
purchase. This upbeat confidence makes it easier for consumers to spend their
money on the business entities and also anyway, consumers are likely to make
subsequent purchases with a familiar and trusted brand (Hsu and Lin, 2019). Brand

recognition has also an impact on consumers when it comes to specific products.
The performance characteristic often associated with extensive brand familiarity is
a higher-quality and more reliable brand together with defining factors that
influence consumers’ behaviour (Keller, 2020). Kim and Ko (2021) established
that customers have a relatively higher purchase intention to the brands they have
familiarity with because of positivity and perceived value associated with those
brands. For example, cosmetics products in the Philippines which is globally
known to have many companies producing these products, it could be that most of
the customers have developed brand loyalty whereby the price preference for most
of the customers is inclined towards well knowing brands than the unknown brands
even though they might be producing some of the best cosmetics product (Lim &
Dubinsky, 2020). This preference is particularly important in industries such as
cosmetics where the reputation of the brand and the consumer trust act as the major
determinants of the choice.
1.1.3. Strategies for enhancing brand awareness
By understanding branding and positioning, together with the support of the
extensive use of contemporary technological tools, it is possible to develop the
brand image and gain a competitive advantage. Branding is establishing a brand
name, logo and a slogan that connects with the target customers as well as the
brand culture and ambition (Keller 2020). Conversely, positioning emphasizes the
way in which the brand is perceived in relation to its rivals. Brand positioning
elements are a powerful brand story, creating an unambiguous perception, and
establishing specific points of differentiation (Kotler & Keller, 2016). To cosmetics
brands, positioning involves communicating the aspects of the product benefits,

components, and brand values that will be more relevant to the target consumers
(Hsu; Lin, 2019). Estée Lauder and L’Oréal are good examples of branded and
well-situated companies in the cosmetics industry (Chen & Xie, 2020). As for the
promotion, advertising and promotional activities are vital since they help make
people familiar with a company’s brands as well as attend the company’s events.
Successful campaigns often involve incorporates the use of both the traditional and
the new media in reaching the general public. The practical ways include, use of
celebrities, having a different kind of material placed and having the right media
placed. For example, the Procter & Gamble company used the internet ads and the
social media promotions through the use of nice advertisement videos on the
stationery ads and Extra commercials during, Olay TV programmes lead to
increased brand recognition thus consumers’ engagement among other effects (Kim
& Ko, 2021). Using coupons, offering promotions, freebies, or free samples are
always a sure fire way to grab the attention of the public and entice them into
purchasing a particular product. The right promotional strategies help the company
manager to raise brand recognition while simultaneously offering an incentive to
sample and purchase new goods (Lim & Dubinsky, 2020). In today’s world people
have been using internet services and so digital marketing plays a vital role in
enhancing brand awareness. The use of internet, social media, and promotional
influencers are the best methods to interact with consumers. Companies need to
communicate with their audience through social media channels like Instagram,
Facebook, TikTok sharing valuable content, collaborations, ads, and more. Targets
such as influencer marketing rely on influencers to sell products and create
awareness on the brand. As pointed out by Hsu and Lin (2019), the utilization of
influencers may also increase brand recognition together with the dependence of

buyers. In the continuum, brands use digital marketing to watch and monitor how
consumers respond to marketing throughout the process and in effect apply fine
tuning adjustments in real time (Lemon & Verhoef, 2016). Accessing the retail
responsibility and factors of retailing is vital towards expanding the level of brand
recognition and product availability. Actually, proper positioning in popular retail
outlets and, additionally, Internet-based sells increase visibility and convenience
(Kotler & Keller, 2016). Cosmetics brands also enjoy the advantage of being both a
physical and online retail store since customers can easily locate the products. A
newspaper advertisement promotes the formation of long-term strong relationships
with large retailers, along with the generation of special brand-related zones within
the large retail stores to enhance customer awareness and attract new customers
(Chen & Xie, 2020). In addition, control of supply chains is also a part of the
efficient distribution plan that will guarantee product readiness and fast delivery.
The pressure for maketing sustainable and ethical products is shifting
branding strategies. Sustainability in production, animal-friendly testing, and clear
product origin can be sources that make the difference and appeal to the
‘conscientious consumer’ (Kim & Ko, 2021). The example of such companies as
The Ordinary and Drunk Elephant that emphasize the principles of sustainability
and ethical practices in their companies show that these values matter for business
positioning nowadays (Hsu & Lin, 2019). New technology and advanced digital
tool are enhancing Brand awareness and consumer participation. Instant apps offer
features like augmented reality (AR) and virtual reality (VR) to build engaging
brand experience, like the attempt on to a cosmetic zone (Kaplan & Haenlein,
2019). These technologies make consumers to have flexible and interactive

experiences hence they mostly have high brand awareness and interaction. Also, by
means of data analysis and application of AI, the firms can then be able to know
the needs and expectations of the customers and; hence, they are in a position to
market offerings suitably (Lemon & Verhoef 2016).
1.1.4. Challenges in building brand awareness
One of the major challenges, when it comes to the cosmetics market, is
market saturation since the number of players is large and all of them strive to
become customers’ favorite. The second situation, which occurs when the value of
product differentiation decreases dramatically, is saturation (Kotler & Keller,
2016). New entrants face tough competition because the industry is dominated by
giants such as L’Oréal and Estée Lauder in terms of market and customers’
attention (Chen & Xie, 2020). Therefore, to succeed within this environment new
entrants must ensure that they allocate their resources significantly on value
propositions and unique selling propositions and unique marketing strategies. For
instance, specialty marketing and use of specific product characteristics or raw
materials serve to help new entrant to establish a niche in an already congested
market (Hsu &Lin, 2019). Besides, there is the major challenge of how brands
filter through the noise and grab consumer attention through the predominant
advertising and promotional communications. Maintaining consumers’ trust is yet
another challenge that the businesses face particularly in the emergent or lucrative
fields. This is because customers are more likely to attend to and purchase from
brands, which they consider to be legitimate and reliable (Kim & Ko, 2021). Trust
formation could be difficult for new entrants or brands that are in a new market
space because they cannot include past interactions with consumers in their

marketing strategy (Lemon & Verhoef, 2016). Moreover, managing consumers’
perceptions requires the elimination of the possibility of doubt concerning the
information provided on products and complete candor concerning promotional
strategies. For instance, cosmetic companies are required to offer real information
about the materials used in the production of the cosmetic products, and their
effectiveness to avoid nationally deceiving the customers and building trust with
them (Kaplan and Haenlein 2019). Angry customers tend to post negative
comments and poor customer experiences are likely to put brands at risk; brands
should cater for their clients and answer to their complaints early enough.
1.1.5. Brand awareness in the cosmetics industry
The cosmetics market is a global industry, which is actively developing and
constantly evolving, it is characterized by very high growth rates and high
competition. The cosmetics market in the world was amounted to 540 billion USD
in 2023, and its average annual growth rate within the next five years is 4.5%. This
expansion is due to the emerging demand for new and improved products in beauty
products industry and growth of consumers’ disposable income across the globe.
Market leaders include international companies such as L’Oreal, Estee Lauder, and
Proctor & Gamble in setting market trends in product innovation and promotion
(Euromonitor, 2023). The sector is also experiencing growth in aspects such as
natural and organic products because of the rise in clients’ concern with the
ingredients used in manufacturing and the environment-friendly products (Mintel,
2022). Another trend typical for the contemporary market environment is the focus
on the values of ethical marketing as the key manipulators shift to the issues such
as transparency and sustainability in an attempt to attract more sensitive to their

health and the environment consumers. Customer variables affecting the cosmetics
industry include brand image, product performance, and promotional strategies.
Price is often determined from the degree of brand awareness consumers have and
this applies in markets where there exist numerous items and brands (Chen & Xie,
2020). The studies also show the brand familiarity has a complementry effect on
the trust factor of consumers toward the products and the overall perception
towards quality of the products and both of these factors are directly related to the
purchasing behaviour of the consumers (Hsu and Lin, 2019). For instance,
businesses with high awareness being established carry around highly loyal clients
who appreciate brand dependability and familiarity (Kim & Ko, 2021). Focusing
on the beauty and skincare items, customers are delegating their product reviews
and recommendations to internet platforms since their decision-making process
(Kaplan & Haenlein, 2019). Which of the social influencer groups may have a
higher impact on business awareness and reputation: social media influencers and
beauty bloggers. In addition, suited advertising communications and sale
campaigns are more rampant in targeting consumer interests and behavior through
personalization. (Lemon & Verhoef, 2016).
1.2. Import Laws, Free Trade Agreements (FTAs), and comparison of
cosmetics regulations between Vietnam and South Korea
This paper further reveals that import policies specific to Vietnam influence
the operations of foreign cosmetics brands like Sulwhasoo. Currently, importing
cosmetics into the country is regulated by several laws and decrees including; the
Law No. 05/2017/QH14 on foreign trade management and the Circular No.
06/2011/ TT-BYT issued by the Ministry of Health that gives guidelines on the
management of cosmetics in Vietnam. In these regulations, all imported Cosmetics

need to be registered as follows Product Information File (PIF) containing
information in relation to safety, quality, and efficacy of the product. The PIF has
to be prepared based on the ASEAN Cosmetics Directive, which Vietnam has
implemented together with other countries of the ASEAN after signing the ASEAN
Harmonization of Cosmetics Regulation (ASEAN, 2020). This file needs to be
kept at the importer’s office and the company must be ready to provide it to the
authorities on demand – something many global brands may not be prepared for if
they do not know the specific rules in a given country. The labels must also be in
Vietnamese and contain the name of the product, the purpose of the product,
ingredients, directions to use, date of manufacture and expiry date (Circular No.
06/2011/TT-BYT). These laws are in force to safeguard customers and also make it
absolutely certain that all garments produced and sold in the Vietnam Government
approved standard meet the applications of Vietnamese Government.
Vietnam has signed several FTAs that affect imports of cosmetics where
companies such as South Korea’s cosmetic industry bear the brunt. The Vietnam-
Korea Free Trade Agreement, which has been implemented in 2015 is of special
concern with Sulwhasoo being a South Korean brand. Vietnam and Korea also
committed to cutting tariffs on many goods under the VKFTA; cosmetics are
among those goods. Traditional rivals to other ASEAN nations, Vietnam has
lowered most tariffs on Korean cosmetics imported to Vietnam to either zero or
nearing zero levels, allowing Sulwhasoo and other brands to penetrate the
Vietnamese market more attractively as of 2024 (Ministry of Trade, Industry, and
Energy, 2023). The VKFTA also provides for measures on the protection of
ownership of intellectual property rights important for brands such as Sulwhasoo.
These provisions assist in providing not only pricing competitiveness of

Sulwhasoo’s products but also the firm’s products from issues of counterfeiting and
other intellectual property wrongs. In addition, the Comprehensive and Progressive
Agreement for Trans-Pacific Partnership (CPTPP) which Vietnam and South Korea
are the member countries helps in reducing the trade barriers with the help of legal
framework of settlement of different trade issues and promotion of regulatory
improvements. This agreement strengthens the business opportunities for foreign
brands as it improves the relationship of transparency and trade barriers (CPTPP,
2022).
It is quite crucial especially to focus on the differences and similarities that
should be considered when comparing Vietnam and South Korea cosmetics
regulations as well as how they affect a brand, such as Sulwhasoo. Cosmetics is
controlled by Ministry of Food and Drug Safety (MFDS) of South Korea under the
Cosmetics Act. This act classifies cosmetics into two categories: general cosmetics
and functional cosmetics, general cosmetics and functional cosmetics. The
functional cosmetics such as whitening, anti-wrinkle and sunscreen contain
functional ingredients and must be approved by the MFDS before entering the
market while the general cosmetics only need notification (MFDS, 2023). Similar
to this classification system is the Vietnamese situation where products that claim
to perform particular functions – such as skin whitening – are likely to face greater
regulatory control. In Vietnam, cosmetics are under the Ministry of Health the
same as in all other ASEAN countries The regulation is given by the ASEAN
Cosmetics Directive. Working in line with the goals of the WAEMU’s cosmetics
market, this directive aims at determining the safety of cosmetics hence fully
realizing the growth of product standards in the concerned region. Nevertheless,
unlike in South Korea where functional cosmetics need separate approval, all

cosmetics products are in Vietnam registered similarly irrespective of what claims
they make, provided that they meet the requirements of the ASEAN Cosmetic
Directive (ASEAN, 2020). South Korea also regulated functional cosmetics where
it takes registration and approval for functional cosmetics from MFDS where
safety and efficacy data, clinical trials, stability test have to be produced. Korean
cosmetics are known to be of high quality and safe for use owing to the vigorous
procedure for approval of products to be sold in South Korea. On the other hand,
Vietnam again provides a comprehensive procedure for the registration of
cosmetics, but is not very rigorous in the pre-approval requirement. For most
cosmetic products, simply submitting a PIF to the local health authority is
sufficient provided that such cosmetics meet the safety and labeling provisions of
the ASEAN Cosmetics Directive. Although it seems that Sulwhasoo has to
encounter many issues of local compliance in Vietnam, this difference makes it
easier for any South Korean brand to spread to Vietnam. Consequently, the fact
that both South Korea and Vietnam offer high safety standards for cosmetics, the
way of testing differs. The MFDS also monitors the cosmetic products market in
South Korea though it carries out routine checks and tests of the cosmetics
particularly the functional cosmetics. There is also regulation of quality control
throughout the manufacturing process whereby the manufacturers are expected to
report any identified impact to the MFDS. Under Vietnamese laws, safety testing is
mainly conducted by the importer or manufacturer who has to demonstrate that
their products are safe for use by consumers. The Vietnamese government raids
and tests products randomly; products that do not meet safety requirements are
withdrawn. The incorporation of the ASEAN Cosmetics Directive assures that
safety testing has been harmonized throughout the ASEAN countries though

implementation re mains a challenge due to the difference in the capability of the
implementing body (ASEAN, 2020). Use of labels in the two countries is aimed at
providing information to the consumers so as to be protected form being sold
substandard products. In South Korea the MFDS heavily controls the labeling and
advertising of functional cosmetics. Failure to adhere to regulatory requirement
leads to fines and the firm’s products being recalled from the market. The same for
Vietnam, the product must be having Vietnamese language on the label and the
product information according to the regulation of Circular No. 06/2011/TT-BYT.
N=Nevertheless there may be instances where the implementation of the
advertising Codes & Standards in Vietnam can be relatively weaker than that of
South Korea For this reason there could be differences in how a particular product
is being advertised in the two nations. This difference shows the relevance of local
knowledge and regulation specifically for brands such as Sulwhasoo, that are
aspiring to sustain the positions of a trusted brand while penetrating the
Vietnamese market.
In practicality, when companies plan to enter Vietnam, it is crucial to
understand the import laws of Vietnam, FTAs as well as the regulations related to
cosmetics in Vietnam. Similarly, for Sulwhasoo, there are ample opportunities to
penetrate and grow in the Vietnam markets due to the favorable environment due
to FTAs including the VKFTA. However, the prime consideration that often
provokes total failure is the lack of recognition of the regulatory environment
within the location. As for cosmetics regulations that are comparable to the
Vietnamese ones spearheaded by the AC D and are now implemented by SK, many
of them are less of a barrier, so it makes entering that market easier. Finally, a bit of
knowledge about both markets legal and regulatory requirements will help

Sulwhasoo to capitalize of its strengths and fortify Sulwhasoo’s brand image in
Vietnam market.

CHAPTER 2: FINDINGS AND DISCUSSION
2.1. Overview of market and consumer analysis of Cosmetics in the
Vietnamese market
2.1.1. Current market status: market share and presence of Korean cosmetics
The cosmetics industry in Vietnam is still growing at a fast pace and is
considered as one among the emerging markets in South east Asia due to the
increasing middle income earning population and improve. From the demographic
point of view, Vietnam has a growing middle class reaching 13% of the population
today, while it will increase to 26% in 2026 according to Nielsen, 2023. This
segment of the population ensures a regular expansion in the demand for personal
beauty as well as health care products that augment significantly the cosmetics
retail market. As of 2022, Vietnam’s cosmetics market size is approximately USD
2.2 billion and it is anticipated to touch USD 2.69 billion in the period of 2023-
2027, the market is expected to have a CAGR of 3.32 % (Statista, 2023). It shows
that the contribution of the cosmetic industry to the Vietnamese economy is
gradually increasing with an increasing trend in the expenditure of the Vietnamese
people on cosmetics as an aspect of this growth.

Figure 2.1: Predicted revenue of retail cosmetics market in Vietnam 2018-2027 in
VND billions
(Source: https://beautycarexpo.com/)
Based on the competitive rivalry, the Vietnamese cosmetics industry is quite
a bit competitive not only for local brands but also for imported ones. Currently,
the survey of the us Department of Commerce affirmed that the Korean goods take
30% of the cosmetics imported into Vietnam and the cooperative partners include
the European union, Japan, Thailand and US … Furthermore the cosmetics
produced by China and Singapore share the important market share due to the
diverse choices for Vietnamese consumer. The increasing trend of the usage of
cosmetic products has enhanced the emergence of cosmetic distribution stores in
Vietnam. These stores are duking it out for market share with masses of beauty
products that fit Vietnamese taste. Further, the availability of outlets and internet
provide an enlarged market for consumers to lift from local and international
producers.

The cosmetics market in Vietnam has several prospects for companies of the
country and from other countries. The market has been rapidly developing due to
the factors such as availability of natural resources, increased demand for vegan
cosmetics and produsts. According to Euromonitor (2023), Vietnam’s cosmetics
market has recorded annual growth of between 15% and 20%. This rapid growth
may be attributed to the general economic growth of the country, as well as the
increased income per capita of its people. With consumers getting conscious with
the way they look, the consumption of cosmetics should remain quite steady in the
future. This growth is further complemented by the development of the cosmetic
distribution networks through different channels of the mass consumption stores
and the internet re-sale market. Vietnam also has abundance of natural resources to
aid it from becoming a significant powerhouse in the cosmetics markets. Vietnam
is an agriculture country, there are more than 10,000 kinds of crops according to
the Ministry of Agriculture and Rural Development, 2023 and about 1000 plants
can be used in cosmetics. Foods present in most recipes are the fruits orange and
lemons, plants including turmeric, green tea, whilst oils contains coconut and olive
amongst others. These natural resources avail a competitive edge for local
manufacturers because they can undertake manufacturing of cosmetics of high
quality at affordable prices. The vegan cosmetics segment is one of the fasting
growing segments in Vietnam’s beauty industry and market. Nielsen’s report
revealed that the Vietnamese market is among the world’s fastest-growing markets
for vegan cosmetics in terms of growth rate of 30 % per annum (Nielsen, 2023). It
agrees with the trend of increased customer sensitization to the need for sustainable
products by extending the notion of sustainability to include cruelty-free products
made out of plant materials. New vegan cosmetics offer a new market opportunity

for businesses to develop the niche market of novel products that are ethical.
Vietnamese market is expanding its invitations for foreign brand cosmetics due to
its high growth factors present within its boundaries. Since 2023, numerous
international brands have entered the market, bringing with them a wide range of
high-quality products that appeal to Vietnamese consumers. Imported brands like
Dior, Chanel, and Estee Lauder dominate the market, holding a 75% market share
(Euromonitor, 2023). These brands benefit from strong brand recognition, superior
product quality, and extensive distribution networks, allowing them to capture a
significant portion of the market. As of the year 2023, lots of foreign brands have
emerged into the market and they all come with high quality products that have
interested Vietnamese customers. Imported brands like Dior, Chanel, and Estee
Lauder dominate the market, holding a 75% market share (Euromonitor, 2023).
Such brands are recognizable and know the product is of top quality with great
distribution channels enabling them take up quite a good share of the market.
The cosmetics industry in Vietnam is quite promising; however there are a number
of obstacles that any business has to overcome in order to be successful in this
sector. The Vietnamese cosmetics market is extremely saturated as there are fierce
competition of local with foreign brands. So much competition fuels quick uptakes
in changes in trends, pricing, and the quality of products, therefore, it becomes
hard to keep a steady market share. Thus, it is necessary for the Organizations to
also be nimble and dynamic as well as constantly looking for innovations in order
not to be left behind. Generally, Vietnamese customers are sensitive to price and
most of the time check prices before they buy anything. Therefore, in order to
compete successfully in the market, businesses have to emphasize on holding high
quality and reasonably priced products to the consumers. Most importantly, even in

Vietnam, it is common for the consumers to buy only those products which
guarantee them a perfect price-quality ratio, that is, price and quality must meet in
accordance with the purchasing power of the consumer. Also, the underdeveloped
government regulation system and the absence of the relevant state policies create
a number of problems in the cosmetics industry in Vietnam. Inevitably, many
issues arise as consumer needs grow, one of which is quality management. The fact
that there are many counterfeit and imitation brands in the market makes the
problem worse as this disrupts the market trust of the consumers and makes it hard
for legit businesses to operate. Among others, the other challenges are the scarcity
of adequate and skilled professionals in the beauty industry and the call for more
strict control on the running of the market. These impediments, if not addressed,
can stifle the expansion and progress of the sector hence businesses are needed to
formulate measures aimed at countering such challenges.
2.1.2. Key players and competitive landscape: competitor profiles and SWOT
analysis
2.1.2.1. Korean cosmetics and other countries’
The Vietnamese market for cosmetics presents a velocity of growth and a
degree of competition that can be categorically stated as aggressive, attributable to
the level of affluence and beauty consumerism within the country. It is worth
noting that among the global competitors, Korean cosmetic companies have
become the major players, although there exist challenges from Japanese,
European, and American countries, and others. This part analyzes the giants in the
Vietnamese cosmetics market and assesses the international brands’ (especially
Korean) strengths, weaknesses, opportunities, and threats (SWOT) in relation to
the market.

Korean beauty, also referred to as K-beauty, has gained ground and become
an essential part of the cosmetics market in Vietnam due to the love for Korean pop
culture across the globe and the advanced products. The US Department of
Commerce records reveal that Korean cosmetics alone occupy a share of
approximately 30 percent of all the cosmetics products imported into Vietnam, thus
placing them at the forefront of the foreign competition (US Department of
Commerce, 2022). The dynamics of globalization – due to the success of the Low-
Expenditure High-Yield strategies based on K-pop and K-dramas offered by
producers such as Sulwhasoo, Innisfree, Laneige, and Etude House, third-world
countries are fast becoming assimilated to western ways, especially in their
marketing approaches in such countries as Vietnam and younger market segments
easily. There are many reasons that K-beauty is so strong in the Vietnamese
market. Entry of these product lines is easy because of the close cultural ties
between Vietnam and Korea, helped by the widespread consumption of Korean
media (Nguyen, 2022). This cultural aspect inspires brand commitment and
resonates with the Vietnamese populace who follow Korean fads. Also, Korean
cosmetic companies are famous for their product lifecycles, which span very short
periods in terms of years or seasons, including state-of-the-art skin-care and
fashionable make-up products. New products come in fast enough that the
consumers do not get bored, which helps these companies to stay afloat. On top of
that, Korean brands are very good at promoting their goods, with social media in
particular, on such platforms as Instagram and TikTok. Their effective utilization of
celebrity endorsement strategies, specifically those of K-Pop stars and actors, helps
them effectively connect with Vietnam’s youth, who are heavily inclined towards
technology (Euromonitor International, 2022).

Nevertheless, despite the expansion and integration of Korean cosmetics in
the Vietnamese market, there are also some weaknesses. For instance, one has to
consider that the high pricing of a lot of Korean goods is a major disadvantage to
most Vietnamese consumers, as they tend to be more price-sensitive. Even though
the middle-class in Vietnam is expanding, a large pool of the people remains very
price-conscious, which limits how these premium-priced products can be accessed
(Euromonitor International, 2022). Plus, the original difficult-to-follow and highly-
praised Korean multi-step skincare system that has its fans in every beauty fanatic
can be off-putting for consumers who do not mind skincare but would rather have
an easy and thoughtless regime without the steps and products. Notwithstanding
the drawbacks, the prospects for the use and acceptance of Korean cosmetic
products in Vietnam are enormous. Another significant growth opportunity is the
further penetration into tier-2 and tier-3 cities, where consumer spending is
growing. In addition, the middle class in Vietnam, which is likely to be 26% of the
population in 2026, has the potential to be another potential market due to an
increase in disposable income for beauty and personal care products (Nguyen,
2022). However, Korean brands must be cautious with the aggressiveness of both
foreign and domestic players, as well as the situation relating to the regulatory
regime in Vietnam, as these factors will influence their markets and products (US
Department of Commerce, 2022).
Vietnam has also welcomed the Japanese cosmetics industry, with brands
such as Shiseido, Hada Labo, and SK-II. In most cases, these brands are perceived
as accurate, dependable, and highly effective, and hence are preferred by those
whose primary consideration is the quality of the product and long-term use of the
skincare treatment (Euromonitor International, 2022). Japan plays a major role in

the cosmetics imported into Vietnam, but not as much as Korea does. One of the
main advantages for Japanese cosmetics in the Vietnamese market is their quality
and safety standards. Japanese companies are well understood by Vietnamese
consumers, whose prime target is not the cost but the necessary quality and effect,
which is how they would describe Japanese goods. Furthermore, the extreme
youthfulness of the demographics of Vietnam creates a greater potential market for
anti-aging products, a category in which Japanese brands are also well-entrenched.
However, this upper-end price range of Japanese cosmetic products makes it hard
for the wider target audience to access them, especially when placed side by side
with cheaper Korean products (Nguyen, 2022). In addition, Japanese firms tend to
have a more traditional approach to marketing activities, which can also lower the
reach and attractiveness of their brands, especially to young audiences whose
preferences are dictated by exciting and creative promotions. Nevertheless, there
are considerable prospects for the development of Japanese cosmetics brands in
Vietnam. The increasing consumers’ demand for anti-aging and healthcare
products facilitates these brands’ growth in the skincare market. In addition, the
development of online shopping sites in Vietnam is one of the greatest growth
factors for Japanese brands, especially when it comes to Shopee and Lazada.
However, Japanese brands must be mindful of the competition from other Asian
brands, including Korean and Chinese products, which are also gaining popularity
in Vietnam (Euromonitor International, 2022).
Along with local brands, the cosmetics sector in Vietnam is also strongly
represented by L'Oréal, Estée Lauder, Clinique, and other European and American
brands. Such brands are usually regarded as luxuries or high prestige items and are
directed at consumers who prefer quality and worldwide appeal (Euromonitor

International, 2022). Western companies have an enclosing positive image and
recognition, which works to their advantage in the Vietnamese market. It is the
high-end consumers who are attracted by their advanced testing of the products
and use of the best components. Still, the attention of the mass market can be
limited as the high prices of the western cosmetic products hinder their broad
acceptance. And, of course, in countries like Vietnam, where a lot of people are
used to watching costs, these western brands may not incorporate with the local
customers on selling their products as culturally ingrained as the Asian brands do;
thus, their market penetration may be affected (Nguyen, 2022). On the other hand,
they can afford to focus on the urban sections of society that are wealthy and ready
to pay extra for luxury items. Also, they can enhance the range of their products by
making items that suit the preferences of Vietnamese people, for example, skin
whitening options or those suitable for the tropical climate. Nonetheless, they have
to deal with many Asian competitors, who tend to be more sensitive to consumer
demand, and with another group of global players. Additionally, the sales and
pricing of higher-end Western cosmetic brands in Vietnam may also be affected by
economic instability or exchange rate changes (Euromonitor International, 2022).
2.1.2.2. Sulwhasoo and some typical Vietnamese brands
While Korean brands like Sulwhasoo have a strong presence, several
Vietnamese cosmetics brands have also carved out niches, catering to specific
consumer needs. Among them, Thorakao, M.O.I, and Cocoon stand out as key
players with distinct strategies and target audiences.
 Thorakao

Thorakao was founded in 1961, thus being one of the earliest cosmetics
brand established in Vietnam. The company first became famous by creating
beauty care lines based on the use of Vietnamese traditional herbs. The product
range highlights natural ingredients including turmeric, aloe vera, and grapefruit
extract which have skin benefits in the traditional Vietnamese medicine practices
(VietnamNet, 2022). Thorakao has thrived over the years because it values
addresses upholds traditional beautifying agents even with growing demand from
the consumers. In all these years, the firm has continued enjoying the attributes of
good quality and reliability, which appeals a lot to the mature segment of the
population who appreciates its history and stable assortment of products. By 2022,
Thorakao is one of the major players in the Vietnamese cosmetics industry
regarding traditional beauty care products. The brand, according to the report from
the Ministry of Industry and Trade, holds approximately 10% of the market of
traditional cosmetics (VnEconomy, 2022). Thorakao’s products are readily
accessible through the local pharmacies, supermarkets and other retail shops in
Vietnam thus solidifying its market share within the country. Touching Even
though modern and Western branded products have intensified and are a threat to
Thorakao’s business prestige, the company’s focus on low prices and inventiveness
in making beauty treatments the old way has enabled them retain the market. Its
gradual market movement indicates that the traditional lines of products still hold
the attention and respect of the Vietnamese consumer.
 M.O.I Cosmetic – Ho Ngoc Ha
M.O.I that translates as “Make Over Image” was established in 2018 by the
Vietnamese contemporary singer Ho Ngoc Ha. The company, from its inception,

focused on young, urban women and positioned itself as a trendy and
contemporary cosmetics line. With the help of the celebrity hood and large fanbase
on social media of Hồ Ngọc Hà, M.O.I penetrated Vietnamese market with ease
and speed (Hao Nam, 2021). The brand offers a line of products that contains
skincare and makeup products that are designed for today’s consumers. Due to its
cutting-edge approach to packaging and the creation of its beauty products, M.O.I
makes a sophisticated global product that meets the beauty standards of most
women around the world but understands the beauty of women in Vietnam. M.O.I,
which primarily targets the young and stylish, has worked very well functional
strategies developed within a short time. The brand has been able to capture a
powerful share of the Vietnamese market for cosmetics in a remarkably short time.
A report released by Nielsen in 2021 claimed that M.O.I holds five per cent
modern cosmetic market share which tends to grow among Vietnamese millennial
and Gen Z consumers (Nielsen, 2021). Development of the brand is closely linked
to the active promotion on social networks and through influencers. Thanks to use
of consumer engagement over the internet, M.O.I was able to establish a strong
brand representation and develop a loyal customer base. In addition, the marketing
campaigns engaged Hồ Ngọc Ha which contributed to the wider audience reach of
the brand.
 Cocoon
Launched in 2012, Cocoon the Vietnamese cosmetic venture is a new
venture but has gain ground making a survival success due to its nature and
environment concern. The mission of the brand is to embrace natural resources and
wholesome processes with the intention of satisfying the increased consumerism of

clean and responsible beauty products (VnExpress 2022). Cocoon has also
encompassed other product lines which include skin and personal care products in
which ingredients such as green tea, aloe vera and chamomile have been used. The
brand shows its concern to its audience that those ingredients are sourced from
green and clean practices which is appealing to the green audience. Cocoon has
grown on exponential levels from the onset as has ride on the wave of use of
organic and natural beauty products. Euromonitor International reports in 2022
showed that % of the domestic market for natural cosmetic products is 3% of all
the revenues BCR achieved, such accomplishment of a fresh brand or company is
noteworthy (Euromonitor, 2022). The reputation of the brand has been enhanced
by its principles which do not compromise on sustainability and ethicality. In
addition, Cocoon’s concern for the environment through reducing pollution
through the use of environmentally friendly packaging materials has won it praise
from consumers who appreciate the use of green beauty products. The brand has
also had support in terms of coupled angles for marketing from its online and
offline retail journeys.
The achievements of Thorakao, M.O.I and Cocoon can also be said to be in
line with the prevailing trends in the Vietnamese cosmetics market. For instance,
Thorakao, being a traditional brand, caters to the needs of consumers that are more
inclined towards heritage and authenticity. M.O.I on the other hand is a modern-
day brand that targets the younger generation through, trendy advertisements and
endorsements. With Cocoon, the emphasis is on beauty that is ethically and
environmentally friendly due to the rise in the number of consumers wanting such
products. Such diversity of preferences is an indication of a more healthy and
robust competition within the market. There is an increase in awareness by

consumers regarding various aspects, such as, innovation; quality and ethicality of
products, therefore, the Vietnamese cosmetics market is continuously growing.
These local brands stand a chance to grow and expand since such a phenomenon
occurs because of the congruence between what people want and what the market
has to offer.
Table 2.1: Sulwhasoo and some typical Vietnamese brands comparison
Brand Overview Strengths Weaknesses Opportunities Threats
Sulwhasoo
High-end
Korean
beauty brand
known for
premium
skincare
products
based on
traditional
Korean
herbs.
- Strong
brand
recognition
in luxury
skincare
- Focus on
holistic
beauty and
traditional
Korean
ingredients
- Extensive
global
presence
- High pricing
limits market
to affluent
consumers
- Perceived as
less
accessible to
younger
demographics
- Expansion
into the
premium
segment of
Vietnam's
growing
middle-class
market
-
Collaboration
with local
influencers to
increase brand
penetration
- Intense
competition
from other
high-end
international
brands
- Cultural
differences
affecting
product
relevance
Thorakao
One of the
oldest
Vietnamese
cosmetics
brands,
- Heritage
and strong
brand loyalty
among older
consumers
- Limited
marketing
innovation
- Outdated
packaging
- Rebranding
to tap into the
eco-friendly,
natural
product trend
- Intense
competition
from both
international
and modern

established in
the 1960s,
focusing on
affordable
skincare
using
traditional
ingredients.
- Affordable
pricing
- Use of
natural, local
ingredients and design
- Adoption of
digital
marketing to
attract
younger
consumers
local brands
- Changing
consumer
preferences
towards
trendy
products
M.O.I
A
contemporary
Vietnamese
cosmetic
brand
launched in
2018, heavily
endorsed by
Vietnamese
singer Hồ
Ngọc Hà.
- Strong
celebrity
endorsement
- Trendy,
affordable
products
- Active
digital and
social media
presence
- Limited
product range
focused
mostly on
makeup
- Dependence
on the
personal
brand of Ho
Ngoc Ha
- Expansion
into skincare
products
-
Collaborations
with other
celebrities to
broaden
appeal
- Risk of
brand image
being
affected by
changes in
Ho Ngoc
Ha's
popularity
- Fierce
competition
in the
youthful
cosmetics
market
Cocoon
A rapidly
growing
Vietnamese
brand known
for natural,
- Strong
focus on
sustainability
and ethical
practices
- Limited
international
presence
- Potential
difficulty in
- Expanding
product line to
meet growing
demand for
natural and
-
Competition
from
established
global

vegan, and
cruelty-free
products
using locally
sourced
ingredients.
- Use of
local, natural
ingredients
- Affordable
pricing for
natural
cosmetics
differentiating
from other
natural-
focused
brands
vegan
products
- Leveraging
e-commerce
platforms for
growth
natural
brands
- Regulatory
challenges
related to
maintaining
certifications
(Source: By author)
 Branding and positioning
Sulwhasoo, unlike Thorakao, M.O.I, and Cocoon presents different branding
and market positioning strategies. Sulwhasoo is a sophisticated modern luxury
brand that combines Korean herbal medicinal values and technology with Coré’s
high-income earners in mind it’s all about prestige. In contrast, Thorakao targets
cost-focused consumers who seek authenticity and the use of homegrown raw
materials, including the ones that have been on the market for decades or centuries.
M.O.I concentrates on young customers who are aware and fashionable in the
current trends, and it is also known for using famous people and very appealing
young people packaging to market its products to the millennials and generation z.
As for Cocoon, its objective market consists of people who care about the
environment and want to buy healthy products in green packaging. The market
share of premium skincare brands has been dominated by Sulwhasoo, while the
brand Thorakao has also been actively presenting inexpensive traditional products.
Instagram and other social networks, as well as a big star M.O.I’s having
popularity among young generations has been the reason for the brand’s fast
growth. Founded later on the eco-oriented market, Cocoon is seeing less inflow of

funds as it caters for the growing demand for ethical brands. In this way each brand
appeals to consumer values in a different way – luxury, tradition, environmental
friendliness or trendy convenience.
 Advertising and promotion
Sulwhasoo aims to position and communicate a slightly embellished image
as the advertising policy primarily focuses on high-end fashion magazines and
beauty related publications, and exclusive events to reach wealthier audience.
Many of the campaigns contain sophisticated images and also its girlish attitudes
alongside with famous models to promote the brands advanced history and skin
science (Sulwhasoo, 2024). On the other side, Thorakao executes a more simple
way of advertising by broadcasting commercials on local television and placing
print media ads as well as advertising at the point of sale. The center of concern is
on the brand’s history, low prices, and brand credibility which is favorable to its
target audience which is core and price averse (VietnamNet, 2022). M.O.I, on the
other hand, is significantly more current in its advertising and promotional
activities, as well as its marketing strategies, and has turned to social media
networks like Instagram, Facebook, and Tiktok with the implementation of
celebrity endorsements and brand influencers targeting dynamic youthful
audiences with bright and stylish photographs (Hao Nam, 2021). Cocoon, on the
other hand, emphasizes its responsibility for nature and society and aims to build
the image of the brand through the dissemination of information about the natural
materials used in production. Its advertising campaigns are simple and do not
contain images but rather present information on the principles of using the
products in an eco-friendly way, aimed at people who care about the environment
(VnExpress, 2022). Every brand customizes its advertising depending on the target

market which ranges from high expensive commodities to a culture of saving the
environment.
 Distribution channels
For instance, Sulwhasoo will pursue a high-end distribution in a bid to
enhance the image of the brand and solidify the luxury positioning. Most of the
brand customers’ products are sold at upscale department stores and specialty
boutiques while exclusive retailers such as Parkson and Vincom Center in Vietnam
are incorporated. Moreover, Sulwhasoo has localized its promotion within the
branded retail facilities, which are found in major cities and offer tailored and
upscale shopping. There is also a large proportion of e-commerce with around 30%
of overall sales expected to come from the internet in the year 2024 through sites
such as Lazada and Shopee (Sulwhasoo, 2024). On the other hand, Thorakao uses a
straightforward distribution technique by making it easy for people to obtain the
products even from supermarkets, local drug stores, and even general retail shops.
With BIC and Coopmart chains, the Thorakao company has also managed to
establish a coverage for its cost-sensitive consumers reaching about 10000 retail
stores countrywide (VietnamNet, 2023). M.O.I concentrates this young group on
special beauty chain stores and fashionable websites, with e-commerce expected to
account for more than 40% of sales in 2024 due to intensive marketing and use of
influencers (Hao Nam, 2024). On the contrary, Cocoon focuses on addressing
customers through its web, sustainable affiliates as well as direct customers,
aiming capture only 50% market of revenue from direct sales in the year 2024
indicative of its narrower market focus (VnExpress, 2024).
 Digital marketing

Sulwhasoo’s marketing offers many cross-connected elements, with the most
influential one being the digital component which is consistent with the high-end
orientation of the brand. This can be attributed in part to brand’s focus on non-
traditional media and high-quality pictures. The gorgeous images and videos
available on their Instagram accounts are centered on the beauty of the product and
the stories behind its savoir fare. The participation of such high-end celebrities in
the brand promotions increases its desirability towards rich classes, for instance
Song Hye-kyo in South Korea. In 2023, Sulwhasoo’s budget for all digital
advertising was about five million U.S. dollars, with a great emphasis on social
media and influence advertising targeted at affluent groups (Sulwhasoo, 2024). In
stark contrast, a different beauty brand called Thorakao uses a thrift digital
marketing design, ‘lasering’ its budget conscious consumers with regular price
cuts. One Facebook page, instead, is for advertising all such discounts, including
the successful discount campaign of twenty percent in the first quarter of 2024,
where the online sales improved by fifteen percent within a span of three months
(VietnamNet, 2024). Thorakao employs contextual advertising on Zalo, a well-
known Vietnamese messaging app as well. M.O.I aims at more youthful customers
by incorporating content that is actively promoted by influencers and offered by
individuals such as Linh Mi on TikTok and Instagram, which helped raised
engagement rates and contributed to a 25% increase in the number of followers
(Hao Nam, 2024). On the other hand, Cocoon focuses on introducing depicted
tactics in its online marketing. For instance, the organic beauty products brand
initiated campaigns such as, Eco-Friendly Journey, which helped raise the
engagement of the public on their online platforms by 18%, all the while
associating the brand with sustainable beauty (VnExpress, 2024).

 Product strategy
To sustain the market, Sulwhasoo is implementing a tight product strategy
based on the high-end and effective luxury medicinal cosmetics which combine
modern technologies and Korean herbs. Their offerings incorporate, among other
things, anti-aging serums, essence, and rich creams where the targeted user is the
rich individual who believes in the power of skin care. True to it’s name-improving
skin quality, Sulwhasoo employs selective technology towards improving skin
hydration, skin uplifting and skin radiance, using marketing enhancers like special
ingredient mixtures and chic containers to emphasize its luxury (Sulwhasoo, 2024).
On the other hand, Thorakao pursues the most primitive product strategy which is
that of cost leadership and regional ethnocentrism. It adds even simpler local
products such as skincare and other personal care items made in simple
formulations with the assurance of product efficacy due to the use of natural
ingredients. Based on these factors, Thorakao positions its product as something
that gives value for money and hence available to many customers (VietnamNet,
2022). M.O.I has a modern product strategy which is in congruence with its chic
youthful image. The brand has a wide range of skin and beauty products capable of
newer trendy ingredients and formulations. Product ranges are frequently updated
in line with prevailing beauty seasons, designed with beautiful packs and promoted
with celebrity images (Hao Nam, 2021). The focus of Cocoon's product strategy is
to promote natural and sustainable beauty through the provision of organic skin
care products that are produced through Eco-friendly means. Its offerings do not
include synthetic additives and most of them have environmentally safe
certifications supporting the green consumers. (VnExpress, 2022).
 Pricing strategy

Sulwhasoo uses a price-setting approach that helps reinforce its focus as a
brand positioned with high-end products. Some products like high-performance
serums and creams are priced higher than most rivals and thus target the wealthier
segment of the market, which is ready to spend on quality skin care products. This
approach is in line with Sulwhasoo’s strategy that places great importance on rare
and quality components and modern mechanisms, which justifies its high-end
brand image, exclusivity in terms of distribution and premium pricing of its
products (Sulwhasoo, 2024). On the other hand, Thorakao takes full advantage of
the existing market by practicing a value-for-money pricing mechanism that is
aimed at being affordable and accessible. Selling at lower price levels than most
international brands, Thorakao seems to cater to the demographic of consumers
who are looking for effective and trustworthy skincare solutions but are very much
cost conscious. This strategy is consistent with the emphasis of the brand on the
inner market, which provides greater values despite lower prices and good quality
helps win over the price sensitive customers (VietnamNet, 2022). M.O.I adopts a
pricing approach which ranges between mid and premium pricing and does not
compromise on style or the chic image. Its pricing is however inclusive of young
trendies who keep up with fashion even though it is above the normal policies of
local brands. To keep customers engaged and stimulate sales, the brand is also
known to offer a number of discount sales regularly (Hao Nam, 2021). Cocoon’s
pricing strategy is rated from mid-range to premium indicating the brand’s
strictness towards natural and eco-friendly materials. It is true that the prices also
consider the costly organic materials used, as well as the costs incurred in eco-
friendly practices, hence targeting primarily a small group of consumers who are
conscious of the environment and its sustainability (VnExpress, 2022).

Table 2.2: Sulwhasoo and some typical Vietnamese brands’ price comparison
Brand Product Description Price (VND)
Sulwhasoo
First Care
Activating
Serum EX
A luxury serum designed to boost
skin vitality and radiance. 3,200,000
Concentrated
Ginseng
Renewing
Cream EX
Premium anti-aging cream with
ginseng to enhance skin firmness
and elasticity. 4,500,000
Essential
Balancing
Water EX
Hydrating toner that balances and
refreshes the skin. 2,200,000
Thorakao
Herbal
Whitening
Serum
Affordable serum for brightening
and evening out skin tone. 120,000
Anti-Aging
Herbal Cream
Traditional herbal cream aimed at
reducing signs of aging. 150,000
Balancing
Herbal Toner
Toner with herbal ingredients to
balance and refresh the skin. 100,000
M.O.I
Glow Serum
Trendy serum with brightening and
hydrating properties. 450,000
Radiance
Night Cream
Cream designed for overnight anti-
aging and radiance. 550,000
Hydrating Refreshing mist designed to hydrate 300,000

Mist and set makeup.
Cocoon
Organic
Brightening
Serum
Natural serum with organic
ingredients for brightening. 250,000
Green Tea
Revitalizing
Cream
Cream with green tea extract for
hydration and revitalizing. 350,000
Aloe Vera
Toner
Natural toner made with aloe vera
for soothing and hydrating. 220,000
(Source: By author)
 Loyalty programs
Sulwhasoo utilizes a high-touch loyalty strategy based on exclusivity,
personalized service, and attention giving rewards for engagement. The “Loyalty
Circle” provides its members access to custom made skin care treatment,
participation in select VIP functions, and sneak peek of newly launched products;
thereby highlighting the prestige value of its offerings and earning the devotion of
well-heeled clientele. The loyalty program goes further to incorporate points that
are awarded to its members and later availed, to purchase items from the company,
promoting repeat purchase behavior (Sulwhasoo, 2024). Thorakao constructs
loyalty by low pricing and heritage taken together, enables customers to avail
loyalty cards with points that they can use to get either discounted or
complimentary items. This strategy together with price promotion strategies cut
and price stability attracts value seeking customers who want good quality yet
affordable skin care (VietnamNet, 2022). M.O.I uses influencers and social media

content in strategies directed at the youth to curb product loyalty. In its “VIP
Club”, members are entitled to product sampling and discount privileges prior to
the official launch of the products most of which are normally advertised via social
media and through contests which the target audience is highly geared towards
(Hao Nam, 2021). At Cocoon, customers are train to be loyal by being sustanmility
focused. Customers are encouraged to recyle and buy green products through the
“Eco-Rewards Program”, which is points based. This method is effective to those
who care about the environment and is also backed up with campaigns that
promote ethical beauty standards (VnExpress, 2022).
 Partnerships and collaborations
Sulwhasoo strengthens its premium positioning by associating with well-
known personalities and fields. In 2023, the famous brand teamed up with the
South Korean actress Song Hye-kyo for its luxury skincare line campaigns and
organized private events including a gala dinner at the Park Hyatt, Seoul. In
addition, Sulwhasoo increased its presence in luxury department stores in Vietnam
such as Vincom Center and Parkson, which resulted in a 15 percent growth in sales
in the premium segment (Sulwhasoo, 2024). On the other hand, Thorakao stresses
availability via building ties with mass retailer chains including Big C and
Coopmart. A partnership with actor Duy Khanh from Vietnam in 2023 helped
increase brand awareness thereby resulting in a 20 percent increase in sales. These
strategies signal Thorakao’s emphasis on low pricing and mass-market penetration
(VietnamNet, 2024). M.O.I creates conduits of connections with the youth through
influencer partnerships. In 2024, beauty influencer Linh Mi gave an Instagram and
TikTok interactive campaign which led to a 30% increase in online sales and a
25% increase in social media followers (Hao Nam, 2024). Cocoon places a priority

on sustainability, collaborating with EcoMart and activist Mai Lan to promote their
goals in 2024. Such initiatives which support green beauty practices led to 15%
increase in brand awareness while the range of sales under the ‘green’ name grew
by 10% (VnExpress, 2024).
 Regulatory Environment
Being an internationally premium brand in Vietnam, Sulwhasoo must follow
providing products of high level of quality and the safety guidelines set by the
Ministry of Health. In 2023, the law which brought about changes in how anti-
ageing or retarding products are released into the markets made product launches
to be postponed, thus showing a higher sense of need for the brand to abide by the
local and global standards (Vietnam Ministry of Health, 2023). However, as a local
company, Thorakao has fewer barriers to entry although it has to comply with local
cosmetic standards. For instance, in 2022, it prepared to comply with the rules of
the new reporting system, which improved reporting of the procurement of raw
materials used in the manufacture of the company’s cosmetic products
(VietnamNet, 2022). Trendy as M.O.I is, it also encounters difficulties with the
law as far as the marketing and product claims of the company are concerned. In
2024, the company revised the promotional claims of its anti-aging serum in
accordance with a regulatory assessment, based on the Ministry of Health's policy
(Ho Chi Minh City Department of Industry and Trade, 2024). Cocoon built its
vision on products that are purely natural and organic, without exceptions, and
designed its product’s certifications and packaging for sustainability purposes.
Also, in 2023, it achieved the certification from Vietnam Organic Association Trust
Certification which was a boost in consumer confidence as well as defending its
image in the eco-friendly market (VnExpress, 2023).

 Cultural considerations
Sulwhasoo celebrates and showcases the narrative of the Korean culture in
beauty, in which modern beauty elements are incorporated in traditional Korean
skincare routines. The company also emphasizes its rich history by sharing
anecdotes about the ancient regimes of beauty and the properties of herbs like
ginseng which is quite popular as an anti-aging ingredient. This is particularly
important to Vietnamese consumers who are after high-class and well-designed
skincare products which are culturally driven and incorporate the science of
skincare, that is the beauty of Korean beauty (Korean Beauty Market Report,
2024). Thorakao is a typical local brand with a focus on traditional values to
illustrate the use of local raw materials. Its promotions tend to include images or
references to elements such as Dinh Lang festivals and beauty concepts of the
place where the consumer resides, aiding in the construction of the brand as an
ethnic, reliable option for those prioritizing Western aided organic beauty
(Vietnamese Cosmetic Trends, 2023). M.O.I reaches out to the younger crowd
particularly the trend-driven segment, by the usage of local celebrities and
influencers in its advertisement campaigns. The ad campaigns tend to focus on
famous people with modern styles that are appealing to the targeted demographic
together with a relevance to the audience’s culture (Vietnam Youth Market
Analysis, 2024). Cocoon’s marketing strategy also addresses the increasing
sustainable ethos in Vietnam through the strategization explaining the use of
natural materials and recyclable materials for packaging. This is because it is
consistent with the morals of their clientele regarding the preservation of the
environment and appealing to the consumers of beauty products that are ethically
and health wise safe (Sustainable Beauty Trends in Vietnam, 2023).

2.1.3. Market segmentation: target audiences
Sulwhasoo, which is a high-end skin care brand from South Korea, attributes
its success to the combination of modern skin care techniques and age-old Korean
traditions of herbal medicine. It has been able to place itself as a unique luxury
skincare mark where cultured and sophisticated consumers easily relate to. As
such, it is important to understand Sulwhasoo’s target audiences as one of the
factors affecting the way the brand operates in the highly competitive beauty
market in Vietnam. This section includes insights on both the geographical and
social segmentation of Sulwhasoo's target audience with appropriate data and
illustrations provided.
2.1.3.1. Demographic segmentation
Age: Sulwhasoo makes most of its sales to people aged 30 to 55 years, who
are the core of the brand as its product range focuses on anti-aging and skincare
measures which take care of issues of wrinkles, fine lines, and skin elasticity
among other things. Being a premium brand, Sulwhasoo appeals to women who
are showing the first signs of aging and are looking for a high-end, classy skincare
range. Vietnam’s demographics create a fertile ground for the target market of
Sulwhasoo. Based on the World Bank (2022) data, the median age in Vietnam is
32.5 years, and the country is said to boast a middle-class growth rate that is
increasing. This makes the country the perfect market for agrising demographic
consuming anti-aging skincare products. Also, the increasing life expectancy in
Vietnam which is currently at 76 years has elevated the need for anti-ageing
products (World Bank, 2023).

Gender: While the primary target audience of Sulwhasoo is women, the
skincare line has also developed and included men’s skincare products. This is
because Sulwhasoo understands that nowadays visages have become a priority to
all people that’s why skin care is no longer biased but almost everyone is involved
especially in the town cities where people’s jobs and socialization revolves around
looking good. Most of the clients of Sulwhasoo brand are women, especially those
of the engaging in discretionary spending, but the male skincare market avails
room for expansion. The available data from the report by Nielsen focused on the
beauty and personal care products markets in Vietnam in 2021 shows that 67% of
women in urban areas use skin care products while only 31% of men (Nielsen,
2021). This indicates that even though most of the customers are women, a larger
share of the market is still available for men’s grooming and skincare products.
Income Level: As a luxury brand, Sulwhasoo primarily focuses on the high
income consumers who can easily afford goods with disposable incomes. The
brand's price range differs significantly from mass-marketed skin care brands; for
instance the price of each item is often between the range of 50 and 200 US dollars
showing clearly the high positioning of this brand. In Vietnam, the increasing
number of middle class and upper-class citizens, especially in cities like Hanoi and
Ho Chi Minh, has provided a ready market for high-end brands for these segments.
The per capita GDP of Vietnam has been on the rise on an annual basis whereby in
2022, it hit a record of USD $3,600 (World Bank, 2023). This has certainly
propelled the economy and continued to expand the middle class, which is
projected to account for 50% of the population by 2035 (McKinsey & Company,
2021). This population group is known to spend heavily on premium offerings,

especially on beauty and wellness dating Sulwhasoo’s target market to be a specific
segment in the overall cosmetics industry.
2.1.3.2. Psychographic segmentation
Sulwhasoo is targeted at those women who have the highest product
standards and are prepared to pay for the upscale skincare. These constituents are
more inclined towards skin care regimes, portraying beauty as one of the essential
aspects of the self-care. The brand employs other modern ingredients from the west
like ginseng and white lily all in one package to cater for those who want old and
modern effectiveness. Most women in this category also believe that super white
prices are equated with efficiency and quality of the skin care products and the
results. They do not simply take, but are appreciating and taking the history,
people, and ideology that the brand represents. According to Euromonitor
International (2022) report, 45% of Vietnamese consumers are ready to pay a
premium for beauty products that deliver high quality and effective results, which
stands in line with positioning of Sulwhasoo.
Another important psychographic segment for Sulwhasoo are those who are
proponents of mental and physical beauty. Such consumers lead a rather active
lifestyle and understand skin care as one of the elements of overall wellness rather
than an isolated process. This works for her as well because Sulwhasoo has a
philosophy which employs Korean indigenous plants in its beauty practices. A
Mintel (2022) study found that 35% of Southeast Asian, particularly Vietnamese,
shoppers prefer wellness-infused natural sweetness in beauty products. This is also
true of Sulwhasoo with its use of herbal ingredients and herbal-based skincare
rituals.

2.1.3.3. Behavioral segmentation
Sulwhasoo focuses on high-involvement consumers who are ready to cross-
check and analyse the ingredients used in the skincare products of their choice. She
is well-versed in the components of skin care, the aspect of skin care, the regimes
involving skin care and the use of anti-aging medicines, including their rationale.
Purchasing decisions hardly come easily and such consumers often settle for expert
opinions, online reviews and feedback and sometimes even a talk around. For
instance, based on findings from a survey carried out by L’Oréal (2022), there
abound 72% of Vietnamese women who look up for information on products
online prior to purchasing them especially in relation to the super premium
skincare category. Such high-involvement process of making purchase decisions is
one of the hallmarks of Sulwhasoo’s marketing approaches that mainly focus on
the benefits and history of the products as explained on the brochures and videos
elaborating on them.
Another area where Sulwhasoo is strong on is that it encourages its
customers to remain loyal to the brand. Considering the high cost of purchasing the
products, the company does not simply wait for all comers seeking for sales or new
customers within the territory. It focuses on customers who are likely to repurchase
the brand thanks to the useful aspects experienced. This type of loyalty is
maintained through special membership services, unique beautician services, and
high-quality in-store facilities. In particular, Vietnamese market has a good
incidence of brand loyalty in the luxury beauty market; 64 % of the customers state
that they remain loyal to brands (Nielsen, 2021). Using this behavior, Sulwhasoo
builds brand aspiration and satisfaction amongst its core audience of wealthy and
older consumers.

2.1.3.4. Geographic segmentation
Sulwhasoo Vietnam focuses on targeted regions which include major cities
such as Hanoi, Ho Chi Minh City, and Da Nang. These are the cities with the most
affluent population and premium retail space where Sulwhasoo has set up its
shops. Urban dwellers are largely exposed to global beauty trends, have disposable
incomes, and have a strong preference for skin care products. In 2021, 35% of the
total population in Vietnam was reported to be urban-based, though it is projected
this would rise to 45% by 2030 (Statista, 2023). Thus, urbanization is a very great
potential possibility and will allow Sulwhasoo to further develop its market by
targeting those upscale urban consumers who are the most tend to be obsessed with
the luxury skincare products.
Geographically, Sulwhasoo is also targeting the growing e-commerce sector
in Vietnam. As more consumers turn to online shopping for convenience,
Sulwhasoo has made its products available on major e-commerce platforms such as
Lazada and Shopee. The e-commerce market in Vietnam is growing rapidly, with
revenue projected to reach $29 billion by 2025, driven by increased internet
penetration and online purchasing behavior (Statista, 2023).
2.1.4. Consumer preferences and purchasing decisions
The Vietnamese cosmetics market has many aspects that affect consumer
behaviours and attitudes towards purchasing certain goods. Among those factors
are the quality of cosmetics, a reputation of a given brand, the tendency to manage
one’s expenses, and trends within the society. This is very important and especially
to a brand such as Sulwhasoo that intends to build its presence in such a saturated
market. This section will focus on the factors that influence consumer preferences

and the reasons behind purchasing particular goods based on evidence and market
analysis. Women in Vietnam have very high expectations when it comes to the
quality and the performance of cosmetic products. With more people, especially in
the cities, taking up multi-layered skin care practices, there is more need for
products that actually work. These days, it is not unusual for a consumer to seek or
even demand to know the ingredients or the formulation of a cosmetic product
simply because the beauty industry is so saturated with fashion blogs and even
social media. Reported in a study carried out by Nielsen (2021), 72% of
Vietnamese women would regard the quality of the products as the key
consideration in skincare and beauty issued. This has also seen the upward trend in
the number of high-end skincare lines, one being Sulwhasoo, which gives more
attention to claiming the role of the company’s Korean herbs in anti-aging
treatments. From this perspective, Sulwhasoo’s offering of ginseng and white lily
that is of a high-grade natural composition is likable by the Vietnamese because
they are now understanding the importance of high-grade products in the long run.
In the beauty market of Vietnam, consumer preferences are highly
influenced by brand reputation. Consumers are more willing to pick well-regarded
brands such as those whose quality and effectiveness are guaranteed especially in
the premium markets. Korean beauty brands commonly known as K-beauty have
gained from the situation through marketing which is product oriented and relates
the culture. For Sulwhasoo as a skincare brand that boasts of its Korean Traditional
Practices, much has to do with the fact that K-Beauty is gaining popularity within
sites in Vietnam. The marketing reinforcement mainly comes from other strategies
which include the influence of the celebrities who are considered as beauty
ambassadors for these Korean products. Kantar Worldpanel's (2020) research

indicated that 45% of Vietnamese consumers are prone to most of the
endorsements except for the sponsored ones in the beauty sector. Also referred to
as the K-Wave or the Korean Culture Wave, Hallyu, consisting of K-Pop, K-
Dramas and the K-Beauty settings has led to an overwhelming love for things
Korean among many, thus making options such as Sulwhasoo which combines
luxury and culture quite easy to find.
Although the consumption of premium beauty products has been on an
upward trend, the aspect of price concern is still a cardinal factor that determines
whether or not such products are bought, especially for the middle class segment. It
is understandable that high-end consumers can go for quality regardless of the cost,
however, a greater percentage of the market still considers the cost quite deeply
when purchasing skin care products. According to a study done by Euromonitor
International (2021), 68% of the local population in Vietnam take the price into
account when buying beauty and personal care goods. This is particularly difficult
for high-end luxury brands like Sulwhasoo whose prices are significantly above the
mass market alternatives. In response to this challenge, Sulwhasoo explored
innovative approaches, such as smaller product sizes and sample kits that allow
customers to try out the brand’s products at cheaper rates before purchasing the
full-size products. In addition to this, offers and discounts through online apps have
also been influential in reaching out to such customers who are very concerned
with prices. Growing e-commerce in Vietnam facilitates flash sales and bundle
offers, especially for brands that are present online or directly registered on Shopee
and Lazada. As published in Statista (2023), it is observed that E-commerce market
in Vietnam will expand at a rate of 19% each year and one of the emerging
category will be beauty and personal care products.

An additional major tendency that affects the consumers' decisions in
Vietnam is the preference for organic and safer skincare lines. Along with the
concern about what goes on their skin, the appeal of paraben-free, chemical-free,
and synthetic fragrance-free products has grown exponentially. This is more
apparent among younger consumers who are known to be more concerned with
sustainability and health in what they consider beauty. According to Mintel (2022),
58% of Vietnamese consumers reported that they would rather have skincare lines
that contain natural ingredients than those that do not. This is consistent with the
global trend in the beauty industry that espouses clean and green beauty. Fashion
company Sulwhasoo that focuses on using natural herbal products benefits from
this. The application of natural products such as ginseng and white lily by the
company does not only serve the purpose of meeting customers’ wants for efficient
skin care products but also achieves their goals of providing safe and natural
products.
The development of e-commerce and social media platforms has completely
changed the behavior of Vietnamese users relating to the search and purchase of
beauty products. Now, the factors, which determine whether an individual will buy
a product or not, include online reviews, recommendations of influencers and
social media as well. With most consumers looking for and buying beauty products
in the Cyber Space, brands such as Sulwhasoo have equally developed and
maintained a strong presence in many digital means of communication. As L’Oréal
(2022) in information research shares: ‘74% of Vietnamese beauty consumers
active online research products before any purchase and out of this, 42% use e-
commerce to complete the purchase.’ Social networks such as Instagram,
Facebook, and TikTok help a lot, especially to those who share many product

reviews and skin routines stars and beauty experts. The endorsement of Sulwhasoo
by beauty gurus and social media influencers has assisted the company in winning
the trust and loyalty of tech-advanced consumers. On the other hand, Sulwhasoo
has integrated online sales through e-commerce websites Porta Zala and Shopee.
These services come with the comfort of delivery services, special offers, and the
ability to read the feedback of other consumers before purchase. The beauty and
personal care segment of Vietnam's e-commerce market in 2022 was also one of
the most rapidly expanding sectors, representing 23% of total online sales (Statista,
2023). Thus, these channels have become easy access for wider and better branding
for Sulwhasoo.
2.1.5. Brand perception: Vietnamese consumer views on Korean cosmetics
Korean beauty products, popularly known as K-beauty, have succeeded in
penetrating the Vietnamese market for the last ten years or so, thanks to cultural
and marketing factors. According to Vietnamese consumers, Korean beauty
products are appealing and advanced, and these products are often directed towards
the effective solutions of skin care problems and beauty ideals propagated through
the Korean culture. In this section, the positive perception of Korean cosmetics in
Vietnam will be analyzed and supported with data, figures and market analysis.
In Vietnam, Korean cosmetics are favored largely due to the cultural effect
exerted by the Korean Wave, otherwise known as Hallyu. It is apparent from the
growing use of Korean entertainment products such as K-pop music and K-dramas
as well as beauty vloggers that Vietnamese consumers’ tastes in beauty products
have changed so much that they can now accept these products. Such societal
constructs see Korean stars as beauty standards or ideal women, thus their perfect

skins and attractive looks create a market for the products they promote. As shown
by research done by Kantar Worldpanel (2021), 62 percent of the Vietnamese
respondents cited Korean popular culture as a factor when making beauty
purchases, which has the highest rate. Idealized images as seen in Korean media,
like clear, moist skin, have been adopted as the most desirable form of conveying
beauty in Vietnam, and even more so in the youth. Other including ethnic Korean
beauty rituals like the 10-step skin care game and using supplementary elements
such as ginseng and snail secretion has also become common. Because of this, so
many brands such as Sulwhasoo, Innisfree, Laneige or The Face Shop have
become regarded as aspirational among the Vietnamese population. This is also
true for people born in the 90s since they are more risk takers when it comes to
beauty and tend to follow the current hottest Korean beauty practices by the
celebrities they adore.
In recent years, consumers in Vietnam regard Korean cosmetics as high
quality and innovative products. The development of Korean beauty brands is
especially world-class, from product developments to ingredient sourcing, which
attracts more and more Vietnamese consumers who care about the efficacy and
safety of the products in their daily skin care rituals. According to a Mintel (2022)
survey, 68% of respondents from Vietnam showed a preference for skin care
products with innovative types of formulation. Korean brands are well known for
the advancement of these types of skin care regimes by incorporating such
techniques into their products as fermentation and multi step routines unlike
western regimes which are considered basic and ineffective. For example,
Sulwhasoo has gained popularity with its lavish products designed with aged
ginseng and other exotic herbal ingredients aimed at filling nods for anti-ageing

solutions. In addition, it is believed thatey’s skincare products provide a reasonable
value for the amount paid for them. There is a large disparity among consumers
where despite the products being positioned as premium in the market, many a
sales of Korean brands have priced several cheap oriented mass market products
but the quality has still been maintained. This combination of reasonable pricing
and creativity is one of the reasons K-beauty has surged in popularity among the
Vietnamese people.
The aesthetic appeal of the packaging of Korean cosmetics serves another
advantage to brand image in Vietnam. Korean beauty products are usually
packaged with sophisticated, bright, and fashionable bags which attracts the
attention of the young Vietnamese who love social media mostly Instagram and
TikTok. The chic non-functional aspect of Korean cosmetic items also works in
their favor as the beauty conscious consumers have the tendency to upload video
blogs of themselves unboxing and performing the skin care regimens. There is a
report published by Nielsen (2021) which indicated 35% of beauty consumers in
Vietnam regarded the aspect of design of a beauty product packs as very important
when making decisions on the specific beauty product to purchase. Korean high
demand for packaging targeted the younger market age group quite successful as
many of these people love minimalist and floral prints that appear young threes
who are so out of active.
Besides, the fact that Korean cosmetics are deemed safe and possess natural
properties further improves the ability of Vietnamese consumers to appreciate these
products. Within the advert of Korean beauty brands, a lot of emphasis is placed on
the fact that they only utilize organic, natural and mild ingredients, a factor which

resonates well with the health conscious Vietnamese consumers who are sensitive
to products containing chemicals and in particular to the products used on their
skin. According to the findings of a study conducted by Euromonitor International
(2021), more than half (52%) of Vietnamese consumers tend to use beauty
products containing natural ingredients, including but not limited to green tea, aloe
vera, and ginseng. Brands such as Sulwhasoo and Innisfree make sure to follow
suit by incorporating traditional plant-based ingredients into their advertising
strategies and promoting the green aspect of the brand. Consequently, Korean
cosmetics industry has gradually developed a clean image towards many
consumers who are environmentally conscious and prefer clean beauty.
The booming e-commerce in Vietnam is partly responsible for the increasing
popularity of Korean cosmetics. Online beauty platforms and marketplaces
including Shopee, Lazada, and Tiki have emerged leading to improved exposure
and better consumption of Korean beauty products among Vietnamese people.
Most of these platforms have unique offers, limited time prices, and engage social
media stars for promotion making K-beauty brands more visible and easy to reach.
In a Statista (2022) report, it was noted that beauty and personal care segment
equaled 21 percent of total e-commerce sales in Vietnam in 2021, with Korean
brands being among the most consumed. Social media influencers and beauty
bloggers have also proved beneficial in the marketing of the Korean cosmetics as
their reviews and tutorials on the products give the Vietnamese purchasers an
overview on the products and how they work. According to a survey by L’Oreal
(2022), 44% of the consumers in Vietnam are influenced by online reviews and
preferences of the purchasing agents when deciding what to buy.

Korean cosmetics are largely viewed positively, but there are challenges that
these brands have to overcome in Vietnam. Price sensitivity still plays a huge part
for middle- to lower-income classes of consumers. Premium brands such as
Sulwhasoo target rich people, but the rest of the population may find it difficult to
purchase such products because of the high prices. Also, the growing availability
of fake Korean cosmetics within the country threatens many users’ trust in the
brand, as the consumers are likely to find inferior or counterfeit goods in some
retail shops which are not official sellers.
2.2. Survey about Brand awareness of Sulwhasoo compare with other
brands
Based on the findings of the survey done on 180 consumers, it was found
that 61.11% of them claimed to know the brand Sulwhasoo which is a sign of good
brand recognition among the survey participants. This implies that the brand has
penetrated successfully into the market with the targeted groups being the
consumers of high-end skincare products. On the other hand, 38.89% of the
respondents claimed they were not aware of the brand, which is an indication of
the possibility for Sulwhasoo to promote itself further to different consumers. All
in all these findings indicate that there are certain objectives that need to be
achieved in ‘Sulwhasoo’ brand’s marketing strategy to ensure potential clients who
are yet to avail of the company’s products are made aware of their existence.

61.11%
38.89%
Yes No
Figure 2.2: Are you familiar with the Sulwhasoo brand?
(Source: By author)
In the research concerning the ways of awareness of Sulwhasoo by the
different consumers, it was found that 37.50% of the respondents learned about the
brand from television and internet advertisements, demonstrating the reach of
digital marketing to potential consumers. Recommendations from friends and
relatives were also important, as 29.17% of the subjects mentioned these personal
introductions to Sulwhasoo. KOL and celebrity promotions reached 15.00% while
other social media sites such as Facebook, Instagram, and Tiktok, used 10.00% for
generating awareness on the brand. Also, 6.67% got to know Sulwhasoo through e-
commerce platforms whilst only 1.67% stated other respective channels – thus
reiterating the call for directed marketing and relationships toward expanding
peoples insight about the brand.

37.50%
29.17%
15.00%
10.00%
6.67%
1.67%
TV/Internet advertisements Friends/Family recommendation
KOL/Celebrity endorsements Social media (Facebook, Instagram, TikTok, etc.)
Online shopping platforms (Shopee, Lazada, Tiki) Other
Figure 2.3: How did you learn about Sulwhasoo?
(Source: By author)
To illustrate the opportunity for the brand to increase its market penetration,
it is worth noting that an astonishing 92.78% of respondents indicated that they
have never used Sulwhasoo products. However, on the other hand, a small
percentage of 7.22% of the participants claimed to have used the brand Sulwhasoo,
which indicates a growth potential for engagement and trials for the brand among
consumers.

92.78%
7.22%
No Yes
Figure 2.4: Have you ever used Sulwhasoo products?
(Source: By author)
Concerning the buying behavior of Sulwhasoo products, 46.88% of the
respondents favor the official stores which shows the tendency of consumers
especially women to buy from authorized sellers in order to avoid buying
counterfeit products. In contrast, 22.92% make use of the official site suggesting
that there is a rising demand for luxury beauty products on the internet. Social
Commerce Platforms such as Shopee, Lazada, Tiki account for 18.75% of the
purchases which shows the availability and ease of access to the products.
Moreover, 11.46% of the respondents carry the products from overseas implying
that global exposure also affects the choices of consumers. This evidence provides
the various purchasing channels that the potential buyers of Sulwhasoo products
make use of.

46.88%
22.92%
18.75%
11.46%
Official stores Official website
E-commerce platforms (Shopee, Lazada, Tiki) Hand-carried from abroad
Figure 2.5: Where do you usually purchase Sulwhasoo products?
(Source: By author)
Skin care category is one of the major areas of interest among respondents
on the range of Sulwhasoo products that is hard to miss at 45.83% for serums,
essences and creams. This goes a long way in reinforcing the positive perception
that the patrons of this brand have towards its skin care solutions as effective and
of great quality. After skin care, 29.17% of consumers showed interest in other
beauty products specifically make up products such as foundation, lipstick and
cushions which are auxiliary to the aforementioned products. In addition to that,
15% are concerned with anti aging solutions pointing out the level of concerns for
skin with regard to the age factor. Finally, 10% of the survey respondents showed
an interest in more natural or traditional products highlighting Sulwhasoo’s

innovative stance towards a combination of contemporary and traditional skincare
practices.
45.83%
29.17%
15.00%
10.00%
Skincare (serums, essences, creams) Makeup (foundation, lipsticks, cushions)
Anti-aging Herbal/traditional products
Figure 2.6: Which Sulwhasoo product range are you interested in/purchased?
(Source: By author)
It can be noted from the survey findings that 63.44% of the individuals
surveyed have experienced South Korean cosmetics, thus revealing the tremendous
attraction and effective marketing of K-beauty products. After South Korea, the
cosmetic use was second place in Vietnam with 36.11% of the respondents,
suggesting an emerging trend towards an appreciation of local businesses. There
were Japanese cosmetics as well, 25 percent of the participants claimed to have
used products hailing from the innovative and quality driven country.
Subsequently, 19.44% of persons used cosmetics from France, which are known
for their elegance and class. Some other regions like Thailand and Europe
(geographically except France) recorded lesser usage frequency indicating that

cosmetics and beauty products from Korea and Vietnam are the most preferred by
consumers in Vietnam.
63.44%
36.11%
25.00%
13.89%
19.44%
12.00%
4.00%
South Korea Vietnam Japan
Thailand France Europe (excluding France)
Others
Figure 2.7: Which country’s cosmetics have you used?
(Source: By author)
The responses indicate that 77.78% of those surveyed are of the opinion that
the quality of Korean cosmetics is the main reason why they are so popular. Also,
65.56% of the respondents emphasize that the products are effective which mean
that K-beauty products are consumer's products with dependable outcomes. Price is
another important factor, with 52.22% of the respondents appreciating the low cost
of the Korean cosmetic products. On top of that, 51.11% of the respondents like
the natural and safe ingredients present in most of these products which enhances
their trust to purchase them. Lastly, 43.33% of the respondents like the Korean

beauty products because of their designs meaning that the packaging of the Korean
beauty products is very important to the consumers.
Better quality More effective
results
Affordable price Natural/safe
ingredients
Attractive
packaging
77.78%
65.56%
52.22% 51.11%
43.33%
Figure 2.8: What stands out about Korean cosmetics?
(Source: By author)
As per the findings of the survey, product quality is the main facet which
consumers look for when buying cosmetics, as attested by 65.56% of interviewees.
After that, 57.78% think that the price has to be reasonable, which reveals that
people wants to get value for their beauty products. In addition, 42.22% consider
brand names to be of importance, implying that trust is an important factor when
buying products. Natural and safe ingredients are also a priority to 36.67% of the
participants, which indicates a shift in focus towards health and sustainability.
Finally, other users’ reviews are important for 25.44% of respondents and
advertisements/endorsement by celebrities for 23.36%, showcasing the relevance
of social proof and marketing.

Product quality
Reasonable price
Reputable brand
Natural/safe
ingredients
Other users'
reviews
Celebrity
endorsements/
advertisements
65.56%
57.78%
42.22%
36.67%
25.44%
23.36%
Figure 2.9: What is the most important factor when purchasing cosmetics?
(Source: By author)
2.3. Discussion
Sulwhasoo, one of the most recognized premium skin care brand from
Korea, has made its inroads into the Vietnamese beauty market. Sulwhasoo’s
further perspective in Vietnam is subject to a number of important factors such as:
market growth rates current and projected economic performance, consumer
behavior patterns, competition, and marketing the brand. In this analysis, attempts
are made along these lines to forecast how the sulwhasoo will perform in the
industry in Vietnam. Vietnam’s cosmetics market has been on the upward trend for
quite some time owing to rising incomes, urban population and beauty
consciousness. Looking forward to 2024, based on the Vietnamese cosmetics
market, it is value USD 2.11 billion and estimates that by 2025, the market will
grow to USD 3.42 billion at a compound annual growth rate of 10.1%

(Euromonitor, 2024). This expansion can be attributed to the rise of the middle
class, a growing appreciation of beauty, and an inclination towards high and
specialty beauty products. Such trends are favorable for Sulwhasoo. The high-end
positioning of the brand meets the growing ready market for sophisticated,
superior, and luxury skin care products. Given the growing wealth of most
Vietnamese customers, especially in cities, risk factors regarding further gaining of
the market share by Sulwhasoo are almost nil. In addition, there is also escalating
demand for anti-aging and overall wellness, which is in line with Sulwhasoo’s
focus on products that incorporate Korean herbs and state-of-the-art skincare
technology.
With the increasing focus on product efficiency, transparency concerning
ingredients, and overall brand quality, Vietnamese consumers tend to be
increasingly selective of the skincare products that they use. Sulwhasoo's high-end
formulation which concentrates on the use of such high-grade ingredient as
ginseng or other Korean traditional herbs places it in a competitive edge in this
changing, rather product-oriented market. The brand's philosophy of blending
modern day skincare practices with traditional ones appeals to people who want
Jnje and Cmette delivery from their skincare systems. Not only that, in recent
developments, companies are also trying to incorporate more technologically
advanced and consumer driven systems to provide their skincare products which
allows solutions to be personalized in a certain way to the consumers Patti. Such
product innovations by Sulwhasoo where they seek to include customized skincare
procedures, more advanced r&d practices and processes under the umbrella of
current skin care modernization strategies perfectly fit in this domain. In this
respect, more recently, Sulwhasoo has introduced skincare products and regimes

based on the individual skin needs of the consumer, further demonstrating the turn
for beauty towards the individual (Sulwhasoo Product Innovations, 2024).
The landscape of the cosmetics market in Vietnam is competitive as it
welcomes many international and local brands. Korean cosmetics companies,
especially Sulwhasoo, are the market leaders, accounting for 30 percent of the
market, with rivals like European brands 23 percent, Japanese brands 17 percent,
and 17 percent own country brands (Vietnam Market Report, 2024). In such a
competitive environment, Sulwhasoo has to contend not only with risks posed by
rival premium Korean brands but also with the risks posed by the upstart domestic
brands which get more attention. Sulwhasoo has to fight for its share and lose less
ground against competition. This means employing unique selling propositions and
implementing strategic measures. For instance, the company needs to rely on its
history more, ensure the level of quality for its goods, and significantly promote
the luxury status of its offers through advertising campaigns. Moreover, as it will
have brand integrations to new markets, active participation in employing social
media influencers or organizing fashionable events will help to keep the consumers
engaged with the brand.
There are many strategic factors that will determine the success of
Sulwhasoo in Vietnam going forward. The expansion of retail network and the
improvement of the online activities of the brand should be prioritized. Since
Vietnam is expected to experience a boom in e-commerce, these initiatives targeted
at enhancing Sulwhasoo's online sales channels as well as their digital marketing
will assist it in achieving its aim of targeting a wider market. For instance,
Sulwhasoo has recently enjoyed increased sales by launching its marketing

campaigns on major online shopping sites such as Lazada and Shopee while
encouraging customers to make purchases (Lazada & Shopee 2024). In the same
vein, both local beauty influencer and celebrities endorsements of Sulwhasoo
brands cultivate attractiveness to the products aiding in penetration to the
Vietnamese market among those young individuals who are mostly on social media
networks. In addition, Sulwhasoo’s initiatives on social responsibility and
sustainability matches the increasing consumer need for ethical practices and
business practices that do not harm the environment. As a result of the sustainable
packaging and sustainable sourcing of the company, environmentally conscious
customers will not only help strengthen the brand image but will help increase
sales of the company’s products.
Even while holding a dominant share in the market, it might be that
Sulwhasoo is experiencing some degree of difficulties. The market dynamics
dictate regular changes to the product in order to sustain the attention of consumer.
Additionally, fluctuations in economic conditions as well as changes in consumer
patterns might affect the performance of the brand. Nevertheless, such difficulties
also create possibilities for Sulwhasoo. As innovation, trends at a minimum, and
enhancement of existing capabilities remain in place, it is possible for Sulwhasoo
to exploit the Vietnamese market where premium skincare products are on high
demand. To ensure that the company continues to grow and maintains its status as
the top premium cosmetics brand in Vietnam, there will be a need to form strategic
alliances, invest in more digital marketing, and aim for sustainability.

CHAPTER 3: MARKETING SOLUTIONS TO IMPROVE SULWHASOO’S
BRAND AWARENESS
3.1. Leverage TikTok for brand engagement
As we speak, TikTok has become one of the popular channels within the
digital sphere more so for the young audiences who appreciate relatable content. In
this sense, KOLs and TikTok influencers can be incredibly helpful in enhancing the
brand awareness of Sulwhasoo. Influencers on TikTok are not only characterized
by the large number of grateful followers, but their audience trusts them, so this
way Sulwhasoo can ‘thank’ every fanned influencer and ‘show’ the products of this
brand. KOLs also prepare exciting and alluring content, such as educational
videos, skin care processes, and entertaining activities that promote the
effectiveness of the brand on Sulwhasoo. This gives potential customers a look-
and-learn opportunity, and helps to instill relatability due to the endorsement.
Hailey Bieber’s product introduction is one of the successful examples of KOLs
usages when she engaged several influencers by sending out samples of her
product, before it was even available in the markets. Inviting those KOLs to speak
about their experience with the product created a stir around the offered goods
among their followers, making them want the products more. This is something
that Sulwhasoo can do too, alright KOLs will be searched and products will be sent
for them to try even before the launch to the fans of the brand. To further enhance
these partnerships, Sulwhasoo sponsors should motivate other performers to do
Vlogs, like Get ready with Me: where Sulwhasoo products are used in the normal
course of the day. Also, include these where there are challenges or hashtags that
ask the audience to post their skincare journeys to increase community bonding
and reach out further.

3.2. Interactive social media campaigns
To achieve better exposure of the Sulwhasoo brand as well as help the
consumers develop better relations with the brand, it will be necessary to make use
of social media campaigns that are focused on engagement. Targeting user-
generated content alongside live showcases will enable Sulwhsaso to reach its
audience and build a center around its products. One useful strategy that comes in
mind is to run campaigns where customers are invited to post and tell of their
nourishing skin regimes with flaunted kakujins in their hands. It can be treated as a
storytelling exercise in which people post pictures or videos in which they
integrate kakujins breath and help to transform each of the skincaring processes. To
make it more interesting and to increase participation, Sulaaosoo can organize
tournaments or lucky draws, which will give contestants a chance to win special
items or gift collections. Such initiatives not only encourage clients to take action
but also helps to gather a lot of valuable and real feedback that can be used in
Sulwhasoo’s marketed dissemination of their social media. This is helpful as
enabled user stories gives the brand management the needed trust and appeal and a
community among the consumers is also encouraged. Furthermore, another
efficient approach is to conduct live sessions featuring beauty specialists or KOLs
on their Instagram and Tiktok pages. These demonstrations also offer the potential
of the demand for a service where attention can be geared towards a specific
dangerous place while providing instructions using the normal sulwhasoo products.
In these arrangements, there are chances for interactions, whereby the viewer can
speak back to the broadcaster without delays, thus enhancing confidence and
prompting on the spot buying decisions. This way, expert beauty advisors would
explain different features of Sulwhasoo product lines, making them applicable for

people with diverse skin concerns. Additionally, incorporating exclusive
promotions during these live events—such as limited-time discounts or bundled
offers—can further drive sales and increase viewer engagement.
3.3. Enhanced online presence
In order to enhance the brand exposure of Sulwhasoo and strike a chord with
the younger generation, it is vital to improve the online presence by means of out-
spoken advertising through and influencer marketing. Therefore, Sulwhasoo can
send out its messages about its products quite effectively through these media. In
this case, the synergy that is created with the beauty influencers that are able to
reach the target audience will serve to improve Sulwhasoo's image. These roles can
include, but may not be limited to, the following types of content, where people
can do a sponsored post, review the product or show how the Sulwhasoo products
fit into their skincare regime with tutorials. As the brand has a number of to
influencers selective with low followers Sharing brand values with these
influencers will help Sulwhosoo in messaging being on point without the
contraction. In addition to that, providing followers of the influencer with special
discount codes together with all the above measures promotes the purchase up and
at the same time adds an exclusive feeling. This serves as motivation for the
followers and encourages them to purchase products from the brand Sulwhasoo,
thus broadening the audience reached and enhancing sales. Another important
tactic to add to the already existing solutions so as to improve the online position
of Sulwhasoo is to buy ad space on social media such as Instagram or TikTok. This
style is particularly favored by the youth who happens to be the main target
populace the brand seeks to reach. Sulwhasoo can make ads that are visually
appealing to the customers and put across the advantages of the commodities such

as traditional Korean ingredients in their products, luxurious in nature and
effectiveness. Employing demographic targeting capabilities, Sulwhasoo can make
certain that its advertisements are visible to the consumers with the highest affinity
to get interested in the premium skincare products. Engaging formats such as short
videos, carousel ads, interactive polls, etc. can help in grabbing the attention of the
target audience and also promoting their interaction. There ads can tell a good story
by highlighting the product usage benefits as well as product user reviews for the
potential targets. Thanks to influencer marketing and targeted social media
campaigns, Sulwhasoo is also capable of scaling up its presence across social
media, which in turn increases brand awareness and loyalty among the young, hip
audience’s trends. But this strategy does not only improves the visibilty of the
brand but also contributes in cementing its reputation in the fierce competitive ring
of cosmetics setting it up for ready expansion in the beauty industry.
3.4. Strategic event marketing
With strategic event marketing, Sulwhasoo has a great chance to build the
necessary brand awareness and connect interactively with its target market. By
holdignpress launch and educational workshops, exclusive to the brand, Sulwhasoo
can offer something which the customers will remember allowing to even more
engage both existing customers and prospects. Inviting loyal customers and
opinion leaders to promotional events for new products is another way of
generating excitement for the launches of new products. Such events might be
organized in a format of several small gatherings where the guests would be able to
try out some of the products that they would be able to review, before the launch,
in quite an extravagant manner. In addition, such events may also offer personal
skin care appointments with a consultant providing clients with the opportunity to

test Sulwhasoo products in individualized tailoring. This not only enhances the
image of the brand, but it also motivates the audience to post about the event,
creating free advertising for the brand and boosting the scope of the product
launch. By adding fun factors, like personal photo capturing or trying products,
enables interaction and creates content which can be put out there in support of the
brand. Another way to instill connecting the brand to the consumers beyond the
certain product is by planning and implementing workshops and master classes
based on Korean beauty traditions, in addition to the exclusive launch events.
These would explain to customers the importance of Korean herbal ingredients and
beauty transformation techniques while demonstrating how they could use
Sulwhasoo product lines in all of their skin care rituals. For instance, through
experiential learning, they will be able to appreciate the different application
techniques of the products as well as the features of every product and the history
of the brand. These educational activities help to portray Sulwhasoo not only as a
skincare brand but also as a teaching brand which encourages the customers to
learn about the products and the brand creating a community around it. Thus, these
event marketing strategies will enable Sulwhasoo to design novel and engaging
experiences that will connect with the consumers, create bonds over time and
enhance brand recognition. In other ways, it means by connecting with people
meaningfully as they come through direct contact with them, Sulwhasoo will stride
qua their market as a premium skincare brand and help in getting customers who
will market the brand themselves.
3.5. Localized marketing strategies
Localized marketing strategies are the key factors that will aid in boosting
Sulwhasoo brand recognition within the Vietnamese market. For instance, through

cultural relevance and the use of local’s popular figures, Sulwhasoo can reach more
consumers and grow its market share. One of the best strategies would be cultural
means in tailoring marketing campaigns to the Vietnamese audience. For instance,
integrating the appeal of those ingredients with the consumers and their practices,
use of ginseng which is seen in both Korean and Vietnamese cultures, in the case
of the brand’s ingredients. For example, these domestic practices can be
incorporated with messages of sulwhasoo being effective and respectful of the
local culture- the higher end skincare range of sulwhasoo to the less expensive
advanced beauty range sold in drugstores. some traditional stages of a Vietnamese
made up skin again could be compared to that of the uses of sulwhasoo. Another
angle of this strategy is that storytelling can be used by Sulwhasoo to provide a
background story of the significance of the ingredients to the consumers and evoke
their emotions. By emphasizing customers’ cultural backgrounds and the present
beauty trends, sulwhasoo can do a goof job in establishing why it appreciates and
knows Vietnam. Popular figures also more often than not promote local products
successfully. Such collaborations sometimes give the audience a reason to consume
the content in line with their lifestyle. For example, a campaign that includes
images of popular Vietnamese actresses or socialites guarantees improved publicly
for the brand. With the help of these local marketing strategies, Sulwhasoo will be
able to penetrate her Vietnamese market even more and develop brand visibility
and loyalty. This conjunction of cultural relevance and local celebrities’
endorsements builds confidence in the consumers with the brand since it shows
Sulwhasoo’s willingness and ability to adopt and embrace the beauty culture in
Vietnam.

3.6. Monitor and adapt
In order to maintain and grow Sulwhasoo's brand recognition in a competing
Vietnamese cosmetics market, it is necessary to have a plan on how marketing
strategies shall be measured and changed. The brand can further understand ebb
and flow of consumer demands and trends in the global market by designing
effective systems of responses and performing frequent competition assessments.
Understanding how satisfied consumers are with the product and with what
opinion the brand itself is regarded requires consumer evaluation. Companies like
Sulwhasoo should have established more feedback collecting formats such as
surveys, focus groups and social media. For example, after buying the product, the
customers can be asked to answer a short questionnaire regarding their experience
with the product in relation to its effectiveness, packing and overall satisfaction
among others. Such feedback can help in understanding the target market and
providing an overview on the consumption of the product. For example, the
incorporation of digital devices or computerized systems in the stores may help
Sulwhasoo determine the customers’ attitudes within minutes. Another way would
be the customer engagement through the interactive polls on their social media
pages which would attract them and give instant results as well. Analysis to look
for changes in such behaviors, interest and improvement opportunities would
therefore allow Sulwhasoo to incorporate consumer feedback in improving
advertising campaigns and new product strategies. Monitoring competition’s
marketing tactics from an ongoing perspective is also an important aspect of the
adaptive acquisition strategy of Sulwhasoo. Such changes in attitude will allow
Sulwhasoo to implement those and many other ideas without the need of recreating
them from scratch by changing approaches of the same. Furthermore, observing

new entrants and disruptive players in the market will assist Sulwhasoo in
determining areas in the market that it can seek to fill up. This may entail
promoting its unique culture, contents within products, or even the high-end
approach to a level that has not been fully utilized by rivals. Hence, with such
feedback and competitive analyses, Sulwhasoo, as marketing management can be
said, is able to efficiently and actively engage in the Vietnamese cosmetic market,
satisfying and improving the brand equity and loyalty of its target customers while
enhancing its products and Marketing activities over time.

CONCLUSION
The level of brand equity that Sulwhasoo garners among consumers in
Vietnam's cosmetic market is a two-sided instrument which presents opportunities
as well as threats. The lagged effect of extent of acceptance of the brand is quite
clear as a good part of the populace knows of its existence, however it looks
behind its many rivals especially in the fast markets such as the Korean cosmetic
market. The likes of Laneige and Innisfree have penetrated the Vietnamese market
quite well, at times using marketing strategies that some might even argue are too
good to be true for the local consumers. That has, in turn, helped them in amassing
a more active population of consumers who use their commodities more than those
of the competitor's. The premise of Sulwhasoo is that it is a high-end brand that
offers its products based on the principles of Korean traditional herbal medicine is
a plus selling point. However, many challenges arise to this notion especially with
the growth of local brands and even foreign brands which have adapted to the local
context and are very good at it. Advances in the demand for skincare products that
boast of effective and yet natural ingredients have given way to high competition
as several brands have come up within a short period. It is not surprising that
customers are diversifying their expectations from just quality products to quality
products that reflect their culture and desire. In addition, the availability of the
internet, in particular social media, has redefined the ways cosmeceutical brands
are located and interacted with. Sulwhasoo has tried to reach out to famous
influencers and KOLs, however, this has not yet been exploited. While competitors
have taken these processes a step further and embraced content and community
which wove stories with the consumers. Such a situation presents a highly critical

concern since Sulwhasoo has to improve on its digital presence and employ milder
marketing strategies which have more interaction with the customers especially the
younger ones. On the other hand, while the brand positioning of the products as
luxury and superior quality products is an added advantage, it also has its
difficulties in the aspect of accessing the consumers. In Vietnam for instance, the
younger generation and many consumers in general are highly price-sensitive and
prefer brands which produce good quality products at lower prices. Therefore,
Sulwhasoo has to strike a nearly impossible tactical balance of jettisoning, or at the
very least softening, its “niche” appeal to the affluent and conforming towards a
mass market appeal which seeks lower pricing.
Building brand recognition for Sulwhasoo in the Vietnamese cosmetic
market is a complicated process that requires the use of the contemporary
marketing mix, coupled with the understanding of local customs and beliefs.
Sulwhasoo will be able take advantage of the increase in popularity of social
networking sites such as TikTok and attract a younger audience through KOLs, or
rather KOL contents. These are the individuals whom the masses trust, look up and
stick to them and thus able to generate interest on the products to be launched.
Several KOLs or influencers even in the economic point of view can appreciate the
tact or strategy where another person has figured who will be used to promote the
product. In cold markets like Vietnam, it is crucial that ground strategies like Saas
Kumara Veil and Hailey Rooftop ‘skid’ where KOLs are engaged much earlier than
the launch period with some specific tasks about the product are employed. The
emphasis of this type of campaign should be on a clearly articulated engagement
with the customers instead of simply asking for content creation and posting. A
request for customers’ participation goes beyond that – which helps in creating a

lot of organic content, such as people’s own interactions with the brand. Influencer
engagement can be taken a step further with a beauty expert engaging consumers
through live TV, offering skincare advice that is tailored to each individual, as this
will not only encourage healthier skin care practices but will also build loyalty
towards the brand. In addition to the social and engaging the existing user mate,
expanding the online reach of the brand through more advertising and investments
in appropriate agencies is essential so as to grab more people. As a means to
effectively visualize the everyday usage of the Sulwhasoo products, sponsored
contents with beauty influencers who appeal to the target group can be carried out.
This is manifested through the use of stunning commercials on networks with
young audience such as Instagram and TikTock, where the company manages to
showcase the product effectively without drawing away the target consumers
attention. Event marketing on the other hand is yet another important levelizer
strategy from the arsenals of Sulwhasoo that allows the brand to reach its
consumers on an emotional level. Such occasions like exclusive portion new
product launches and educational seminars are also known to create some
experiences that are not only aimed at selling something, but also creating a bond
among the participants. By including softer approaches such as consultations and
Korean beauty culture master classes, Sulwhasoo will help people understand that
they are not only about skin care, but also about promoting the heritage and values
of the nation. Marketing mix application is however deemed very amiss in respect
to the Vietnamese market. This is in the case, for instance, where the promotion s
through local celebrities and the campaigns are made culturally appropriate. With
reard to this, cocommon cultural elements such as ginseng, the brand promotes
trust, loyalty and wonder among its consumers. Last but not least, the continuous

monitoring and adjusting of the marketing strategies is of utmost significance.
Incorporating feedback loops to draw opinions from customers is one aspect that
Sulwhasoo does which helps in improving its products and communication on an
ongoing basis. Moreover, regular industry analysis allows for the recognition of
useful strategies that the competition has employed, thus allowing the company to
be unique in the given market. Through this rounded and flexible approach
Sulwhasoo has the potential to dramatically raise its brand presence in Vietnam.
Given the emphasis on community outreach, striking influences, target event
marketing, and cultural relevance, Sulwhasoo is fierce enough to compete in the
fast and ever-changing makeup industry. This integrated marketing campaign is
aimed at not only increasing awareness of the brand but also building long-term
association with consumers so as to enhance the brand equity and achieve business
objectives within the Vietnamese territory.
The case analysis of Sulwhasoo‘ brand awareness and marketing strategies
towards Vietnam shows both practical and theoretical implications that may help in
the effective management of brands in cosmetics. Such knowledge of customer
behavior and their preferences can actually help one to come up with a suitable
marketing strategy. For example, using social media to target potential customers,
especially the young ones, like with platforms such as TikTok where influencers
create different fun videos for the users and the audience engages with Sulhwasoo
products. The two also note that by conducting live sessions and educating the
target customers, value is added to them and the brand creates a feeling of
belonging. Finally, place-oriented marketing strategies like using local stars to
market, using their language and pictures will rise the brand’s worth and appeal
further to the people of Vietnam. In theory, for example through the use of Maslow'

s perspectives on the levels of needs, the theories assist suitable demographic
employment on the consumers decision on purchasing the goods. Since it has been
established that consumers do not just buy products for their primary utility, and,
rather, want something that will boost their self-image, and self-worth, social
status, and so, that is why Sulwhasoo wants its products to be snobbish luxury
products. Moreover, the theories on how a customer becomes a loyal one state that
there is a need to reach most clients’ hearts. This encouraged the brand to focus on
activities that build long-term loyalty such as relationship marketing and
community involvement rather than transactional marketing which is important for
building repeat purchase only.

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