The $2.3 Billion Cosmetics Market Appraisal: Why Malaysia’s Leading Beauty Brand is Betting Big on Vietnam as their Primary Overseas Market

Yukazan, a well-known Malaysian beauty and wellness brand, offers a diverse range of products, including cosmetics and essential health items such as fever-reducing patches and masks.

Established in 2009 as Shills Beauty, the company expanded its portfolio to over 200 SKUs by 2023. Yukazan is part of the global MKA Group, founded in 1995 and headquartered in Malaysia. The MKA Group has a diverse range of businesses across various industries, including automotive, manufacturing, IT, beauty & health, F&B, agriculture, and distribution. In 2021, Yukazan rebranded from Shills Beauty to MKA Joycare to align with the broader mission of the MKA Group.

Besides Malaysia, Yukazan has a presence in several Asian countries, including Vietnam, Singapore, Hong Kong, Indonesia, and Brunei. Ms. Lee Joyce, the company’s representative, particularly emphasized their focus on Vietnam as their main “oversea” market, with an established office in the country for the past ten years, while the other countries mentioned only have distribution channels.

“We entered the Vietnamese market in April through e-commerce platforms and later partnered with Guardian retail stores. So far, we have been witnessing double-digit monthly growth in our e-commerce sales,” shared the enthusiastic representative.

For the next three years, Yukazan aims to become a widely recognized health and beauty brand in Vietnam. In 2024, the company plans to invest heavily and focus on establishing its presence and expanding distribution channels in the market.

In the second and third years, Yukazan intends to consider localizing exclusive products, increasing sales, and forming strategic partnerships to ensure sustainable growth and market leadership in Vietnam.

Photo: Ms. Lee Joyce, Executive Director of Yukazan Group.

In reality, the Vietnamese beauty market is growing and attracting both domestic and foreign players. According to a report by Metric on the beauty industry in 2023 across five e-commerce platforms in Vietnam (Shopee, Lazada, TikTok Shop, Tiki, and Sendo), the total industry revenue reached VND 37,700 billion, with sales of 341 million products, reflecting growth of over 50% compared to 2022. The revenue growth rate of the cosmetics industry through e-commerce is expected to maintain a rate of 20-30% in the next five years.

Research by Euromonitor International shows that from 2018 to 2022, the percentage of Vietnamese women using beauty products increased from 76% to 86%. The annual growth rate of the cosmetics market is expected to be 15-20% in the coming years. By 2026, the total revenue of the cosmetics industry is predicted to reach USD 3.5 billion.

This also signifies an intense competition among brands, with up to 90% of the market share held by large global corporations such as L’Oreal Vietnam, Shiseido, and AmorePacific (known for its brands Sulwhasoo, Laneige, Mamonde, Etude House, and Innisfree, among others).

According to a market share analysis by Euromonitor International for the 2018-2022 period, the top 10 companies accounted for 80.7% of the market. Within this, L’Oreal Vietnam maintained its leading position with an 18% market share, a 3% increase compared to 2018, while Shiseido’s share decreased by 1.8% to 11.3%.

When asked about their strategy in such a competitive market, Yukazan’s representative, Ms. Lee Joyce, stated that while Vietnam has many brands, they noticed that most products have similar ingredients and functions…

Yukazan aims to bring unique products to Vietnam, not only in the beauty segment but also in healthcare, such as their Hydrogel cough relief patches, which were the first functional product of its kind in Malaysia, achieving sales of over 300,000 units within just four months of its launch.

“Yukazan aims to have its products available in 2,000 stores across Vietnam in the next three years,” said Ms. Lee Joyce.