Major store expansion: G&M Cosmetics reports Vietnam offline sales growth surpassing online

G&M is an Australian manufacturer of beauty and personal care products, with brands such as Australian Creams and P’URE Papayacare under its roster.

The firm first entered Vietnam in 2018, primarily through online platforms such as Lazada and Shopee.

In August, the company announced that it has expanded its Australian Creams MKII Gold Series in over 500 physical retail points in Vietnam, its biggest expansion in the market to date.

The expansion spans multiple retail partners, including pharmacy chains Guardian and Medicare Pharmacy as well as various other beauty and cosmetics chains like Sammy Beauty Shop.

“This has been about 18 months in the making. I guess now you could say we’re fully integrated into the Vietnam market,” said Peter Bosevski, global marketing and sales manager, G&M Cosmetics.

Bosevski also told CosmeticsDesign-Asia that the brand is set to launch into a supermarket chain in early 2025.

This latest expansion comes as growth in the physical retail market accelerates.

“What we’re seeing is better movement in the offline space in Vietnam compared to the e-commerce platforms,” said Bosevski.

He estimated that its offline channels were performing 15% to 20% better than online.

“Our business partners in Vietnam report that shoppers are actively visiting stores, especially in the beauty, skin care sector, where they are testing products and engaging with sales staff. That's been the case now and we're seeing more results from the offline space versus the online space,” said Bosevski.

He added that the popularity of the Australian Creams MKII Gold Series was also driven by its competitive price point at around USD15.

“An average Vietnamese person is spending on skin care per month around USD21 or USD22 a month. It doesn't sound like a lot, but it is something new and it is growing. We're competing against brands like Cetaphil, Dove, Nivea, Aveeno – the multi-multinational brands. So, we have to be very strategic and clever with our pricing. So we've gone in at a very affordable everyday price.”

Vietnam and other South East Asian markets make up some of the firm’s most promising markets today.

“We have always had a high demand and interest in South East Asia and more recently in the Vietnam market. With a population of around 100 million and a growing middle and upper class, Vietnam’s discretionary spending on imported skincare, and especially demand for high-quality Australian made skincare, is growing year on year,” said Bosevski.

According to the firm, the nation’s beauty and personal care market value reached US$2.3 billion in 2021. The forecast reveals yield revenues of US$8.6 billion by 2025, with a compound annual growth rate (CAGR) of 8.6%.