Himalaya Herbals to Vietnam

1.0 Introduction

These days most people prefer to be more fashionable and care more about their appearance especially females become increasingly obsessed with their looks. Because of this changing trend, the global cosmetic consumption has increased dramatically in the last few years, with the skin care become the most popular among other kinds of cosmetic (Chameleon Pharma Consulting 2014).

Source: Chameleon Pharma Consulting (2014)

Company Background

Himalaya Global Holdings Ltd. (HGH) also known as Himalaya Herbals is a drug and cosmetics manufacturing company which was founded in 1930 by Mr M. Manal. Being a research-oriented and science-based company, the products are safe and reliable to use. The manufacturing processes are very systematic under the control Good Manufacturing Practice (GMP) while Total Quality Management (TQM) system guaranteed the quality of the products. As a head-to-heel brand, it is very convenient for customers to have all the things for personal care under one brand. Due to the reputation of 80-year experienced company offering a wide range of organic products, most people around the world are already familiar with its brand image. Indeed, Himalaya Herbals is not only successful in domestics market but also already had the experience for the international market, with a dramatic growth in product demand.

2.0 Demand of product in Vietnam

According to figures from Nielsen, the New York-based market research giant, the annual turnover of the Vietnamese cosmetics market is around 15 trillion VND (US$704.2 million) (Vi 2015). According to the survey conducted by Q&Me in September 2016, nearly 30% of the Vietnamese females make up every day and 44% spends on cosmetics less than 200,000 VND monthly (Asia Plus 2016).

According to latest figures from market research company Mintel, the Vietnam market for beauty and personal care is expected to be worth $1.78 billion, a figure that should reach $ 2.35 billion by 2018 (Pitman 2016). Moreover, Vietnam’s personal care market ranked in the first position among ASEAN countries in terms of Nominal GDP CAGR (%) (Owh, C., Chee, P.L. and Loh, X.J. 2016:1-17).

Personal care market in Nominal GDP CAGR (%) ASEAN countries from 2013–2017

(Source: The Royal Society of Chemistry 2016)

3.0 STEEPLE Analysis

To identify the external factors affecting the business, the STEEPLE analysis for Vietnam will be conducted.

 Sociocultural

The current population of Vietnam is 95,240,408 as of Friday,