Vietnam cosmetics chain Hasaki attracts Alibaba investment amid rapid market growth
24 Nov 2023 --- Alibaba ventures back into the Vietnamese market. This time, according to Deal Street Asia, with a minority investment in the cosmetics and beauty chain Hasaki. Alibaba is making the move through its arm, Alibaba International Digital Commerce Group (AIDC).
Hasaki is a growing chain launched in 2016 with more than 140 stores and clinics across Vietnam, plus a growing online retail site. It is backed by Hong Kong-based Excelsior Capital Asia’s Vietnam fund.
Alibaba’s Asian investments
The terms and value of the deal are not disclosed, but this isn’t the first foray into the Vietnam market for the Chinese e-commerce behemoth.
Two years ago, Alibaba led a consortium to purchase a 5.5% stake in The CrownX, an integrated retail platform of local conglomerate Masan Group.
AIDC runs Alibaba.com plus commerce retail businesses overseas, such as AliExpress and Lazada.
Hasaki chief welcomes Alibaba investment
The founder and CEO of Hasaki, Hiep Dinh, states he’s “thrilled to welcome Alibaba International as a financial investor. Despite challenging macro conditions, this transaction is a testament to the Hasaki team’s capability and business model.”
Dinh also says the beauty and personal care market is one of the fastest-growing consumer segments in Vietnam, with a total market size crossing US$2 billion and an annual growth rate of 7%.
Alibaba continues to capitalize on Asia’s growing economy.
Foreign investors flock to Vietnam
As the personal care and beauty market continues to expand in Vietnam, foreign institution capital is taking note.
L Catterton is a US-based consumer-focused private equity group. It backs Indonesian beauty e-commerce company Social Bella, which entered the Vietnamese market in 2020.
Growing opportunities for beauty brands
Research from Innova Market Insights suggests the most launched categories in Vietnam from July 2022 to June 2023 were skin care (27%), lip cosmetics (15%) and hand, bath and shower (13%). Launches in the latter category also grew with 10% average annual growth from July 2018 to June 2023 (CAGR).
More than half (55%) of all the personal care & beauty launches from July 2022 to June 2023 had a moisturizing & hydrating claim, 41% had a long-lasting claim and 27% had an ethical packaging claim.
Meanwhile, plant-based claims grew in Vietnam with 40% growth from July 2018 to June 2023 while sustainable packaging claims grew 33%.
More than half of all personal care & beauty launches in Vietnam from 2022–2023 had a moisturizing & hydrating claim.
Asia on track for solid growth
Personal Care Insights reported on In-Cosmetics Asia 2023 in Thailand last September, where exhibitors addressed the growing opportunities for suppliers and manufacturers of beauty products to penetrate Asian markets to satisfy local consumer demand for new trends and products catering to their regional need
Emerging economies embracing e-commerce
This week, Personal Care Insights highlighted Meta’s plans to grow its digital footprint in India and reel in consumers with popular social media platforms like Instagram.
With a burgeoning middle class that is incredibly tech-savvy, India is a crucial region for companies to expand their reach. India’s national investment facilitation agency believes the country’s existing ecosystem makes it “an attractive destination to become a global hub.”
The government highlights its recent free trade deal with Australia to create more market access opportunities in the cosmetic sector.
By Anita Sharma
