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An Overview of Vietnam’s Maternity and Baby Market

Vietnam has more than 30% of all households with children under 2 years of age. Parents are willing to pay more for quality products that will benefit their children, thanks to rising incomes and better education. The increasing number of mothers who work has increased the demand for diapers and baby wipes. The total revenue of this market is estimated at around $7 billion, with the growth rate of 30-40 per cent. This article presents a brief overview regarding Vietnam’s baby and maternity markets: Consumer Preferences and Marketing Strategies

The two most important factors in Vietnam’s baby product market are product quality and origin. International brands are preferred by parents who want high-quality products for their children, especially those from Japan, Europe, America, and Australia. These brands have the largest market share; meanwhile, consumers are less trustful in domestic products. This market is thriving for baby and infant care products made by foreign brands like Bübchen, Pureen and Pigeon.

Baby Care Products from Therapeutic Brands

Johnson’s Baby, Chicco and Wesser are the specialized manufacturers of shampoos, conditioners and lotions for baby. There are also therapeutic brands on the market that offer clinical cosmetics for both babies and adults. These include Eucerin, CeraVe, and Cetaphil. These brands are highly regarded in Vietnam and strongly recommended by local doctors for skin safety. They do not cause allergy or irritation for adults, and can be used for cleaning and treatment of acnes. These brands offer similar benefits for babies, including shampoos and conditioners that provide gentle cleaning. According to industry sources, these therapeutic brands don’t have a lot of market share but they are becoming more popular as parents look for products that can be used for babies.

Products of Johnson’s Baby

Urban Consumers Prioritize Product Quality over Pricing

Vietnam’s rural and urban consumers have different buying habits. People in major cities like Hanoi, Ho Chi Minh and Da Nang pay more attention to product quality than people living in rural areas. Foreign brands are popular in cities while local brands are more prevalent in rural areas. The pricing strategy for foreign suppliers of high-end baby products should be targeted at urban consumers who are looking for quality, but also affordable items. Huggies, Pampers, Pigeon, and Chicco’s baby products, including diapers, shampoos, and lotions, range from VND150,000 to VND200,000 (US$6.50-8.60). Strollers and gears typically cost VND700,000 (US$30).

Products of Pigeon

Marketing – Building Trust and Awareness for Women in Early Pregnancy

Marketing strategies that promote awareness via online channels are important in addition to traditional TV advertising. Mothers in Vietnam are extremely cautious about the quality and safety of baby products. They will be eager to read online reviews, ratings and shares their experiences on parenting forums and social networks. It will quickly become popular among young parents if it receives positive comments from the online parent community.

Webtretho (web-babies) – the most popular online forum for moms

Some key players such as Kimberly Clark, Johnson’s Baby and Chicco have begun to work with doctors and hospitals to organize workshops for pregnant women. These events educate participants about baby health and how to prepare for their babies. This includes choosing the right products and being spiritually and physically strong. Participants are provided with product samples that have been approved by doctors. This helps to build trust and confidence among women during early pregnancy. Industry sources say that these customers have high brand loyalty.

Partnerships with local distributors and retailers

Baby products are currently distributed in major cities through mom and baby shops. Mom and baby shops that offer a wide selection of baby products are the preferred shopping destinations for millennial mothers. They have high expectations for product quality and convenience. Concung, Bibomart, Kidsplaza and Tuticare are the most popular mom and baby shops in Vietnam with more than 100 outlets. Collaboration with these top retailers is a great way to raise brand awareness for foreign players. Many local customers don’t know that these mom-and-baby stores have their own online ordering systems. They instead use online shopping platforms like Shopee, Tiki and Lazada. Tiki is the most popular e-commerce platform due to its low prices and reputation for selling authentic products.

Concung – one of the largest retailers for Mom and Baby category

Baby products, especially for skin care and hygiene, sell more on brand loyalty. This is different from fast-moving consumer goods where new brands are easily accepted by local consumers. Because babies may need more time to adapt to new brands, parents will have to pay higher switching costs. Therefore, it might be more costly for them to invest in new products from foreign companies. To leverage local distributors’ marketing and network knowledge, foreign suppliers new to Vietnam are advised to collaborate with them.

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