December 5, 2022 - 4:00 pm
December 5, 2022 - 5:00 pm
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The propensity of cosmetics consumption in Ho Chi Minh city after the COVID-19
Student: Nguyễn Thị Trà My, VNP
Supervisor: Dr. Hồ Quốc Thông
Background: In Vietnam, where this business has the fastest growth rate when compared to the rest of Southeast Asia, cosmetics is one of the fastest-growing industries. According to revenue figures, this market generates an estimated VND 50,000 billion in revenue each year, which not only demonstrates the significant profit it generates but also the prominence of this sector globally commercial marketing. Due to the lasting effects of the Covid-19 outbreak on the world economy, the cosmetics industry as well as many other industries experienced extreme hardship. Contrary to its initial status as a luxury good, the consumption of cosmetic products dropped significantly due to the crisis.
Materials and Methods: An online questionnaires was administrated and sent to Ho Chi Minh’s consumers from 18 to 55 years old through social networks. The questions were related to the affection of the Covid-19 to consumers life and how they has adjusted their expenditure on cosmetics. Standard econometric models were employed to investigate the change in consumer perception and the consumption of cosmetic products.
Results: A final working sample of 200 observations were obtained, and all of respondents are cosmetic consumers consuming, for example, beauty, skin care and body products. As observed from the econometric model ‘s result, key factors that have a significant impact on cosmetics consumption behavior are the number of persons that consumers contacted weekly, age, marital status and the change in income. In particularly, cosmetic consumption of who are single and who are contacted more people weekly are tend to increase while those who married or contacted less people weekly is more likely to reduce their spending on cosmetic. Thus, as consumer’s age and consumer’s income increase, so does their expenditure on cosmetic.
Conclusions and implications: Both men and women have a need for cosmetics, but single person and those who meet more people each week are the main consumers, and the cosmetic consumption are increase as consumer’s age and consumer’s income increase. Once the isolation period following the Covid-19 epidemic has ended, their demand for cosmetics has a tendency to increase again. Given that the majority of potential customers are single women or man who meet a lot of people each week and are highly concerned with their own health, cosmetic companies must put a priority on ensuring consumer health and produce products with as few side effects as possible or natural cosmetics in order to draw in more clients.
Keywords: cosmetic consumption, Covid-19 epidemic affection