Executive Summary The Cocoon Innovation Proposal aims to introduce a new line of avocado-based body lotion and hair mask products, remforcing Cocoon’s position as a pioneering, vegan- fr
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COCOON has firmly established itself as an ethical and responsible beauty brand, which is a critical differentiator in the increasingly value-driven beauty industry The company’s adherence to vegan and cruelty-free principles appeals to a growing segment of conscious consumers Its use of locally sourced, natural ingredients leverages Vietnam’s rich biodiversity, creating unique and effective skincare solutions that stand out in a crowded market Furthermore, COCOON has demonstrated a strong market presence, achieving notable success both domestically and in international markets, particularly across Southeast Asia
Despite its rapid growth, COCOON faces challenges in competing with well- established global brands that dominate the beauty sector As a newer entrant in the international market, the brand is still building its global recognition and customer base Additionally, COCOON’s positioning as a vegan beauty brand may limit its appeal to consumers who are not explicitly seeking cruelty-free or plant-based products, thereby narrowing its potential market
The brand is well-positioned to capitalize on prevailing trends in the beauty industry, such as the rising global demand for sustainable, vegan, and eco-friendly products This shift presents an opportunity for COCOON to expand its market presence beyond Southeast Asia into regions like Europe and North America, where interest in vegan beauty products continues to grow International expansion into these markets offers substantial growth potential and the possibility of further cementing COCOON’s reputation as a leader in ethical beauty
The competitive nature of the beauty industry poses a significant challenge, with well-established global players holding a majority share of the market Additionally, external factors such as economic fluctuations and changes in consumer spending habits could negatively impact the demand for premium and ethical beauty products These uncertainties underscore the importance of strategic planning to mitigate risks associated with economic volatility and market competition
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Key Drivers of Growth , aas
1.3.1, Increased Awareness of Beauty and Personal Care
Improved living standards in Vietnam have led to a growing focus on beauty and hygiene, driving demand for cosmetics Middle-class consumers, particularly women, now spend VND 450,000-500,000 (USD 19-21) monthly on skincare and makeup Social media and Korean beauty trends heavily influence preferences, boosting demand for diverse products Younger generations are gravitating toward organic options, while increased financial independence among women and rising male grooming awareness further expand the market Brands are responding with natural ingredients and appealing packaging, cementing cosmetics as an everyday essential
Urbanization is reshaping Vietnam's cosmetics market, with migration to cities like Hanoi and Ho Chi Minh City creating a growing customer base Urban consumers, exposed to global beauty trends, drive demand for high-quality and innovative products Modern retail infrastructure, such as malls and beauty specialty stores, has further unproved access to both local and international brands This urban shift continues to fuel market growth and positions urban centers as hubs for cosmetic consumption.
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While there is significant growth potential in the Vietnam Cosmetics Market, sustainability and ethical concerns present substantial obstacles Consumers are increasingly prioritizing eco-friendly products and transparency in sourcing, which often leads to higher production costs for brands Moreover, the prevalence of counterfeit and poor-quality products erodes consumer trust and complicates market dynamics Many companies face difficulty in balancing profitability with ethical practices, resulting in fewer sustainable options being available This hesitation to fully adopt environmentally friendly practices could impede overall market growth, as consumers are more inclined to support brands that reflect their values on sustainability and ethics.
1.4.2 Impact of Growing Geopolitical Tensions on the Vietnam Cosmetics Market
Rising geopolitical tensions between countries and regions could significantly influence the expansion of the Vietnam Cosmetics Market These tensions create uncertainty, disrupting supply chains and affecting consumer behavior Trade conflicts and regulatory shifts may lead to higher costs and delays in sourcing raw materials, hindering production efficiency Additionally, economic instability may cause consumers to become more cautious with their spending, leading to a decline in demand for non-essential goods such as cosmetics To maintain growth in this volatile geopolitical environment, brands must adjust their strategies, enhance supply chain resilience, and maintain consumer trust
Preference for Natural Products: The demand for natural and organic skincare is rising sharply, with consumers seeking eco-friendly and vegan-certified products Ingredients like avocado, known for their high nutrient content and moisturizing properties, are highly favored This trend aligns perfectly with Cocoon’s product proposition Digitalization and E-commerce: E-commerce is expanding rapidly, particularly among younger, tech-savvy consumers Platforms like Lazada, Shopee, and Tiki are becoming dominant sales channels for skincare products Nevertheless, offline retail— including specialty stores and supermarkets—remains a vital distribution point for a significant portion of consumers
Price Sensitivity: Despite the increasing willingness to mvest in skincare, many Vietnamese consumers remain price-sensitive This is especially true in rural areas, where affordability plays a key role in purchasing decisions Cocoon’s products must balance perceived value and pricing to attract a broad audience
Male Grooming: Men are showing increased interest in grooming products, presenting opportunities for unisex or male-targeted versions of body lotions and hair masks This market segment is growing rapidly and is expected to contribute significantly to overall industry growth
Opportunities for Cocoon: Cocoon is the sole Vietnamese brand ranked among the top 10 best-selling cosmetics products of 2023, capturing 10.3% of the market share Its grapefruit hair tonic has been particularly successful, with sales exceeding 285,000 units over the past year, reflecting a 35% growth compared to the previous year This product leads in sales across major distribution networks, including Hasaki, Guardian, Matsukiyo, BeautyBox, and ThegioiSkinfood, cementing its position as a market favorite
- Differentiation through Natural Ingredients: Cocoon can leverage the appeal of avocado as a "superfood" ingredient This allows the brand to highlight its natural,
10 vegan, and cruelty-free qualities, addressing a key consumer demand Targeting consumers who value sustainability and premium natural ingredients will create a competitive edge
- Multi-Channel Distribution: Expanding across both online and offline platforms is crucial:
- Online Channels: Platforms like Shopee, Lazada, and Tiki can drive e- commerce sales, particularly among Millennials and Gen Z
- Offline Channels: Partnerships with beauty retailers, supermarkets (e.g., VinMart, Co.opmart), and boutique stores ensure physical accessibility for diverse consumers
- Focused Marketing for Key Demographics: Urban Millennials and Gen Z can be targeted with campaigns emphasizing eco-friendliness, sustainability, and natural benefits Social media platforms lke TikTok and Instagram, supported by influencer collaborations, can effectively capture these consumers’ attention Additionally, tapping into the male grooming market with unisex branding can help Cocoon expand its consumer base
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Production will take place with inventory stored at Cocoon's manufacturing facility located in Xuyen A Industrial Park - My Hanh Bac Commune - Duc Hoa District - Long
- Offline: Available at retail cosmetics stores in Hanoi and Ho Chi Minh City, including stores like Guardian, SammyShop, Thegioiskinfood, and Cocolux
- Online: Available on its website and some e-commerce platforms such as Shopee, Lazada, and TikTok Shop
With its core values of creating cruelty-free, plant-based skincare solutions, this project marks a significant step forward in CoCoon’s mission to fuse the richness of Vietnam’s natural resources with modem, science-backed beauty formulations The new avocado line, featuring body lotions and hair masks, will highlight the nourishing and
24 moisturizing properties of avocado oil, offering eco-conscious consumers a range of high- quality, effective skincare products Therefore, our main objectives includes:
Development of Avocado-Based Product Line: Cocoon will introduce a range of skincare products using cold-pressed avocado oil sourced from Tay Nguyen, Vietnam This line will highlight the brand’s focus on sustainability, ethical production, and natural ingredients, while also providing local farmers with new market opportunities, helping to stabilize and increase the value of avocados
Market maintenance and expansion in Vietnam: In Vietnam, Cocoon has established a certain position in the vegan cosmetics industry with 10.3% of market share for cosmetics already in 2023 (Upbase, 2024) Leveraging this, the new vegan cosmetic products made from avocado will help Cocoon continue to maintain and enhance its brand recognition while increasing its competitiveness against other similar brands
Below is the specific plan for executing these objectives, broken down into four phases Each phase covers key timelines, the primary goals, and the measurable results that will be used to evaluate success and ensure that the project stays on track
Phase Timeline Main objectives Expected results
Phase 1: Market QI - Q3 2025 | - Conduct comprehensive | - Ready-to-launch entry preparation market research: Assess product lines local consumer preferences and regulations Doing a wide range survey across the country (from major countries to countryside)
- Finalize product formulation: Optimize avocado-based products using cold-pressed avocado oil from Tay Nguyen
Maintain partnership with cosmetics retailers (e.g., The Guardian, SammyShop, Thegioiskinfood ) and expand Cocoon’s own e- commerce channels to other platforms (TikTok Shop)
- Design sustainable packaging: Align packaging with eco-friendly values
Phase 2: Product | Q4 2025 - Product launch: Utilize - Attract at least launch and initial digital-first marketing, 400,000 customers promotion influencer collaborations, - Achieve 80% and product sampling First | positive feedback on focusing on major cities product performance
- Develop e-commerce: from initial consumers Tailor online platforms for consumers by adding new products with attractive promotions
Promote through beauty influencers to build awareness
Phase 3: 2026 - 2027 - Expand product reach: - Product availability Expansion and Increase availability in in 80% of major cities growth secondary cities and - 10% increase in provinces across Vietnam repeat customers
- Loyalty programs: within the first year Launch customer loyalty - 20% participation in and eco packaging return eco packaging returns initiatives to build brand retention
Continue targeted digital and offline campaigns
Phase 4: Market 2028 - 2029 - Introduce new avocado- | - Increase market share consolidation and product line extension based products: Launch additional items (serums, cleansers) based on market demand to 30% in Vietnamese vegan cosmetics by
- Launch of at least 2 new product categories
- Collaborate with local based on consumer beauty movements: demand
Strengthen presence through partnerships with other beauty brands
In Vietnam, avocados are primarily grown in five provinces in Tay Nguyen region: Lam Dong, Dak Lak, Dak Nong, Gia Lai, and Kon Tum, with a total cultivation area reaching nearly 8,000 hectares Thanks to favorable climate and soil conditions, the Central Highlands provinces are considered well-suited for avocado cultivation (thuongmaibiengioimiennui, 2024) However, despite being delicious and nutritious, avocados are typically consumed fresh, limiting their economic value for farmers (Tuoi Tre, 2024) Consequently, avocados have not yet brought significant economic benefits to local farmers Compounded by the Covid-19 pandemic, avocado prices dropped sharply and have yet to recover, with signs of further decline (Dan Viet News, 2024) This is unfortunate news for avocado farmers in Tay Nguyen
According to Healthline, avocados are good for improving skin and enhancing wound healing Avocado oil is rich in fatty acids and nutrients that may benefit and moisturize your skin It’s a good source of vitamins A and E, which are linked to skin membrane health (healthline, 2021) A study has shown that avocado can also penetrate deep into hair fibers, making it ideal for dry hair by adding shine, smoothness, and softness (Hornby, S.B., Appa, Y., Ruetsch, S and Kamath, Y., 2005) For these reasons, our group proposed this new product, aligning it with Cocoon, a well-established vegan cosmetics brand in Vietnam
Market research: The first and essential step is to conduct thorough market research in Vietnam This involves analyzing Vietnamese consumer preferences, skincare habits, and the demand for vegan, cruelty-free products The demand for cosmetics in Vietnam is increasing, and our group already conducted a small survey that confirmed this trend Since Cocoon is a well-known, fully Vietnamese cosmetic brand, brand recognition is not a major issue Therefore, in this R&D phase step, our group will primarily focus on competitor analysis, which helps to pinpoint opportunities and gaps in the market, positioning Cocoon’s avocado-based products as a differentiated offering
Identifying ingredients: After understanding the market, the next step is to source high quality ingredients that cater to consumers’ skincare needs Cold-pressed avocado oil from Tay Nguyen region, will be the primary ingredient, known for its nourishing and moisturizing properties Additional ingredients such as shea butter for hydration, vitamin
E for antioxidant protection, and aloe vera for soothing effects are chosen to complement the avocado oil These ingredients are selected for their ability to protect and rejuvenate skin and hair in humid, polluted environments To maintain Cocoon’s brand values, all ingredients are sourced sustainably, with a focus on ensuring they are plant-based and cruelty-free Special care is also taken to verify that the selected ingredients meet consumers’ safety and cosmetic regulations, ensuring compliance and product effectiveness
Formulation development: With the ingredients selected, the R&D team moves into the formulation development phase This step focuses on creating skincare products that suit Vietnamese climate, requiring lightweight, non-greasy formulations that absorb quickly and provide long-lasting hydration Cosmetic chemists work to balance the rich, nourishing properties of avocado oil with fast-absorbing ingredients to ensure products are comfortable for daily use in a tropical environment Product texture and feel are also prioritized, with the goal of creating formulations that feel luxurious without leaving a heavy residue Formulas are pH-adjusted to be gentle on the skin and effective at maintaining skin health This stage also includes multiple iterations to optimize the effectiveness of the products on a variety of skin types common in Vietnam
Stability and efficacy testing: Once the formulations are developed, the next critical phase is stability and efficacy testing Given Vietnam’s high temperatures and humidity, the products must be tested to ensure they remain stable and effective over time in these conditions Stability testing examines how the product holds up under environmental stressors like heat and moisture, while efficacy testing ensures that the formulations deliver the promised skin and hair benefits These tests include evaluating the shelf life of the products and ensuring that the texture, fragrance, and performance do not degrade over time Microbiological safety testing is also conducted to verify that the products remain free from contamination and are safe for long-term use
Consumer testing: Following lab testing, the products are distributed for consumer trials to gather feedback on performance, texture, and fragrance This is a crucial step in fine-tuning the product to meet the expectations of consumers Test groups, which represent different skin types and demographic segments, evaluate the products under real- life conditions to provide insights into how the formulas perform in Vietnam’s climate Consumer feedback helps adjust aspects like fragrance strength, absorption time, and
28 overall satisfaction with the product experience The goal is to ensure the products not only meet functional needs but also provide a positive sensory experience for users
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Cocoon will begin by establishing strong partnerships with reliable suppliers in Tay Nguyen, ensuring that we source only the highest quality avocados that meet our sustainability and organic standards We conduct routine quality checks on the avocados upon arrival at our facility, ensuring that only the best ingredients are used in our products Cocoon operates a manufacturing facility in Long An, southern Vietnam, which is equipped with advanced technology for the efficient production of our products
Cocoon's production facility is located in the Mekong Delta region of Vietnam, which lies between the Central and Southern regions This allows Cocoon to integrate both inventory warehouse and production operations at the same location, reducing transportation and storage costs and also maximizing inventory management We suggest that Cocoon should consider opening an inventory warehouse in the Northern region to facilitate product distribution and delivery to individual customers We recommend Bac Ninh as a suitable location for this Having storage facilities in both Long An and Bac Ninh will ensure smooth supply chain operations, allowing customers to be served promptly and experience products in their best condition These locations are also strategic due to their robust logistics infrastructure, proximity to key retail partners, and access to a large consumer base
When Cocoon receives an order, our streamlined order processing system is activated We efficiently handle orders from both our e-commerce platform and retail partners, ensuring that every request is processed swiftly and accurately Our warehouse team then picks, packs, and prepares the products for shipment, conducting quality control checks to guarantee that everything meets our high standards before leaving the facility
This new product will be distributed in two main channels: a Retail cosmetics stores:
Cocoon has already had partnerships with major retail chains specializing in cosmetics and personal care Key players in the market include:
The Guardian: Guardian was established in 2011 and is part of the Dairy Farm Group, based in Hong Kong Guardian is one of the leading retail chains for beauty and
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Cocoon will begin by establishing strong partnerships with reliable suppliers in Tay Nguyen, ensuring that we source only the highest quality avocados that meet our sustainability and organic standards We conduct routine quality checks on the avocados upon arrival at our facility, ensuring that only the best ingredients are used in our products Cocoon operates a manufacturing facility in Long An, southern Vietnam, which is equipped with advanced technology for the efficient production of our products
Cocoon's production facility is located in the Mekong Delta region of Vietnam, which lies between the Central and Southern regions This allows Cocoon to integrate both inventory warehouse and production operations at the same location, reducing transportation and storage costs and also maximizing inventory management We suggest that Cocoon should consider opening an inventory warehouse in the Northern region to facilitate product distribution and delivery to individual customers We recommend Bac Ninh as a suitable location for this Having storage facilities in both Long An and Bac Ninh will ensure smooth supply chain operations, allowing customers to be served promptly and experience products in their best condition These locations are also strategic due to their robust logistics infrastructure, proximity to key retail partners, and access to a large consumer base
When Cocoon receives an order, our streamlined order processing system is activated We efficiently handle orders from both our e-commerce platform and retail partners, ensuring that every request is processed swiftly and accurately Our warehouse team then picks, packs, and prepares the products for shipment, conducting quality control checks to guarantee that everything meets our high standards before leaving the facility
This new product will be distributed in two main channels: a Retail cosmetics stores:
Cocoon has already had partnerships with major retail chains specializing in cosmetics and personal care Key players in the market include:
The Guardian: Guardian was established in 2011 and is part of the Dairy Farm Group, based in Hong Kong Guardian is one of the leading retail chains for beauty and
32 personal care products in the Asia-Pacific region The chain has expanded to many major cities, with over 100 stores of various sizes spread across Vietnam
Watsons: One of the largest health and beauty retailers in Vietnam, with a strong focus on skincare products As of now, Watsons Vietnam has 7 large stores located in the southern region, inside major shopping malls
Beauty Box: The Korean cosmetics chain is currently the exclusive distributor of over 200 of the most trendy cosmetic brands in Vietnam As of now, the store chain has expanded to 40 locations across major cities, offering more than 7,000 different cosmetic products
The Gioi Skinfood: A Vietnamese cosmetics retailer founded in 2012 and a distributor of authentic skincare and makeup products from many well-known brands Currently, the store chain of The Gioi Skinfood is now primarily concentrated in major cities like Hanoi or Ho Chi Minh City b Online channels
We recognize the importance of online sales channels, especially in the current retail landscape Our online distribution strategy includes:
E-commerce Platforms: We will continue to launch our products on major online marketplaces such as Shopee or Lazada, which dominate our e-commerce space These platforms provide us with a broad reach and an established customer base We also plan to expand to other potential platforms like Tiktokshop
Brand Website: We plan to develop a website for direct-to-consumer sales that will allow us to engage with customers more personally, offering tailored promotions and content
We utilize a mix of transportation methods tailored to the needs of our retail and ecommerce channels For transporting avocados from Tay Nguyen to our manufacturing facility in Long An, we rely on refrigerated trucks to ensure the quality and freshness of the avocados during transit This is crucial for maintaining the integrity of the ingredients we use in our skincare products
Once the products are manufactured, we collaborate with local logistics partners to manage last-mile delivery effectively This partnership enables us to leverage their expertise in navigating urban areas, ensuring that our products reach customers promptly
We establish regular delivery schedules for our retail partners, allowing them to maintain optimal stock levels and meet consumer demand
Additionally, we maintain flexibility in our logistics operations to adapt to peak demand periods or promotional events This means we can quickly increase delivery frequency or adjust routes as needed, ensuring that we meet customer expectations during busy times By combining reliable transportation methods with strategic partnerships, we create a seamless logistics process that enhances our operational efficiency and customer satisfaction
Sustainability is at the core of our packaging choices Currently, CoCoon places great emphasis on the form and design of our products All packaging is made from eco- friendly paper materials, avoiding plastic lamination Our bottles and containers are fully recyclable, reflecting our commitment to minimizing environmental impact For our avocado-based products, we incorporate elements of Vietnamese culture into the packaging design, integrating traditional woodblock printing motifs into the logos This not only enhances the aesthetic appeal but also celebrates our rich cultural heritage
All packaging 1s carefully labeled in compliance with stated regulations, including clear ingredient lists, usage instructions, and expiration dates We aim to provide consumers with all the necessary information to make informed choices
At Cocoon, our quality control process is thorough and tailored to our diverse range of avocado-based products We start by inspecting every batch of avocados upon arrival from our suppliers in Tay Nguyen Each shipment undergoes sensory evaluations— checking for color, texture, and smell—to ensure we only accept the highest quality fruit Laboratory tests are also conducted to measure the oil's acidity, purity, and nutrient content, ensuring all raw materials meet our stringent standards
During production, we implement real-time monitoring of key parameters for each type of product For example, when producing avocado oil, we closely monitor extraction temperatures and times, while for creams and masks, we assess the emulsification process to ensure a smooth texture Our quality control team conducts regular sampling and testing at various stages, including pre- and post-production, to verify consistency across our entire product line
To mitigate potential risks in our distribution process, we identify alternative suppliers for avocados and other key ingredients Additionally, we develop contingency plans for logistical challenges that may affect our diverse product range For instance, we
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The Avocado Nourish Body Lotion is a premium skincare product meticulously formulated to cater to the unique demands of consumers in Vietnam’s tropical and humid climate With a lightweight, creamy texture, this lotion provides intense hydration while ensuring a non-greasy finish, making it ideal for everyday use Its key ingredient, cold- pressed avocado oil, is rich in essential fatty acids and vitamins A and E, which restore skin elasticity and promote a naturally radiant complexion Enhanced with shea butter for deep moisturization and aloe vera for its soothing and hydrating properties, the lotion offers a comprehensive solution for soft, supple skin Designed for comfort in hot and sticky weather, this product effectively meets the needs of modern consumers seeking high- performance skincare
- Lightweight, creamy formula suitable for Vietnam’s humid climate
- Contains cold-pressed avocado oil and, shea butter, and aloe vera for deep hydration and repair
- Non-greasy finish ensures comfort for daily use, especially in the context of Southeast Asian tropical weather
The Avocado Moisture Hair Mask delivers an indulgent, reparative treatment designed to revive dry and damaged hair Its rich, creamy formula deeply penetrates hair fibers, harnessing the nourishing properties of cold-pressed avocado oil and the
35 strengthening benefits of vitamin E Together, these ingredients repair damage, enhance shine, and reduce frizz while providing essential protection from environmental stressors Suitable for all hair types but particularly effective for damaged or chemically treated hair, this mask ensures silky, manageable strands with a luxurious feel It positions itself as a must-have for individuals seeking salon-quality results at home As such, key product characteristics may include:
- Rich, creamy texture designed to deeply penetrate hair fibers
- Combines avocado oil and vitamin E for repair and shine enhancement
- Formulated for all hair types, especially damaged or dry hair
Both products exemplify Cocoon’s commitment to delivering vegan, cruelty-free, and eco-conscious beauty solutions By combining sustainably sourced, plant-based ingredients with formulations tailored to Vietnam’s climate and consumer needs, these offerings appeal to the target audience in key ways:
- Natural avocado scent with subtle floral or herbal undertones, offering a soothing and luxurious experience
- Textures are designed for a pleasant sensory experience—smooth for the lotion and thick yet easy-to-rinse for the hair mask The thickness of the hair mask also targets the preference for higher value-for-money products amongst most conscious Vietnamese consumers, especially in the targeted customer group
Cocoon's avocado-based product line exemplifies the brand’s unwavering commitment to sustainability and ethical practices, seamlessly integrating environmental responsibility into every stage of production The primary ingredient, cold-pressed avocado oil, is sourced locally from the Tay Nguyen region, supporting Vietnamese farmers and boosting the local agricultural economy Ethical farming practices are prioritized to preserve biodiversity and minimize environmental harm, ensuring a harmonious balance between resource utilization and conservation Complementary ingredients, such as shea butter and aloe vera, are also sourced sustainably, maintaining a strong alignment with the brand’s eco-conscious values
The packaging reflects Cocoon’s dedication to sustainability through thoughtful design and material selection The 250ml lotion bottles and 200ml hair mask jars are crafted from 100% recyclable plastic or biodegradable materials, minimizing environmental impact while maintaining functional durability Inspired by Vietnamese
36 woodblock art, the packaging incorporates traditional motifs, celebrating cultural identity and creating a distinct visual appeal This design choice reinforces Cocoon’s position as a proudly Vietnamese brand committed to both heritage and innovation
Image: Avocado Body Lotion in Bottle
Image: Avocado Body Lotion in Jar
Image: Avocado Hair Mask in Tube Environmental Impact:
To further reduce its ecological footprint, Cocoon adopts a minimalistic packaging approach that eliminates unnecessary waste Additionally, the brand actively engages customers in its sustainability mission through initiatives like packaging return programs, offering incentives for recycling used containers This strategy not only strengthens brand loyalty but also fosters a sense of shared responsibility, empowering consumers to contribute to environmental preservation alongside the company Together, these efforts position Cocoon as a leader in ethical, eco-friendly beauty solutions within the Vietnamese market
1.1.3 Differentiation in the Market - Unique Selling Points (USPs)
- Cruelty-free certification, ensuring appeal to eco-conscious consumers: A key difference between Cocoon products and those of its competitors in the vegan cosmetics market - CO Mém and Po Lang - is its emphasis on ethical ingredient sourcing and manufacturing processes A certificate of ethical manufacturing both adds substance to its branding and labels, while making adding uniqueness to each Cocoon product
- Locally sourced, high-quality ingredients at competitive prices, emphasizing authenticity and sustainability: Cocoon prioritizes quality and ethics over volume,
38 which extends to the preservation of cultural and original authenticity By partnering with local businesses and suppliers, Cocoon is able to obtain local ingredients at best prices and most consistent possible quality, which translates to its product lines
- Designed specifically for Vietnam’s climate, setting Cocoon apart from international competitors: By designing each product with the Vietnamese local in mind, combined with experience and knowledge of the Vietnamese consumer and the brand’s leading position among domestic counterparts, Cocoon products position themselves as the choice for the majority of domestic consumers Innovative Formulae:
- Use of cold-pressed avocado oil: By incorporating cold-manufactured avocado oil instead of heat-treated options, Cocoon’s avocado infused cosmetic products better preserve nutrients and offer superior hydration compared to competitors
- Balance between moisturizing properties with a lightweight feel to cater to the needs of Southeast Asian consumers
- Competitive pricing to attract the price-sensitive demographic, especially young professionals and students with moderate disposable income
- Maintain a balance between affordability and the premium image of vegan, eco- friendly products
Direct competitors of Cocoon come from both domestic and international brands, namely:
Có Mềm Homelab positions ifself as an "affordable luxury" brand, offering high- quality, natural skincare products at relatively accessible price points This strategy allows them to attract a wider range of consumers who desire premium skincare without breaking the bank
To determine the optimal pricing for their products, Co Mém employs a value-based pricing strategy This approach involves considering factors such as the quality of ingredients, unique formulations, and perceived benefits to consumers By understanding
39 the value proposition of their products, Cé Mém can justify premium pricing for specialized items while maintaining competitive prices for core offerings