the cocoon original Vietnam balance oil on green background

Vietnam. Insights by Asia Circles

Cocoon Vietnam: A Case Study in Eco-Friendly Success

A look at the number one Vietnamese skincare brand, for brands considering entering the Vietnamese market.

Cocoon Vietnam, an innovative and eco-friendly skincare brand, has achieved remarkable success by leveraging Vietnam’s rich natural resources and focusing on sustainability. This brand has carved out a unique niche in the competitive beauty market, resonating deeply with consumers both locally and internationally.

The Cocoon original Vietnam logo

In this case study, we’ll take a quick overview of Cocoon. We’ll aim to identify the key areas that have led to the brand’s rapid success, and see how they have managed to stand out as a local brand in a market traditionally dominated by international players. 

The Story: From Humble Beginnings to National Pride

Cocoon, or Cocoon Original, is a 100% vegan cosmetic brand established by parent company Nature Story Cosmetic Co, in 2013. Weaving an intricate story that resonates with Vietnams growing middle-class demographic, Cocoon’s description of their brand story can be summarized as follows:

Solid foundations: Brand Identity. 

Using the backstory, Cocoon has masterfully crafted a cohesive brand identity centered around three key pillars that have steadily gained traction:

Local Ingredients
Vegan & Cruelty-Free
Vietnamese-Centered

By embracing all three of these pillars, Cocoon has created a brand moat in Vietnam’s growing market. They have successfully sandwiched the brand between traditional Vietnamese beauty brands, and international competitors. 

Here’s how:

1. Embracing Local Ingredients 

A cornerstone of Cocoon’s strategy is its unwavering commitment to local ingredients. By sourcing native plants and fruits such as winter melon, turmeric, and Dak Lak coffee, Cocoon ensures product freshness and potency while supporting local agriculture — buying directly from farmers.

farmland in rural Hanoi

This approach not only guarantees high-quality products, but also deeply resonates with Vietnamese consumers, who take pride in their country’s rich natural resources. This connection to local culture is a vital component of Cocoon’s appeal, with a higher percentage of locally popular acne and anti dark-spot formulations in their range, in comparison to international competitors. 

All cosmetic products before being put on the market are studied for 12 to 24 months, and are tested to pass tests for microbiology, pH, stability over time, temperature, irritation, and must fully meet the regulations and circulation on the market according to the regulations of the Ministry of Health of Vietnam

Inspirational Brands — AsiaPacificEnterpriseAwards

2. Commitment to Vegan and Cruelty-Free Practices

Cocoon’s core principles are to ensure their Vegan products are never tested on animals, and to ensure all formulations are cruelty-free. This serves to differentiate the brand from many local competitors, carving a niche that places the brand identity closer to popular international counterparts than traditional Vietnamese brands. 

By positioning itself as a leader in ethical beauty, Cocoon has gained significant recognition. Their 100% vegan and cruelty-free products ensured the brand was the first Vietnamese cosmetics brand to receive certifications from both PETA and the Leaping Bunny program. Adhering to these stringent standards has helped Cocoon build a dedicated customer base that highly values sustainability and animal welfare. 

3. Vietnamese Culture

Cocoon’s domestic success can be largely attributed to its profound appreciation and understanding of local culture. In a market that has been traditional dominated by Korean beauty brands, Cocoon have found a niche by utilizing similar modern packaging and styling, but with a Vietnamese twist. 

cocoon vietnam rose aqua gel

Not only incorporating unique natural ingredients from Vietnam into its products, the strong Vietnamese essence continues in every aspect, from fragrances to packaging style, and even naming conventions. 

This cultural authenticity enhances product appeal and builds a strong emotional connection with local consumers. In addition to a cultural appeal, the brand has also benefitted from governmental help and grants encouraging the use of Vietnamese products.

butterfly emerging from a cocoon 3 steps

How Cocoon Has Achieved Success

Strategic Marketing and Direct-to-Consumer (D2C) Model

Cocoon’s success is significantly bolstered by its strategic use of the Direct-to-Consumer (D2C) model. This model facilitates direct engagement with customers, fostering a loyal community and providing valuable insights into consumer preferences. 

Cocoon effectively leverages social media for marketing, utilizing platforms like Facebook for interactive campaigns such as “Discover Vietnam”.

For the “ Discover Vietnam” marketing campaign in August 2020, Cocoon used Social Media Marketing through attractive Minigames on the main Facebook Fanpage with easy playing rules, aimed at introducing new product lines to customers.

Players just need to comment and tag friends in the Minigame post. A joining link will be sent directly via Messenger via Chatbox. The prize is a vegan product line with roses from Cao Bang and coffee from Dak Lak.

Through this minigame,  Cocoon’s Marketing strategy  has succeeded in attracting customers, increasing brand interaction on the fanpage and having a strong viral effect. After less than 1 month, on September 7, 2020, Cocoon’s strategy had 7,104 customers participating.

Cocoon’s Marketing Strategy: Vietnamese vegan cosmetics

These enhance brand visibility and deepen customer engagement. In addition, highly targeted use of KOL marketing and influencer collaborations, such as the Cocoon x Suboi (a popular Vietnamese rapper and singer) have driven sales among the growing 18-25 demographic. 


Sustainable Practices and Social Responsibility

Cocoon is deeply committed to sustainability, utilizing eco-friendly packaging and advocating for recycling initiatives. The brand backs this up by actively participating in social responsibility projects across Vietnam, such as campaigns to end elephant riding in Dak Lak and national trash pick-up events. 

Cocoon team had an elephant-friendly travel experience at Yok Don National Park

These initiatives amplify their environmental impact and elevate the brand’s value and foster community engagement, maintaining a high degree of authenticity. 


Embracing E-commerce

In addition to its physical presence in stores like Guardian, Watsons, Hasaki, Nutycosmetic, Thế Giới SkinFood, and Lam Thảo, Cocoon has established a robust e-commerce footprint.

The brand capitalizes on major online platforms such as Shopee, Lazada, and TikTok Shop to drive sales, ensuring broad accessibility and convenience for its customers.

The omni-channel approach involves direct promotional spending on e-commerce platforms like Lazada, but also using KOLs to direct customers from social media marketing campaigns to physical retailers.

During the epidemic period, online business activities became increasingly popular, leading to a surge in demand for Cocoon’s products on social networking sites. This resulted in a significant increase in the company’s revenue. In just two years, Cocoon’s revenue has skyrocketed from nearly 13 billion VND in 2020 to 184 billion VND in 2022.

VietData

Affordable Pricing and High-Quality Products

Despite high ethical standards and using premium local ingredients, Cocoon has managed to keep its products affordable. This accessibility has been crucial in gaining widespread acceptance in the Vietnamese market, where price sensitivity can be a significant barrier. 

Cocoon’s products strike a balance of quality and affordability, making them competitive against both local and international brands.

cocoon original vegan and effective advert

Innovative and Responsive Product Development

Cocoon demonstrates a remarkable ability to innovate and respond to consumer feedback. A prime example is the reformulation of their N15 Serum for acne-prone skin, which was updated based on user feedback to include a pump dispenser instead of a dropper. This change underscores Cocoon’s commitment to continuous improvement and customer satisfaction.

new pump version of cocoon N15 serum

Such responsiveness builds trust and loyalty among consumers 


Leveraging Expansion

Since its inception, Cocoon has experienced rapid growth, with availability in nearly 2,000 points of sale across Vietnam. These efforts have garnered significant recognition, including being honored as the “Vietnam Brand of the Year” at the LazMall Brand Awards 2022.

Cocoon has used this brand recognition to aggressively expand into nearby international markets like Malaysia, Singapore, and more recently, into the US. This expansion underscores Cocoon’s growing influence and the universal appeal of its products, and is testament to the strong “Made in Vietnam” heritage, pushed from inception.


Love your nature cocoon x suboi collaboration

Conclusion

Cocoon Vietnam’s rapid rise in the beauty industry serves as an exemplary case study of how a local brand can achieve success by embracing its heritage. 

Cocoon’s commitment to environmental protection and sustainability distinguishes it from local competitors, solidifying its reputation as a socially responsible and environmentally conscious skincare brand in Vietnam. However, the unashamedly Vietnamese outlook, and tailored local marketing drive has allowed it to stay responsive to consumer needs and provide an aura of authenticity that larger international brands have struggled to match. 

By focusing on these key areas, Cocoon has not only carved out a niche in a market dominated by international players, but has also set a new standard for what consumers can expect from Vietnamese beauty brands.

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